Title
Receive a presentation and consider approval of revisions to the County Enhanced Infrastructure Financing District (EIFD) Policy.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Receive a presentation and consider approval of revisions to the County Enhanced Infrastructure Financing District (EIFD) Policy.
SUMMARY:
Enhanced Infrastructure Financing Districts (EIFDs) are a mechanism authorized under California State law that allows local governments to finance infrastructure projects within specified areas. These districts capture a portion of the increased property tax revenue generated by developments in the district, reinvesting these funds into crucial infrastructure improvements.
The County of Monterey recognized the vital role that Enhanced Infrastructure Financing Districts (EIFDs) play in driving economic growth and enhancing the well-being of our community. These districts provide an avenue for local governments to support infrastructure development through tax increment financing. Given the feedback from multiple cities interested in requesting County partnership on EIFDs, it is prudent to revise specific sections of the existing EIFD policy so that it is more amenable to city participation.
The County Administrative Office received feedback from various stakeholders regarding the existing EIFD policy, which has resulted in draft revisions before the board.
DISCUSSION:
The County of Monterey had previously formulated and approved a policy to guide its participation in EIFDs, specifically concerning financial partnership with cities. The key components of this policy are provided below, while the policy is included in attachment A.
1. Contribution of Tax Increment
2. Term of County Participation in EIFD
3. Procedures for Extension
4. Termination Prior to End of Term
5. Governance
The revised EIFD policy attached clarifies any vague criteria and expectations for cities seeking the County of Monterey's financial partnership in EIFDs. The revisions include:
1. 2.a revising the maximum term from twenty-five (25) to thirty (30) years.
2. 2.c.i revising from five (5) to seven (7) years
3. 2.c.i revising from two (2) to ten (10) years
4. 3.a.ii.4 removed unclear language and included specific language regarding low income housing.
5. 4 revised language to clear up any confusion as to when the County may need to seek external assistance with a review of a proposal.
6. 4.a clarified external assistance would only be needed if the county lacks internal expertise.
7. 4.b clarified the need for external assistance if there is lack of staff available to perform the review.
8. 5.b clarifies options for the city and county to explore ways to allocate new affordable housing to the county directly or through an alternative set aside of funds.
By adhering to this structured approach, the County aims to ensure that EIFD proposals align with our commitment to economic development, sustainability, and community well-being while efficiently addressing future partnership requests.
OTHER AGENCY INVOLVEMENT:
Staff has consulted with County Counsel, County Administrative Office, Finance, and Housing and Community Development.
FINANCING:
There is no impact from approving this policy. If in the future the County decides to participate in EIFD partnerships with cities within the County, financial impact resulting from those proposals will be presented to the Board for consideration at that point within the framework established by the policy recommended as part of this report.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The proposed recommendation supports the Board of Supervisors strategic initiatives for Economic Development and Infrastructure.
Mark a check to the related Board of Supervisors Strategic Initiatives
_X_ Economic Development
___ Administration
___ Health & Human Services
_X_ Infrastructure
___ Public Safety
Prepared by: Richard Vaughn, Economic Development Manager, Ext. 5602
Approved by: Deborah Paolinelli, Assistant County Administrative Officer, Ext. 5309 (REVISED VIA SUPPLEMENTAL)
Attachments:
EIFD Policy (Clean)
EIFD Policy (Redline)
PowerPoint