The Natural History of Foster City, California
by James K. Sayre
a draft manuscript
12 May 2005
Chapter 2 - Estero Municipal Improvement District and the creation of the City of Foster City
When the Foster partnership was faced with the problems of financing the construction of their new city by the Bay, they created unique solution: the Estero Municipal Improvement District. This is a one-of-a-kind political animal that allowed the owners of the land to vote in proportion to the assessed value of land that they owned (sort of a throwback to colonial days in the Original Thirteen colonies, when only white, male, adult property-owners had the right to vote).
In 1960, the California State Government approved the creation of the Estero Municipal Improvement District (SB 51), which allowed the District to issue tax-free municipal bonds to pay for the costs of construction of Foster City, including the dredging, the construction of the lagoons and levees, and the installation of utilities (sewage, water, gas, electricity, telephone), the paving of roads, and the construction of bridges. The bonds were to be paid off by property taxes levied on the new property owners in Foster City. In 1964, less than four years after the start of construction, the first homes were ready for occupancy. In the middle sixties, the new homeowners banded together as the Foster City Community Association. As property taxes levied by Estero MID went higher and higher, political organizing and protest blossomed in Foster City. In 1967, the State Legislature passed legislation to allow an orderly transition to political democracy in Foster City. The Estero MID ruling board was increased to five members. In 1969, the homeowners won a majority of seats on the board. In 1971, the incorporation vote for the creation of the City of Foster City was passed by an overwhelming margin of 98% in favor. The City was officially incorporated on April 27, 1971. The Estero Municipal Improvement District still exists alongside the City of Foster City.
End.
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