ADMINISTRATIVE REPORT
MEETING DATE: October 12, 2026 AGENDA CATEGORY: New Business TO: Finance, Economic Development and Jobs Committee
FROM: Phillip Burns, Development Services Director
DATE: August 31, 2026
SUBJECT: Presentation Regarding the Enhanced Infrastructure Financing District Feasibility Study.
Staff and city consultant, Kosmont Companies, to provide an overview of analysis.
RECOMMENDATION:
Staff recommends the Committee make recommendations on the presented information.
BACKGROUND:
The City of Bakersfield is evaluating the use of a special purpose financing district such as an Enhanced Infrastructure Financing District (EIFD) to capture value from potential new development to fund critical infrastructure and community investment priorities. EIFDs are financed through tax increment generated from the growth in property taxes collected from within a designated district boundary.
District tax increment financing (TIF) capacity is estimated to range up to $717M over time. In addition to the TIF District funding capacity, the district would elevate the City’s ability to attract other public funding, particularly state and federal grants where we get extra points in application scoring.
While a city-only financing district strategy would likely achieve favorable “return on investment” for the City, a broader partnership including the County of Kern would further improve financial feasibility.
District can finance a variety of activities:
Infrastructure and public facilities of regional or communitywide significance such as public facilities, roadways, parking, parks and open space, etc. Maintenance
Affordable housing
The district can fund projects and public capital facilities located outside its official boundaries but must demonstrate a clear benefit nexus showing that the outside infrastructure directly supports or enhances the development inside the district.
Why are Public Agencies Authorizing Financing Districts?
1. Return on Investment: Private sector investment induced by district commitment accelerates growth of net fiscal revenues, promotes job creation, economic revitalization, housing production, and helps support essential infrastructure improvements.
2. Ability to attract other funding that is not otherwise available for projects within the community: additional funds / other public money; tax increment from other entities (county, special districts); and federal / state grants / loans (e.g., for transit-oriented development, water, housing, parks, remediation).
FISCAL IMPACT:
The EIFD feasibility study was funded in the Fiscal Year 2025-26 budget.
COUNCIL GOAL:
Economic Opportunity for All
Reliable Infrastructure
ATTACHMENTS:
None