How to Create a Special District (Step-by-Step)

  • By: Tara Astbury
  • February 4, 2025

As city populations grow, it becomes challenging for existing governmental structures to adequately meet specific community needs. When funding discrepancies exist in areas like education, flood control, transportation, and parks and recreation, residents may form a special district to directly address the issue.

Special districts focus on a single or limited number of functions and provide local control of services. They often depend on meeting management software to simplify collaboration, run efficient meetings, and facilitate community engagement.

What is a Special District?

A special district is a governmental body formed for the purpose of providing specific services like public transportation, emergency medical services, or fire protection within a defined geographic region. 

Special districts allow residents to elect their own governing boards and have a say in the selection of service providers. Districts can issue bonds to finance major projects, such as building a new hospital, enhancing road maintenance, or renovating a school. Special districts are funded  through:

  • Property taxes
  • Sales taxes
  • Grants
  • Service fees

Only community members living within the district pay for additional services. They’re normally established through a city ordinance or city code, depending on state laws.

How to Create a Special District

All communities require services such as schools, water, and infrastructure. Creating a special district allows for tailored solutions to address the unique needs of a particular area. By law, special districts typically form at the beginning of a fiscal year and dissolve at the end of the year. 

1. Identify the Need

The first step in starting a new district is to identify the specific need. Unique challenges may be the result of natural disasters, rapid growth, or environmental concerns. A special district can focus resources, expertise, and enhanced services to counter the effects of those challenges.

2. Develop a Proposal

Gauge public support by circulating a petition to outline the economic feasibility of the project, desired service, geographical boundaries, and fee structure. Surveys, public meetings, and informational sessions can inform residents about the proposed district and answer any questions.

3. Secure Approval

Submit a formal document explaining the need for the district. The reviewing authority will conduct its own investigation concerning the need and potential impact of the proposed special district, considering public services, economic consequences, population and housing, and land use. 

4. Hold a Public Vote

Many states, but not all, require a public vote to approve the creation of a special district. Some states require a simple majority vote, while others require a higher majority, such as two-thirds majority. 

5. Establish and Operate the District

After obtaining approval, you can launch and operate the new special district. Next steps include:

  • Creating a charter for the district outlining responsibilities and operating procedures.
  • Appointing or electing a governing board to oversee the new special district’s operations.
  • Providing services and managing the district’s affairs.

Make sure to consult with legal professionals throughout the process to ensure compliance with applicable laws and regulations.

eScribe Supports Growing Municipalities

When establishing a special district, eScribe helps municipalities manage the complex requirements of public meetings, legal compliance, and documentation. 

The cloud-based software ensures all necessary steps—such as holding public hearings, collecting stakeholder feedback, and documenting resolutions—are easy to record and organize.

eScribe streamlines workflows and allows municipalities to focus on strategic planning and stakeholder communication, speeding up the creation of a special district while maintaining compliance with regulations.

Key Features of eScribe Meeting Software include:

  • Agenda Management
  • Minutes Management
  • Electronic Voting
  • Public Portal
  • Integrated Video Streaming
  • Workflow Automation

By improving organization and enabling better collaboration, eScribe equips municipalities with the tools they need to govern effectively and establish special districts efficiently.

Ready to learn more? Check out how the City of Greensboro, NC, utilizes eScribe to enhance local governance and improve processes.