CSA 17 - Rancho Tierra Grande

Email:
300-PWSpecialDistricts@countyofmonterey.gov

Special Districts Staff
Tom Moss
(831) 755-5847

On April 28, 2026, the Board of Supervisors voted to move forward with a Proposition 218 election for CSA 17 parcel owners, to give all property owners the opportunity to participate in an official vote for a direct benefit assessment. 

County Service Area 17 (CSA-17) annual revenue from AB 8 property tax revenue, generates approximately $15,000 to $18,000 annually, and is insufficient to fund the current active services (drainage system maintenance and open space maintenance) and the proposed active service (street maintenance); however, CSA-17 property owners will have an opportunity to vote to approve a direct benefit assessment needed to fund these services.    

An Engineer’s Report was prepared and approved by the Board of Supervisors.  The Engineer’s Report determined assessment rates needed to place Annual Revenue in line with Annual Costs for the CSA-17 active services.   Harris & Associates report, dated April 2026,  determined assessment rates for residential parcels within CSA-17 are estimated to range from approximately $298 to $723 per parcel, depending on development status, with an approximate 3 percent annual adjustment tied to construction cost inflation. The recommended total assessment for FY 2026–27 was $157,924.25.

The timeline for the Proposition 218 process was as follows:

• April 28, 2026 - Board of Supervisors adopted a Resolution of Intent to initiate the Proposition 218 process
• Following adoption of the Resolution of Intent - A 45-day notice period commenced, during which public notices and official ballots were mailed to all affected property owners.
• June 23, 2026 - At 1:30 pm, a public hearing was held, and the final ballot tabulation were as follows: 
  • Ballots Returned:  130
  • Total Percentage of Ballots Returned:  53.28%
  • Total Assessment Amount of Ballots Returned:  $75,746.88
  • No Vote Count:  91
  • Yes Vote Count:  34
  • Vote Not Indicated or Not Signed:  5
  • Total Assessment Amount of Yes Votes:  $20,375.57
  • Total Assessment Amount of No Votes:  $62,828.02
  • Total Assessment Amount of Yes Votes in Proportion to Total Returned Votes:  26.90%
  • Total Assessment Amount of No Votes in Proportion to Total Returned Votes:  73.10%

Based on the weighted ballot tabulation, a Majority Protest exists (73.10%),  Therefore, no annual assessment shall be imposed on the Fiscal Year 2026-27 property tax bill.

The Final Engineer’s Report adopted by the Board of Supervisors, can be obtained via email by sending a request to: 300-pwspecialdistricts@countyofmonterey.gov

CSA-17 is a Dependent Special District established on January 21, 1963.  As required by  the subdivision application condition of approval, the subdivider petitioned the Board of Supervisors to establish CSA 17 to provide extended services (open space maintenance and drainage system maintenance) for Rancho Tierra Grande (RTG) No. 1.  The subdividers of the RTG No. 2, RTG No. 3, and Mercurio subdivisions were required to petition the Board of Supervisors to annex their subdivisions into CSA 17.  There are currently 225 residential lots within CSA-17, and the property owners are responsible for funding the extended services.

What is a Special District?

Special districts are limited, special purpose local governments that are separate from cities and counties.  Within their jurisdictions, special districts can provide a variety of services such as street and sidewalk maintenance, storm drain maintenance, open space maintenance, street lighting, water and sewer service.  The infrastructure is publicly owned, and the County maintains it using special assessments or fees collected from the property owners who benefit from such services.  Special assessments are included as a line item on the property tax bill.   

The establishment of CSA-17 in 1963 authorized certain services and empowered the County to levy taxes in an amount sufficient to fund the extended services provided by the dependent special district.

This authority to levy taxes for extended services was effectively eliminated with the passage of Proposition 13 in 1978, which capped the base property tax rate at 1% and shifted responsibility for property tax allocation to the State. Following Proposition 13, the Legislature enacted Senate Bill 154 (SB 154) in 1978, establishing the initial framework for allocating property tax revenues. In 1979, Assembly Bill 8 (AB 8) further refined this framework and established the system that governs the distribution of future property tax growth. A detailed history of California’s property tax allocation system is available here: https://lao.ca.gov/reports/2012/tax/property-tax-primer-112912.aspx

For Fiscal Year 2025–26, the total estimated AB 8 property tax apportionment for CSA-17 is $19,700, which is insufficient to support current and proposed service levels.

The projected Fiscal Year 2026–27 budget for CSA-17, assuming a successful Proposition 218 vote, is as follows:

• Open Space Maintenance: $19,700 (estimated annual AB 8 revenue)
• Street Maintenance: $64,850.11
• Storm Drain Maintenance: $53,074.34
• County Administration: $40,000.00

Total: $177,624.45

Based on current revenues of $19,700, CSA-17 would face an estimated annual funding gap of $157,924.45 in Fiscal Year 2026–27 to maintain the level of services outlined above.

Proposition 218, known as the Right to Vote on Taxes Act, was approved by voters in November 1996 and added Article XIIID to the California Constitution. It requires that a parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel.

In accordance with Proposition 218, any new or increased assessment requires:

• Preparation of an Engineer’s Report demonstrating the special benefit to assessed properties
• Notice to property owners detailing the proposed assessment and its basis
• A majority protest hearing at which property owners may submit written protests

Engineer’s Report

Prior to the majority protest hearing, an Engineer’s Report must be prepared and approved by the Board of Supervisors. The purpose of the report is to determine the direct benefit assessment rates necessary to align annual revenue with the cost of providing services.

Harris & Associates prepared a Draft Engineer’s Report, dated June 2025, which determined that assessment rates for single-family residences within CSA-17 would range from $298 to $723 per year. A community meeting was held on September 25, 2025, to review the draft report.

Based on community input, Harris & Associates has prepared a Final Engineer’s Report dated April 2026.

Schedule

1. Board of Supervisors Meeting No. 1 – April 28, 2026 (Legistar File Number:  RES 26-062)

The Department of Public Works, Facilities and Parks recommended that the Board of Supervisors adopt a resolution to:

a. Approve the Engineer’s Report;
b. Declare its intent to establish CSA-17 annual assessments beginning in FY 2026–27, with future annual adjustments tied to the Engineering News Record’s San Francisco Construction Cost Index; and
c. Set the date for the Majority Protest Hearing and direct staff to provide required notice

2. Board of Supervisors Meeting No. 2 – June 23, 2026 at 1:30pm

The Department of Public Works, Facilities and Parks will recommend that the Board:

a. Conduct a Public Hearing to receive objections or protests regarding the proposed annual assessment
b. Direct the Clerk of the Board to tabulate and certify all protests received prior to the close of the hearing
c. Determine whether a majority protest exists
d. If no majority protest exists, adopt a resolution approving the annual assessments for CSA-17

Q:  What are the activated services in CSA 17?

• County Service Areas (CSA 17) was formed in 1963 when the subdivider petitioned the Board of Supervisors to authorize and activate Open Space Maintenance, Storm Drain Maintenance and Surface Water Disposal services.

Q:  Why were the roads not included in the CSA 17 activated services?

• When the subdivider of Rancho Tierra Grande 1 petitioned the Board of Supervisors to create the County Service Area, the subdivider did not request street maintenance to be included as an active service.  
• As a result, responsibility for road maintenance is part of the County’s maintained mileage system of 1,260 miles of roads and remains outside the scope of CSA 17; therefore, these services are funded through other mechanisms (specifically gas taxes and not property taxes). The County gas taxes are used for all the County’s 1,260 miles of roads, and the CSA has been and currently is in competition for those limited resources.
• The authorized and activated services are documented in Board Resolutions and The Local Agency Formation Commission of Monterey County (LAFCO) Resolution No. 09-17.

Q:  Why is Street Maintenance included in the CSA 17 Engineer’s Report?

• In response to community interest in improving road conditions, Street Maintenance is proposed as a new service activated through the assessment process. 
• In 2025, the County rehabilitated all of CSA 17’s streets through the Local Road Rehabilitation Program, so that the community would have a “clean slate” of roads to base the Engineer’s Report, thereby reducing the rate as much as practicable.
• If approved, the community will directly fund street maintenance so that your locally raised funds will be used for your streets solely. The County gas taxes are used for all the County’s 1,260 miles of roads, and the CSA has been and currently is in competition for those limited resources. 

Q:  What is a Majority Protest Hearing?

• A Majority Protest Hearing is a Public Hearing where property owners may submit written protests in the form of a completed assessment ballot, either in favor of or in opposition to a proposed property-related assessment. 
• A majority protest exists if the weighted value of ballots submitted in opposition exceeds the weighted value of ballots submitted in support.  Only valid, returned ballots are counted.
• If a majority protest exists, the assessment cannot be imposed.

Q:  If a majority protest does not exist, how much would be my annual assessment for my property(s) within CSA 17?

• Per the Board of Supervisors adopted April 2026 Engineer’s Report, the annual assessment for FY 2026-27 will range from $298 to $723 per year.
• The specific assessment for each Assessor’s Parcel Number (APN) is provided in Appendix E: Fiscal Year 2026/27 Assessment Roll of the April 2026 Engineer’s Report.

Q:  How was my assessed value determined? 

• CSA-17 used the Equivalent Dwelling Unit (EDU) method to allocate costs for benefiting parcels.  This is a standard best practice that is used regularly in assessment districts throughout the State of California.
• Under this method, a single-family home is defined as one (1) EDU.  Other land uses are converted to EDU’s based on an assessment formula appropriate for their proportional benefit. 
• For CSA 17, the assessment is calculated by evaluating Storm Drainage Infrastructure, Roadway Infrastructure, and Administration components independently of each other.  A parcel’s total assessment is the sum of these cost based on the benefit received.

Q:  If a majority protest does not exist, will my assessment increase in the future?

• The assessments identified in the Engineer’s Report may be increased each year based on the annual change in the “San Francisco Construction Cost Index” (SF-CCI) as published by Engineering News Record. Indexing the proposed assessments will allow for increases in normal repair, maintenance, and operating costs, without the need for additional election proceedings required by Proposition 218.
• Any increases beyond the SF-CCI, or changes in the level of service, would require the Proposition 218 process and property owner approval.
• In the event the SF-CCI is no longer published, the CSA shall use a similar index, as approved by the County Board of Supervisors.

Q:  Who is eligible to vote?

• The record owner of the parcel, as shown on the latest property tax assessment roll, is eligible to vote.
• For properties held in a trust, corporation, etc., the authorized agent may complete and submit the ballot.

Q:  What if a parcel has more than one owner?

• Anyone of the property owners on record may submit the ballot.
• Alternatively, owners can request proportional ballots based on proportional ownership interest, provided documentation of that interest is submitted. 

Q:  How are votes weighted?

• The assessment for individual parcels may vary depending on the proportionate special benefit derived by each parcel from the infrastructure, as determined by the Engineer’s Report. The ballots are weighted according to the proportional financial obligation of each affected property. For example, if property owner A’s assessment is $10 and they submit a ballot in opposition to the proposed assessment, and property owner B’s assessment is $1 and they submit a ballot in support of the assessment, property owner A’s ballot would have ten times more weight than property owner B’s ballot.
• A recent example follows:

Q:  Can the Board of Supervisors overturn the ballot proceeding result?

• No, the outcome of the Proposition 218 election, formalized through a Public Hearing, is final and cannot be overridden by the Board of Supervisors

Q:   Is a protest ballot a public record?

Yes, assessment ballots are not confidential and may be subject to public disclosure.