What is an EIFD?
Approved by state legislation in 2014, EIFDs can be formed among public entities with property taxing authority, including a city, county or special district. School districts are excluded. In Lakewood’s case, the two entities with property taxing authority include the city and the County of Los Angeles.
EIFDs capture property tax revenue growth within their boundaries, known as property tax increment. That revenue can be used to issue bonds to fund infrastructure projects, such as streets, utilities, sidewalks, pedestrian safety enhancements or other public purposes allowed by law.
Does an EIFD create new taxes or change my property taxes?
No. The EIFD does not have the power to impose new taxes on property owners and does not affect a taxpayer’s tax bill. Instead, an EIFD captures property tax growth and redirects it to new purposes, such as infrastructure and other public amenities.
Who approves an EIFD?
The local elected officials from each participating taxing entity that forms an EIFD, such as the City Council or County Board of Supervisors, vote to form the EIFD and create a Public Financing Authority. The authority oversees EIFD financing and activities.
How long does an EIFD last?
An EIFD can collect and spend property tax increment for up to 45 years after the first bond is issued.
What is the goal of Lakewood’s EIFD?
The goal of the Lakewood Enhanced Infrastructure Financing District is to create financing for infrastructure investments around economic development opportunity sites within the city, such as aging commercial centers and sites designated in the city’s Housing Element for future housing development. The exact projects to be funded will be considered over the next several years, after the EIFD is formed.
Is an EIFD a developer subsidy?
No. The EIFD is not a developer subsidy. The proposed district is not funding infrastructure that would otherwise be a developer or private-sector obligation. The EIFD would fund regionally beneficial public infrastructure of community-wide significance that is needed to support private-sector investment that may otherwise not occur for many years.