Once an improvement district is legislated, according to the City Improvement District Act, the cost of providing additional services is borne by the property owners through the payment of a CID levy. The levy is mandatory and is based on the rateable value of the individual stands and applied on a pro-rate basis*. Unlike rates, CID levies may only be spent in the area in which they are collected.
*Note: Currently council rates are based on the land value of individuals stands, therefore the levy applicable to each stand is USUALLY based on the land value.