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    5.    
FINANCE COMMITTEE
Meeting Date: 09/13/2021  
Subject:    POLICY REGARDING EVALUATION OF ENHANCED INFRASTRUCTURE FINANCING DISTRICTS (EIFDs)
Submitted For: Monica Nino, County Administrator
Department: County Administrator  
Referral No.: N/A  
Referral Name: POLICY REGARDING EVALUATION OF ENHANCED INFRASTRUCTURE FINANCING DISTRICTS (EIFDs)
Presenter: Timothy Ewell, Chief Assistant County Administrator Contact: Timothy Ewell, Chief Assistant County Administrator

Information
Referral History:
In 2015, Senate Bill 628 (Chapter 785, Statutes of 2014) created Enhanced Infrastructure Financing Districts (EIFDs) effectively modifying the structure of already existing Infrastructure Financing Districts (IFDs). Following the dissolution of redevelopment, EIFDs serve as a financing mechanism to use tax-increment financing, similar to former redevelopment projects, but with greater collaboration between cities and counties for economic development, housing and other large-scale projects throughout the State. Subsequent to the creation in 2015, statutes authorizing EIFDs have been modified on a regular basis, including broadening the listing of eligible project types and modifying the process for the EIFD to issue bonds to fund those projects.

Similar to financial impacts from former redevelopment agencies, the County's share of the ad valorem property tax is impacted by a redirection of those revenues from the County to an EIFD. The difference is that the County must opt-in to become a partner in the EIFD formation process and pre-negotiate the share of ad valorem property tax to be reallocated to the EIFD. Due to the size of the County and the number of cities within the County there is potential for significant requests of County participation in EIFD development at a commensurate financial cost to the County. As an example, the County Administrator's Office has been approached by the cities of Pittsburg and Brentwood to gauge interest in the participation of the County in EIFDs located within each city. Both cities are in the exploratory phase of EIFD development.
Referral Update:
On September 7, 2021, the Board of Supervisors referred to the Finance Committee the development of a policy related to evaluation of EIFD proposals submitted for review from jurisdictions within the County. Recall that the County took a similar approach to evaluation of Compensation Agreements being requested by cities as part of the redevelopment dissolution process. Adopting and subsequently distributing a policy sets a minimum bar for cities to meet when it comes to submitting proposals to the County for review and evaluation. It also communicates to cities what projects the County is interested in partnering on, consistent with stated Board of Supervisors policy goals, and acceptable rates of financial participation for such projects by the County.

Today's action is requesting that the Finance Committee review the draft policy assembled by staff related to County participation in joint EIFDs with cities within the County and consider recommending a version of the EIFD policy to the full Board of Supervisors for adoption. Following action by the Finance Committee, the County Administrator's Office will share the proposed final draft version of the policy with our municipal advisor, KNN Public Finance, for any additional input that may be beneficial to development of the policy and include the outcome of the review in the board order transmitting the draft policy to the full Board for consideration.
Recommendation(s)/Next Step(s):
REVIEW draft County Policy on evaluation of joint Enhanced Infrastructure Financing Districts with cities within the County; PROVIDE feedback to staff and markups to proposed policy; and DETERMINE whether to forward to the full Board of Supervisors for review and adoption.
Attachments
DRAFT Policy - County Participation in Enhanced Infrastructure Financing Districts (EIFDs)

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