In most cases, a special district needs a combination of enterprise and non-enterprise revenues to effectively fund its operations. For example, a recreation and park district likely receives a majority of its revenue from property taxes, but it offsets the cost of programs like yoga classes and sports leagues through fees.
In states that allow a ballot initiative process, special districts can ask voters for additional revenue; however, this process can be costly and challenging to reach voter-approval thresholds as high as two-thirds on certain taxes.
