Assessment District FAQs

The City provides these FAQs relating to Assessment Districts as a courtesy to the public and to assist the public in understanding certain basic information about the establishment of Assessment Districts.  These FAQs are not intended to provide legal advice nor are they intended to be relied upon as the process for the actual formation of an Assessment District.  

What is an Assessment District?

Assessment Districts have been in use in California for over 150 years. Local public agencies, including cities, may establish assessment districts for the purposes of financing all or a portion of the cost of certain public improvements and services within the boundaries of the designated area or “district.” 

The procedure for establishing an Assessment District is generally governed by the assessment statute under which the district is formed, and under other generally applicable law, including Proposition 218 and Proposition 26. 

What can an Assessment District Finance?

Various public improvements can be funded with an assessment district. Some examples include: streets, sidewalks, curbs and gutters, water, sewer, gas electric, lighting, drainage or flood control facilities and geological improvements.

What is an Assessment?

“Assessment” means any levy or charge by an agency upon real property that is based upon the special benefit conferred upon the real property by a public improvement or service that is imposed to pay the capital cost of the public improvement, the maintenance and operation expenses of the public improvement, or the cost of the service being provided.

How is an Assessment District created?

The specific process for creation of an Assessment District can vary depending upon the type of Assessment District proposed but generally, proceedings may be initiated by petition signed by owners of the property proposed to be assessed or by resolution of the legislative body.  As part of the process, the City would order the preparation of an engineer’s report, which is prepared by a registered professional engineer and contains specific information relating to the proposed district.  After the engineer’s report is finalized, property owners within the proposed Assessment District would vote to determine whether the Assessment District will be formed. 

How are the Assessments determined for an Assessment District?

The assessment is established through the engineer’s report.