Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: ENHANCED INFRASTRUCTURE FINANCE DISTRICT
UPDATE
Date: August 25, 2026
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council receive an update on the status of the proposed Enhanced Infrastructure Finance District. No action is proposed.
Background
After completing the Fiscal Impact Analysis, on June 23, 2026, the City Council adopted resolution 2026-40, declaring the City’s intention to establish an Enhanced Infrastructure Finance District (EIFD), with boundaries generally coinciding with the established priority development areas. At the same time, the City Council also created the Public Finance Authority (PFA), but declined to appoint any City Councilmembers or a public member, as the viability of the EIFD depended on if the County of Sonoma were to eventually elect to participate in the EIFD.
Analysis/Discussion
On August 18, 2026, the Sonoma County Board of Supervisors (BOS) unanimously elected to join Cotati’s PFA, appointed Supervisor Rabbitt and directed staff to move forward as needed on the appointment process for a citizen representative on the PFA. In addition, the BOS also directed County staff to hire a consultant to perform a peer review of Cotati’s Fiscal Impact Analysis.
At this time, the BOS has agreed to join Cotati’s five member PFA, rather than the more onerous 7 member PFA that was formed in Santa Rosa. However, staff discussions will likely continue on the level of County participation following the completion of the peer review of the Fiscal Impact Analysis.
Given that is unlikely to need a PFA meeting until the peer review is complete and only if the City Council decides to move forward on the final terms, staff do not believe there is an immediate need to appoint City Councilmembers to the PFA. If a decision is made to proceed, this will also include an action to appoint City Councilmembers and move forward with Phase 3 of the EIFD consulting agreement.
Based on the timing of the next steps and assuming it makes sense to proceed, the base year will be FY 2026-27.
Financial Considerations
This item is informational only, there are no financial impacts.
Environmental Issues
Where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review.
This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed discussion is exempt from CEQA pursuant to Section 14.03.021 of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment.