About Your Tax Bill

Santa Margarita Water District (SMWD) is Orange County’s second-largest water district, providing water and wastewater treatment services to more than 203,000 residents in Mission Viejo, Rancho Santa Margarita, Rancho Trabuco, Coto de Caza, Las Flores, Ladera Ranch, Village of Esencia, Village of Sendero, Talega, and San Juan Capistrano.

SMWD's service is divided into nine improvement districts, which correspond to specific geographic areas. The purpose of SMWD's improvement districts was to efficiently fund capital infrastructure in areas as they were developed, by issuing bonds and levying property taxes to repay the bonds. Each improvement district's infrastructure was funded by its own bonds, ensuring that residents of older neighborhoods would not have to pay for facilities in newly developing areas.

Property owners in certain improvement districts may be subject to special property taxes to repay either General Obligation Bonds or Community Facilities District Bonds.

General Obligation Bonds

SMWD has issued General Obligation Bonds to fund the water and wastewater infrastructure for the various improvement districts. General Obligation Bonds are issued for the development of specific facilities and are paid for by the area directly benefiting from the facilities. Debt service payments (principal and interest) are established at the time the bond is sold and are collected through the County of Orange Treasurer-Tax Collector via property tax bills. Annually, SMWD determines the necessary tax rates for each improvement district.

Community Facilities District Bonds

A Community Facility District (CFD) are formed for the purpose of financing acquisition and construction of new capital facilities. SMWD has issued CFD Bonds for the communities of Talega (Improvement District 7) and Village of Sendero (Improvement District 4E). Debt service payments (principal and interest) are established at the time the bond is sold and are collected through the County of Orange Treasurer-Tax Collector via property tax bills.