What is a Community Services District?

In unincorporated areas, essential services such as water, sewer, fire protection, security, and recreation are typically provided by the county. Because counties cover large and diverse regions, it can be challenging to deliver consistent, tailored services to every community. To address this, the Community Services District Law (Government Code §61000–61850) was created as an alternative way for unincorporated communities to manage and provide local services.

A Community Services District (CSD) is a special district formed by residents of an area to provide services directly to their community. CSDs are authorized to deliver a wide range of services, including water, wastewater management, garbage collection, fire protection, street lighting, public recreation, mosquito control, library services, ambulance services, underground utility conversion, and graffiti abatement, among others.

CSDs can span areas across multiple counties or unincorporated communities. Like cities or counties, they have the authority to issue bonds or create improvement districts for funding projects. Any long-term debt or bond issuance requires approval by at least two-thirds of registered voters within the district.

Why is a Community Services District Needed?

Many small communities do not have the tax base required to become an incorporated city, which means they must rely on the county for essential services. Counties, managing large regions, often cannot provide services tailored to the unique needs of individual communities. This can leave residents with limited local control and few ways to address problems or concerns.

By forming a CSD, residents gain a locally elected Board of Directors that oversees operations, management, and services. Through board meetings and local engagement, the community has a direct voice in deciding the types and levels of services provided. This structure allows the CSD to respond more quickly and effectively to local needs than a county government could.

How is a Community Services District Formed?

A CSD can be established either through a petition by registered voters or by a county resolution. Formation requires approval by a two-thirds majority vote of residents living within the proposed boundaries. Once established, the CSD takes over functions previously managed by the county.

Adding any new services after formation also requires a majority vote of registered voters within the district. This ensures that residents have control over the services they receive.

How Are CSD Charges Determined?

Property owners within a CSD pay taxes directly to the District instead of the county for the services provided. Taxes are generally based on the assessed value of the land and improvements, but in certain cases, such as irrigation water, taxes may be based on land value only.

CSDs are limited to a maximum tax levy of 1% of assessed value, unless a majority vote allows an increase. Additional taxes may be approved to cover debt service on bonds or to provide services to specific portions of the district.

CSDs may also impose water or sewer standby charges to maintain service availability. These charges are typically capped at $10 per parcel or acre unless otherwise approved by law.

How Long Will the Charges Continue?

CSD taxes and fees continue as long as the District provides services to the community. Residents benefit from knowing that funds collected go directly toward maintaining and improving local services and infrastructure.