3;kc,25,Eggolk
Agenda Item No: 3.a
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: October 6, 2026
Submitted by: Joe Lambert
From: Development Services
Subject:
DISCUSSION AND/OR ACTION REGARDING THE PLACENTIA ENHANCED
INFRASTRUCTURE FINANCING DISTRICT (EIFD)
Financial Impact:
Per 2025 Staff report, the estimated range of $17 to $24 million in property tax increment over approximately 40 years. Up to $59 million in net fiscal impact revenue to the City over approximately 50 years. Potential expense of $9,978,105 for the construction of the Old Town Streetscape Improvement Project.
Recommended Action:
It is recommended that the City Council:
Provide direction to staff as appropriate.
Strategic Plan Statement:
This item is consistent with the City Council approved Strategic Goals, specifically Goal No. 2:
Public Safety, Goal No. 3: Infrastructure, Facilities & Public Spaces, and Goal No. 4:
Economic Development. Completion of the Old Town Streetscape Project will enhance City streets, sidewalks and public spaces resulting in a clean, attractive and upgraded streetscape in the project area. Providing these upgrades including ADA, landscaping and circulation improvements would also enhance public safety while fostering business growth and attracting new businesses.
Discussion:
On May 6, 2025, City Council conducted a Study Session regarding the Placentia EIFD and related Old Town Streetscape Improvement Project. At that meeting, the City Council provided direction to Staff as follows:
To allocate $ 150,000 from EIFD revenues to finalize the design, delay bond financing until $1 million was accumulated or alternative funding was secured and return to City Council with construction bids and a financing plan when funds were available.
Financial Summary:
It is projected that approximately $10.05 million could be generated in net bond proceeds utilizing City and County tax increment revenues over the approximately 40 -year term of the Placentia EIFD to help fund core public infrastructure needed to support Placentia's growth.
The City's contribution is capped at 50% of its share of property tax increment (-6.8 out of
13.6 cents on the dollar) within the district boundary for a maximum of $24,000,000 total over the approximately 40 -year district lifetime (estimated range of actual allocation is $17 to $24 million, depending primarily on interest rates). The County's contribution is capped at 50% of its share (-2.95 out of 5.9 cents) within the district boundary for a maximum of $3,547,000 total over the first 25 years district lifetime, with an option to extend to 30 years only if needed.
Both the City and County allocations would terminate sooner if project funding goals are achieved sooner than projected.
The debt insurance structure approved by the County is for the City to loan $1 million to accelerate Project financing which would reduce bond issues size, debt service, improve security and reduce the bond interest rate. In this structure, the City would take the lead and issue its own 30 -year Lease Revenue Bonds ("LRBs") in lieu of the PFA. The City would provide property/building collateral for underlying LRB lease in this structure. The ultimate debt issuance structure would come before the City Council for separate approval at the appropriate time.
While the greater Placentia area would benefit from the infrastructure improvements (not just the Old Town Project area), the formation of the EIFD results in a reallocation of TI (i.e., the City's share of taxes levied on property within the district boundaries on that portion of the taxable valuation over and above the taxable valuation of the base year property tax roll) from the General Fund to pay for the Placentia infrastructure improvements. The TI projections are based upon various assumptions made utilizing the future growth potential of the residential, commercial, and industrial development sectors in the area. Once the EIFD has terminated, the property tax increment revenue allocated to the EIFD will flow back into the City's General Fund. The property tax generated up to the taxable valuation of the base year tax roll will continue to flow to the City's General Fund. The total project delivery cost for the Old Town Streetscape Improvement Project is $9,978,105.