Economic Development Subcommittee
February 14, 2023

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1 EIFD Enhanced Infrastructure Finance District
Formation Process Discussion
February 14, 2023

ECONOMIC DEVELOPMENT SUBCOMMITTEE
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Office Locations: Newport Beach | San Jose | San Francisco | Riverside | Dallas | Houston | Raleigh | Tampa Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
DAVID TAUSIG, CEO / President
LENI ZARATE, Vice President
COURTNEY TSENG, Project Manager
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Enhanced Infrastructure Financing District (“EIFD”)
 Public infrastructure financing mechanism
utilizing property taxes generated by
community growth requiring NO NEW
TAXES
 Tax Increment revenues are the same ad
valorem property taxes already paid by
property owners, so no additional
property taxes can be imposed
 EIFDs use portion of tax increment
generated by the existing 1% ad valorem
property tax, but can’t use increment from
educational agencies (e.g., school district,
community college districts)
3 www.FinanceDTA.com
Enhanced Infrastructure Financing District (“EIFD”)
(Cont.)
 Unlike old redevelopment districts that utilized
tax increment financing, there is no blighted area
requirement to establish an EIFD, so entire City
can be included in an EIFD
 Proceeds may be utilized to fund any public
improvements with a useful life of 15 years or
more that provide community benefit
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EIFD Formation Process
 City Council Public Hearing
Initial Resolution of Intention (“ROI”) adopted. Includes approved boundaries of EIFD and lists improvements to be constructed
Public Financing Authority (“PFA”) established:
2 City Council members, 1 County Supervisor, 2 members representing the general public  Administers the EIFD; orders the preparation of Infrastructure Financing Plan (“IFP”) • IFP includes fiscal impacts analysis on the budgets of participating local public agencies. • Copy of IFP must be made available to all property owners within the proposed EIFD and the County, and presented at a public meeting occurring at least 30 days before notice is sent regarding the first PFA public hearing
 PFA holds three public hearings at least 30 days apart  Board and Council each adopt Resolutions approving the IFP  City files Statement of Boundary Change with State Board of Equalization by Dec. 1, 2023 5 www.FinanceDTA.com
EIFD Formation Process, cont.
 No election is required to form an EIFD unless 25% of property owners protest at third PFA public hearing
 An EIFD is abandoned if over 50% of property owners protest the formation
 PFA adopts IFP at third public hearing and approves Resolution of Formation establishing EIFD
 PFA files “Statement of Boundary Change” with California Board of Equalization by December 1st of a given Fiscal Year
 Approving ROI by June 30, 2023, would mean the “Base Year ”for tax increment generation would be FY 2023-24. This would be the earliest potential Base Year for the proposed City of Santa Rosa Downtown EIFD
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EIFD Formation Process, cont.
 PFA makes the decision to sell bonds when
sufficient ad valorem property tax and VLF
increment has accrued to support debt service
Minimum debt service coverage is 125%
 Bonds cannot be sold until after some
development has occurred and tax increment is
generated, so EIFDs are often used as a
reimbursement mechanism
 Bonds are secured only by tax increment
generated within the EIFD, not by the
municipality’s General Fund
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Eligible EIFD Public Improvements
 Roads, highways, streets, parking facilities,
and transit facilities
 Sewer, reclamation, and water facilities
 Flood control facilities, retention bases, and
drainage channels
 Childcare facilities
 Libraries
 Parks, open space, and recreational facilities
 Solid waste facilities
 Brownfield restoration and other
environmental mitigation
 Military base reuse
 Affordable housing
 Transit priority facilities
 Port facilities
 Improvements related to fighting climate
change
 Internet access services
8 Note: EIFD funding cannot finance public services unless they involve maintenance of facilities built with EIFD funding
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9 Santa Rosa Downtown Station Area Specific Map

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10 Santa Rosa Qualified Opportunity Zone Map

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11 Santa Rosa Proposed Downtown EIFD Map

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Thank You!
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