L.3

How are special districts governed and funded?

funding

Special districts must have adequate, sustainable funding to provide the reliable services their communities depend on — such as fire protection, water, sanitation, healthcare, parks, and more. With little to no funding from the State of California or the federal government, these funds must come from local property taxes, assessments, service fees, developer impact fees, and grants.

Due to strong local oversight and constitutional provisions, including strict processes in California law governing voter approval for the taxes and fees that fund special districts, these agencies are often required to do more with less than other government entities like cities and counties.

By their very nature, special districts deliver highly specialized services that demand long-term investments in technology, infrastructure, and equipment to serve communities well into the future. As a result, they must strategically plan and prudently save reserve funds to effectively finance future services.