Frequently Asked Questions about Special Districts in California

What are “special districts”? As part of California’s local government structure, special districts are agencies that provide specialized services across the state. They are defined as “any agency of the state for the local performance of governmental or proprietary functions within limited boundaries.” These special districts provide specified services within a defined geographic area and they are most often single purpose districts without police powers.

How are special districts governed? In general, special districts are governed by a board of directors who are either elected or appointed. Voters who establish these districts can also elect the board members. Those who are appointed are usually appointed by the elected city council members or boards of supervisors. Those governing boards adopt relevant policies that are carried out by the special districts.

What are the two main types of special districts? Among the special districts in California, there are dependent and independent districts. Dependent districts are governed by a city council or county board of supervisors. Independent districts have a manager, similar to a city manager or county administrative officer.

What is the most common type of special district? It is the one focused on a single function, such as libraries, flood control, irrigation, or mosquito abatement.

What is another type of special district? Multi-function districts, such as community service districts, provide two or more services.

Why are special districts usually formed? The most common reason for a special district to be formed is due to the fact that the tax base is too low to fund all of the services that are demanded by a community.

How else are special districts defined? These districts are determined to be “enterprise” (which means they operate as a business and are funded by user fees, such as those that provide water, power, waste, or transportation services) or “non-enterprise” (i.e., those which do not receive such funding).

What are examples of enterprise special districts? The most common enterprise special districts are utility districts and transit agencies.

Is there any state oversight of special districts? Yes, first, they are accountable to the voters who created the districts, as well as their customers to whom they provide valuable services. In addition, the State of California provides oversight of them, such as review of annual financial reports.