Earlier editions: 2026-09
Title 3 — Revenue and Finance›Chapter 3.32 — SPECIAL IMPROVEMENT DISTRICT FINANCING CODE
Newport Beach Municipal Code Art. V Annexation of Territory
Newport Beach Municipal Code · 2026-10 edition · updated 2026-10-04 · Newport Beach
Cite as: Newport Beach Municipal Code Article V · Text as of 2026-10-04
§ 3.32.540. Authorization.¶
The City Council may annex territory to an existing special improvement district as provided in this article. The annexed territory need not be contiguous to territory included in the existing special improvement district. The territory proposed to be annexed to the special improvement district may be territory located outside the territorial limits of the City provided that the territory to be annexed to the special improvement district will be annexed to the City prior to, or concurrently with, the annexation of the subject territory to the special improvement district and, if the annexation of the subject territory to the City is not completed, the subject territory shall not be annexed to the special improvement district. The City Council shall not adopt a resolution of intention pursuant to Section 3.32.550 if the territory proposed to be annexed includes territory which is outside the territorial limits of the City unless an initial action, petition, or filing for the annexation of that territory to the City has been adopted or filed, as appropriate.
(Ord. 94-40 § 2 (part), 1994)
§ 3.32.550. Adoption of Resolution of Intention.¶
If the City Council determines that public convenience and necessity require that territory be added to an existing special improvement district, or if the voters residing within certain territory or owners of land there request the City Council to include territory within the district, the City Council may adopt a resolution of intention to annex the territory or to provide for future annexation of the territory.
(Ord. 94-40 § 2 (part), 1994; Ord. 2023-22 § 155, 2023)
§ 3.32.560. Resolution of Intention – Contents.¶
The resolution of intention to annex the territory or to provide for future annexation of the territory shall do all of the following:
A. State the name of the existing special improvement district.
B. Generally describe the territory included in the existing district and the territory proposed to be annexed. As an alternative, the resolution may identify territory proposed for annexation in the future, with the condition that parcels within that territory may be annexed only with the unanimous approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed.
C. Specify the types of public facilities and services provided pursuant to this Code in the existing district and the types of public facilities and services to be provided in the territory proposed to be annexed or to be annexed in the future; and include a plan for sharing facilities and providing services that will be provided in common within the existing district and the territory proposed to be annexed or to be annexed in the future.
D. Specify any special taxes which would be levied within the territory proposed to be annexed or to be annexed in the future to pay for public facilities and services provided pursuant to this Code within that territory. A special tax proposed to pay for services to be supplied within the territory proposed to be annexed or to be annexed in the future shall be equal to any special tax levied to pay for the same services in the existing district, except that a higher or lower tax may be levied within the territory proposed to be annexed or to be annexed in the future to the extent that the actual cost of providing the services in that territory is higher or lower than the cost of providing those services in the existing district. A special tax proposed to pay for public facilities financed with bonds secured by the existing special improvement district shall be the same as the tax levied in the existing district for that purpose, except that a higher special tax may be levied for that purpose within the territory proposed to be annexed or to be annexed in the future to compensate for the interest and principal previously paid by the existing special improvement district, less any depreciation allocable to the public facility.
E. Specify any alteration in the special tax rate levied within the existing special improvement district as a result of the proposed annexation. The maximum tax rate in the existing special improvement district may not be increased as a result of proceedings pursuant to this article.
F. Fix a time and place for a hearing upon the resolution which shall not be less than thirty (30) nor more than sixty (60) days after the adoption by the City Council of the resolution of intention to annex territory or to provide for future annexation of territory pursuant to Section 3.32.550.
(Ord. 94-40 § 2 (part), 1994)
§ 3.32.570. Notice of Hearing.¶
The Clerk shall give notice of the hearing in the same manner and within the same time as provided for the giving of notice of a hearing on a resolution of intention to establish a special improvement district, as required by Section 3.32.240. Notice pursuant to Section 3.32.250 may be mailed to the registered voters and landowners within the territory proposed to be annexed or proposed to be annexed in the future.
The notice shall do all of the following:
A. Contain the text or a summary of the resolution.
B. State the time and place for the hearing.
C. State that at the hearing the testimony of all interested persons for or against the annexation of territory or the future annexation of territory to the special improvement district or the levying of special taxes within the territory proposed to be annexed or proposed to be annexed in the future will be heard.
(Ord. 94-40 § 2 (part), 1994)
§ 3.32.580. Protests.¶
At the hearing, protests against the proposals described in the resolution of intention may be made orally by any interested person. Any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularities or defects to which objection is made. All written protests shall be filed with the Clerk prior to the time fixed for the hearing. The City Council may waive any irregularities in the form or content of any written protest and at the hearing may correct minor defects in the proceedings. Written protests may be withdrawn in writing at any time before the conclusion of the hearing.
(Ord. 94-40 § 2 (part), 1994)
§ 3.32.590. Abandonment of Proposal – Required Number of Written Protests.¶
If fifty (50) percent or more of the registered voters, or six registered voters, whichever is more, residing within the existing special improvement district, or if fifty (50) percent or more of the registered voters or six registered voters, whichever is more, residing within the territory proposed for annexation or proposed to be annexed in the future, or if the owners of one-half or more of the area of land included in the existing district or if the owners of one-half or more of the area of land in the territory proposed to be annexed or proposed to be annexed in the future, file written protests against the proposed annexation of territory to the existing special improvement district or the proposed addition of territory to the existing special improvement district in the future, and protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be undertaken for a period of one year from the date of decision of the City Council on the issues discussed at the hearing.
(Ord. 94-40 § 2 (part), 1994)
§ 3.32.600. Continuance and Duration of Hearing – Abandonment of Proceedings –…¶
A. The hearing may be continued from time to time but shall be completed within thirty (30) days, provided that the City Council may extend that time up to six months if it determines that it is in the public interest to do so. At the conclusion of the hearing, the City Council may abandon the proceedings, or may, after passing upon all protests, submit the question of levying a special tax within the area proposed to be annexed to the existing special improvement district to the qualified electors of the area proposed to be annexed as specified in Article III of this chapter, or may provide for the annexation of territory proposed for annexation in the future upon the unanimous approval of the owner or owners of each parcel or parcels at the time that the parcel or parcels are annexed, without additional hearings.
B. Notwithstanding any other provision of law, when the question of levying a special tax within the areas proposed to be annexed into an existing special improvement district appears on the same ballot as the question of annexation of the same territory to a school district, the effectiveness of each ballot measure may be made contingent on the passage of the other ballot measure.
(Ord. 94-40 § 2 (part), 1994; Ord. 2023-22 § 156, 2023)
§ 3.32.610. Addition of Territory With Full Legal Effect – Special Tax Levy.¶
A. After the canvass of returns of any election conducted in accordance with Section 3.32.600, the City Council shall determine that the area proposed to be annexed is added to and part of the existing special improvement district with full legal effect, and the City Council may levy any special tax within the annexed territory, as specified in the resolution of intention to annex adopted pursuant to Section 3.32.550, if two-thirds of the votes cast on the proposition are in favor of levying the special tax.
B. Upon a determination by the City Council that the area proposed to be annexed is added to the existing special improvement district, the Clerk shall record notice of the annexation pursuant to California Streets and Highways Code Section 3117.5.
(Ord. 94-40 § 2 (part), 1994; Ord. 2023-22 § 157, 2023)
§ 3.32.620. Failure to Receive Approval of Two-thirds of Voters – Prohibition of…¶
After the canvass of returns of any election conducted in accordance with Section 3.32.600, the City Council shall take no further action on annexing the territory proposed to be annexed to the special improvement district for a period of one year from the date of the election if less than two-thirds of the votes cast on the proposition are in favor of levying the special tax.
(Ord. 94-40 § 2 (part), 1994)
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