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What is a
Community Services District (CSD)?
Background
In unincorporated
areas, basic services like water, sewer, security and fire protection are
usually provided by the county. Because counties often consist of large and
diverse geographical areas, providing a consistent and adequate service level
across all areas can be difficult. Consequently, the Community Services District
Law (Government Code §61000-61850) was created to provide an alternate method
of providing services in unincorporated areas.
The Community
Services District Law
The law allows
residents of an unincorporated area to initiate the formation of a community
services district (also referred to as “CSD”). A CSD is authorized to
provide a wide variety of services, including water, garbage collection,
wastewater management, security, fire protection, public recreation, street
lighting, mosquito abatement, conversion of overhead utilities to underground,
library services, ambulance services, and graffiti abatement.
A CSD may span
unincorporated areas of multiple cities and/or counties. A CSD may issue bonds,
or form an improvement district for the purpose of issuing bonds, as any City or
County might do. Any bond issuance or other long-term debt will require a 2/3rds
majority approval of registered voters residing within the CSD.
Why is a
Community Services District Needed?
Small communities
may not have the tax base necessary to incorporate into a city. Instead,
residents must rely on the county to provide all essential services. In most
cases, due to the scope of their requirements, counties cannot provide tailored
services to any one community.
This leaves
residents with little if any local control over services and no easy way to
address problems or complaints.
Once a CSD is
formed, the residents elect a board of local residents to oversee CSD management
and operations. Through board meetings and local presence, the community has a
direct say in what types and levels of service it receives. Overall this
independent form of local government is able to be much more responsive to a
community’s needs.
How is a
Community Services District Formed?
A CSD is
initiated by a petition of registered voters or by adoption of a resolution at
the county level. A CSD cannot be formed without a 2/3rds majority vote of
residents living within the proposed boundaries. Once approved, the CSD will
take over functions previously operated by the county. Provision of any new
services requires a majority vote of the registered voters in the CSD.
How is the Annual
Charge Determined?
When a CSD
exists, the property owner will pay taxes to the CSD instead of the county for
the services provided. Taxes are calculated upon assessed value of the land and
improvements and placed on the property tax bill. If the CSD was formed only for
supplying water for irrigation, however, the taxes can be based upon the value
of the land only, disregarding improvements. CSDs are limited to a maximum tax
levy of 1% of assessed valuation unless a majority vote authorizes it to exceed
that limit. Additionally, a CSD may levy taxes in excess of 1% to pay debt
service on general obligation bonds that were previously approved by a majority
vote.
A CSD may also
provide certain services only to a segment of the CSD territory. In that case,
taxes for those services will be approved by and levied against the affected
properties only.
A CSD may also
charge a water or sewer standby charge to ensure future availability of service,
which in most cases is limited to $10 per parcel or acre, unless otherwise
approved by law.
How Long Will the
Charge Continue?
CSD charges continue as long
as the CSD is providing services to the community.
References:
Link to:
Joshua
Tree - Opposition to CSD, David McChesney - MOST REVEALING!!
Can a CSD Get
Sued:
Links to
Community Services Districts:
NOTES:
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Kathy
McDonald, LAFCO, advises that a CSD WILL NOT protect Yucca Mesa from
annexation. Only an Incorporation can block an annexation by an
outside source.
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The
Coalition Survey clearly points to the fact that residents of the Mesa
are satisfied with things as they are. Mesa people did not want the
Town and are happy with the County. They don't want to pay for more
services.
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The Coalition
is providing the above information for reference only. A
Coalition member was interested in knowing about a CSD.
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