SPECIAL DISTRICT BOARD MEMBER/TRUSTEE€¦ · Special District Board Member/Trustee Handbook COnTEnTS 02 WHAT YOU SHOULD KNOW AS A BOARD MEMBER ... , including hiring, disciplinary

California Special Districts AssociationSpecial District Board Member/Trustee Handbook

SPECIAL DISTRICTBOARD MEMBER/TRUSTEE

California SpecialDistricts AssociationDistricts Stronger Together


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

01

BoardMemberRoles

Makeandapprovedistrictpolicy

Setthedirectionofthedistrict

Makedecisions

Establishstrategicgoalsandobjectives

Beanadvocateforspecialdistricts


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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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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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.


grassrootsAdvocacyguide

A gUIDE TO BECOMIng An EFFECTIvE ADvOCATE FOR SPECIAL DISTRICTS.


california special districts association

SERvIng SPECIAL DISTRICTS


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

(continued)

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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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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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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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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


Documents

SPECIAL DISTRICT BOARD MEMBER/TRUSTEE€¦ · Special District Board Member/Trustee Handbook COnTEnTS 02 WHAT YOU SHOULD KNOW AS A BOARD MEMBER ... , including hiring, disciplinary