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

• 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)

Why New Funding Tools Are Needed

• PFA’s are separate governmental entities established

under SB628, as such can use other authorities under state law…

• Public Private Provisions of the Infrastructure Finance

and Investment Act

• Prevailing Wage Rates
• Many other provisions

Institutional Design of EIFD’s and their Governing Board’s (PFA’s)

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

• r program driven

 Creation of districts: Any Size  Creation of Public Finance Authorities-Taxing Entity  Design of Business Plans

Principles behind the design of the Enhanced Infrastructure Financing District

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

• n the Board including special districts

 Partnerships with private and non-profits can developed with streamlined procurement procedures

New Model for local and regional infrastructure investment in California

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
• r Tax Credit
• 10. Loans from Public Agencies

8

What Types of Projects Could an EIFD Fund?

Affordable Housing Public Light Rail Inf. Public BRT Inf. Sustainable Communities Wastewater Treatment Stormwater Recharge Parks & Open Space Industrial Structures Childcare Facilities

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?