Special District Formation

SDFA assists with all aspects of special district formation including developer negotiations, feasibility and pro-forma analysis, conducting workshops with both public agency decision-makers and affected property owners, preparing Engineer’s and Special Tax Reports, drafting of special tax formulae, supervising landowner elections, creating boundary map and assessment diagrams, and recording all pertinent formation documents.

Administration of Special Districts

SDFA performs all aspects of special district administration. We utilize our proprietary special district software (SDSoft) to process, calculate, apportion, update and generate all special taxes and assessments to be applied to the secured rolls of various counties in California.  Additionally, SDFA prepares levy budgets to ensure that all recoverable costs of the agency are incorporated into the levy, monitors fiscal agent transactions, monitors and updates letter of credit requirements, tracks the indexing of mitigation payments, monitors delinquencies and other services as needed by the client.

Delinquincy Assistance

SDFA assists public agencies with both monitoring and collecting unpaid special taxes and assessments as required by bond covenant. As part of this process, SDFA mails delinquency notices as required, often after each installment and again at the end of the fiscal year. Fiscal year end notices, at the discretion of the agency, can contain provisions for the delinquent charges to be paid to our offices for processing which includes sending such payments on to the bank and removal of the charges from the County tax roll. Should delinquencies reach the foreclosure covenant, SDFA prepares a summary exhibit for agency action, as well as requests unpaid taxes and assessments requiring such foreclosure action be stripped from the County tax roll.

Continuing Disclosure

SDFA assists its clients in both the preparation and dissemination of Continuing Disclosure Reports. In accordance with the Continuing Disclosure Agreement (CDA), which typically requires updated development and financial information of both the special district and the agency, SDFA timely monitors, organizes, prepares, provides for review and submits annual report filings. Periodic notices, referred to as Notices of Material Events, are also prepared and timely disseminated to the bond market as required by the CDA.

Arbitrage Rebate Services

For applicable tax-exempt financings, SDFA performs arbitrage rebate calculations in compliance with Section 148 of the Internal Revenue Code. In preparing such calculations SDFA ensures that only transactions that are in accounts subject to the rebate rules are considered and that all yield computations utilize data that has been characterized correctly.

Annual & Five Year Reports

In compliance with AB 1600, SDFA reviews and/or assists in the preparation of Annual & Five Year Developer Fee Reports that allow the public and other interested parties to examine the revenues and expenditures over the applicable time period as well as identify future projected or necessary expenditures.


SDFA annually completes all necessary CDIAC (California  Debt and Investment Advisory Commission) reporting for clients with applicable debt; complying with California Government Code Sections 53359.5, 6599.1 and 8855(K).

Fee Justification Study

For primary and secondary school districts, SDFA prepares Fee Justification Studies for residential and commercial/industrial development that identify the impact of projected future development on school facilities. The Study considers the ability of the school district to accommodate the impact within current facilities and identifies the cost associated with meeting the increased facilities needs. The Study makes the necessary findings set forth in Government Code Section 66001 et al., and in accordance with Government Code Section 65995 et al., to support the collection of statutory school fees as allowed by the State of California.

School Facilities Needs Analysis

For an eligible primary and secondary school district, SDFA performs a School Facilities Needs Analysis which potentially allows school districts the ability to collect Alternative Fees by quantifying the impacts of new residential development on school district facilities for the next five-year period. In accordance with Government Code Sections 65995.5. 65995.6, and 65995.7 and Education Code 17620, the Analysis reviews the eligibility of the school district, calculates a “true cost” in compliance with Section 66000 of the Government Code, and clearly steps through each required calculation of the Level II and Level III Fees. SDFA presents the report, summarizing the findings to the Board, and supports legal counsel and staff in responding to any questions received.

Fiscal Analysis

SDFA performs in-depth review of special districts historical revenue and expenditures based on our extensive experience to assure compliance with applicable formation documents and statutory requirements.

Growth Projections

SDFA completes a comprehensive review of permit and planning data, as well as pending project applications in order to provide public agencies with predictive data to assist with a variety of planning and growth management functions.

Staff Training

SDFA provides agencies with both formally arranged training sessions and as needed response to staff questions to allow agencies to efficiently and accurately handle necessary special district tasks.

Territory Transfers

SDFA prepares on behalf of the agency Territory Transfer Reports in accordance with: Education Code 35753 and 35500. The report details the pertinent criteria outlined in the Education Code as well as the reasoning for transfer as described by the Petitioners. This territory transfer analysis and resulting report is completed while working closely with legal council District staff.