Report to Mayor and City Council
Tuesday, December 03, 2019
Discussion
SUBJECT:
Title
CONSIDER RESOLUTION NO. 19-192 DECLARING INTENTION TO ESTABLISH THE CARSON ENHANCED INFRASTRUCTURE FINANCING DISTRICT TO FINANCE THE CONSTRUCTION, AND/OR ACQUISITION, AND MAINTENANCE OF CAPITAL IMPROVEMENTS; ESTABLISH A PUBLIC FINANCING AUTHORITY; AND AUTHORIZE CERTAIN OTHER ACTIONS RELATED THERETO (CITY COUNCIL)
Body
I. SUMMARY
On September 3, 2019, staff and the City's EIFD Consultant, Kosmont & Associates ("Kosmont"), provided a brief update to the City Council and requested direction regarding the formation of the proposed Carson Enhanced Finance Infrastructure District ("EIFD"). The City Council directed staff to form the Carson EIFD without the initial participation of the other taxing entities, and also continue soliciting the participation of other taxing entities into the Carson EIFD. Shortly after the City Council update on October 9, 2019, new EIFD legislation (Assembly Bill 116) was approved by the State of California, which modifies the EIFD formation procedural requirements.
Specifically, AB 116 eliminates the voter-approval requirement before an EIFD Public Financing Authority ("Authority") issues bonds, and instead requires three (3) public hearings before the Authority approves the Infrastructure Financing Plan ("IFP"); as opposed to the single public hearing now required pre-AB 116. Additionally, AB 116 requires the IFP to be submitted to a vote (e.g. via mail-in ballot) if between 25% and 50% of landowners and residents in the proposed area object. If more than 50% of landowners and residents in the proposed area object to the IFP, then EIFD formation proceeds must halt for at least one year. A comparison table between the pre-AB 116 formation and debt issuance procedures and the post-AB 116 procedures is provided on Exhibit No. 1.
AB 116 will become effective on January 1, 2020. It is unclear how it will impact governmental entities currently in the ...
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