How to create an Enhanced Infrastructure
Financing District (EIFD)
MUNICIPALITY (CITY/COUNTY)
1. Municipality (city/county)
2. Legal Counsel
3. Financial Advisor
Form Team
Best Practices Tips
1. Define/refine Boundaries
2. Estimate Future Assessed Property Values
3. Estimate Increment for Potential
Taxing Agencies
4. Identify Public Facilities and Programs
5. Identify Funding Sources in Addition to
Tax Increment
1. Focus on areas with significant
growth potential
2. Maximize area
3. Explore available RPTTF and MVLF
revenues to kick-start the EIFD
4. Consider establishing project areas
to maximize EIFD revenue
Evaluate EIFD
Feasibility
1. Electeds
2. Other Taxing Entities
3. Affected Residents and Property Owners
Conduct
Outreach
Best Practices Tips
1. Explore potential projects to be funded
by the EIFD that would entice
participation of the County or other
taxing agencies
2. Educate stakeholders about EIFDs –
not a new tax, not a lien on property
3. Identify property owners who will
advocate for formation
1 2
3 1. Select members of Public Financing
Authority (PFA)
2. Establish PFA and adopt Resolution of
Intention to establish proposed EIFD
3. Mail Resolution of Intention (or alternate
one-page notice) to PFA, each affected
taxing entity, and property owners
Initiate Formal
Process
4 You have now formed your PFA!
PUBLIC FINANCING AUTHORITY
Best Practices Tips
1. Map and Legal Description
2. List of Facilities and Programs
3. Tax Increment Revenue Projections
4. Financing Plan
5. Fiscal Impacts on Affected Taxing Entities
6. Date District will Cease
7. Replacement Housing Plan
8. District Goals
9. Tax Increment Limits
1. Provide comprehensive list of projects
and programs
2. Projects listed in General Plan are
good starting point
3. Tax increment limits should provide
large buffer above projections to
minimize risk of need to amend limits
Prepare
Infrastructure
Financing Plan (IFP)
1. Send IFP to all affected taxing entities
and property owners
2. Notice initial PFA information meeting
(10 days before meeting)
o Present Draft IFP
o Consider Comments
Pre-Adoption
1. Notice 1st Public Hearing (No sooner than 30 days
after initial PFA meeting)
2. Hold 1st Public Hearing (after 4 weeks of noticing) - No action
3. Notice and hold 2nd Public Hearing (at least 30
days after 1st hearing) - Consider comments, action
to modify or reject IFP)
4. If IFP not rejected, notice 3rd Public Hearing and
provide copy of IFP
5.Hold 3rd Public Hearing (at least 30 days after 2nd
hearing) - Consider all protests and proceed as
follows:
o If majority protests, terminate EIFD proceedings
o If between 25% and 50% protest, then notice and
hold Protest Election
o If less than 25% protest, the PFA may adopt the
IFP at the close of the hearing
6. If Protest Election is held and majority votes against formation, then proceedings terminate. If majority
does not vote against formation, the PFA may adopt
the IFP.
Public Hearings
and Protest
Proceedings
1. All participating Taxing Entities must
approve the IFP prior to PFA forming the
EIFD (can be done before 3rd PFA Public
Hearing)
2. PFA enacts resolution forming the EIFD
at close of 3rd Public Hearing (if less
than 25% protest) or at close of Protest
Election (if less than majority votes
against formation)
Approvals &
Formation
5 6
7 8
This chart was created by CALED’s Economic Developmen
ance and Real Estate (EDFRE) Committee. Learn more about EDFRE at https://caled.org/everything-ed/caleds-economic-development-finance-real-estate-committee/ THE OVERALL ADOPTION PROCESS TYPICALLY TAKES 12-18 MONTHS, HOWEVER EVERY COMMUNITY WILL BE
DIFFERENT BASED ON LOCAL POLITICAL CONSIDERATIONS AND RESOURCES