California Streets And Highways Code Section 18014

If any lots or parcels of land belonging to the United States, or to this State or to any county, city, public agency, mandatory of the government, school board, educational, penal or reform institution, or institution for the feebleminded or the insane are in use in the performance of any public function and are included within the assessment district, the city council may, in the resolution of intention, declare that such lots or parcels of land, or any of them, shall be omitted from the assessment thereafter to be made to cover the costs and expenses of the improvement. If the lots or parcels of land, or any of them, are omitted from the assessment by the resolution, the total cost and expense of all work done shall be assessed on the remaining lots lying within the limits of the assessment district, without regard to such omitted lots or parcels of land. If the city declares in the resolution of intention that said lots or parcels of land, or any of them, shall be included in the assessment, or if no declaration is made respecting such lots or parcels of land, or any of them, the city shall be liable for such sums as may thereafter be assessed against such lots or parcels of land, and such sums shall be payable by the city out of the general fund unless the city council shall in its resolution of intention designate another fund. However, any such sums which may be assessed against any such lots or parcels of land, shall not be payable by the city when such sums are paid by the owner of or the governing body controlling such lots or parcels of land.