Understanding the Municipal Recreation Improvement District under Arkansas Statutory Law

What is this MRID thing?

Definition and Purpose

An MRID is a special district created by a municipality to fund and manage recreational amenities and infrastructure. The primary purpose of establishing an MRID is to ensure the provision of quality recreational facilities and programs for the benefit of the community.

Authority and Formation

The authority to create an MRID is granted to municipalities under the Arkansas Municipal Code, specifically Title 14, Chapter 55. The governing body of a municipality, usually the city council or board of aldermen, has the power to establish an MRID through the adoption of an ordinance.

The ordinance must outline the boundaries of the district, the purpose for its creation, and the powers and duties of the MRID board. Additionally, the ordinance may specify the method of financing the district, such as through the imposition of taxes, fees, or assessments.

Board of Directors

Once an MRID is established, a board of directors is appointed to oversee its operations. The board typically consists of individuals appointed by the governing body of the municipality, and they serve in a voluntary capacity.

The board of directors is responsible for making decisions regarding the development, improvement, and maintenance of recreational facilities within the district. They may also have the authority to hire staff, enter into contracts, and manage the district's finances.

Funding and Financing

An MRID can generate revenue through various means, including property taxes, sales taxes, user fees, and special assessments. Arkansas MRID are often successful in obtaining grant funding to finance improvements. The specific method of financing is generally determined by the municipality at the time of establishing the district.

The funds collected by the MRID are used to support the operation, maintenance, and improvement of recreational amenities, such as parks, playgrounds, sports fields, swimming pools, and community centers. The board of directors is responsible for budgeting and allocating these funds to ensure the efficient and effective use of resources. Funds are allocated based on how they are formally assessed and collected. To avoid claims of mishandling the management of community funds, monies received must be allocated and subsequently spent on the asset for which they were assessed and allocated.

Community Involvement

Community involvement is an essential aspect of an MRID. The board of directors should actively seek input from residents and stakeholders when making decisions regarding the district's activities and priorities. Public meetings, surveys, and other forms of engagement can be employed to gather feedback and ensure that the recreational facilities meet the needs and desires of the community.

Conclusion

The establishment of a Municipal Recreation Improvement District under Arkansas statutory law empowers municipalities to provide and maintain high-quality recreational facilities for their residents. By creating an MRID, municipalities can ensure that their communities have access to well-maintained parks, sports fields, and other recreational amenities that contribute to the overall well-being and quality of life of their residents.