Enhanced Infrastructure Financing District
Draft Infrastructure Financing Plan
June 3 , 2024
City Council
1 • Financing tool for public infrastructure
and private property improvements
• Source of tax increment:
Cites, counties and special districts
may allocate all or a portion of tax
increment generated by existing 1% ad
valorem property tax and increases in
assessed property value (AV) in the
EIFD above the base year AV.
• NO NEW TAXES.
• NO additional property taxes imposed
EIFD: Enhanced Infrastructure Financing District
2 EIFD: Formation Process
City Council Meeting – April 25, 2023:
• Resolution of Intention (ROI) - Adopted
• Approved EIFD boundaries
• Reviewed types of facilities eligible for financing
• Identified goal s - Economic Development
• Public Financing Authority (PFA) – Established
• 2 City Council members, 2 County Supervisors, 3 members of the public • Oversees development of Infrastructure Financing Plan (IFP); process includes decision points for City and County
• Implements Infrastructure Financing Plan (IFP) after approval by City and County
3 EIFD: Formation Process
4 1. City/County identify projects to be funded by EIFD and percentage of tax increment allocated to EIFD • Board of Supervisors - August 20, 2024
• City Council - November 19, 2024
2. Introduction of draft IFP at PFA public meeting
• April 2, 2025
3. PFA 1st Public Hearing (receive comments and modify) • May 8, 2025, continued to May 15, 2025
4. City Council and Board of Supervisors (accept or reject IFP) • June 3, 2025 – noticed public hearing
5. PFA 2nd Public Hearing
• June 16, 2025
• IFP subject to protest hearing
• If no protest, PFA can approve or reject IFP and adopt Resolution of Formation EIFD: Infrastructure Financing Plan (IFP)
5 IFP Elements
a. A map and legal description of the proposed EIFD.
b. A description of the public facilities and other forms of development or public assistance to be undertaken within the EIFD.
c. A finding that the improvements to be funded are of communitywide significance and provide significant benefits to an area larger than the EIFD. d. A financing section containing a series of elements, including projected EIFD tax revenues and construction revenues, a limit on revenues allocated to the EIFD and the period of time the EIFD will be in existence (not to exceed 45 years after the approval of a bond measure by the PFA), a plan for financing the eligible facilities and an analysis of the fiscal impacts of the EIFD on the local public agencies participating in the EIFD.
e. The EIFD's goals for each public improvement financed by the EIFD.
EIFD: Boundary
6 7
• The proposed EIFD consists of assessor’s parcels generally located:
o South of West College Avenue
o West of Brookwood Drive
o North of Maple Avenue
o East of Wilson Street
• All of which is an area located within the Downtown Station Area Specific Plan. It will encompass 308.02 gross taxable acres, which consist of 913 parcels within the City of Santa Rosa. • The map and legal description of the EIFD are included In the IFP as Appendix A. • After the formation of the EIFD, the boundaries of the EIFD cannot be expanded without the approval of the City, County and PFA, with all notices and hearing requirements for the original formation of the EIFD applied to the affected landowners and residents of the area to be annexed into the EIFD.
EIFD: Boundary
EIFD: Projects Financed by EIFD
8 • For the first 10 years, 50 percent of Item 1 percentage will be spent on Placemaking - No bonding during first 10 years for Placemaking
• City Council, PFA and County will revisit allocation of EIFD revenue after 10 years • City Council, PFA and County will revisit allocation of EIFD revenue during first 10 years if Performing Arts/Sports Entertainment Center (Center) is available
• Projects located outside of district must have a tangible connection to the work of the district
EIFD: Projects Financed by EIFD
9 Performing Arts/Sports Entertainment Center
• Create local on-site jobs, as well as indirect and induced employment Placemaking Projects
• Includes public facilities outlined in specific and corridor plans and design guidelines. • Specifically, transportation, streetscapes, lighting, sidewalk reconstruction, ADA improvements, bike racks, downtown entry monuments, and other transit needs • Projects that support connectivity between Railroad Square and Downtown and can be shown to provide significant economic benefit within the EIFD boundaries Affordable
Housing
• Prioritize mixed income developments, but may only finance deed restricted for very low, low and moderate affordability levels and onsite facilities for child care, after school care and social services
Goal: Catalyze private development, increase economic activity, employment property taxes, commercial occupancies, retail sales, private investment or other appropriate measures.
EIFD: Financing Program
10 Maximum portion of the incremental tax revenue allocated by the City to the EIFD. • The City will allocate 50% of
o Ad valorem Property Tax
o Net Available Revenue
o Property Taxes in lieu of VLF
o Subject to $200 million maximum
Maximum portion of the incremental tax revenue allocated by the County to the EIFD. • The County will allocate 25% of:
o Ad valorem Property Tax
o Net Available Revenue
o Subject to $100 million maximum
Date on which the EIFD will cease to exist:
• Shall not be more than 45 years from the date on which the issuance of bonds is approved EIFD: Financing Program
11 • $72,559,272 in City ad valorem property tax and net available revenue increment and $32,847,483 in City Property Taxes in lieu of VLF are anticipated to be generated within the proposed EIFD.
• $120,048,885 in ad valorem property tax increment and net available revenues are anticipated to be generated by the County within the proposed EIFD. • The total net increment available to the EIFD through the entire term of the EIFD, after deducting Administrative Expenses, would equal $81,425,167. o These revenue projections are the result of the anticipated $3.6 billion increase in the EIFD’s valuation between FY 2024-25 and Fiscal Year 2069-2070.
EIFD: Financing Program
12 Projected Financing Schedule for Bond Issue and Pay-As-You-Go revenues Bond
Year
Coupon
Rate/ Bond
Term
Bonded
Indebtedness
Bond
Construction
Proceeds
Cumulative
Pay-Go
Revenue 1
Cumulative Bond
Construction
Proceeds Plus
Pay-Go
NPV (3%)
Bond
Proceeds
Plus Pay-Go
2034 5 %/ 30 YRS $4,430,000 $3,925,372 $2,281,867 $6,207,239 $4,901,964 2039 5 %/ 30 YRS $3,280,000 $2,867,431 $4,099,461 $10,892,265 $8,059,578 2044 5% /25 YR S $3,530,000 $3,076,588 $6,685,865 $16,555,257 $11,366,092 2049 5 %/ 20 YRS $3,665,000 $3,165,936 $10,174,415 $23,209,742 $14,731,377 2054 5% /15 YR S $3,585,000 $3,035,838 $14,722,281 $30,793,447 $18,054,239 2059 5 %/ 10 YRS $3,135,000 $2,624,475 $20,515,026 $39,210,666 $21,251,647 2064 5% /5 YR S $2,065,000 $1,677,525 $27,986,983 $48,360,148 $24,267,293 2069 0% /0 YR S $0 $0 $44,218,846 $64,592,011 $28,811,960 Total N/A $23,690,000 $20,373,165 $44,218,846 $64,592,011 $28,811,960
Note:
1. Pay-As-You-Go revenues represent the anticipated aggregate amount of debt service coverage that will be available to the EIFD if it is not utilized to fund principal and interest for EIFD debt, plus net available revenue and Property Taxes in lieu of VLF.
EIFD: Fiscal Impact to City General Fund
13 Recurring General Fund Revenues at the End of EIFD Term General Fund Expenditures at the End of EIFD Term
EIFD: Fiscal Impact to County General Fund
14 Recurring General Fund Revenues at the End of
EIFD Term
Recurring General Fund Expenditures at the End of EIFD Term
EIFD: Public Comment
15 • Written and verbal public comments received
• Questions regarding potential increase in taxes
• Proposed modifications to the EIFD boundary
• Percentage of funds to placemaking
• Increase to 50%, with affordable housing and catalyst project splitting the remaining 50%
• Catalyst project should be in or immediately adjacent to with easy pedestrian access to downtown businesses
EIFD: Next Steps
• 2nd PFA public hearing to conduct protest hearing then adopt IFP and form district: June 16, 2025
• Judicial validation: 4-6 months
• Apply for Tax Rate Area to Board of Equalization:
Prior to December 31, 2025
16 EIFD: Recommendation
It is recommended by the Departments of Planning and
Economic Development and Finance that the Council, by
resolution, approve the Draft Infrastructure Financing
Plan
17 EIFD: Recommendation
Questions and Comments
Gabe Osburn
Planning and Economic Development Director
[email protected]
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