Enhanced Infrastructure Financing District (EIFD)
Enhanced Infrastructure Financing District (EIFD): The City of Santa Cruz is working with Kosmont Companies Inc. to explore financial tools and strategies that could help bring new funding to support public infrastructure projects. City Council has acted by approving a resolution of Intention on 3/25/25. You can review the presentation HERE.
Additionally, the Council Action established the Public Financing Authority (PFA)
PFA Roster can be found Here
PFA Meeting Minutes and Agendas can be found Here
Project & PFA Staff Liaison Contact Information:
Brian Borguno, Development Manager bborguno@santacruzca.gov
Next steps:
- The First Meeting of the EIFD Public Financing Authority is scheduled for Thursday, August 28th at 9am, and will take place in City Council Chambers. 8.28.25 Agenda Packet
Watch the Community Information Webinar
City of Santa Cruz staff worked with Kosmont Companies Inc, to complete a Financial Feasibility Analysis:Santa Cruz Financing District Analysis
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 Santa Cruz' s case, the two entities with property taxing authority include the City and the County of Santa Cruz.
EIFD’s capture property tax revenue growth within their boundaries, and that tax revenue may be 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 property tax growth within the existing tax rate, known as “property tax increment”, and redirects a portion of it for 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, County Board of Supervisors) 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 Santa Cruz EIFD?
The goal of the Santa Cruz Enhanced Infrastructure Financing District is to create financing for infrastructure investments around various 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?
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