Item No. 19.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: VANIAH DE ROJAS, ASSISTANT CITY MANAGER
DATE: JULY 28, 2026
APPOINTMENT OF PUBLIC MEMBER TO THE DOWNEY ENHANCED
SUBJECT: INFRASTRUCTURE FINANCING DISTRICT (EIFD) PUBLIC FINANCING AUTHORITY
EXECUTIVE SUMMARY
The City Council will consider appointing Hector Lujan to the Downey Enhanced Infrastructure Financing District (EIFD) Public Financing Authority (PFA). An EIFD is a local financing tool used to fund public infrastructure and economic development projects through capturing a portion of future tax increment revenues. The PFA serves as the governing body that oversees the EIFD, conducts required public hearings, and ultimately adopts the district's Infrastructure Financing Plan (IFP).
RECOMMENDATION
That the City Council:
Appoint Hector Lujan to the Downey Enhanced Infrastructure Financing District - Public Financing Authority.
BACKGROUND
EIFDs were created in 2014 (SB 628) following the dissolution of Redevelopment Agencies and have since become the predominant tax -increment financing (TIF) tool employed in California, with more than 30 districts formed Statewide, including six in Los Angeles County. EIFDs fund public facilities and investments by capturing a portion of future property tax increment revenue as development occurs within district boundaries. Importantly, EIFDs do not increase property taxes or impose new taxes on landowners. Additionally, the commitment of future EIFD funding has served as a catalyst for private sector investment and enhances eligibility for additional resources, including County contributions and competitive state and federal grants.
At the November 18, 2025 City Council meeting, the City Council received a presentation by City staff and its consultant (Kosmont Companies) regarding the feasibility of an EIFD, specifically in the areas of Rancho Los Amigos South Campus, NASA/Vultee Building, and the Back 20. At this meeting, the City Council provided staff with direction to proceed with preparing a non -binding Resolution of Intention to form an EIFD and move forward toward potential formation pursuant to the EIFD government code.
On December 9, 2025, the City Council approved: Resolution No. 25-8328 - Resolution of Intent to Form an EIFD; the establishment of the Downey EIFD Public Financing Authority (PFA); and appointment of then Mayor Hector Sosa and then Councilmember, now Mayor, Claudia M. Frometa to the PFA.
At the June 23, 2026 Los Angeles County Board of Supervisors meeting, the Board of Supervisors approved a resolution expressing the County's intent to participate in the Downey EIFD and membership in the newly formed Public Financing Authority.
With a City -County EIFD strategy, the Tax Increment Financing (TIF) capacity is estimated at up to $54 Million.
These monies could be used for public facilities of community significance with a useful life of 15+ years, including maintenance. Example projects identified by City staff and consultants include, but are not limited to:
• Water, sewer, and utility capacity enhancements;
• Roadway and streetscape improvements;
• Affordable housing gap funding;
• Metro station first/last mile connections;
• Park improvements; and
• Broadband infrastructure.
Separately, the Los Angeles County Metropolitan Transportation Authority (Metro) has separately procured an expert team of consultants (which happens to include Kosmont Companies) to provide value capture financing technical support to Los Angeles County jurisdictions with Metro transit infrastructure. Metro has offered to assist the City by funding the implementation phase of the EIFD work going forward at City staff's direction. This action will result in savings to the City as all staff time and consultant time on the implementation will be covered by Metro, and not require any use of City funds. This is a savings of approximately $65,000 to the City.
ANALYSIS
Implementation of an EIFD requires creation of a PFA. The PFA adopts bylaws governing terms, officers, and meeting schedules. It oversees implementation of the Infrastructure Financing Plan (IFP), with authority to approve minor amendments (e.g., revenue updates). Major amendments (e.g., new projects or allocation increases) require approval by the City Council and any partner legislative body.
The structure of the EIFD (City + County strategy) is five -member board consisting of:
• Two Downey City Councilmembers;
• One public member appointed by the Downey City Council; • One LA County Supervisor (or designee); and
• One public member appointed by the LA County Supervisor Tonight's proposed appointment of Hector Lujan to the Downey EIFD Public Financing Authority will fill the vacant public member spot appointed by the Downey City Council. The County is expected to appoint their public member to the PFA in the coming months.
Following this appointment, staff will begin coordinating with the County to formally initiate the PFA process and schedule the associated meetings.
BOARD/COMMISSIONISUBCOMMITTEE ACTION
At the July 7, 2026 Rancho Los Amigos Ad -Hoc Committee Meeting, the members of the Ad -hoc discussed and recommended to move forward with Hector Lujan to serve on the Downey EIFD Public Financing Authority.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Economic Vibrancy
{]uahv of Life' Safety, & infrastructure
FISCAL IMPACT
There isnofiscal impact associated with this report.