The PID #2 Fund (Highlands) accounts for revenues and expenditures related to assessments within the Highlands Public Improvement District. A Public Improvement District (PID) is established to provide specific types of improvements or maintenance within a defined geographical area that are financed by assessments against the property owners within the area. A PID allows for improvements and a higher degree of maintenance within the PID area, enhancing property values. With the establishment of an advisory body, the property owners within the PID have control over the types of improvements, levels of maintenance, and the number of selected assessments. PIDs provide a development tool that allocates costs according to the benefits received. The PID allocates the price of its services by having each property pay its proportionate share of the budget in the form of an assessment.

Assessment yields must be used to improve the territory within the PID in accordance with the following parameters: landscaping and irrigation, constructing or improving perimeter fencing, sidewalks, entry features, fountains, distinctive lighting, and signs; acquiring and installing pieces of art or decorations; establishing or improving parks; acquiring, by purchase or otherwise, real property; using special supplemental services for improving and promoting the district, including services relating to advertising, promotion, public safety, security, business recruitment, development, recreation, and cultural enhancement; and paying expenses associated with establishing, administering, and operating the district.