Nearly one-third of all government entities in the United States provide public services through Special Districts. Because most Special Districts perform only one function or a very limited number of functions, their establishment allows a greater degree of concentrated effort in providing services in an efficient and cost-effective manner.

Financing infrastructure improvements through Special Districts shifts infrastructure costs from all taxpayers within the jurisdiction of a general-purpose local government to the residents or property owners who will specifically benefit from such improvements. Public officials often favor special districts as a means of providing facilities at no direct cost to the local government. Special Districts provide a mechanism for financing infrastructure that directly ties benefits to costs yet allows major capital costs to be spread over a long period by use of revenue bonds. 

Special Districts raise their revenue from direct charges for services rendered and from special assessments. Only a small percentage of special districts are empowered to levy ad valorem taxes. In contrast, ad valorem taxes account for more than one-half of all revenues raised by counties, townships, municipalities and school districts. In many cases, Special Districts provide the only institutional mechanism that allows a balance between the economic constraints and the demands for levels of service. 

This overview has been prepared by the Florida Association of Special Districts for the purpose of providing key facts regarding special districts and the underlying reasons for their widespread use.