A Special Services District (SSD) is “a defined area within the city where special services are rendered and the costs of the special services are paid from revenues collected from service charges imposed within that area.”
Generally, SSDs are established in areas with a concentration of retail and foot traffic. Property owners agree to pay for additional services beyond what is normally provided by the City through the general fund revenues.
In Minnesota, SSDs are authorized under State Statute (428A) but must be enacted locally with a petition and ordinance. Strictly speaking, the ordinance and City Council govern the services of the district. That said, an advisory board may be created but is not required. The advisory board (Steering Committee) makes recommendations to Council, who would formally adopt charges and an operating budget every year via resolution. The charges must be proportionate to the costs of the services provided. The charges are collected as an assessment on a property owner’s taxes, or some similar mechanism.