California Special Districts AssociationSpecial District Board Member/Trustee Handbook
SPECIAL DISTRICTBOARD MEMBER/TRUSTEE
California SpecialDistricts AssociationDistricts Stronger Together
California Special Districts AssociationSpecial District Board Member/Trustee Handbook
COnTEnTS
02 WHATYOUSHOULDKNOWASABOARDMEMBER CommitmentandResponsibilities Accountability:TheRoleofStaff&theGeneralManager “WhyGovernanceisImportant”
05 LEARNINGMOREABOUTSPECIALDISTRICTS
07 ETHICSLAWSFORELECTEDANDAPPOINTEDOFFICIALS
08 THERALPHM.BROWNACT
09 YOURROLEASASPECIALDISTRICTADVOCATE
12 CALIFORNIASPECIALDISTRICTSASSOCIATION BenefitsandServices EducationalOpportunities ANewApproach
16 THEMEDIA KeyMessages ResponsestoToughQuestions
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BoardMemberRoles
Makeandapprovedistrictpolicy
Setthedirectionofthedistrict
Makedecisions
Establishstrategicgoalsandobjectives
Beanadvocateforspecialdistricts
California Special Districts AssociationSpecial District Board Member/Trustee Handbook
WHAT yOU SHOULD knOW asaSpecialDistrictBoardMember
CommitmentandResponsibilitiesAsaboardmemberortrusteeforaspecialdistrict,youhavecommittedtoservethebestinterestsofthecommunity,provideservicesthatareessentialtothecommu-nityandrepresentthepeoplewhoplacedyouintooffice.
Withastrongcommitment,thereareanumberofresponsibilitiesasadirectoronaspecialdistrictboard.Someofthesewillbeidentifiedanddetailedinthishandbooksothatyouwillhaveanevenbetterunderstand-ingofspecialdistrictsandyourroleasadirector.
Oneofthemostsignificantresponsibilitiesasadirectoristounderstandthattheboardisateamandyouneedtoworktogetherassuch.Understandingthedynamicsofthegroupaswellastheindividualperspectivesandopinionsoftheotherboardmembersthatyousitwithiscrucialtothesuccessoftheteamanddistrictyourepresent.Thisunitedapproachwillhelptostrengthenthedistrictandprovidethegroundsformain-tainingaclearvisionofthefuture,aunityofpurposeandacohesiveboardofdirectors.
Additionally,theboardofdirectorstypicallyhasspecificresponsibilitiesthatcoincidewiththeiroverallroleasdirectors.Forexample,intheareaofhumanresources,theboard’schargeistosupportandassesstheperformanceofthegeneralmanager,approvepersonnelpolicies,establishsalarystructureandbenefitspackages,approvejobdescriptionsandorganizationalstruc-ture,andestablishastrongcommunica-tionslinkbetweentheboardandgeneralmanager.
Anotherexampleofspecificresponsi-bilitiescanbeseenwhentakingalookatsomeofthefinancialaspectsofthedistrict.Typically,theboardwillensurethatsoundfiscalpolicyexistsandthatpracticesandcontrolsareinplacesothatthedistrict,staff,generalmanager,andboardhavedirectaccountabilitytotheirconstituents.Furthermore,aboardmaybeinvolvedinsuchthingsastheapprovaloftheannualbudget,developingreserveguidelines,establishingfinancialgoals,reviewingdistrictfinances,developingcapitalimprovementplans,settingratesandfees,andthelike.
Clearly,asdemonstratedabove,beingadirectoronaspecialdistrictboardentailsacommitmenttobeingactivelyinvolvedinsettingthedirectionofthedistrictand,mostimportantly,servingthebestinter-estsofthecommunityandtheconstitu-entsthatthedistrictserves.
AccountabilitySpecialdistricts,governingofficials,andmanagementareaccountabletothevotersandcustomerswhousetheirservices.EveryspecialdistrictmustsubmitannualfinancialreportstotheCaliforniaStateControllerandalsomustfollowstatelawspertainingtopublicmeetings,bondeddebt,recordkeeping,conflictofinterest,andelections.
TheroleofstaffandthegeneralmanagerTherolesofthestaffandgeneralmanagerareverydifferentfromthatofthedirec-tors,anditisimportanttounderstandwhattheresponsibilitiesandreportingavenuesareofeachrespectivegroup.
Thegeneralmanagerandstaffofthedistrictareencouragedtomakerecommendationsandplayanactiveroleinmovingthedistrictforward.Theirmainroleistomaintainandadvancetheoperationsofthedistrictandimplementthosepolicies,strategies,anddirectivesthatareapprovedbytheboardofdirectors.Alldirectivesforstaffshouldbegivenbythegeneralmanagerordesignatedsupervisorwithinthedistrict.
Thegeneralmanageristheexecutivestaffofficerofthedistrictandfortheboardofdirectors.He/sheadministersthedistrictandhasexclusivemanagementandcon-troloftheoperationsandworksofthedis-trict,subjecttoapprovalbytheboardofdi-rectors,andprovidesday-to-dayleadershipforthedistrict.He/shedelegatesauthorityathis/herdiscretionandhasauthorityoveranddirectsallemployees,includinghiring,disciplinaryactionandtermination.He/sheseekstocarryintoeffecttheexpressedpoliciesoftheboardofdirectors,includingplanningtheshort,medium,andlongtermworkprogramforthedistrict,facilitatingconstructiveandharmoniousboardrela-tions,preparingandmanagingthedistrictbudget,conductingstudies,anddeliveringwrittenandoralpresentations.
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OvERALL, yOUR ROLE AS A DIRECTOR IS TO:
• Makeandapprovedistrictpolicy
• setthedirectionofthedistrict
• Makedecisions
• establishstrategicgoalsandobjectives
• beanadvocateforspecialdistricts
WHy GovernanceisImportantBy Davis Campbell, Governance Consultant | Trainer
Localboardsarethereason,andreallytheonlyreason,whylocalcontrolislocal.Specialdistrictboardsarethevoicesofthecommunity.Boardsarealsoalargereasonwhyspecialdistrictsexist.
Thetruthisthateveryelectedorappointedpublicofficialneedstoworryaboutgover-nance;governanceiswhatboardsdo.Governanceistakingthewishes,needs,anddesiresofthecommunityandtransformingthemintopoliciesthatgovernthedistrict.Survivalofspecialdistrictsasaconceptdependsinlargepartonhowwellwedoourjobsasboarddirectorsortrustees.Thequickestwaytodestroyspecialdistrictsisforthepublictoper-ceivedistrictsasnotresponsivetotheneedsofthecommunityorasnotbeinggovernedeffectively.
Ifgovernanceisimportant,howdowedoitwell?Thegoodnewsisthatinrecentyearsalotofworkhasbeendoneoneffectivegovernance.BaseduponamodeldevelopedbytheCaliforniaSchoolBoardsAssociation(CSBA)andadaptedbytheCaliforniaSpecialDistrictsAssociation(CSDA),therearethreecriticaldimen-sionstoeffectivegovernance.TheCSBAEffectiveGovernanceModelprovidesanin-depthexaminationofthethreecriticaldimensionsthatinteracttodeterminehowaboardoperatesanditseffectivenessasanorganization.
• First,themodellooksattheboardasanorganizationalentity;• Second,theindividualswhoserveaseffectiveboardmembersandmakeuptheboard;• Andthird,thespecificjobstheboardmustperform.
Allthreeofthesedimensionsorelementsofaboardmustbeviewedasawholeinordertotrulydevelopaneffectivegovernanceoperation.
Components of the Effective Governance Model
TheboardasanorganizationAnyboard,publicorprivate,nonprofitorcorporate,existsasanorganizationalentity,withitsownuniqueorganizationalculture,norms,values,andoperatingstyle.Thereareattributesorcharacteris-ticsthatareconsistentlypresentinboardsthatoperateinahighlyeffectiveway.Ef-fectiveboardsbecomeknownaseffectivebecausetheyoperateinanorganizationalenvironmentoftrust,honestyandopen-ness.Theseboardsexhibit,asateam,thefollowingcharacteristics:
• Allboardmembersareperceivedtobeequallylegitimate—nomatterhowdif-ferentordifficultanindividualmaybe.
• Theboardstrivestomaintaina“nosecrets,nosurprises”operatingnorm.
• Theboardrecognizesandacceptsthatconflictsanddifferencesareinevitable,notnecessarily“bad,”andmustbefacedandanalyzed.
• Theeffectiveboardtendstoimmediate-lyturntosolutionsratherthanplayingthe“gotcha”game.
• Theeffectiveboardtreatsallstaffwithdignityandrespect.
• Theeffectiveboardtreatsallcommunitymemberswithdignityandrespect,eveninthefaceofcriticismandopposition.
• Theeffectiveboardexhibitscreativethinking,knowshowtohandlefailureaswellassuccess,encouragesrisktakingandcreatesaclimateofsupportforexcellence.
• Theeffectiveboardassumescollectiveresponsibilityfortheconduct,behaviorandeffectivenessoftheboard.
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California Special Districts AssociationSpecial District Board Member/Trustee Handbook
TheboardleaderWhileboardsdevelopuniqueorganization-alcultures,theyare,afterall,composedofindividuals.Itisindividualsandtheirvalues,skills,andknowledgethatshapehowboardsoperateatanygiventime.Individualsalsodeterminewhethertheboardwillsustaineffectivebehaviorasagrouprole.
Noteveryonewhoservesonaspecialdistrictboardbecomesaneffectiveboardmemberorleader.Thosewhodobecomeeffectiveboardmembersalsobecomehighlyvaluedcommunityleaders.Whenanentireboardiscomposedoftrulyeffectiveboardmembersratherthanindividuals,theboardbecomeshighlyeffective.
So,whatarethecharacteristicsofeffectiveboardmembersandhowaretheydifferentthanthosewhojustserveonboards?
• Effectiveboardmembersthinkaboutgovernancedifferently.Theyhavedis-tinctlydifferentattitudesfromnon-ef-fectiveboardmembers.Effectiveboardmembersunderstandthefundamentalroleofthecitizenleaderinthegover-nanceofspecialdistricts.
Forexample,effectiveboardmembersunderstandfundamentalprinciplesofef-fectivegovernance.Theyunderstandthattheauthorityofanyboardmemberrestsonlywiththeboardasawhole;thattheboard,nottheindividualboardmember,governsthespecialdistrict.Theytendtoworrywhenanindividualisattemptingtoimposehisownagendaonthedistrictratherthanworkingtobuildsupportforaninstitutionalagenda.
• Effectiveboardmembersknowthathowaboardmembergovernsisasimportantaswhataboardmemberdoes.Theyknowthatmannersmakeahugedifference.
• Effectiveboardmembersworkhardtomaketheteamsuccessful.
• Effectiveboardmembersunderstandtheyneedtoestablishtrust.Theytreateveryonewithrespect,andexpectotherstotreatthemthesameway.
• Effectiveboardmembersrespectthediver-sityofperspectiveandstyles.
• Effectiveboardmembersalwayskeepconfidentialinformationconfidential.
Whateffectiveboardsdo:Thespecialdistrictboard’sjobinthedistrictThethirddimensionaddressesthespecificre-sponsibilitiesofthegoverningboard.Weknowthateffectiveboardshavestrongcompetency-basedculturesandthatindividualeffectiveboardmembershavestronggovernanceskills,butthethirdquestionis:Todowhat?Whatarethedutiesandresponsibilitiesofboardsinthesystems?Theansweristhatspecialdistrictboardshavecertainresponsibilitiesthatnooneelseinthesystemcanperform.
Thespecificresponsibilitiesoftheboardareclusteredintofourareas:settingthedirec-tionforthedistrict;establishingandsupportingthestructureofthedistrict;holdingthedistrictaccountableonbehalfofthecommunity;andservingascommunityleaders.
Thesearetheessencesofeffectivedistrictgovernance:acompetency-based,highlyeffectiveboardorganizationandculture;individualcitizensservingaseffectiveboardmembers,accomplishingthespecificdutiesandresponsibilitiesthatonlygoverningboardscandoonbehalfoftheircommunities.
Therealchallengetospecialdistrictsishowtolearnandachieveasboardmembers.Therearegovernanceskillsrequiredandtobelearnedinordertobeeffective.Butfirst,wemustestablishacultureofparticipationinourspecialdistrictcommunity.Everyboardmembermustunderstandthat,justasweexpectourstafftobeinvolvedintheirprofession,tolearnanddevelopnewskills,sotoomustweaseffectiveboardmemberslearnandhoneourgovernanceskills.Wemustencourageourcolleaguestobranchoutandlearntheskillsofgovernance.Wemustestablishacultureofparticipationandcontinuingeducationinthespecialdistrictcommunity.ThefutureofspecialdistrictsinCaliforniadependsuponit.
SPECIAL DISTRICT RESOURCES
California Special Districts Association www.csda.netSenate Local Government Committeewww.sen.ca.govAssembly Local Government Committee www.assembly.ca.govOfficial California Legislative Information www.leginfo.ca.govLeague of California Cities www.cacities.orgCalifornia State Association of Counties www.counties.orgCalifornia Local Government Finance Almanacwww.californiacityfinance.comCalifornia Association of LAFCos www.calafco.orgGovernor’s Office of Planning & Research www.opr.ca.govCalifornia State Controller’s Officewww.sco.ca.govCalifornia Legislative Analyst’s Office www.lao.ca.govSpecial District Leadership Foundationwww.sdlf.orgSpecial District Risk Management Authoritywww.sdrma.orgCSDA Finance Corporationwww.csdafinance.net
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Whatarespecialdistricts?Specialdistrictsareaformoflocalgovernment.Theyarecreatedbytheirconstituentstomeetspecificserviceneedsfortheircommunities.Mostperformasinglefunctionsuchaswaterdelivery,fireprotection,wastewaterorcemeterymanagementtonamejustafew.Some,likecommunityservicesdistricts,providemultipleservices.
Specialdistrictsarenotcitiesandcounties,theyarenotschooldistricts,theyarenotMello-Roosdistricts,andtheyarenotstategovernment.Specialdistrictsworkhand-in-handwithcitiesandcountiestoprovidecommunitieswithessentialpublicservicesandtokeeppacewiththedemandsoffulfillingallthepublicserviceneedsofCalifornia’srapidlygrowingpopulation.
Whatkindsofspecialdistrictsareoutthere...tonameafew?• Airport• PublicCemetery• Communityservices• Drainage• Floodcontrol• Fireprotection• Healthcare/hospital• Harbor/port• Irrigation• Library• Mosquitoabatement
andvectorcontrol• Policeprotection• Reclamation• Recreationandpark• Openspace• Resourceconservation• Sanitation/wastewater• Transit• Utility• Water•Waterconservation• Wastemanagement
Howdoesaspecialdistrictdifferfromacityorcounty?Specialdistrictsarelimited-purposelocalgovernments.Theyprovideonlytheservicestheirresidentsdesirewithinadesignated,limitedboundary.Bycontrast,citiesandcountiesaregeneral-purposelocalgovernments.Theyprovideabroadarrayofservicesforresidentsthroughouttheirgeographicboundaries.Futhermore,countiesinunincorporatedareas,andcitiesareresponsibleforland-usedecisions.
Whatisthedifferencebetweenindependentspecialdistrictsanddependentspecialdistricts?Independentspecialdistrictsaregovernedbytheirownboardsofdirectorswhoareelectedbyvotersorappointedtofixedtermsbyelectedofficialsintheirdistricts.Theseboardsdonotconsistofexofficiomemberswhoareofficersofthecountyoranotherlocalagency.Abouttwo-thirdsofthestate’sspecialdistrictsareindependentspecialdistricts.
Dependentspecialdistrictsaregovernedbyother,existinglegislativebodiessuchasacitycounciloracountyboardofsupervisors,orappointeesthatserveatthepleasureofthosebodiesandcanberemovedorreplacedanytimeattheirwill.
Howarespecialdistrictsfunded?Specialdistrictsarefundedeitherthroughlocalpropertytaxrevenues,feeschargedtocustomersfortheirservicesoracombinationofthetwo.Specialdistrictsthatrelyprimarilyonpropertytaxrevenuesareconsiderednon-enterprise,whiledistrictsthatprimarilygeneraterevenuethroughfeesforserviceareconsideredenterprise.
LEARnIng MORE aboutSpecialDistricts
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Howaretheycreated?Specialdistrictsrequiremajority-voteapprovalbycitizensintheproposeddistricttobecreated,oratwo-thirdsvoteifanewtaxisrequiredtofundthedistrict’soperations.Whenresidentsorlandownerswantnewservicesorahigherlevelofservicenototherwiseprovidedbycitiesandcounties,theycanproposetoformtheirownspecialdistricttopayforandadministertheservicesbyapplyingtotheLocalAgencyFormationCommission(LAFCo).
WhatisProposition13?Proposition13,enactedbyvotersin1978,imposedstrictlimitsonpropertytaxestoonepercentofpropertyvalue,causingspecialdistricts,citiesandcountiestolosemuchoftheirlocalcontrolandfundingsecurity.BeforeProp13,specialdistrictsreceived$945millionfrompropertytaxes(1977-1978).ShortlyafterProp13wasimposed(1978-1979),specialdistrictpropertytaxrevenuedroppedto$532million,alossofalmost50percent.
WhatisLAFCo?LocalAgencyFormationCommissions(LAFCo)areresponsibleforcoordinatinglogicalandtimelychangesinlocalgovernmentalboundaries,conductingspecialstudiesthatreviewwaystoreorganize,simplifyandstreamlinegovernmentalstructureandpreparingaSphereofInfluenceforeachcityandspecialdistrictwithineachcounty.TheLAFCo’seffortsaredirectedtoseeingthatservicesareprovidedefficientlyandeconomicallywhileagriculturalandopen-spacelandsareprotected.
WhatisERAF?ERAFistheEducationalRevenueAugmentationFund.Duringtherecessionoftheearly1990s,thestatetookpropertytaxesfromspecialdistricts,citiesandcountiesandshiftedthemintoERAFtooffsetitsdebtandspendingobligationstoeducation.Thatmandatedpropertytaxshiftofpreciouslocalgovernmentrevenuecontinuestodaydespitethefiscalhardshipsithascausedlocalgovernments.SinceERAFbeganin1992,thestatehasshiftedover$9billionannuallyinlocalpropertytaxrevenuefromspecialdistricts.
WhatisProposition1A?Proposition1Alimitedthestate’sfutureabilitytotransferfundsawayfromlocalgovernments,exceptinthecaseoffiscalemergencies.Theamountislimitedtoeightpercentofpropertytaxrevenuesinacountyandmustbepaidbackwithinthreeyears,withinterest.
Fire, Emergency, Medical & Police35%
Other12%
Parks & Recreation9%
Flood Control & Water27%
Transit17%
Wheredospecialdistricttaxdollarsgo?
Legislative Analyst, Coleman Advisory Services
FInD OUT MORE ATWWW.CSDA.nET!
Electedandappointedofficialshaveanobligationtoconductbusinessinanethicalmannerandmakedecisionsthatareinthebestinterestsoftheirconstituents.Asadirectorforaspecialdistrict,itisimperativethatyoukeepthepublic’sinterestsinmindandavoidanysituationswhereyourselfinterestsareputfirst.Buildingthepublic’sconfidenceandtrustbydemonstratingyourabilitytorecognizepotentialethicsproblemsandthenremovingyourselffromthatsituationisakeyfactortoyoursuccessasadirector.
Thereareanumberofstatelawsthatgoverntheethicalconductofpublicof-ficials.Themostsignificantlawsdealwithconflictofinterestandcriminalactivity/cor-ruptionasitrelatestopublicofficialsandhowtheymakedecisionswithintheirrespectiveagencies.
UnderthePoliticalReformAct,apublicofficialmaynotparticipateinanywayinadecisioninwhichthepublicofficialhasa“disqualifyingconflictofinterest”.Thelawstatesthat:
“Nopublicofficialatanylevelofstateorlocalgovernmentshallmake,participateinmakingorinanywayattempttousehisofficialpositiontoinfluenceagovernmentaldecisioninwhichheknowsorhasreasontoknowhehasafinancialinterest.”California Government Code §87100
Asthisappliestospecialdistricts,aconflictofinterestregardingaparticulardistrictdecisionwouldexistifitwere“…reason-ablyforeseeablethatthedecisionwillhaveamaterialfinancialeffect,distinguishablefromitseffectonthepublicgenerally,ontheoffi-cial,amemberofhisorherimmediatefamily…”oranyofone’sotherfinancialinterests.California Government Code §87103
Inessence,themostimportantthingsyouneedtoknowaboutthePoliticalReformActare:
• Thelawappliesonlytofinancialconflictsofinterest--thosearisingfromeconomicinterests.
• Whetheryouhaveaconflictofinterestdependsheavilyonthesituationrelatedtoeachdistrictdecision.
• Thebestwaytoavoidconflictofinterestproblemsistolearnandrecognizethevariouseconomicinterestsfromwhichconflictscanarise.
Inadditiontotheconflictofinterestlaws,publicofficialsmustalsodiscloseallpersonaleconomicinterests.Specialdistrictofficialsareaffectedthroughtheirrespectivedis-trict’sconflictofinterestcode/policiesthatadistrictisrequiredtohavebylaw.Therefore,asapublicofficial,youarerequiredtofilea“StatementofEconomicInterests”withtheFairPoliticalPracticesCommissionwhen
ETHICS LAWS ForElectedorAppointedOfficials
youbeginyourterm,annuallyandwhenyouendyourterm.
IntheStatementofEconomicInterests,publicofficialsarerequiredtodiscloseallsourcesofincomeaswellasinterestsinrealproperty,investments,giftsandthelike.Giventhatit’sthelawandalsothatthepublic,includingmedia,havefullaccesstostatementsofeconomicinterests,itisrecommendedthatofficialsbecompletelyopen,honestandalwaysdiscloseallfinan-cialinterestsasthiscouldhelppreventfutureproblems.
Therearenumerousotherlegal“dos”and“don’ts”forpublicofficials,manyofwhichdealwithpersonalloans,gifts,freetravel,payments,honoraria,contractsandholdingdualoffices.Itisrecommendedthatofficialsresearchallofthespecificsofthelawsrelatedtotheirposition.
Lastly,thereareadditionallawsthataffectpublicofficialsandviolationofthemmaynotonlycauseyoutoloseyourposition,butalsomayresultincriminalpenalties.Ac-cordingtothepublicationALocalOfficial’sGuidetoEthicsLaws(2002Edition)someareasthatcanresultincriminalprosecutionand/orforfeitureofofficeinclude:
• Bribery• Paymentsforappointmentstooffice• Willfulorcorruptmisconductinoffice• Embezzlement• Misuseofpublicfunds• ViolationoftheOpenMeetingsLaw/
BrownAct• Prohibitedpoliticalactivities• Convictionofacrime
Ascanbeseenabove,publicofficialsareheldaccountablefortheiractionsbothbytheirconstituentswhoelectthemandbythelaw.Asanelectedorappointedofficial
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California Special Districts AssociationSpecial District Board Member/Trustee Handbook
foraspecialdistrict,itisyourresponsibil-itytopromoteethicalconductwithinyourdistrictandunderstandtheethicslawstoensurethatyouarealwayskeepingthein-terestsofyourconstituentsintheforefront.
AB1234andethicstrainingrequirementIn2005,theStateLegislaturepassedAssemblyBill1234byAssemblyMemberSimonSalinas(D-Salinas),whichrequireslocalgovernmentofficialstotakeethicstrainingeverytwoyears,witharequire-mentthattheytaketheirfirsttrainingnolaterthanayearaftertheystarttheirfirstdayofservicewiththedistrict.Thisandsimilarlegislationwereproposedafterin-cidencesthatoccurredinseveraldistrictsoverlapsesinethicaljudgement.
Specifically,ifadistrictprovidesanytypeofcompensation,salaryorstipendtoanyboardmemberorprovidesanytypeofexpensereimbursement,thenallmembersofthatboardmustparticipateintheethicstraining,aswellasanydesignatedemploy-ees(likethegeneralmanager).Thetrainingmustbeatleasttwohourseverytwoyears,andarecordmustbekeptbythedistrict.ThesearepublicrecordsandaresubjecttotheCaliforniaPublicRecordsAct.
PUBLIC OFFICIAL ETHICS LAW RESOURCES
California Special Districts Associationwww.csda.net
Institute for Local Governmentwww.ca-ilg.org
Fair Political Practices Commission www.fppc.ca.gov
Official California Legislative Information www.leginfo.ca.gov
Office of the Attorney Generalwww.ag.ca.gov
ThebasisoftheRalphM.BrownActisthat“Allmeetingsofthelegislativebodyofalocalagencyshallbeopenandpublic,andallper-sonsshallbepermittedtoattendanymeetingofthelegislativebodyofalocalagency…”
WhiletheBrownActhasgonethroughaseriesofadditionsandamendments,thecoreoftheActremainsthesame:toen-surethatthemeetingsoflocalgovernmentbodies,formalorinformal,beopenandaccessibletothepublicatalltimes.
TheActbeginsbystatingthefollowing:
“Inenactingthischapter,theLegislaturefindsanddeclaresthatthepubliccommis-sions,boardsandcouncilsandtheotherpublicagenciesinthisStateexisttoaidintheconductofthepeople’sbusiness.Itistheintentofthelawthattheiractionsbetakenopenlyandthattheirdeliberationsbeconductedopenly.ThepeopleofthisStatedonotyieldtheirsovereigntytotheagencieswhichservethem.Thepeople,indelegatingauthority,donotgivetheirpublicservantstherighttodecidewhatisgoodforthepeopletoknowandwhatisnotgoodforthemtoknow.Thepeopleinsiston
THE RALPH M. BROWn ACTCalifornia Government Code §54950-54962
remaininginformedsothattheymayretaincontrolovertheinstrumentstheyhavecreated.”
Aspublicagencies,specialdistrictsmustcomplywiththeBrownAct.Thismeansmeetingsandelectionsofdistricts’govern-ingboardsmustbeopenandannouncedthroughpublicchannelssuchasthroughnewspapers,flyersornoticesdeliveredtoresidents.
TheBrownActisverydetailedastowhatispermissibleandisamendedperiodically.ItisrecommendedthatpublicofficialsreadtheRalphM.BrownActinitsentiretyandreceivesometypeoftrainingand/orreadvariouspublicationsontheAct.
BROWn ACT RESOURCES
Open & Public IV: A User’s Guide to the Ralph M. Brown Actwww.csda.net
Search CA law/codeswww.leginfo.ca.gov/calaw.html
Education/Trainingswww.csda.net
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Thespecialdistrictcommunityandtheirgoverningofficials,morethanever,arecomingtogethertocreateapresenceandunitedvoice.TheCaliforniaSpecialDistrictsAssociation(CSDA)iscontinuingtoworktoincreasethevisibilityofspecialdistrictswithkeydecision-makersandcreateanetworkofactiviststhroughoutCalifornia.Allspecialdistrictofficialsshouldplayanactiveroleineducatingotherlocalofficialsandlegislatorsonspecialdistrictsandtheissuesthatimpacttheirresourcesandservices.
Specialdistrictscannolongersitidleascompetinginterestsvieforshrinkingstateresources.Thetimeforactiveengagementisnow!
yOUR ROLE ASASPECIALDISTRICTADVOCATE
Everloomingstatebudgetdeficitshavenecessitatedincreasedlegislativeadvocacyandgrassrootsengagementbyspecialdistrictofficialsinamoreactiveandvisiblemanner.Furthermore,termlimitshaveresultedinaweakerknowledgebasewithincomingcandidatesoftheservicesthatareprovidedbyspecialdistrictsandtheissuesfacingthem.Itisthejobofeveryelectedofficialtoeducatestatelegislatorsearlyaboutspecialdistrictsandgainsupportforprotectinglocalrevenuesandservices.
MeetwithlegislatorsOneofthekeyrolesyoucanplayasadirectorandspecialdistrictadvocateistomeetwithyourlegislators.Cultivatingrelationshipswithdecisionmakersisessential;itisthemostsignificantadvocacyroleyou
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canplayasaspecialdistrictofficial.Meetingscanbeassimpleasstoppingbyyourlegislatorslocalofficetointroduceyourselfandthespecialdistrictyourepresent,orevensettingupaformalappointmenttodiscussissuesthatarefacingyourdistrictandspecialdistrictsingeneral.
Anotherpossibilityistoholdabreakfastorcoffeeeventandinvitethelegislatorandhisorherstafftoattend,ortotakethemonatourofyourfacility.CSDA’sAdvocacy&PublicAffairsDepartmentcanhelpdistrictssetmeetingswiththeirlegislatorsinthedistrictortheCapitol.Thesearethemosteffectivetypesofmeetings.
RespondtoCallstoActionThroughoutthelegislativesession,youmayreceivea“CalltoAction”fromvariousorganizations,includingCSDA.TheseCallstoActiontypicallypertaintoaparticularpieceoflegislationthatwillaffectyourdistrict.Itisimperativethatyoutakeamomenttoreviewtheinformationandtakeaction!Avisit,phonecall,fax,emailorlettertoyourlegislatorcanmakeahugedifferenceonissuesthatcouldaffectyourdistrict,andhowitoperates.
CSDAalsoregularyupdatesitsGrassrootsActionCenterwiththetoplegislativeissuesfacingspecialdistricts,includingtoolsthathelpdistrictstakeactionsuchassampleletters.Ifyourdistrictisnewtosuchefforts,CSDAoffersmembersaGrassrootsAdvocacyGuideaswellassamplepoliciesfortakingapositiononlegislation.
GetinvolvedatthelocalandstatelevelsCSDAencouragesallspecialdistrictstaffanddirectorstogetinvolvedinactivitiesandeventsthroughoutthestate.ThisincludesparticipationinlocalspecialdistrictchaptersandLAFComeetings,aswellasstatewidefunctionslikeCSDA’sannualSpecialDistrictsLegislativeDays.Theseareopportunitiestolearnanddiscussthemajorissuesoftheyear,aswellparticipateinvisitswithlegislatorsintheCapitol.
CSDAhasaGrassrootsMobilizationSurvey,whichasksboardmembersandstaffiftheyknowaparticularlegislator,andhowwelltheyknowthatlegislator.Atspecificpoints
duringthelegislativesession,respondentswillbeaskedtomakeaphonecallortwotothatlegislatortosupportabillthatpromotesspecialdistrictsortoopposelegislationthatwouldharmdistricts.Ifyouknowalegislator,besuretofillouttheGrassrootsMobilizationSurvey.
Worktogetherwithcities,countiesandotherspecialdistrictsMuchlikethespecialdistrictyourepresent,thecities,countiesandotherspecialdistrictsnearyouplayanintegralroleinyourregion.Asadirector,youshouldworktoestablishstrongrelationshipsandhelptocreateanatmospherethatisconducivetosharinginformationandideaswithotherlocalagencies.
Gettoknowotherelectedofficialsinyourarea.Thiswillhelpyoutobetterunderstandissuesfacingotherlocalgovernmentsandcanalsoassistinidentifyingissuesthateachagencymayhaveincommon.Partneringwithcities,countiesandotherspecialdistrictsoncommonissuescanbringadditionalinfluencetoaspecificcauseorlegislativematterandresultinbenefitingeachagency’sconstituents.
RESOURCES FOR BECOMIng A SPECIAL DISTRICT ADvOCATE
California Special Districts Association (CSDA)www.csda.net
League of California Cities www.cacities.org
California State Association of Counties www.counties.org
California Association of LAFCos www.calafco.org
California State Senate www.senate.ca.gov
California State Assembly www.assembly.ca.gov
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DOWnLOAD CSDA’SgRASSROOTSADvOCACy gUIDE.
California SpecialDistricts AssociationDistricts Stronger Together
grassrootsAdvocacyguide
A gUIDE TO BECOMIng An EFFECTIvE ADvOCATE FOR SPECIAL DISTRICTS.
California Special Districts AssociationSpecial District Board Member/Trustee Handbook
california special districts association
SERvIng SPECIAL DISTRICTS
California Special Districts AssociationSpecial District Board Member/Trustee Handbook
CALIFORnIA SPECIAL DISTRICTS ASSOCIATIOn
TheCaliforniaSpecialDistrictsAssociation(CSDA)isa501(c)(6),not-for-profitassociationthatwasformedin1969toensurethecontinuedexistenceoflocal,independentspecialdistricts.Forover40years,CSDAhasbeenofferingitsmemberscost-efficientprogramsandrepresentationattheStateCapitolwithastronganddiversemembershipthroughoutCalifornia.
Theassociationisgovernedbyan18-memberBoardofDirectorselectedbymailballots.TheBoardconsistsofthreedirectorsfromeachofthesixregionsthroughoutCalifornia.Additionally,thereareanumberofcommitteesandlocalchaptersthatprovideinputandguidance.The CSDA standing committees include:
AUDIT | EDUCATIOn | ELECTIOnS/ByLAWS |
FInAnCE | FISCAL | LEgISLATIvE
MEMBERSHIP AnD RECRUITMEnT
CSDAprovideseducationandtraining,riskmanagementandinsurancecoverages,industry-widelitigation,publicrelationssupport,legislativeadvocacy,capitalimprovementandequipmentfunding,collateraldesignservicesand,mostimportantly,currentinformationthatiscrucialtoaspecialdistrictsmanagementandoperationaleffectiveness.
CSDAistheonlystatewideassociationrepresentingalltypesofindependentspecialdistricts.MembershipinCSDAisavaluabledistrict’sinvestmentinitsfuture!Throughmembership,specialdistrictstakeanactiveroleineducatingthegeneralpublic,theirconstituentsandlegislatorsastotheimportantrolethatspecialdistrictsplayinCalifornia.
CSDA BEnEFITS & SERvICES
ThepurposeoftheCaliforniaSpecialDistrictsAssociation(CSDA)istoprovidespecialdistrictsthroughoutthestatewithrepresentation,advocacy,educationandservicesthatcanpositivelyaffecttheiroperations.WhileourgovernmentalaffairsprogramservestheinterestsofallspecialdistrictsinthestateregardlessoftheiraffiliationwithCSDA,theseeffortsareonlypossiblewiththesupportofthesesamespecialdistricts.Getinvolvedthroughmembership!
LegislativeandlegalrepresentationLegislative advocacy:CSDAistheonlyvoiceintheCapitolthatrepresentsandfightsforallCaliforniaspecialdistricts,regardlessofservicesprovided.CSDAemploysfulltimein-houselobbyistswhoreviewandmonitoreverybillintroducedforitspotentialimpactonCalifornia’sspecialdistricts.AnybillsrequiringactionarequicklybroughttotheattentionoftheCSDALegislativeCommitteeandBoardofDirectorsinordertodetermineapositiononeachrespectiveissueandthenlobbiedaccordingly.Litigation support: CSDAofteninvolvesitselfinlitigation,orpendinglegalcases,onbehalfofitsmembers,includingtestifyingincourt,filingamicusbriefsandrequestsforpublication,amongothers.
Competitiveriskmanagement/workers’compensation/healthcoverageandfinancingopportunitiesSpecial District Risk Management Authority (SDRMA):ThroughCSDAmembership,districtscanaccessqualitycoveragethroughSDRMAwhichhasbeencreatedandrunbyspecialdistrictsfor20years.BecauseSDRMAisnotsubjecttotheprofit-drivenpoliciesofprivatecorporations,theyoffertailored,comprehensivecoverageatasubstantialsavingstospecialdistricts.CSDA Finance Corporation: Needhelpfundingcapitalimprovementorequipmentprojects?TheCSDAFinanceCorporationwasdesignedspecificallytohelpCSDAmembersenhancerevenuesandreducecostsassociatedwiththeseprojectsthroughtheuseofinnovativefinanceprograms.CriticalandcurrentinformationCSDA e-News: anelectronicnewslettersentdirectlytoyouremaileveryweek,whichincludesupdatesonkeylegislation,informationonneweducationworkshopsandtrainings,andotherimportantnewsthataffectsCSDAmembersandspecialdistrictsingeneral.Additionally,therearejoblistingsandsponsorshipopportunitiesforthoseentitieslookingforpublicity.California Special District magazine:CSDA’sbimonthlymagazine,California Special District,isreadnotonlybymembersofotherspecialdistricts,but
EnSURE yOUR DISTRICT IS A CURREnT MEMBER bycheckingwithyourgeneralmanagerorcall877-924-CSDA.
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alsobylegislatorsandotherdecision-makersinthestate.Thearticleshighlightnotonlyspecialdistrict-specifictopics,butalsobroaderpolicyissuesthataffectthestate,likeinfrastructureandgovernance.
CSDA website–theCSDAwebsite’s“MembersOnly”sectionhousestoolsandinformationusefultoanyandeveryspecialdistrictandfeatures,amongotherresources:- AdirectoryofyourSenateandAssembly
representativesandcontactinformation;- Alistofbillsimportanttospecial
districts,CSDA’spositiononthosebillsandsampletemplatelettersforyourdistricttouse;
- DiscountedpricingonpublicationsattheonlineCSDABookstore;
- ReducedratesonclassesandworkshopsbyregisteringforaneventthroughtheEducationCalendar;
- Linkstoadditionalresourcesrelatedtospecialdistricts.
CSDA listserv:TheemaillistservprovidesaconvenientwayforCSDAmemberstodiscussissuesofimportancewithotherspecialdistricts,sharerelevantinformationandgetanswerstoquestionsfromthosemostqualifiedtoanswer:peoplewhohavebeenthroughthesameexperiences.Discount on publications: CSDAmembersreceivesignificantsavingsonvariousguides,manualsandbrochuresofferedthroughCSDA.Someoftheseinclude:
• ALocalOfficial’sGuidetoEthicsLaws:Thiscomprehensiveguide,publishedby
theInstituteforLocalSelfGovernmentanddevelopedbyabroadbaseofprofessionalsfromlocalagencies,ispackedwithusefulinformationontheethical“dosanddon’ts”forelectedorappointedpublicofficials.Crucialareascoveredinclude:publicdisclosureofpersonaleconomicinterests,receiptofloans,gifts,travelpaymentsandhonoraria,conflictsofinterest,campaigncontributionsandbias,havinganinterestinacontract,dualofficeholdingandincompatibleoffices,andcriminalmisconductinoffice.Eachofyourelectedorappointedofficialsshouldhaveacopyofandreadthisdocument!
• CaliforniaIndependentSpecialDistrictsinformationbrochure:Thisbrochure,whichisfreeoftime-datedinformationtoensurealongshelflife,definesspecialdistricts,highlightstheservicestheyprovide,outlineswhorunsthem,andexplainshowtheyoperate.Thisbrochureservesasagreatpublicinformationpieceforyourdistrictconstituents,localmediarepresentatives,andpolicymakers.
• Open&PublicIV-AUser’sGuidetotheRalphM.BrownAct:“Allmeetingsofthelegislativebodyofalocalagencyshallbeopenandpublic,andallpersonsshallbepermittedtoattendanymeetingofthelegislativebodyofalocalagency…”ThemaingoalofthispublicationistoputtheRalphM.BrownActinaneasytoreadformat,soitcanbereadilyunderstoodbylocalofficials,thepublic,andthenewsmedia.Topicscoveredin
Open&PublicIVinclude:meetings,legislativebodies/committees,noticeandagenda,teleconferencing,rightsofthepublicandwhentolegallyholdclosedsessions.ItisimperativethatalldistrictrepresentativeshaveaclearunderstandingofthecurrentBrownActtoavoidviolationsofthelaw.
• SamplePolicyHandbook:ThishandbookisanaccumulationofpolicieswrittenandeditedbyHarryEhrlich,aswellastheadaptedpoliciesofvariousdistrictsthroughoutthestate.Handbookcontentsinclude:generalboardpolicies,includingadoptionandamendmentofpolicies;over80personnelpoliciessuchassexualharassment,advancementofwages,benefits,educationalassistanceandremuneration;operationalpoliciesonaccounting,budgetpreparationandmore;boardofdirectorpoliciessuchastheroleofofficers,attendancesandcommitteemakeup;boardmeetingpoliciesregardingsuchissuesassettingagenda,conductandminutes;facilitiesdevelopmentpoliciesincludingannexationandenvironmentalreviewguidelines.Foracompletelistofthecontentsinthishandbook,contacttheCSDAoffice.
AdditionalmemberbenefitsFree legal advice:EveryCSDAmemberisentitledtoonehouroffreelegaladvicetoassistinresolvinganylegalissueorquestion.TheCSDAlegalcounselhasbeenrepresentingspecialdistrictsfor50yearsandiswellversedinhelpingspecialdistrictsinavarietyofareas.
CALIFORnIA SPECIAL DISTRICTS ASSOCIATIOn
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California Special Districts AssociationSpecial District Board Member/Trustee Handbook
Local chapters:SeveralcountiesinCaliforniahavealocalchapter.Thesechaptersprovidealocalforumforthediscussion,considerationandinterchangeofideasconcerninglocalissuesandCSDA’spurposesanddirection.Notonlydotheselocalchaptersadvocateatthelocallevel,theyalsohelptoinformthepublicofthebenefitsoflocalcontrol,establishingalocalcommunicationnetworkandcarryingoutprogramsofmutualbenefittomemberdistricts.Getinvolvedlocally!Hardworking, dedicated staff: ThestaffatCSDAisfullymotivatedandworkinghardeverydayoftheweektorepresentyouandensureyourdistrict’ssuccess.Wearehereforyou!ProfessionalDevelopmentOpportunitiesCSDAisdedicatedtoprovidinghigh-qualityeducationalopportunitiesatareasonableprice.Theworkshopsofferedvaryfromextensiveboardmemberandgovernancetrainingtolegalissuesandthedevelopmentofpolicyandpersonnelmanuals.WorkshopsareofferedthroughouttheyearandatspecialdistrictofficelocationsthroughoutCalifornia.Wenowofferavarietyofwebinarsspecificallydesignedforspecialdistricts.Webinarsprovideyetanotheravenuetostaycurrentandreceivecontinuingeducationonavarietyoftopics.
SpecialDistrictLeadershipAcademyOneofthemostsignificantandcomprehensivetrainingseriesaspecialdistrictboardmembershouldparticipate
inistheCSDALeadershipAcademy.TheAcademyfocusesonfourareasthatallboardmembersshouldknowinordertodotheirjobseffectively.Theseinclude:
1)Governancefoundations2)Settingdirection/communityleadership3)TheBoard’sroleinhumanresources4)TheBoard’sroleinfinance
CSDAhasdevelopedthisprogramandcurriculuminconjunctionwithexpertsingovernanceaswellashighlyexperiencedspecialdistrictofficialsandmanagers.AnnualConferenceTheCSDAAnnualConferenceisanopportunityforspecialdistrictemployees,managersandboardmemberstoreceivethelatestinformationaboutspecialdistrictsandtheissuesfacingthem,aswellasattendworkshopsonthelatestmanagementtechniques.Theconferenceisalsoanoutstandingplacetovisitwithexhibitorsandmeetandnetworkwithyourpeersfromotherspecialdistrictsthroughoutthestate.SpecialDistrictsLegislativeDays(SDLD)CSDA’sSDLDisanannualtwo-daylegislativeconferenceinSacramento.Specialdistrictleaderscometothestate’scapitoltoexchangeideaswithlegislatorsandCapitolstaffwhoarecriticaltothegrowthandsurvivalofspecialdistrictsandhearfromkeylegislatorsandpolicyexpertsontopicsthatdirectlyimpactspecialdistricts.Districtrepresentatives
alsogettoknowlegislators,staffandpolicyexpertsinacasualsettingatthelegislativereception.
SpecialDistrictLeadershipFoundation(SDLF)TheSDLFisacollaborativeeffortofeightspecialdistrictorganizationsdedicatedtoexcellenceinlocalgovernment.SDLFhasimplementedtheSpecialDistrictAdministratorCertificationProgram,whichcertifiesthosewhosucceedasoneofthe“bestofthebest”intheirprofession.TheFoundationalsohasimplementedasimilarprogramforspecialdistrictgoverningofficialsandhasendorsedtheCSDALeadershipAcademyasitscoregovernancetraining.Lastly,aprogramcalledDistrictsofDistinctionshowcasesthebestofthebestindistricts.Open,EthicalLeadership:AB1234complianceCSDAhasworkedincollaborationwithhighlyrespectedlawfirmsspecializinginlocalgovernmentstodevelopthecontentandcurriculumforethicstrainingcourses.Boardmembersarerequiredbylawtotakeatwo-hourethicstrainingcourseeverytwoyearsandthisworkshopthatCSDAofferssatisfiesthisrequirement.Remember—it’sthelaw!
NetworkingOpportunitiesCSDA’sAnnualConferences,seminarsandSpecialDistrictsLegislativeDaysprovideunequaledopportunitiestonetworkwithothersinyourchosenprofessionanddiscusscommonproblems,solutionsandexperiences.
EnSURE yOUR DISTRICT IS A CURREnT MEMBER bycheckingwithyourgeneralmanagerorcall877-924-CSDA.
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CSDAisembarkingonanewapproachtotakeamoreactiveandvisibleleadershiproleinadvancingthecauseofspecialdistricts.
OneofthemostsignificantgoalsofCSDAistobuildsupportforspecialdistrictissuesbyeducatingkeydecision-makersandthemediaaboutthevalueofspecialdistrictsinprovidingessentialservicesthatvoterswantandneed.Byexpandingourbaseofinfluence,weareraisingthevisibilityandcloutofspecialdistrictstomakeyourvoicesheard.
CSDAisfocusingmoreonthepolicyarenatostrengthenspecialdistricts’voiceandenhanceyourvisibilityintheStateCapitol.CSDAhasretitledtheLegislativeDepartmentastheAdvocacyandPublicAffairsDepartment,andrefocusedthemissiontowardgrassrootsandpublicoutreachinstrategiccoordinationwithtraditionallobbyingefforts.
CSDAispositioned,nowmorethanever,asapowerfuladvocate,keyresourceandreferralnetworkonissuesthatimpactspecialdistricts.ThisnewapproachsignalsanopportunityforustoelevatetheprofileandinfluenceofspecialdistrictsandtoprovideCSDAwiththefirepoweritneedstobecomealeadingadvocateandkeyresourceonissuesthatimpactspecialdistricts.
To get there, CSDA will continue to:
• Buildsupportforspecialdistrictissuesbyeducatingkeydecision-makersandthemediaaboutthevalueofspecial
districtsinprovidingessentialservicesthatvoterswantandneed.
• Focusoncommoninterestsandhelpdistrictsbetterservetheircustomersbyplacingagreateremphasisontop-notcheducationandtraininginadvocacy,governance,administration,riskmanagementandfinance.
• Strengthenourconnectionandvaluetospecialdistrictsbyimprovingourcommunicationschannels,informationsourcesandmembershipforums.
• FocusontheSpecialDistrictLeadershipAcademy–theonlycurriculumendorsedbytheSpecialDistrictLeadershipFoundation.
GrassrootsmobilizationCSDA’seffectivenessonlegislativemattersisdirectlylinkedtothelevelofparticipationofspecialdistrictsandweneedactiveengagementinouradvocacyprogramstoestablishastrongandlastingpresence.Thismeansbeingcontinuallyresponsivetocallsforactionandcultivatingrelationshipswithyourconstituenciesandkeydecision-makersonthestateandlocallevelstobuildastrongcoalitionofsupport.
CSDAiscommittedtoaneffectivegrassrootsmobilizationeffort.Asaspecialdistrictdirector,youmayhaverelationshipstostatelegislatorsthatwouldbebeneficialtotheentirespecialdistrictcommunityinCalifornia.CSDAhasasurveytofindoutwhoexactlyyouknowintheCapitolsowecanmakethatimportantconnectionwhenanimportantvoteisneededtopromoteandprotectspecialdistricts.
A nEW ApproachforCSDA
CSDA CORE BELIEFS
TheCSDABoardofDirectorsbelievesthatspecialdistrictsareclosesttothecommunityandthemostresponsiveformoflocalgovernmentinCalifornia.
The Board therefore believes that CSDA can and should:
• Betheleadingandpassionatevoiceforallspecialdistricts.
• Beaggressiveandresoluteinrepresentingandadvocatingfortheneedsofallspecialdistricts.
• Strengthensupportforspecialdistrictsbyeducatingthepublic,mediaandpublicpolicymakersonalllevelsonthevalueandfunctionofspecialdistricts.
• Capitalizeonthestrengthsofthediversityofspecialdistricts,fullyrepresentingalltypesandformsofdistricts.
• Bethepremieretrainingproviderforallspecialdistricts,strivingforeffectivegovernance,leadershipandadministration.
• Provideawiderangeofhigh-qualityservicesandresourcestomemberdistricts.
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California Special Districts AssociationSpecial District Board Member/Trustee Handbook
COMMUnICATIng WITHTHEMEDIA
Inyourtermasaspecialdistrictdirector,youwillundoubtedlybeinvolvedwithsometypeofmediacontact.Whetherit’salocalnewspaper,tradejournal,televisionorradiostation,independentjournalistorbeingaskedtoparticipateinanewsconference,it’simperativethatyoubeprepared.Theseareafewgeneraltalkingpointsthatyoucanusetoensurethatyouhaveaconsistentmessageandfocusedanswerstotoughquestions.
KeyMediaMessages
Specialdistrictsareanintegralpartofthelocalgovernmentframework.
Specialdistrictsworkhand-in-handwithcitiesandcountiestofulfillallofCalifor-nia’spublicserviceneeds.
Specialdistrictsareaformoflocalgovern-ment.Theyarenotcities;theyarenotcounties;theyarenotschooldistricts;theyarenotMello-Roosdistricts;andtheyarenotstategovernment.Specialdistrictsarelimited-purposelocalgovernmentspro-vidingonlytheservicestheirconstituentswantandneed.
Specialdistrictsfillvoidsincityandcountyservicesandheightenthelevelofservicesdesiredbytheirconstituencies.
Specialdistritscanservesingleormultiplefunctionsandcanservesmallneighbor-hoodsorlargeregions.Theytailortheirservicestocitizendemand.
Specialdistrictsarefundedeitherthroughashareoflocalpropertytaxrevenueand/orfeesgeneratedfromtheirconstituentswhovotetoformthemandholdthemac-countableforallthattheydo.
Specialdistrictsarespecialbecausetheyprovidefocusedservicesthatresidentsintheircommunitieswant,needandap-proveattheballotbox.
Nospecialdistrictcanoperatewithouttheconsentofvotersdecidingwhatservicestheywantfortheircommunities.
NearlyallofCaliforniaresidentsrelyonspecialdistrictsforsomeformofservicethatisdeliveredtotheirhomes,business-esand/orcommunities.
Everyday,millionsofCaliforniansareservedbyspecialdistricts.Thisincludesthewaterthatbrewsourcoffeeinthemorning,theparksourchildrenenjoy,thestreetlightsandthefiretruckswedependon,aneveningBBQwithoutmosquitoes,thebooksthatenrichourknowledge—allthankstospecialdistricts.
Specialdistrictsservethepublicbyde-liveringcritical,life-savingfireandpoliceprotection,aswellasessentialhealthcareservices.
Specialdistrictsareclosesttothecom-munitiestheyserveandthereforeprovideexpedientandresponsiveservicestocustomers.
Independentspecialdistrictsaregovernedbytheirownboardsofdirectors.Theyareelectedbyvotersintheirdistrictorap-pointedtofixedtermsbyelectedofficialsintheirdistrictwhoareaccountabletotheirconstituents.
Specialdistrictboardmembersandtrust-eesalltakeanethicstrainingcourseeverytwoyearstoensurewhattheydoonaday-to-daybasisiscompliantwithstatelawandtobestservetheirconstituents.
Specialdistrictsonlyprovidetheservicesthattheirconstituentswantandneed.
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Specialdistrictscanlinkcoststobenefits.Thatis,onlythosewhobenefitfromspecialdistrictservicespayforthem.Thosewhodonotbenefitdonotpay.
Specialdistrictsareopen,visibleandaccountabletotheirconstituents.
Specialdistrictsarevisiblebecausetheirservicesareeitherusedorseenalmosteverydaybytheirconstituents.
Aspublicagencies,specialdistrictsmustcomplywiththeBrownAct,whichmeansmeetingsoftheirgoverningboardsmustbeopenandpubliclyannounced.
Specialdistrictscannotbeformedwithouttheconsentofamajorityofvotersintheirdistricts,andtheycannotraisetaxeswithouttwo-thirdssupport.
Specialdistrictsareaccountabletovotersandthecustomerswhousetheirservices.TheymustsubmitannualfinancialreportstotheStateControllerandalsomustfollowstatelawspertainingtopublicmeetings,bondeddebt,recordkeepingandelections.
Specialdistrictsdotheirjobsanddotheirjobswell.Likeanypublicentity,notmuchisreportedaboutthemwhencustomersarepleasedandthingsaregoingwell.It’stypicallywhencontroversyariseslikearatehikeorservicereductionthattheybecomemoreapparent.AstheLittleHooverCommissionagrees:“Nonewsisgoodnews.Thevastmajorityofspecialdistrictsaresuccessfulandclearlymanyare.”
Specialdistrictsandthecoreservicestheyprovidewillbedevastatedifthestatecontinuestobalancethebooksoffthebacksoflocalgovernments.
Specialdistrictshavelost$9billionsincethestatebeganshiftinglocalpropertytaxrevenuetooffsetitsowndebtandspendingobligationsasfarbackas1992.Over$500millionwaslostin2012-2013,alone.
Propertytaxrevenuelossesareparticularlydifficultforindependentspecialdistrictsbecause,unlikecitiesandcounties,propertytaxrevenueisoftenthesoleorprimarysourceoffundingfortheprovisionofservices.
COMMUnICATIng WITHTHEMEDIA
Lossofadditionallocalgovernmentrevenuetothestatepresentsaserioushardshipformanyindependentspecialdistrictsthatcanonlybeabsorbedbyprogramcutsandstaffandservicereductions.
It’sunfairtoaskresidentsofspecialdistrictstoreplacethepropertytaxrevenuetakenbythestatethattheyoriginallyvotedtogotospecialdistricts.Thiscouldresultindoubletaxationontheseresidentsjusttorestorethesameservicestotheiroriginallevel.
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California Special Districts AssociationSpecial District Board Member/Trustee Handbook
Whyaresomespecialdistrictssupportedbypropertytaxes,othersbyfeesorboth?Specialdistrictsdesignatedas“non-enterprisedistricts”arefundedthroughaportionofpropertytaxes.Theydon’tlendthemselvestofeesbecausetheservicesbenefittheentirecommunityandnotjustindividualresidents.Aboutthree-quartersofthestate’sspecialdistrictsarenon-enterprisedistricts.Someofthemincludelibraries,policeandfireprotection,mosquitoandvectorcontrol,andpubliccemeteries.Thoughnon-enterprisedistrictsrelyoverwhelminglyonpropertytaxesfortheiroperationalexpenses,certainservices,suchasaparkdistrict’spool,cangenerateasmallamountoffeerevenue.
Specialdistrictsthataredesignatedas“enterprisedistricts”runmorelikeabusinessenterpriseandthereforechargecustomers“userfees”forspecificservicesprovided.Forexample:waterratesfortheamountofwaterconsumedorroomchargesforpatienthospitalstays.Virtuallyallwater,wastewaterandhealthcaredistrictsareenterprisedistricts.
Bothenterpriseandnon-enterprisedistrictscanpursuebondstopayforcapitalimprovements—forinstance,topayforanewdamorlibrarybuilding.Insuchcasestheymustreceiveatwo-thirdsmajorityvotetoissuegeneralobligationbondsbackedbypropertytaxes.
Whilesomeenterprisedistrictsaresupportedbybothpropertytaxesanduserfees,thepropertytaxrevenuetheyreceiveistypicallyminimalandprimarilyusedtopayfortheirbonddebtsand/orstabilizerates.
Howarespecialdistrictsstaffed?Don’ttheyhaveboardmemberswhoareheavilycompensatedfordoingverylittle?Thestaffingofspecialdistrictsisbasedonsizeandbudget.Someruraldistrictsoperate
onlywithvolunteersorstaffthatispaidminimally.Forothers,theadministrationorstaffingmayrequirealargercommitmentofresources.Thebudgetallocatedfortheoperationalneedsofthespecialdistrictisapprovedbyanelectedboardinapublicmeeting.BoardmembercompensationissetinstatutebytheLegislature.Somedistrictshavethestatutoryauthoritytoadjusttheirboardmembercompensation.
Canspecialdistrictstaxaresidentwithouthis/herconsent?No.Proposition13limitedpropertytaxestoonepercentofpropertyvalue.Manyspecialdistrictsgetashareoftheserevenuesandiftheyrequireadditionalrevenue,theymustgettheapprovalofvotersbyatwo-thirdsmajority.
Onceaspecialdistrictisformed,
howmuchisaresidenttaxedfor
theservicesreceived?
Theindividualistaxedbasedonaportionofwhatisreallocatedtothatspecialdistrictfromthetotalamountofpropertytaxrevenuecollectedforlocalgovernmentpurposes.
Ifaspecialdistrictwantsmorethanwhattheoriginalallocationprovided,itcanrequest“specialtaxes”butProp13andstatelawrequirethatspecialtaxesbeapprovedbyatwo-thirdsmajorityvote.Ageneralobligationbondthatraisespropertytaxesalsorequirestwo-thirdsvoterapproval.
Specialassessmentsareanotherwayvoterscanpayforspecialdistrictservices.Butunlikespecialtaxes,propertyownerspaybenefitassessmentsonlyfortheprojectsorservicesthatdirectlybenefittheirpropertysuchassewers,parksandwatersystems.Insuchcases,theamountoftheassessmentmustbedirectlyrelatedtothebenefitreceived.Proposition
218enactedin1996requiredlocalgovernments,includingspecialdistricts,togetweightedballotapprovalfrompropertyownersbeforetheycanlevybenefitassessments.
WhydowehaveMello-Roosdistrictsandspecialdistrictsfundingourservices?Doesn’tthatamounttodoubletaxation?Mello-Roosisjustafundingmechanism.YoucannotvisitorseeaMello-Roosdistrict.Specialdistrictsdeliverservices;Mello-Roosdistrictsdonot.CalifornialawallowsmanyspecialdistrictsalongwithcitiesandcountiesandschoolstoestablishMello-Roosdistrictstofinancepublicworksandpublicservices.LocalgovernmentsuseMello-Roossolelyasafinancingtooltoprovidetheessentialservicestheirconstituentswantandneed.
Wouldn’tyousayspecialdistrictsaretheworstformoffragmentedgovernment?Specialdistrictsactuallyarethebestreal-worldsolutiontomeettheessentialpublicserviceneedsofcitizensthatarenotalreadybeingmetbycitiesandcountiesbecauseofalackoffundingorinfrastructure.
Thereareapproximately2,200specialdistrictscomparedto480citiesand58counties.Whysomanyandwhycan’ttheybeconsolidatedtosavetaxpayersmoney?Numbersarearbitrary.Whatreallymattersisthequalityofservicesandhowwellaspecialdistrictrespondstothecustomersitserves.Consolidationmayworkinsomecases.Infact,CSDAandspecialdistrictsareopentoreorganizationifitisdeemedtobecost-effective,leadtoincreasedefficiencyandissupportedbytheconstituentstheyserve.
RESPOnSES totoughquestions
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Butwhenspecialdistrictsmergeintoalargerdistrict,theymustserveamuchlargerarea.Andwhenthathappens,theymaybecomefurtherremovedfromtheneighborhoodresidentswhooriginallycreatedthem.Consolidation,often,mayendupcostingcustomersmoreinthelongrun.First,costlystudiesmustbeconductedtodetermineifmergingisevenfeasibleoracceptabletovoters.Afterthatisdone,thedistrictsmayfindthattheylacktheinfrastructuretoconsolidateif,forinstance,existingsewerorwaterpipescannotbeconnectedorreplacedtocoverlargerareas.
Aren’tspecialdistrictsseenasinefficientbecauseoftheabundanceofservicesthatseemtooverlaporareduplicative?Whilespecialdistrictsmaydotmanylocallandscapes,theyaretheclosestpublicagenciestothecommunitiestheyserveandthereforeareabletoprovidethemostexpedientandresponsiveservices.Furthermore,becausespecialdistrictsfocusonasinglefunctionorlimitedfunctions,theyareabletofocustheirefforts,whichleadstodisciplineandinnovation.
EverycountyhasaLocalAgencyFormationCommission(LAFCO)thatensurestheservicesprovidedbyspecialdistrictsandotherlocalagenciesdonotoverlap.LAFCOsalosconductMunicipalServiceReviewsonspecialdistrictsevery5years.
WhatisERAF?ERAFistheEducationRevenueAugmentationFund.Duringtherecessionoftheearly1990s,thestatetookpropertytaxesfromspecialdistricts,citiesandcountiesandshiftedthemintoERAFtooffsetitsdebtandspendingobligations.Thatmandatedpropertytaxshiftofpreciouslocalgovernmentrevenuecontinuestodaydespitethefiscalhardshipsithascausedlocalgovernments.
HowmuchhasbeenlostbecauseofERAF?SinceERAFbeganin1992,thestatehasshiftedover$9billioninlocalpropertytaxrevenuefromspecialdistricts.Specialdistrictslostanother$500millionin2012-2013,alone.
Whyaremulti-countydistrictsexemptedfromERAF?Multi-countydistrictssuccessfullyfoughttobeexemptedfromERAFastheyandalllocalgovernmentsrightfullyshould.Thestateshouldnotberaidinglocalgovernmentsformoneydesignatedandapprovedbyvotersforlocalgovernmentpurposes.CSDAhasjoinedwiththeLeagueofCaliforniaCitiesandtheCaliforniaStateAssociationofCounties(CSAC)intheLeaveOurCommunityAssetsLocal(LOCAL)CoalitiontostopfurtherERAFshifts.
Ifspecialdistrictsarehurting
forsomuchfundingbecauseof
ERAFandProp13,whydosome
havesuchhugereserves?
Specialdistricts,likecitiesandcounties,needreservestoensuretheycanrespondtotheirconstituentsintheeventofemergenciesordisasterslikefloodingandearthquakes.Prudentreservesoftenareneededtoaccumulatethecapitaltopayforlargepublicworksprojects.Inaddition,reservesprovideasafetycushioninleanyears,stabilizingconsumers’rates.
CSDAhasdevelopedtheSpecialDistrictReserveGuidelines,acomprehensiveguideforaccumulationandmanagementofspecialdistrictreserves.Thereportsetsstrictpolicyproceduresandhighstandardsforallindependentspecial
districtmemberstofollowinhandlingtheirfiduciaryresponsibilities.
Note: The Guidelines are available through CSDA at no cost to members.
What’stostopsomespecialdistrictadministratorsfromusingthesereservesforhigh-pricedjunketsorfor“officialmeetings”thatturnouttobenothingmorethanfreevacations?Localaccountabilityiskeyhere.Asthepublicagenciesthatareclosesttothepeopletheyserve,specialdistrictsaredirectlyaccountabletotheirconstituents.Assuch,theirleaderswillbeheldtoanswertothevoterswhoelectedthemorelectedofficialswhoappointedthemforanyactionsthatcomeintoquestion.
Howarespecialdistrictsscrutinized?Whoaretheyaccountabletoandhowoftenmusttheyundergochecksandbalances?Specialdistrictsareaccountabletothevoterswhoelecttheirboardsofdirectorsandthecustomerswhousetheirservices—justlikecitycouncilmembers,boardsofsupervisors,andstateandfederallegislators.SpecialdistrictsmustsubmitannualfinancialreportstotheCaliforniaStateControllerandalsomustfollowstatelawspertainingtopublicmeetings,bondeddebt,recordkeepingandelections.
Aspublicagencies,specialdistrictsmustcomplywiththeBrownAct.Meetingsmustbeopenandpublic.Specialdistrictscannotform,theirratescannotincreasenorcantheirgoverningboardsbeelectedwithouttheconsentofamajorityofvotersintheirdistrict.
RESPOnSES totoughquestions
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California Special Districts AssociationSpecial District Board Member/Trustee Handbook
Insummary,beingaspecialdistrictboardmember/trusteeisanimportantjobandonethatshouldbetakenseriously.Clearly,thepositionrequiresthatelectedorappointedofficialswearnumeroushatsandbeknowledgeableinawiderangeofareas.TheCaliforniaSpecialDistrictsAssociation(CSDA)hasdevelopedthishandbooktoprovideboardmembers/trusteeswithsomeofthecoreinforma-tionthatisneededtobeaneffectiveandproductiveofficialwithinaspecialdistrict.CSDAencouragesofficialstodofurtherresearch,usetheresourcesreferencedthroughoutthehandbook,participateincontinuingeducationopportunitiesandseektheexpertiseoflegalcounselwhereappropriate.
Mostimportantly,useCSDAasthefirstresourceonspecialdistrictissues.WewelcomeanyfeedbackonthishandbookorhowCSDAcanbetterservespecialdistrictsinCalifornia.877-924-2732.
In SUMMARy
“Themostremarkablethingaboutourcountryisthat;ordinarycitizenscontrolalmosteverymajorinstitution,publicandprivate…Doesthismakesense?Whatitmakesisademocracy.We,thepeople,governourselves.”
Henry N. Brickell, Regina H. Paul in Time for Curriculum
1112 I Street, Suite 200Sacramento, CA 95814toll-free: 877.924.2732www.csda.net
© CSDA 2013-2014
California SpecialDistricts AssociationDistricts Stronger Together