1 PROPOSED MOSSDALE TRACT
ENHANCED INFRASTRUCTURE FINANCING DISTRICT –
INFRASTRUCTURE FINANCING PLAN OVERVIEW
City of Manteca
April 18, 2022
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Presentation Overview
• Purpose of Presentation
• Infrastructure Financing Plan (IFP) - Overview
• Description of IFP Elements
• Estimated Cost and Plan for Financing Facilities
• Development and Tax Increment Revenue Forecast
• Jurisdictional Participation Levels in EIFD
• Fiscal Impact Analysis and Results
• Next Steps in EIFD Formation Process
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Infrastructure Financing Plan
3 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
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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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Estimated Eligible Infrastructure and Facility Costs*
5 *Costs obtained from the SJAFCA
Mossdale Tract Area ULDC Climate
Change Adjustment Consolidated Cost
Estimate, prepared by Kjeldsen Sinnock
Neudeck Civil Engineers and Land
Surveyors, dated January 29, 2021.
Eligible Infrastructure and Facility
costs will be funded through a
variety of funding sources including
Assessments and Development
Impact Fee Revenues with
supplemental funding from EIFD
revenues.
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Mossdale Tract Funding Sources
• ULOP Program anticipated to be completed by 2028
• Estimated $230M (2021 $’s) for 200-Year ULOP Project
• Almost entirely locally funded at this time
• New Local Funding Mechanisms
• Development Impact Fee collected throughout Mossdale Tract Basin • Proposed Overlay Assessment District
• Proposed Mossdale Tract Enhanced Infrastructure Financing District ATTACHMENT 2
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Tax Increment Financing Overview
• TIF is permissible through EIFD.
• EIFD may use all or a portion of property tax increment. • Development and assessed value growth forecasts.
• Tax increment revenue forecast (years to accrue).
• Consider fiscal impacts to jurisdictions with EIFD
participation.
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Timing for Tax Increment Revenues
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 EIFD
Formation
Infrastructure and
Other Improvements
Commence
New development and new assessed value growth
Sufficient Tax Revenue
for Project Funding
PAYGO Funding Debt Service Payments
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Tax Increment Revenue Forecast Assumptions
9 • New residential and nonresidential growth and absorption assumptions from jurisdictions.
• Provided by each jurisdiction and reviewed by all jurisdictions • Assumptions regarding growth of existing development assessed values. • Combined into Assessed Value (AV) growth forecast (by jurisdiction). • Jurisdictional shares of ad valorem property tax (vary by Tax Rate Area). • (New AV Growth x Share of Property Tax) = Property Tax Increment forecast (by jurisdiction)
• Determination of share of property tax increment to EIFD.
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Summary of EIFD Land Uses
Cumulative totals as provided by Jurisdictions
10 Land Use
Dwelling
Units
Building
Sq. Ft.
Dwelling
Units
Building
Sq. Ft.
Dwelling
Units
Building
Sq. Ft.
Dwelling
Units
Building
Sq. Ft.
Residential Land Uses
Low Density Residential 4,258 - 4,419 - 187 - 8,863 -
High Density Residential 661 - 738 - 888 - 2,287 -
Subtotal Residential 4,919 - 5,157 - 1,075 - 11,150 -
Nonresidential Land Uses
Retail Commercial - 3,305,952 - 4,098,222 - 3,042,807 - 10,446,981 Office Commercial - 2,020,948 - 928,931 - 261,089 - 3,210,967 Industrial - 9,415,432 - 6,071,411 - 3,920,750 - 19,407,593 Subtotal Nonresidential - 14,742,332 - 11,098,564 - 7,224,645 - 33,065,541 Total All Land Uses 4,919 14,742,332 5,157 11,098,564 1,075 7,224,645 11,150 33,065,541 Source: San Joaquin County; City of Manteca; City of Lathrop; City of Stockton; LWA; EPS.
Cumulative Dwelling Units/Square Footage at Buildout (2060) Lathrop Manteca Stockton Total County
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Summary of Ad Valorem Property Tax Shares
11 • Existing City allocations reflects the average property tax allocation to the County General Fund for all TRAs within the EIFD boundary that are within the boundaries of each City. • Annexation Area allocations are estimated based on the average property tax allocation for each TRA and the terms of the existing master tax-sharing agreement between the individual city and the County.
Item Existing City Annexation Areas Existing City Annexation Areas Existing City Annexation Areas City General Fund Property Tax Allocation 11.23% 6.94% 14.30% 6.63% 16.71% 7.23% County General Fund Property Tax Allocation 18.76% 27.75% 19.84% 26.51% 20.56% 28.93% Jurisdiction
Lathrop Manteca Stockton
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Assessed Value:
Future
Development
Net Fiscal
Surplus
Growth in Property
Tax Revenue
Share of
Property Tax
Determination of EIFD Participation Levels
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Annual EIFD Contribution Rate Scenarios
13 Affected Taxing Entity 2030 - 2032 2033 - 2043 2044 -2061 Maximum Tax Rate Scenario
City of Lathrop 10.0% 20.0% 20.0% 20.0%
City of Manteca 5.0% 20.0% 20.0% 20.0%
City of Stockton 1.0% 20.0% 20.0% 20.0%
San Joaquin County 47.3% 20.0% 20.0% 20.0%
Variable Tax Rate Scenario
City of Lathrop 10.0% 13.0% 9.5% 4.5%
City of Manteca 5.0% 13.0% 9.5% 4.5%
City of Stockton 1.0% 13.0% 9.5% 4.5%
San Joaquin County 47.3% 13.0% 9.5% 4.5%
EIFD Contribution Rate
Initial Years
(2021-2029)
Tax revenues available to the Mossdale Tract Area EIFD
will be based on each ATE’s share of property tax revenue attributable to the growth in taxable assessed value in the Mossdale Tract Area EIFD beginning FY 2022/23
The IFP estimates annual EIFD under a Maximum Tax
Rate Scenario and a Variable Tax Rate Scenario.
• The Maximum Tax Rate Scenario reflects the
maximum potential tax rate as committed to by each
ATE.
• The Variable Tax Rate Scenario reflects rates which
vary over time estimated based on annual EIFD
revenue requirements.
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San Joaquin County – Estimated Annual EIFD Revenues and Rates Reduce and Manage the Region’s Flood Risk 14
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City of Lathrop – Estimated Annual EIFD Revenues and Rates Reduce and Manage the Region’s Flood Risk 15
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
20212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049205020512052205320542055205620572058205920602061 EIFD Revenue (in Millions$)
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%
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City of Manteca - Estimated Annual EIFD Revenues and Rates Reduce and Manage the Region’s Flood Risk 16
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City of Stockton - Estimated Annual EIFD Revenues and Rates Reduce and Manage the Region’s Flood Risk 17
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Cumulative EIFD Revenues
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Fiscal Impact Analysis
• Fiscal Impact Analysis (FIA) prepared for each jurisdiction. • Examines estimated annual net fiscal impact to each Affected Taxing Entity (ATE). • Analyses are based on the approved Fiscal Year 2020/21 budget for each ATE. • Analyses reflect estimated growth forecasts prepared by each ATE. • Analyses have been reviewed and vetted by ATE staff.
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Fiscal Impact Model Framework
20 MOSSDALE TRACT
LAND USES IN ATE
CITY/COUNTY
SERVICE LEVELS
Existing LOS
CITY Budget/
Financial Data
FY 20/21 Budget
REVENUE ESTIMATES
Property Tax
Property Tax in Lieu of VTF
Property Transfer Tax
Sales and Use Tax
Transient Occupancy Tax
EXPENSE ESTIMATES
General Government
Police and Fire Services
Community Development
Public Works
EIFD Tax Increment
(If necessary)
FISCAL MITIGATION
MEASURES
NET FISCAL IMPACT BY
ATE
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Estimated Annual General Fund Fiscal Impacts (After EIFD Allocation) 21 $15,414,000
$18,306,000
$10,861,000
$37,498,000
$17,831,000
$14,204,000
$6,624,000
$15,827,000
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Lathrop Manteca Stockton San Joaquin County
Annual Revnues and Expenditures
Mossdale Tract EIFD
Fiscal Impact Results by ATE at Buildout (2060) - Max Tax Rate Scenario Annual Revenues Annual Expenditures
Annual General Fund
Surplus/Deficit =
($2,417,000)
Annual General Fund
Surplus/Deficit =
$4,102,000
Annual General Fund
Surplus/Deficit =
$4,237,000)
Annual General Fund
Surplus/Deficit =
$21,671,000)
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Estimated Annual General Fund Fiscal Impacts: City of Manteca 22 Annual Fiscal Impacts to the City of Manteca’s General Fund Prior to EIFD Allocation and After EIFD Allocation under Maximum Tax Rate and Variable Tax Rate Scenarios
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Next Steps
23 •Draft IFP is available for review and comment by the following:
• Property owners within the proposed boundaries.
• Affected taxing entities (Lathrop, Manteca, Stockton and San Joaquin County). • Mossdale Tract EIFD Public Financing Authority.
• Members of the public.
•Revised Draft IFP will be prepared to reflect comments received.
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Reduce and Manage the Region’s Flood Risk
Next Steps – Meeting Schedule
24 Week 1Week 2Week 3Week 4Week 1Week 2Week 3Week 4Week 1Week 2Week 3Week 4Week 1Week 2Week 3Week 4 Public Financing Authority Meetings
Public Hearing No. 1 4/21
Public Hearing No. 2 5/26
Public Hearing No. 3 (Consideration of EIFD formation) 7/21 Affected Taxing Entity EIFD Workshops
City of Lathrop 5/2
City of Manteca 4/18
City of Stockton 5/3
San Joaquin County 5/24
Affected Taxing EIFD IFP Adoption Consideration
City of Lathrop 7/11
City of Manteca 6/21
City of Stockton 6/14
San Joaquin County 6/21
Workshop or hearing date
1 2 3 4
TASKS
April May June July
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Questions?
SJAFCA MISSION STATEMENT - Reduce and Manage the Region’s Flood Risk 25 ATTACHMENT 2