SJAFCA MISSION STATEMENT - Reduce and Manage the Region’s Flood Risk 1
PROPOSED MOSSDALE TRACT
ENHANCED INFRASTRUCTURE FINANCING DISTRICT
Lathrop City Council Special Meeting
January 13, 2022
Item 2.1
Reduce and Manage the Region’s Flood Risk
SJAFCA Mossdale Program
SJAFCA Strategic Plan Priority Actions related to Mossdale Tract Urban Level of Protection:
• Support USACE in initiating Phase 2 of the Lower San Joaquin River Project Feasibility Study
• Complete the Mossdale Urban Flood Risk Reduction Study and advance Design and Environmental Review
• Achieve 200-year Urban Level of Flood Protection for the Mossdale Tract Area (by 2028) and present Adequate Progress until Improvements are Complete Implementation of the proposed Enhanced Infrastructure
Financing District is integral to Adequate Progress
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Mossdale Tract Funding
• Program must be completed by 2028 (AB 838 3-Year Extension) • Phase 4 Work (200-Year ULOP Project) currently estimated to be $230M (2021$’s) taking into consideration SJAFCA’s Climate Adaptation Policy • Almost entirely locally funded at this time
• New Local Funding Mechanisms
• Development Impact Fee collected throughout Mossdale Tract Basin • Been in place since early 2019. Currently working through update process. • Proposed Overlay Assessment District
• Would overlay RD 17’s existing assessment funding the local share of the Phase 3 Levee Seepage Repair Project. Preliminary Rates are being evaluated. Looking to advance assessment formation in the Spring (early 2022).
• Proposed Mossdale Tract Enhanced Infrastructure Financing District • A partnership between the Cities of Lathrop, Manteca, and Stockton and San Joaquin County dedicating a portion of Property Tax Increment toward the project to fund / finance the Project.
Reduce and Manage the Region’s Flood Risk
Summary of Request
Start formation of the EIFD by adopting the Resolution of Intention
1. Establishes the Governance Entity (a Public Financing Authority) which is the entity that will:
a. Prepare the necessary documentation - the Infrastructure Financing Plan; and, b. Take the formal steps of forming the EIFD subject to approval by the participating agencies
2. Appoint Members of PFA including Lathrop City Council Members and Public Members
a. Staff recommendation is to overlap membership between EIFD PFA and SJAFCA as much as possible for administrative efficiencies. Public Members will be chosen today from applications received, subject to approval by the other agencies.
3. Set forth the hearing and noticing actions to be carried out consistent with relevant EIFD Law
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Reduce and Manage the Region’s Flood Risk
Public Financing Authority - Membership
• Public Financing Authority is proposed to consist of two (2) members from each of the four (4) participating agencies governing bodies (Council Members / Supervisors) plus two (2) members of the public (a total of 10 members)
• Each participating Agency appoints their members and approves the two public members
• Attached resolution, as recommended, appoints Council Members Akinjo & Lazard to the PFA and as the agency initiating the formation of the EIFD, approves the appointment to the two public members
• All of the other participating agencies must approve the public members as well
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Reduce and Manage the Region’s Flood Risk
Policy Considerations
• The Mossdale Tract Area EIFD will allow Lathrop and the other Affected Taxing Entities to continue to validate their findings of Adequate Progress toward ULOP.
• The effective use of an EIFD as a tool for infrastructure finance should result in positive economic and fiscal impacts to the community.
• The Center for Business and Policy Research at the Eberhardt School of Business concluded that total economic benefits of future development in the basin, which would only be able to move forward if the ULOP project is completed, would be more than $11 Billion and 66,000 jobs at buildout.
• In addition, analyses completed by SJAFCA’s consultant team estimate positive fiscal impacts for each of the ATEs.
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Reduce and Manage the Region’s Flood Risk
EIFD Formation Process
Formation process starts with an initial action of a Participating Entity. • Governance Entity / PFA
Process continues with meetings of new PFA
• Five Meetings of PFA
• Two organizational meetings / call for preparation of IFP / Three Noticed Public Hearings • Multiple mailed notices to all property owners/residents within the EIFD Formation is conditioned on Participating Entity approval • Participating entities must approve IFP prior to Third/Final Public Hearing of PFA
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Reduce and Manage the Region’s Flood Risk
Enhanced Infrastructure Financing Districts
An Enhanced Infrastructure Financing District (EIFD) is a tax increment financing mechanism through which jurisdictions allocate a portion of new property tax revenues to fund eligible improvements of communitywide benefit.
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EIFD Contribution
City General Fund
EIFD Funding
- Infrastructure Projects of
Community Benefit
-EIFD Administrative Costs
- County Reimbursement
Remaining City Property Tax
Revenues
Incremental New
Property Tax Increment
Incremental Value of
Anticipated New
Development in the EIFD
Incremental Growth of
Exisiting Value within the
EIFD Boundary
City Share of Property Tax
Revenues
Proposed
Boundary of
the EIFD
• Reflects the Area of
Benefit of ULOP
• Consistent with the
Area subject to the
Regional Levee
Impact Fee and
Proposed Overlay
Assessment District
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Infrastructure Financing Plan
10 As required by Government Code Sections 53398.59–53398.74, the completed IFP contains the following information:
1. The EIFD boundary
2. Public facilities and other forms of development or financial assistance
3. A finding of communitywide significance
4. Financial analyses that summarize:
a. Maximum tax increment committed to the EIFD
b. Amount of tax revenues generated for the EIFD
c. A financing plan and any intention to incur debt
d. A limit on total tax increment allocated to the EIFD e. The date the EIFD will cease to exist
f. An analysis of projected net fiscal impacts of the EIFD on affected taxing entities
5. A dwelling unit replacement plan
6. The goals of the EIFD
Reduce and Manage the Region’s Flood Risk
Summary of Draft Analyses Completed
To be included as attachments to the IFP, drafts Fiscal Impact Analyses and EIFD Revenue Analyses have been completed for each affected taxing entity and ready for review by the new PFA.
Fiscal Impact Analysis
• The Fiscal Impact Analysis estimates the costs of providing municipal services to development within the EIFD as well as the net fiscal impact to each jurisdictions General Fund of EIFD development, including estimated EIFD contributions under each scenario.
EIFD Revenue Analysis
• The EIFD Revenue Analysis estimates the annual EIFD contribution generated by anticipated development within each jurisdiction, under both allocation scenarios.
Preliminary Bond Proceeds Analysis
• A preliminary Bond Proceeds Analysis has been completed in order to estimate the capacity of the EIFD to generate proceeds for construction of the Mossdale ULOP Project.
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City of Lathrop Annual EIFD Revenues and Rates
Reduce and Manage the Region’s Flood Risk 12 $0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
0.0%
5.0%
10.0%
15.0%
20.0%
25.0% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 EIFD Revenue (in Millions$) City of Lathrop
Annual EIFD Allocation Rates and Revenue
Maximum Tax Rate and Variable Tax Rate Scenarios
Annual EIFD Revenue - Variable Tax Rate Scenario Annual EIFD Revenue - Maximum Tax Rate Scenario Allocation Rate - Variable Tax Rate Scenario Allocation Rate - Maximum Tax Rate Scenario
10.0%
20.0%
13.0%
9.5%
4.5%
Reduce and Manage the Region’s Flood Risk
Next Steps & Requested Action
• Cities of Manteca and Stockton and San Joaquin County would each adopt companion resolutions that:
• Declare their intent to participate in the EIFD; and, • Appoint their respective members to the PFA Board (consistent with the intent to overlap the SJAFCA Membership as much as possible)
• Participating Member Agency Actions are scheduled throughout January & February • First Public Financing Authority Meeting would be scheduled for Mid-February Recommendation: Council adoption of the attached Resolution of Intention proposing to establish an Enhance Infrastructure Financing District and appointing two Lathrop Members and two Public Members.
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Questions?
SJAFCA MISSION STATEMENT - Reduce and Manage the Region’s Flood Risk 14