REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 25, 2024
FROM
LUTHER SNOKE, Chief Executive Officer, County Administrative Office
SUBJECT
Title
Evaluation Guidelines for Enhanced Infrastructure Financing Districts, Community Revitalization and Investment Authorities, and Climate Resilience District Projects
End
RECOMMENDATION(S)
Recommendation
1. Find that the proposed adoption of evaluation guidelines for Enhanced Infrastructure Financing Districts, Community Revitalization and Investment Authorities, and Climate Resilience District Projects is exempt from review pursuant to the California Environmental Quality Act and in accordance with California Environmental Quality Act Guidelines Section 15061(b)(3).
2. Adopt evaluation guidelines for Enhanced Infrastructure Financing Districts, Community Revitalization and Investment Authorities, and Climate Resilience District projects.
(Presenter: Matthew Erickson, County Chief Financial Officer, 387-5423)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Create, Maintain and Grow Jobs and Economic Value in the County.
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). There is no financial impact to adopt the evaluation guidelines for Enhanced Infrastructure Financing Districts (EIFD), Community Revitalization and Investment Authorities (CRIA), and Climate Resilience District (CRD) projects.
BACKGROUND INFORMATION
Tax Increment Financing (TIF) districts provide a funding or financing mechanism to capture incremental property tax revenues collected within a designated district to fund infrastructure projects with community-wide benefits. TIF was originally an economic development tool used by redevelopment agencies (RDA) throughout California, enabled as part of the Community Redevelopment Act that was passed in 1945 to assist local governments in eliminating blight through development, reconstruction, and rehabilitation. In 2012, the State of California dissolved the RDAs through the passage of Assembly Bill 1x26, which prohibited RDAs from issuing new obligations and required the RDAs to wind down their affairs through successor agencies that were designated for this purpose.
After the dissolution of the RDAs, several TIF tools were established by California Law, such as EIFD, CRIA, and CRD. Typically initiated by cities or counties, these financing districts have more limited powers than the former RDAs and provide an opportunity to pool property tax resources from different entities for various projects. The different entities can include city, county, or special districts, i.e. fire district, flood control district, or board governed county service areas. Each of these financing districts has its own requirements and participation of taxing agencies is voluntary.
Approval of this item will adopt guidelines for evaluating proposals requesting County participation in EIFD, CRIA, and CRD financing districts. The guidelines identify requirements for County participation, conducting a financial impact analysis, and proposal requirements. When utilized by staff for the review of EIFD, CRIA, and CRD proposals, these guidelines will establish a procedure for consistent review, recommendation, and consideration for next steps in the proposal process. Any recommendations to enter into an EIFD, CRIA or CRD will be brought to the Board of Supervisors for consideration.
The guidelines identified in this item are exempt from review pursuant to the California Environmental Quality Act (CEQA) and in accordance with CEQA Guidelines Section 15061(b)(3) as there is no possibility that the adoption of these guidelines will have a significant effect on the environment.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Julie Surber, Principal Assistant County Counsel, 387-5455) on May 29, 2024; Auditor-Controller/Treasurer/Tax Collector (Diana Atkeson, Assistant Auditor-Controller/Treasurer/Tax Collector, 382-7004, and Franciliza Zyss, Chief Deputy, Property Tax, 382-3170) on June 7, 2024; Finance (Amanda Trussell, Principal Administrative Analyst, 387-5423) on June 4, 2024; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on June 7, 2024.