FAQs

Enhanced Infrastructure Financing Districts (EIFDs) are districts with defined boundaries that use local property taxes to issue bonds to fund infrastructure projects (e.g., streets, public safety enhancements, trails, signage). EIFDs can be formed among any entities with property taxing authority, including County, City, or Special Districts. School districts are excluded.  

NO. The establishment of an EIFD will not result in any new taxes or fees to property owners. The EIFD allows for a reallocation of future property taxes to a separate account to be used to pay for infrastructure improvements that benefit a designated area.

The EIFD allows funds generated by future tax dollars to be re‐invested in a designated area. These revenues serve as a dedicated source of public funds for improvements. Some proceeds will be used to pay the amount required to cover the repayment of municipal bonds issued by the EIFD.

An EIFD can collect and spend property tax increments up to 45 years after the first bond is issued.

EIFDs do not create a new tax, nor do they result in any additional taxes or fees to property owners. Once a District is formed, the EIFD allows for a reallocation of a portion of future property taxes (the tax increment) to a separate account to be used to pay for infrastructure improvements that benefit a designated area.

When an EIFD is established, the “baseline property value” for all properties within the District is set, or frozen, at that year’s appraised value. Tax increment revenue is generated from the “captured appraised value” (the difference between the baseline value and the annually updated appraised value). A pre-designated percentage of this revenue establishes the fund that is administered by the PFA to be used for public infrastructure and community benefiting projects.

The PFA may decide to sell bonds when sufficient property tax increment has accrued to support the debt service. In this way, bonds are secured only by the tax increment generated within the District, NOT by the City’s or County’s General Funds. Bonds may not be sold until after some development has occurred and tax increment is generated, hence EIFDs are often used as a reimbursement mechanism. EIFDs have a lifespan of up to 45 years after the first bond is issued.

The Public Financing Authority (PFA) authorizes, develops, and eventually implements the Infrastructure Finance Plan (IFP), which is the investment plan of the EIFD. In essence, the PFA oversees EIFD finances and activities.

As both the City and the County are anticipated to participate in the San Diego River Park EIFD, and thus are the affected taxing entities, the PFA’s membership must consist of a majority of members from the legislative bodies of the participating entities, and a minimum of two members of the public must be chosen by the legislative bodies. Boards typically consist of an odd number of representatives, so the PFA will consist of two City of San Diego Councilmembers, two members from the San Diego County Board of Supervisors, and three members of the public.

• Land Acquisition/Easements
• Trail Design and Construction
• Bridges Design and Construction
• Pocket Park/Staging Areas    

Local elected officials vote to form the EIFD and create a Public Financing Authority (PFA). The PFA Board serves as the governing body to implement the EIFD projects that are listed in the Infrastructure Financing Plan (IFP).  Although there is no public vote to form an EIFD, there are a minimum of three public hearings held by the PFA where property owners can provide feedback and voice any concerns. At the final hearing, the PFA Board (made up of two County Supervisors, two elected City officials and three members of the public) will vote whether to form the EIFD or delay proceedings based on any protest received.