What is an EIFD?
Approved by State legislation in 2014, EIFDs can be formed among any entities with property taxing authority, including a City, County, or Special District, but excluding school districts. In Rancho Cucamonga's case, the two entities with property taxing authority include the City and the Rancho Cucamonga Fire Protection District.
EIFD’s capture property tax revenue growth within their boundaries, and that tax revenue to issue bonds to fund infrastructure projects (e.g. 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 impact any taxpayer’s tax bill. Instead, EIFD captures tax property tax growth, known as “ property tax increment”, and redirect it to new purposes, such as infrastructure and other public amenities.
Who approves an EIFD?
The local elected officials from each of the participating taxing entities that form an EIFD (e.g. City Council, Fire District Board of Directors) vote to form the EIFD and create a Public Financing Authority. This Authority oversees EIFD financing and activities.
How long does an EIFD last?
An EIFD can collect and spend property tax increment up to 45 years after the first bond is issued.
What is the goal of Rancho Cucamonga EIFD?
The goal of the Rancho Cucamonga Enhanced Infrastructure Financing District is to create financing for infrastructure investments in the Foothill/Haven area that will support the vision of the 2021 General Plan for mixed use development and the activity surrounding Cucamonga Station. The exact projects will be considered over the next several years, after the EIFD is formed.
Is an EIFD a developer subsidy?
EIFD is NOT a developer subsidy. The proposed district is NOT funding infrastructure that would otherwise be a developer/private sector obligation. EIFD is funding regionally-beneficial public infrastructure of community-wide significance, that is necessary to catalyze private sector investment that would otherwise not occur until decades later, if at all.
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