Special Districts

Special districts are a unique piece in the local government puzzle of California and Nevada. Special assessment districts are separate units of government created to manage specific resources within defined boundaries. These boundaries vary greatly in size – they can be within towns, counties or across many jurisdictions – and are created by local government or voter initiative. Special districts are self-financing, legal entities able to obtain funding from taxes, bonds or other types of fees directly from the people the district serves. This funding mechanism allows residents and/or landowners who want new or improved services to initiate formation of a special district to pay for and implement those services. Special districts are governed by an independent board of directors elected by the district’s voters or appointed to a fixed term of office by either the city council or board of supervisors. Other existing legislative bodies like a city council or board of supervisors manage dependent districts that lack their own governing authority.

Two types of special districts exist: enterprise and non-enterprise. Enterprise districts are run like a business, charging customers for their services and maintaining positive cash flows. User fees predominantly finance enterprise activities. Non-enterprise districts provide services that don't lend themselves to fees because they benefit the entire community, not just certain residents. Non-enterprise districts usually rely on property taxes as the major source of revenue. Park and open space districts are usually non-enterprise because of their community-wide benefits and difficulty with collecting fees. Voters hold special districts accountable an elected Board of Directors and the services the district provides. In California, there are more than 4,000 independent special districts charged with everything from parks and recreation services to fire and police protection services to mosquito abatement.