200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-5094
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
CITY MANAGER’S OFFICE
DATE: MAY 12, 2026
FROM: CITY MANAGER’S OFFICE
SUBJECT: RESOLUTION IN OPPOSITION OF THE PROPOSED
CALIFORNIA HIGH-SPEED RAIL AUTHORITY TAX
INCREMENT FINANCING DISTRICTS
ATTACHMENT (Y/N): YES ITEM # 23
GOVERNMENT CODE § 84308 APPLIES: NO
REQUESTED ACTION:
That the City Council, by Resolution, oppose the California High-Speed Rail Authority’s proposal to establish Tax Increment Financing districts.
DISCUSSION:
At the May 5, 2026, City Council meeting, Council Member Ryan Balius requested a resolution formally opposing the California High-Speed Rail Authority’s proposal to establish state-controlled Tax Increment Financing districts.
In February 2026, the California High-Speed Rail Authority (HSRA) released its Draft 2026 Business Plan, outlining its construction strategy and revenue approach for the High-Speed Rail project. The plan includes a proposal to establish Tax Increment Financing (TIF) districts within a half-mile radius of proposed station locations. TIF districts are areas in which future increases in tax revenue generated by new development are redirected to help finance specific projects within that district. Under the HSRA’s proposal, the state would be allowed to capture property and sales tax growth revenue to support high-speed rail construction and related commercialization activities.
Anaheim is identified as a future high-speed rail station site at the ARTIC, near the OCVIBE development. If the HSRA’s proposed TIF districts advance, it could divert future property and sales tax growth from the area surrounding the ARTIC. The City relies on such revenues to fund essential public services, including infrastructure maintenance, public safety, parks, housing, and local transportation improvements.
On April 27, 2026, the State Senate Transportation Committee held an informational hearing on the Draft 2026 Business Plan. The plan is now moving through the state budget process rather than the standard legislative process. More detailed information on the TIF proposal is expected to be released once it appears in a budget trailer bill.
Resolution to Oppose the California High Speed Rail Authority’s proposal to establish a Tax Increment Financing (TIF) districts May 12, 2026
Statewide local-government organizations—including the League of California Cities, the California State Association of Counties, and the California Special Districts Association—have led efforts to oppose the HSRA’s proposed TIF districts.
If approved, the City will transmit the resolution and a letter of opposition to its state legislators for appropriate distribution.
IMPACT ON BUDGET:
There is no budgetary impact.
Respectfully submitted,
Greg Garcia
Interim City Manager
Attachment:
1. Resolution