Kenton County became the second county in Northern Kentucky to create a Transportation Improvement District on Tuesday.
This financial vehicle is designed to pool money from various sources and dedicate it to infrastructure improvements.
The districts are able to fund construction, property acquisition, demolition or removal services, site preparation, equipment, communication facilities, financing expenses, studies and professional services.
Kenton County Judge/Executive Kris Knochelmann said that the tool will be important to utilize, “especially as we look at additional roads in Kenton County, exits, things of that nature—how do we get that done, or allow it to be done faster?”
Former state Rep. Sal Santoro (R-60) was present at the meeting and explained the district for Kenton County to the legislative body. During his time in the Kentucky House of Representatives, Santoro served as chairman of the House Budget Review Subcommittee on Transportation.
In 2022, Santoro sponsored HB 274 which gave qualifying city and county governments to be able to develop these districts. Gov. Andy Beshear signed the bill into law in May 2022.
Santoro touted the district’s “local control” aspect and said it would help Kenton County finish infrastructure projects more efficiently.
“A Transportation Improvement District streamlines projects,” Santoro said. “That’s what it does; it gives local people control. I know you’ve seen the ordinance and all — this is something that we’re moving statewide.”
Boone County was the first county in Northern Kentucky to approve its own Transportation Improvement District when its fiscal court voted to do so on Feb. 6. The districts are more common in Ohio, within the Greater Cincinnati area; Warren, Butler, Clermont and Hamilton counties all have their own.
Santoro said one key difference between Kentucky’s Transportation Improvement Districts and Ohio’s is the latter’s ability to devote funding to a wide variety of public infrastructure projects rather than strictly roadways.
“For us, you can do water, sewer, electric — whatever you need, you put in the plan,” Santoro said.
The next step for Kenton County is for the fiscal court to appoint a governing board of trustees for the district – something that is required by law. The board of trustees must include five voting members – two of whom must be members of the local chamber of commerce or local countywide business group organization, one non-voting member appointed by the largest city in the county, and one non-voting member appointed by the county planning commission. Each member must be a resident of Kenton County.
The board’s responsibilities include adopting bylaws, overseeing district affairs, ensuring smooth functioning, approving projects and ensuring compliance with the legislative framework.
The district also has financing authority that is subject to the governing legislative body’s approval. This authority allows the district to issue revenue bonds, receive grants from local, state, and federal funding sources, as well as court private investments.
“What it does — you can use federal money, state money, local money to approve a board that would have this new highway come,” Santoro said.
In order to authorize projects, the board must hold a public meeting and publish a meeting notice to field questions and input from community members. Once the board authorizes a project, it would require the final approval from the county’s governing body, or in this case, the Kenton County Fiscal Court.
Kenton County Commissioner Beth Sewell asked if Transportation Improvement Districts could lead to the eventual levying of county property or sales taxes.
“There is some opportunity for property tax levy on locals or sales tax levying — is that what we’re heading towards?” Sewell asked.
Santoro responded by stating that “only an elected official, meaning the (fiscal) court” could approve any tax hikes.