The LID Debt Service Fund is used to account for payments and revenues associated with bonds that are sold for local improvement (or special assessment) districts. Assessments on properties that benefit directly from the improvements are used to pay off the bonds.

During the next biennium, all assessments will have been collected by the city for the last remaining improvement district (362nd Avenue improvements). We have therefore included in the budget the payment of the remaining principal the city owes on the LID bonds.