Why New Funding Tools Are Needed Rebuilding Californias - PowerPoint PPT Presentation

THE FUNDING TOOL FOR 21ST CENTURY PROJECTS Presentation by Mark Pisano April 24, 2015

Why New Funding Tools Are Needed  Rebuilding California’s Infrastructure is estimated to cost over $5oo billion by the State Administration. (PPIC, 2009)  Federal Budget Stress is impacting Reauthorization of Domestic Infrastructure Legislation and causing grant program reductions.  Government Fiscal Stress for State, locals and special districts projected for decades- currently 2% of GDP growing to 5% of GDP by 2035. (2014 GAO State and Local Trend Report)  Demographic Changes are raising costs for people related programs and reducing revenues for all governments-annual growth rate of taxes will be 45% lower and income 18% for decades. (Pisano, 2014, National Civic League)

Institutional Design of EIFD’s and their Governing Board’s (PFA’s)  PFA’s are separate governmental entities established under SB628, as such can use other authorities under state law… o Public Private Provisions of the Infrastructure Finance and Investment Act o Prevailing Wage Rates o Many other provisions

Principles behind the design of the Enhanced Infrastructure Financing District Goal orientated approach that creates wealth and funding through:  Policies on land use that have value that is captured  Investments that individuals, property owners, businesses are willing to pay for the benefits (nexus is demonstrated)  Putting organizations in community together more efficiently-multiple and diverse funding streams

Principles behind the design of the Enhanced Infrastructure Financing District Maximum flexibility in all design features of the legislation  Design of Investment Program-not stovepipe or program driven  Creation of districts: Any Size  Creation of Public Finance Authorities-Taxing Entity  Design of Business Plans

New Model for local and regional infrastructure investment in California Authorizes the creation of a Public Finance Authority (PFA) with comprehensive authority to address all local and regional needs  All infrastructure except school facilities  All Economic Development including industrial, commercial, housing that has a community benefit.  Environmental clean up Creates a way to put multiple organizations needed to address goals and problems to be solved  City or Country initiates but all taxing entities are eligible to be on the Board including special districts  Partnerships with private and non-profits can developed with streamlined procurement procedures

Local Funding Sources- Everything you can think of, except tax increases, that can be included in a business plan: 1. Public/Private Partnerships 2. User Fees 3. Assessments on property 4. Developer Agreements 5. Property Tax increment 6. VLF Tax backfill 7. Anticipation Agreements 8. Cap and Trade Allocations 9. Any Federal/State/Local Grant or Tax Credit 10. Loans from Public Agencies

What Types of Projects Could an EIFD Fund? Public Light Rail Inf. Sustainable Communities Parks & Open Space Affordable Housing Stormwater Recharge Industrial Structures Public BRT Inf. Childcare Facilities Wastewater Treatment 8

WHAT YOU NEED TO DO TO GET STARTED • City or County that has responsibility for local land use must create district- no vote requirement. • Need investment plan and/or updated specific plan that addresses goal or problem- planning determines value and consensus. • Only vote required is a 55% vote when public general obligation debt is issued. • Form Public Finance Authority of all taxing entities

Let’s Get Started Any Questions?