1SJAFCA MISSION STATEMENT ‐ Reduce and Manage the Region’s Flood Risk
PROPOSED MOSSDALE TRACT
ENHANCED INFRASTRUCTURE FINANCING DISTRICT
Stockton City Council
February 8, 2022
Agenda Item 15.2
Reduce and Manage the Region’s Flood Risk
SJAFCA Mossdale Program
SJAFCA Strategic Plan Priority Actions related to Mossdale Tract Urban Level of Protection:
•Support USACE in initiating Phase 2 of the Lower San Joaquin River Project Feasibility Study
•Complete the Mossdale Urban Flood Risk Reduction Study and advance Design and Environmental Review
•Achieve 200-year Urban Level of Flood Protection for the Mossdale Tract Area (by 2028) and present Adequate Progress until Improvements are Complete Implementation of the proposed Enhanced Infrastructure
Financing District is integral to Adequate Progress
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Mossdale Tract Funding
• Program must be completed by 2028 (AB 838 3‐Year Extension) • Phase 4 Work (200‐Year ULOP Project) currently estimated to be $230M (2021$’s) taking into consideration SJAFCA’s Climate Adaptation Policy • Almost entirely locally funded at this time
• New Local Funding Mechanisms
• Development Impact Fee collected throughout Mossdale Tract Basin • Been in place since early 2019. Currently working through update process. • Proposed Overlay Assessment District
• Would overlay RD 17’s existing assessment funding the local share of the Phase 3 Levee Seepage Repair Project. Preliminary Rates are being evaluated. Looking to advance assessment formation in the Spring (early 2022).
• Proposed Mossdale Tract Enhanced Infrastructure Financing District • A partnership between the Cities of Lathrop, Manteca, and Stockton and San Joaquin County dedicating a portion of Property Tax Increment toward the project to fund / finance the Project.
Reduce and Manage the Region’s Flood Risk
Summary of Request
Support formation of the EIFD by adopting the Resolution of Intention to Participate
1. Supports establishment of the Governance Entity (a Public Financing Authority) which is the entity that will:
a. Prepare the necessary documentation - the Infrastructure Financing Plan; and, b. Take the formal steps of forming the EIFD subject to approval by the participating agencies
2. Appoint Stockton’s members of PFA and confirm appointment of Public Members a. Staff recommendation is to overlap membership between EIFD PFA and SJAFCA as much as possible for administrative efficiencies. Public Members will be chosen today from applications received, subject to approval by the other agencies.
3. Authorization to provide support for any noticing actions to be carried out consistent with relevant EIFD Law
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Reduce and Manage the Region’s Flood Risk
Public Financing Authority - Membership
• Public Financing Authority is proposed to consist of two (2) members from each of the four (4) participating agencies governing bodies (Council Members / Supervisors) plus two (2) members of the public (a total of 10 members)
• Each participating Agency appoints their members and approves the two public members
• Attached resolution, as recommended, appoints Council Members Wright & Warmsley to the PFA and approves the appointment to the two public members selected by Lathrop; Mike Morowit and Steve Dresser • After Stockton, the County would be the last participating agencies to approve the public members
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Reduce and Manage the Region’s Flood Risk
Policy Considerations
•The Mossdale Tract Area EIFD will allow Stockton and the other Affected Taxing Entities to continue to validate their findings of Adequate Progress toward ULOP.
•The effective use of an EIFD as a tool for infrastructure finance should result in positive economic and fiscal impacts to the community.
•The Center for Business and Policy Research at the Eberhardt School of Business concluded that total economic benefits of future development in the basin, which would only be able to move forward if the ULOP project is completed, would be more than $11 Billion and 66,000 jobs at buildout.
•In addition, analyses completed by SJAFCA’s consultant team estimate positive fiscal impacts for each of the ATEs.
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Reduce and Manage the Region’s Flood Risk
EIFD Formation Process
Formation process started with an initial action of a Participating Entity (Lathrop) and appointment of members to the PFA by all of the participating entities • Governance Entity / PFA
Process continues with meetings of new PFA
• Five Meetings of PFA
• Organizational meeting / Preparation of IFP and Three Noticed Public Hearings • Includes multiple mailed notices to all property owners/residents within the EIFD and any other agencies within the proposed boundary
Formation is conditioned on Participating Entity approval • Participating entities must approve IFP prior to Third/Final Public Hearing of PFA 7Reduce and Manage the Region’s Flood Risk
Reduce and Manage the Region’s Flood Risk
Enhanced Infrastructure Financing Districts
An Enhanced Infrastructure Financing District (EIFD) is a tax increment financing mechanism through which jurisdictions allocate a portion of new property tax revenues to fund eligible improvements of communitywide benefit.
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EIFD Contribution
City General Fund
EIFD Funding
‐ Infrastructure Projects of
Community Benefit
‐EIFD Administrative Costs
‐ County Reimbursement
Remaining City Property Tax
Revenues
Incremental New
Property Tax Increment
Incremental Value of
Anticipated New
Development in the EIFD
Incremental Growth of
Exisiting Value within the
EIFD Boundary
City Share of Property Tax
Revenues
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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Infrastructure Financing Plan
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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
Reduce and Manage the Region’s Flood Risk
Summary of Draft Analyses Completed
To be included as attachments to the IFP, draft Fiscal Impact Analyses and EIFD Revenue Analyses have been completed for each affected taxing entity and will be ready for review by the new PFA at its Second meeting
Fiscal Impact Analysis
• The Fiscal Impact Analysis estimates the costs of providing municipal services to development within the EIFD as well as the net fiscal impact to each jurisdiction's General Fund of EIFD development, including estimated EIFD contributions under each scenario.
EIFD Revenue Analysis
• The EIFD Revenue Analysis estimates the annual EIFD contribution generated by anticipated development within each jurisdiction, under both allocation scenarios.
Preliminary Bond Proceeds Analysis
• A preliminary Bond Proceeds Analysis has been completed in order to estimate the capacity of the EIFD to generate proceeds for construction of the Mossdale ULOP Project. 11Reduce and Manage the Region’s Flood Risk
City of Stockton Annual EIFD Revenues and Rates
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$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
EIFD Revenue (in Millions$)
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
1.0%
20.0%
13.0%
9.5%
4.5%
Reduce and Manage the Region’s Flood Risk
Next Steps & Requested Action
• Cities of Lathrop and Manteca have each taken respective actions. • After Stockton, San Joaquin County would consider a similar companion resolution (on February 15th) that:
• Declares its intent to participate in the EIFD; and,
• Appoints its respective members to the PFA Board (consistent with the intent to overlap the SJAFCA Membership as much as possible)
• First Public Financing Authority Meeting is scheduled for February 17th Recommendation: Council adoption of the attached Resolution of Intention to Participate in the Proposed Mossdale Tract Enhance Infrastructure Financing District and newly formed Public Financing Authority.
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Questions?
SJAFCA MISSION STATEMENT ‐ Reduce and Manage the Region’s Flood Risk 14