The District operates primarily from General Tax Revenues, Proposition 172 Public Safety Funds, Special Assessment Funds and Mitigation Funds. The Fire Auxiliary provides invaluable additional financial support by raising funds through community events and buying items for the Department or for firefighters directly that, although needed, do not fit within the budget. From time to time, deeply appreciated citizen donations also assist with special funding needs.

The budget process begins with a Preliminary Budget, prepared by the Finance Committee to cover the next fiscal year from July 1 to June 30, and presented to the Board for approval in June of each year. The bulk of the District's operating funds are paid through The Nevada County Tax office, and arrives in the District's account in December. This is followed by a Proposed Adopted Budget, reflecting several months' spending experience and the actual funding from the County. This budget is approved by the Board in January. An additional Revised Budget is drafted for approval in April. The fiscal year is concluded with a Final Budget reflecting actual income and expenditures and is presented to the Board at the end of the fiscal year.