These services are primarily funded by property owners through assessments or special taxes that
are collected through annual property tax bills, reducing the cost to ratepayers by eliminating the
administrative costs from annual billing and payment collection. The method for calculating
how much each property owner pays per parcel varies based on the type of district and rules
outlined within each ordinance adopted as the districts were formed. The most common method
for calculating the rate per parcel is based on a variety of factors, including land use, parcel
acreage, or use type (single-family or multi-family). The assessments or special taxes cannot
exceed the maximum amount in the adopted ordinance without an additional vote of the
community within the district’s boundaries. At the time of formation, some of the ordinances
included cost escalators, tied to a specific cost index, to allow special districts to increase the
maximum rate each year to keep pace with inflation.
The most commonly used cost indices are the Consumer Price Index (CPI) which measures the
cost of consumer goods, and the Construction Cost Index (CCI) which measures the cost of
construction materials and labor. There are a total of 74 districts included in this Board letter and
proposed actions; of these, nine are proposing assessment increases within existing approved
maximum amounts using the established rate and methodology.
Staff reviewed each district to determine if revenues were adequate for services or if rates should
be increased or decreased based on the budget. Staff determined that the proposed rates for Fiscal
Year (FY) 2026-27 are needed to fund services and to ensure compliance with Board Policy
B-29, which directs departments to recover full cost for services provided to agencies or
individuals outside the County of San Diego organization under grants, contracts, or for which
fees may be charged. Rates are imposed in accordance with Articles XIII A-D of the California
Constitution (Proposition 218 The Right to Vote on Taxes Act) as amended to date. Under
Proposition 218, new or increased assessments or special taxes beyond a previously approved
maximum rate cannot be imposed without a vote of the property owners or registered voters.
If the Board of Supervisors, acting on behalf of the County of San Diego and other independent
districts, does not adopt the resolutions, the proposed assessments and special taxes cannot be
placed on the tax rolls for FY 2026-27. Without the funds generated by assessments and special
taxes, services for flood control protection, private road maintenance, parks, and landscape
services would be reduced, and maintenance could be suspended. Fund balance would be
leveraged as much as possible to fill the gap and maintain existing operations and service levels
for public safety communications systems, structural fire protection, and emergency medical
services, which would impact the funding available for working capital. Additionally, without
the ability to levy the approved assessments and special taxes, the County and independent
districts would be unable to fully recover the costs of providing these services as required under
Board Policy B-29, resulting in increased reliance on limited fund balance and reduced
compliance with established cost recovery practices.
Permanent Road Division Zones (County District)
Permanent Road Division (PRD) Zones are managed by the County Department of Public Works
(DPW) in various unincorporated communities. The amount each parcel is charged is determined
by factors such as the type of land use, parcel size, and the number of dwelling units, which is
represented by “benefit units.” Benefit units are used to quantify the specific level of benefit each
parcel receives from the services. Rates will remain unchanged in 43 of the 49 Permanent Road
Division (PRD) Zones. The remaining six PRD’s will see changes (four increases and two