text:
(a) This section applies only to the City of Oakland and any infrastructure financing district proposed by the City of Oakland, as described in this section.

(b) In addition to the findings and declarations in Section 53395, the Legislature further finds and declares that consolidating in a single agency the ability to capture property tax increment revenues to finance qualified public facilities in the City of Oakland will provide communitywide benefits.

(c) For purposes of this section:

(1) “Affected taxing entity” means any governmental taxing agency, except Oakland and its local educational agencies, that levied or had levied on its behalf a property tax on all or a portion of the land located in the proposed district in the fiscal year prior to the designation of the district, all or a portion of which the district proposes to collect in the future under its infrastructure financing plan.

(2) “Base year” means the fiscal year in which the assessed value of taxable property in the district was last equalized prior to the effective date of the ordinance adopted to create the district, or a subsequent fiscal year specified in the infrastructure financing plan for the district.

(3) “City council” means the City Council of the City of Oakland.

(4) “Debt” means loans, advances, or other forms of indebtedness and financial obligations, including, but not limited to, commercial paper, variable rate demand notes, all moneys payable in relation to the debt, and all debt service coverage requirements in any debt instrument, in addition to the obligations specified in the definition of “debt” in Section 53395.1.

(5) “District” means any district created pursuant to this section, including any project area within a district.

(6) “District board” means the governing body for the district created pursuant to this section. The district board shall include each member of the city council and one member from each affected taxing entity, if any, that adopts a resolution approving an infrastructure financing plan pursuant to this section. If no affected taxing entity adopts a resolution approving an infrastructure financing plan pursuant to this section, the district board shall be the city council.

(7) “Local educational agencies” means, collectively, the Oakland Unified School District, the Peralta Community College District, and the Alameda County Office of Education.

(8) “Oakland” means the City of Oakland.

(9) “Project area” means a defined area within a district formed under this chapter in accordance with subdivision (e).

(10) “Public facilities” means facilities authorized to be financed in whole or in part by a district formed under this chapter in accordance with subdivision (e). Public facilities may be publicly owned or privately owned if they are available to and serve the general public, but shall not include any ball park for the Oakland Athletics Major League Baseball franchise.

(d) (1) A district may finance the design, purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer, as described in this chapter. The facilities need not be physically located within the boundaries of the district. However, any facilities financed outside a district shall have a tangible connection to the work of the district, as detailed in the infrastructure financing plan adopted in accordance with subdivision (e). Subdivision (b) of Section 53395.3 shall not apply to the district, but the district shall only finance public facilities of communitywide significance that provide significant benefits to the district or the surrounding community.

(2) A district shall not finance routine maintenance, repair work, or the costs of ongoing operation or providing services of any kind.

(3) In addition to any other project authorized by this chapter, a district formed pursuant to this section may finance any of the following:

(A) Highways, interchanges, ramps and bridges, arterial streets, parking facilities, and transit facilities.

(B) Sewage treatment and water reclamation plants and interceptor pipes.

(C) Facilities for the collection and treatment of water for urban uses.

(D) Flood control levees and dams, retention basins, and drainage channels.

(E) Childcare facilities.

(F) Libraries.

(G) Parks, recreational facilities, and open space.

(H) Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles.

(I) Brownfield restoration and other environmental mitigation.

(J) The development of projects on a former military base, provided that the projects are consistent with the military base authority reuse plan and are approved by the military base reuse authority, if applicable.

(K) The repayment of the transfer of funds to a military base reuse authority pursuant to Section 67851 that occurred on or after the creation of the district.

(L) The acquisition, construction, or rehabilitation of housing, whether publicly or privately owned, for very low income households and persons and families of low or moderate income, as those terms are defined in Sections 50105 and 50093, respectively, of the Health and Safety Code, for rent or purchase.

(M) Acquisition, construction, or repair of industrial structures for private use.

(N) Transit priority projects, as defined in Section 21155 of the Public Resources Code, that are located within a transit priority project area. For purposes of this paragraph, “transit priority project area” includes a military base reuse plan that meets the definition of a transit priority project area or a contaminated site within a transit priority project area.

(O) If the State Air Resources Board, pursuant to Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7, has accepted a metropolitan planning organization’s determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets, projects that implement a sustainable communities strategy.

(P) Projects that enable communities to adapt to the impacts of climate change, including, but not limited to, higher average temperatures, decreased air and water quality, the spread of infectious and vectorborne diseases, other public health impacts, extreme weather events, sea level rise, flooding, heat waves, wildfires, and drought.

(Q) Port or harbor infrastructure, as defined by Section 1698 of the Harbors and Navigation Code.

(R) The acquisition, construction, or improvement of broadband internet access service, as defined in Section 53167. Notwithstanding any other law, a district that acquires, constructs, or improves broadband internet access service may transfer the management and control of those facilities to a local agency that is authorized to provide broadband internet access service, and that local agency when providing that service shall comply with the requirements of Article 12 (commencing with Section 53167) of Chapter 1.

(S) Remediation of hazardous materials in, on, under, or around any real or tangible property.

(T) Seismic and life safety improvements to existing buildings.

(U) Rehabilitation, restoration, and preservation of structures, buildings, or other facilities having special historical, architectural, or aesthetic interest or value and that are listed on the National Register of Historic Places, are eligible for listing on the National Register of Historic Places individually or because of their location within an eligible registered historic district, or are listed on a state or local register of historic landmarks.

(V) Structural repairs and improvements to piers, seawalls, and wharves, and installation of piles.

(W) Removal of bay fill.

(X) Stormwater management facilities, other utility infrastructure, or public open-space improvements.

(Y) Other repairs and improvements to public facilities.

(Z) Planning and design work that is directly related to any public facilities authorized to be financed by a district.

(AA) Reimbursement payments made to the California Infrastructure and Economic Development Bank in accordance with paragraph (5) of subdivision (e) of Section 53395.81.

(BB) Improvements, which may be publicly owned, to protect against potential sea level rise.

(CC) Fire stations.

(e) Notwithstanding Sections 53395.10 to 53395.25, inclusive, the district board may adopt or amend one or more infrastructure financing plans for the district according to the procedures in this section. The district shall include only those areas, which may be noncontiguous, that the district board finds are necessary to achieve the goals of the district, as identified in the resolution of intention adopted pursuant to this section. Any district may be divided into project areas, each of which may be subject to distinct limitations established under this section. The district board may, at any time, add territory to the district or amend the infrastructure financing plan for the district in accordance with the same procedures for the formation of the district and adoption of the infrastructure financing plan pursuant to this section.

(1) Before initiating proceedings for the establishment of a district pursuant to this section, the city council shall make all of the following findings:

(A) There is a need for the district.

(B) A thorough financial analysis and plan for the public facilities in the district have been completed.

(C) The boundaries for the district have been identified.

(D) Analyses and determinations have occurred regarding all of the following:

(i) The projected cost of the public facilities.

(ii) The parties that, in addition to the city, will contribute to the cost of constructing the public facilities.

(iii) Whether, and the extent to which, development facilitated by the district will generate economic benefits to the city, including, but not limited to, participation in any revenue stream to be generated by any project on city-owned property, or community benefits, such as public open space and affordable housing.

(2) Upon making the findings required by paragraph (1), the city council may initiate proceedings for the establishment of a district by adopting a resolution of intention to establish the proposed district, which shall do all of the following:

(A) State that an infrastructure financing district is proposed to be established and describes the boundaries of the proposed district. The boundaries may be described by reference to a map on file in the office of the clerk of the city council.

(B) Describe the type of public facilities proposed to be financed by the district.

(C) State that some or all of the incremental property tax revenue from Oakland and some or all affected taxing entities within the district, but none of the local educational agencies, may be used to finance these public facilities.

(D) State the need for the district and identify the goals that the district proposes to achieve.

(E) Direct the preparation of a proposed infrastructure financing plan.

(3) The city council shall direct the city clerk to mail a copy of the resolution of intention to any affected taxing entities.

(4) The proposed infrastructure financing plan shall be consistent with the general plan of Oakland, as amended from time to time, and shall include all of the following:

(A) A map and legal description of the proposed district, which may include all or a portion of the district designated by the district board in its resolution of intention.

(B) A description of the public facilities required to serve the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, purpose, and projected costs of the public facilities.

(C) A financing section that shall contain all of the following:

(i) A provision that specifies the maximum portion of the incremental tax revenue of Oakland and of any affected taxing entity proposed to be committed to the district, and affirms that the plan will not allocate any portion of the incremental tax revenue of the local educational agencies to the district. The portion need not be the same for all affected taxing entities. The portion may change over time.

(ii) Limitations on the use of levied taxes allocated to and collected by the district that provide that incremental tax revenues allocated to a district must be used for purposes authorized under this section.

(iii) A projection of the amount of incremental tax revenues expected to be received by the district, assuming a district receives incremental tax revenues for a period no later than 45 years after Oakland projects that the district will have received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter. In the event that the district board divides the district into multiple project areas, the projection of the amount of incremental tax revenues expected to be received by the district shall be calculated separately for each project area.

(iv) Projected sources of financing for the public facilities to be assisted by the district, including debt to be repaid with incremental tax revenues, projected revenues from future leases, sales, or other transfers of any interest in land within the district, and any other legally available sources of funds.

(v) A limitation on the aggregate number of dollars of levied taxes that may be divided and allocated to the district. Taxes shall not be divided or be allocated to the district beyond this limitation, except by amendment of the infrastructure financing plan pursuant to the procedures in this subdivision. If the district board divides the district into multiple project areas, the project areas may share this limit and the limit may be divided among the project areas or a separate limit may be established for a project area.

(vi) For the district, or for each project area of the district if the district board divides the district into multiple project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the district’s authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district board divides the district into multiple project areas, the district board may establish a separate and unique time limit applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.

(vii) An analysis of the costs to Oakland for providing facilities and services to the district while the district is being developed and after the district is developed, and of the taxes, fees, charges, and other revenues expected to be received by Oakland as a result of expected development in the district.

(viii) An analysis of the projected fiscal impact of the district and any associated development upon any affected taxing entity. If there are no affected taxing entities because the plan does not provide for collection by the district of any portion of property tax revenues allocated to any taxing entity other than Oakland, the district has no obligation to any other taxing entity under this subdivision.

(ix) Estimated administrative expenses to be paid with incremental tax revenues allocated to the district.

(x) A statement that the district will maintain accounting procedures in accordance, and otherwise comply, with Section 6306 of the Public Resources Code for the term of the plan.

(D) A provision that meets the requirements of Section 53396 providing for the division of taxes, if any, levied upon taxable property within the district and the allocation of a portion of the incremental tax revenue of Oakland and other designated affected taxing entities to the district.

(5) This chapter shall not be construed to prevent a district that is formed pursuant to this section from utilizing revenues from any of the following sources to support its activities, provided that the infrastructure financing plan has been approved in accordance with this section:

(A) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).

(B) The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).

(C) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).

(D) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).

(E) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).

(F) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).

(G) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4).

(H) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311)).

(I) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703)).

(6) The proposed infrastructure financing plan shall be mailed to each affected taxing entity for review, together with, to the extent available, any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities and any proposed development project for which the public facilities are needed, and shall be made available for public inspection. The report also shall be sent to the Oakland Planning and Building Department and the city council.

(7) The city council shall not enact a resolution proposing formation of a district and providing for the division of taxes of any affected taxing entities for use in the district as set forth in the proposed infrastructure financing plan unless the governing body of each affected taxing entity adopts a resolution approving the plan, and that resolution has been filed with the city council at or before the time of the hearing. A resolution approving the plan adopted by the governing body of an affected taxing entity shall be deemed the affected taxing entity’s agreement to participate in the plan for the purposes of this section.

(8) If the governing body of an affected taxing entity has not approved the infrastructure financing plan before the city council considers the plan, the city council shall amend the infrastructure financing plan to remove the allocation of the tax revenues of the nonconsenting affected taxing entity.

(9) (A) The district board shall consider adoption of the infrastructure financing plan at three public hearings that shall take place at least 30 days apart. Notice of each public hearing shall be given in accordance with paragraph (17).

(B) At the first public hearing, the district board shall hear all written and oral comments, but take no action.

(C) At the second public hearing, the district board shall consider any additional written and oral comments and take action to modify or reject the infrastructure financing plan. If the infrastructure financing plan is not rejected at the second public hearing, then the district board shall conduct a protest proceeding at the third public hearing to consider whether the landowners and residents within the infrastructure financing plan area wish to present oral or written protests against the adoption of the infrastructure financing plan.

(10) The draft infrastructure financing plan shall be made available to the public and to each landowner within the area at a meeting held at least 30 days prior to the notice given for the first public hearing. The purposes of the meeting shall be to allow the staff of the district board to present the draft infrastructure financing plan, answer questions about the infrastructure financing plan, and consider comments about the infrastructure financing plan.

(11) (A) Notice of the meeting required by paragraph (10) and the public hearings required by paragraph (9) shall be given in accordance with paragraph (17). The notice shall do the following, as applicable:

(i) Describe specifically the boundaries of the proposed area.

(ii) Describe the purpose of the infrastructure financing plan.

(iii) State the day, hour, and place when and where any and all persons having any comments on the proposed infrastructure financing plan may appear to provide written or oral comments to the infrastructure financing district.

(iv) Notice of the second public hearing shall include a summary of the changes made to the infrastructure financing plan as a result of the oral and written testimony received at or before the public hearing and shall identify a location accessible to the public where the infrastructure financing plan proposed to be presented at the second public hearing can be reviewed.

(v) Notice of the third public hearing to consider any written or oral protests shall contain a copy of the infrastructure financing plan, and shall inform each landowner and resident of their right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the district board taking action to implement the infrastructure financing plan.

(B) At the third public hearing, the district board shall consider all written and oral protests received prior to the close of the public hearing along with the recommendations, if any, of affected taxing entities, and shall terminate the proceedings or adopt the infrastructure financing plan subject to confirmation by the voters at an election called for that purpose. The district board shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest.

(12) An election required pursuant to subparagraph (B) of paragraph (11) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The district board shall adopt, at a duly noticed public hearing, procedures for this election.

(13) If a majority of the landowners and residents vote against the infrastructure financing plan, then the district board shall not take any further action to implement the proposed infrastructure financing plan. The district board shall not propose a new or revised infrastructure financing plan to the affected landowners and residents for at least one year following the date of an election in which the infrastructure financing plan was rejected.

(14) At the hour set in the notices required by paragraph (9), the district board shall consider all written and oral comments.

(15) If less than 25 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest, the district board may adopt the infrastructure financing plan at the conclusion of the third public hearing by ordinance. The ordinance adopting the infrastructure financing plan shall be subject to referendum as prescribed by law.

(16) The district board shall consider and adopt an amendment or amendments to an infrastructure financing plan in accordance with the provisions of this section.

(17) The district board shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the district’s internet website and shall mail a written notice of the meeting or public hearing to each resident and each taxing entity at least 10 days prior to the meeting or public hearing.

(A) Notice of the first public hearing shall also be published not less than once a week for four successive weeks prior to the first public hearing in a newspaper of general circulation published in the County of Alameda. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the district board and object to the adoption of the proposed plan by the district board.

(B) Notice of the second public hearing shall also be published not less than 10 days prior to the second public hearing in a newspaper of general circulation in the County of Alameda. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the district board and object to the adoption of the proposed plan by the district board.

(C) Notice of the third public hearing shall also be published not less than 10 days prior to the third public hearing in a newspaper of general circulation in the County of Alameda. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the district board and object to the adoption of the proposed plan by the district board.

(18) This section implements and fulfills the intent of this chapter and of Article XIII B of the California Constitution.  The allocation and payment to a district of the portion of taxes specified in this section for the purpose of paying principal of, or interest on, loans, advances, or indebtedness incurred by the district under this section shall not be deemed the receipt by a district of proceeds of taxes levied by or on behalf of the district within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall that portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision enacted in implementation of Article XIII B of the California Constitution.

(19) Any action or proceeding to attack, review, set aside, void, or annul the creation of a district, adoption of an infrastructure financing plan, including a division of taxes thereunder, or an election pursuant to this section shall be commenced within 30 days after the enactment of the ordinance creating the district pursuant to this subdivision. Consistent with the time limitations of this paragraph an action or proceeding with respect to a division of taxes under this section may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure, except that Section 869 of the Code of Civil Procedure shall not apply.

(20) An action to determine the validity of the issuance of bonds pursuant to this section may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. However, notwithstanding the time limits specified in Section 860 of the Code of Civil Procedure, the action shall be commenced within 30 days after adoption of the resolution pursuant to paragraph (1) of subdivision (f) providing for issuance of the bonds if the action is brought by an interested person pursuant to Section 863 of the Code of Civil Procedure. Any appeal from a judgment in that action or proceeding shall be commenced within 30 days after entry of judgment.

(21) (A) The district board shall review the infrastructure financing plan at least annually and make any amendments that are necessary and appropriate and shall require the preparation of an annual independent financial audit paid for from revenues of the infrastructure financing district.

(B) The district board shall adopt an annual report on or before June 30 of each year after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days prior to the public hearing. The district board shall cause the draft report to be posted in an easily identifiable and accessible location on the district’s internet website and shall mail a written notice of the availability of the draft report on the internet website to each landowner and each resident within the area covered by the infrastructure financing plan and to each affected taxing entity that has adopted a resolution pursuant to paragraph (7). The notice shall be mailed by first-class mail, but may be addressed to “occupant.”

(C) The annual report shall contain all of the following:

(i) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress.

(ii) A chart comparing the actual revenues and expenses, including administrative costs, of the district board to the budgeted revenues and expenses.

(iii) The amount of tax increment revenues received.

(iv) An assessment of the status regarding completion of the district’s projects.

(v) The amount of revenues expended to assist private businesses.

(D) If the district board fails to provide the annual report required by subparagraph (B), the district board shall not spend any funds received pursuant to a resolution adopted pursuant to this section until the district board has provided the report.

(22) The ordinance creating a district and adopting or amending an infrastructure financing plan shall establish the base year for the district. The district board may amend an infrastructure financing plan by ordinance for any purpose, including, but not limited to, the following:

(A) Dividing an established district into one or more project areas.

(B) Reducing the district area.

(C) Expanding the district area.

(23) Oakland may enter into an agreement for the construction of discrete portions or phases of public facilities. The agreement may include any provisions that Oakland determines are necessary or convenient, but shall do all of the following:

(A) Identify the specific public facilities or discrete portions or phases of public facilities to be constructed and purchased. Oakland may agree to purchase discrete portions or phases of public facilities if the portions or phases are capable of serviceable use as determined by Oakland.

(B) Identify procedures to ensure that the public facilities are constructed pursuant to plans, standards, specifications, and other requirements as determined by Oakland.

(C) Specify a price or a method to determine a price for each public facility or discrete portion or phase of a public facility.

(D) Specify procedures for final inspection and approval of public facilities or discrete portions or phases of public facilities, for approval of payment and for acceptance and conveyance.

(f) Notwithstanding Sections 53397.1 to 53397.11, inclusive, the district board may approve and issue bonds for the district according to the procedures in this section.

(1) The district board may, by resolution adopted at the time of the formation of the district, authorize the issuance of bonds in one or more series by determining the aggregate principal amount of bonds that may be issued in the district. The district board may undertake the proceedings and actions described in this subdivision with respect to the district as a whole, or separately with respect to one or more project areas. If the district board undertakes the proceedings for the district as a whole, it may thereafter, by resolution, allocate the principal amount of the authorized bond issuance to one or more project areas within the district. The district board may increase the principal amount of bonds that may be issued for the district or a project area within the district by undertaking the proceedings in this subdivision with respect to that increased amount. The bonds may be sold at a negotiated sale or a competitive sale subject to the notice requirements of paragraph (5).

(2) At any time after formation of the district and adoption of the resolution described in paragraph (1), the district board may, by a majority vote of its members, issue tax-exempt or taxable bonds in one or more series. Bonds shall be issued following adoption of a resolution containing all of the following information:

(A) A description of the facilities to be financed with the proceeds of the proposed bond issue.

(B) The estimated cost of the facilities, the estimated cost of preparing and issuing the bonds, and the principal amount of the proposed bond issuance.

(C) The maximum interest rate and discount on the proposed bond issuance.

(D) A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.

(E) A finding that the amount necessary to pay the principal of, and interest on, the proposed bond issuance will be less than, or equal to, the amount determined pursuant to subparagraph (D).

(F) The issuance of the bonds in one or more series.

(G) The date the bonds will bear.

(H) The date of maturity of the bonds.

(I) The denomination of the bonds.

(J) The form of the bonds.

(K) The manner of execution of the bonds.

(L) The medium of payment in which the bonds are payable.

(M) The place or manner of payment and any requirements for registration of the bonds.

(N) The terms of call or redemption, with or without premium.

(3) The district board may, by majority vote of the members of the district board, provide for refunding of bonds issued pursuant to this subdivision. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The district board shall not extend the time to maturity of the bonds being refunded.

(4) The district board, the city council, or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of a district issued pursuant to this chapter are not a debt of the city or of any of its political subdivisions, other than the district, and none of those entities, other than the district, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the district. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation.

(5) Bonds may be sold at a negotiated sale or a competitive sale. At least five days before a competitive sale of bonds, the district board shall publish notice of the sale, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City of Oakland and in the City of Los Angeles.

(6) If any member of the district board whose signature appears on bonds ceases to be a member of the district board before delivery of the bonds, that member’s signature is as effective with respect to those bonds as if the member had remained in office at the time of delivery of those bonds.

(7) Bonds issued pursuant to this subdivision are fully negotiable.

history: (History: Added by Stats. 2019, Ch. 762, Sec. 2. (SB 293) Effective January 1, 2020.)

title: 5. LOCAL AGENCIES

article: 1. General Provisions


kind: section

code: GOV

text: If a city or county that is a member of the Orangeline Development Authority establishes an infrastructure financing district pursuant to this chapter for the purpose of providing funding for public transit facilities, that city or county may provide some or all of this funding to the Orangeline Development Authority for the purposes of furthering public transit facilities within the jurisdiction of the authority, including facilities related to magnetic levitation.

history: (History: Amended by Stats. 2013, Ch. 210, Sec. 14. (SB 184) Effective January 1, 2014.)

division: 2. CITIES, COUNTIES, AND OTHER AGENCIES

title: 5. LOCAL AGENCIES

chapter: 2.8. Infrastructure Financing Districts

article: 1. General Provisions

path: 5. LOCAL AGENCIES > 2. CITIES, COUNTIES, AND OTHER AGENCIES > 2.8. Infrastructure Financing Districts > 1. General Provisions


text:
Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance adopted pursuant to Section 53395.23 to create the district, shall be divided, subject to the provisions of Section 53993, as follows:

(a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the ordinance adopted pursuant to Section 53395.23 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.

(b) That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city or county and each affected taxing entity which has agreed to participate pursuant to Section 53395.19 in excess of the amount specified in subdivision (a) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.

history: (History: Amended by Stats. 2016, Ch. 49, Sec. 2. (SB 975) Effective January 1, 2017.)

title: 5. LOCAL AGENCIES

article: 3. Division of Taxes

path: 5. LOCAL AGENCIES > 2. CITIES, COUNTIES, AND OTHER AGENCIES > 2.8. Infrastructure Financing Districts > 3. Division of Taxes


text: All costs incurred by a county in connection with the division of taxes pursuant to Section 53396 for a district shall be paid by that district.

history: (History: Added by Stats. 1990, Ch. 1575, Sec. 1.)

title: 5. LOCAL AGENCIES

article: 3. Division of Taxes


text: The legislative body may, by majority vote, initiate proceedings to issue bonds pursuant to this chapter by adopting a resolution stating its intent to issue the bonds.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds

path: 5. LOCAL AGENCIES > 2. CITIES, COUNTIES, AND OTHER AGENCIES > 2.8. Infrastructure Financing Districts > 4. Tax Increment Bonds


text:
The resolution adopted pursuant to Section 53397.1 shall contain all of the following information:

(a) A description of the facilities to be financed with the proceeds of the proposed bond issue.

(b) The estimated cost of the facilities, the estimated cost of preparing and issuing the bonds, and the principal amount of the proposed bond issuance.

(c) The maximum interest rate and discount on the proposed bond issuance.

(d) The date of the election on the proposed bond issuance and the manner of holding the election.

(e) A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.

(f) A finding that the amount necessary to pay the principal of, and interest on, the proposed bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (e).

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text:
The clerk of the legislative body shall publish the resolution adopted pursuant to Section 53397.1 once a day for at least seven successive days in a newspaper published in the city or county at least six days a week, or at least once a week for two successive weeks in a newspaper published in the city or county less than six days a week.

If there are no newspapers meeting these criteria, the resolution shall be posted in three public places within the territory of the district for two succeeding weeks.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: The legislative body shall submit the proposal to issue the bonds to the voters who reside within the district. The election shall be conducted in the same manner as the election to create the district pursuant to Section 53395. 20 and the two elections may be consolidated.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text:
(a) The bonds may be issued if two-thirds of the voters voting on the proposition vote in favor of issuing the bonds.

(b) If the voters approve the issuance of the bonds as provided by subdivision (a), the legislative body shall proceed with the issuance of the bonds by adopting a resolution which shall provide for all of the following:

(1) The issuance of the bonds in one or more series.

(2) The principal amount of the bonds, which shall be consistent with the amount specified in subdivision (b) of Section 53397.2.

(3) The date the bonds will bear.

(4) The date of maturity of the bonds.

(5) The denomination of the bonds.

(6) The form of the bonds.

(7) The manner of execution of the bonds.

(8) The medium of payment in which the bonds are payable.

(9) The place or manner of payment and any requirements for registration of the bonds.

(10) The terms of call or redemption, with or without premium.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: If any proposition submitted to the voters pursuant to this chapter is defeated by the voters, the legislative body shall not submit, or cause to be submitted, a similar proposition to the voters for at least one year after the first election.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: The legislative body may, by majority vote, provide for refunding of bonds issued pursuant to this chapter. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The legislative body may not extend the time to maturity of the bonds.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: The legislative body or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of a district issued pursuant to this chapter are not a debt of the city, county, or state or of any of its political subdivisions, other than the district, and none of those entities, other than the district, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the district. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: The bonds may be sold at discount not to exceed 5 percent of par at public sale. At least five days prior to the sale, notice shall be published, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City and County of San Francisco and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: If any member of the legislative body whose signature appears on bonds ceases to be a member of the legislative body before delivery of the bonds, his or her signature is as effective as if he or she had remained in office. Bonds issued pursuant to this chapter are fully negotiable.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text:
Notwithstanding the provisions of this article, all of the following shall apply to the issuance of bonds by a waterfront district established pursuant to Section 53395.8:

(a) The legislative body may, by resolution, authorize the issuance of bonds without holding an election of the voters residing in the waterfront district.

(b) The legislative body may undertake the proceedings and actions described in this article with respect to the district as a whole, or separately with respect to one or more project areas. If the legislative body undertakes the proceedings for the district as a whole, it may thereafter, by resolution, allocate the principal amount of the authorized bond issuance to one or more project areas within the district.

(c) The legislative body may increase the principal amount of bonds that may be issued for a district or a project area within a district by undertaking the proceedings in this article, with respect to that increased amount.

(d) The bonds of a waterfront district may be sold at a negotiated sale subject to the notice requirements of Section 53397.10.

history: (History: Amended by Stats. 2012, Ch. 785, Sec. 3. (AB 2259) Effective January 1, 2013.)

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text:
(a) The Legislature finds and declares that the North American Free Trade Agreement has resulted in a dramatic increase in trade with Mexico. In 1998 companies in California exported over $13.3 billion worth of goods to Mexico, and more than 80,000 jobs throughout the state are the direct result of this trade. This increased trade has strained the inadequate public infrastructure in the region just north of the international border.

(b) The Legislature further finds and declares that there is a significant opportunity for industrial development, including high technology and biotechnology manufacturing, in the region along the border. However, this region lacks the public infrastructure necessary to support new development or to provide for the rapid and reliable delivery of supplies to, and distribution of products from, companies throughout the state.

(c) The Legislature finds and declares that the state and federal governments have withdrawn in whole or in part from their former role in financing infrastructure facilities, including highways, roads and interchanges, sewage facilities and water reclamation works, water supply and treatment works, flood control and drainage works, schools, libraries, parks, parking facilities, open space, and seismic retrofit and rehabilitation of public facilities.

(d) The Legislature further finds and declares that the methods available to local agencies to finance public works often place an undue and unfair burden on buyers of new homes, especially for public works that benefit the broader community.

(e) The Legislature further finds and declares that the absence of practical and equitable methods for financing both regional and local public works leads to a declining standard of public works, a failure to construct new public works needed to support new commercial and industrial development in the region along the border, a reduced quality of life and decreased safety for affected citizens, increased objection to otherwise desirable development, and excessive costs for homebuyers.

(f) The Legislature further finds and declares that it is equitable and in the public interest to provide alternative procedures for financing public works and services needed to support new commercial and industrial development in the region along the border that would generate significant new employment opportunities.

history: (History: Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.)

title: 5. LOCAL AGENCIES

article: 1. General Provisions

path: 5. LOCAL AGENCIES > 2. CITIES, COUNTIES, AND OTHER AGENCIES > 2.9. Infrastructure Financing Districts in the Border Development Zone > 1. General Provisions


text:
Unless the context otherwise requires, the definitions contained in this article shall govern the construction of this chapter.

(a) “Affected taxing entity” means any governmental taxing agency that levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed district in the fiscal year prior to the designation of the district, but not including any county office of education, school district, community college district, or the Educational Revenue Augmentation Fund.

(b) “Border development zone” means a strip of land three miles wide with the international border with Mexico on the south, the mean high tide of the Pacific Ocean on the west, and the border with the State of Arizona on the east.

(c) “City” means a city, a county, or a city and county.

(d) “Debt” means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals.

(e) “Designated official” means the city engineer or other appropriate official designated pursuant to Section 53398.13.

(f) “District” means an infrastructure financing district located in the border development zone.

(g) “Infrastructure financing district” means a legally constituted governmental entity established pursuant to this chapter for the sole purpose of financing public facilities.

(h) “Landowner” or “owner of land” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. The legislative body has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter.

(i) “Legislative body” means the city council or board of supervisors.

title: 5. LOCAL AGENCIES

chapter: 2.9. Infrastructure Financing Districts in the Border Development Zone

article: 1. General Provisions


text:
(a) The revenues available pursuant to Article 3 (commencing with Section 53398.30) may be used directly for work allowed pursuant to Section 53398.3 (including use as matching funds to accomplish this work), may be accumulated for a period not to exceed five years to provide a fund for that work, may be pledged to pay the principal of, and interest on, bonds issued pursuant to Article 4 (commencing with Section 53398.40), or may be pledged to pay the principal of, and interest on, bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) or the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311)), the proceeds of which have been or will be used entirely for allowable purposes of the district. The revenue of the district may also be advanced for allowable purposes of the district to an Integrated Financing District established pursuant to Chapter 1.5 (commencing with Section 53175), in which case the district may be party to a reimbursement agreement established pursuant to that chapter. The revenues of the district may also be committed to paying for any completed public facility acquired pursuant to Section 53398.3 over a period of time, including the payment of a rate of interest not to exceed the bond buyer index rate on the day that the agreement to repay is entered into by the city.

(b) The legislative body may enter into an agreement with any affected taxing entity providing for the construction of, or assistance in, financing public facilities.

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text:
(a) A district may finance (1) the purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer that satisfies the requirements of subdivision (b), (2) the planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of that property, and (3) the costs described in Sections 53398.5 and 53398.31. A district may only finance the purchase of facilities for which construction has been completed, as determined by the legislative body. The facilities need not be physically located within the boundaries of the district. A district may not finance routine maintenance, repair work, or the costs of ongoing operation or providing services of any kind.

(b) The district shall finance only public capital facilities that provide significant benefits to the area of the border development zone, including, but not limited to, all of the following:

(1) Highways, interchanges, ramps and bridges, major and minor arterial streets, major and minor collector streets, parking facilities, and transit facilities. Phased road widening projects shall also be permitted.

(2) Sewage collection, pumping, treatment and water reclamation plants and interceptor pipes.

(3) Facilities for the collection and treatment of water for urban uses.

(4) Flood control levees and dams, retention basins, and drainage facilities.

(5) Child care facilities.

(6) Libraries.

(7) Parks, recreational facilities, and open space.

(8) Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles.

(9) Public safety facilities.

(c) Any district that constructs dwelling units shall set aside not less than 20 percent of those units to increase and improve the community’s supply of low- and moderate-income housing available at an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, to persons and families of low and moderate income, as defined in Section 50093 of the Health and Safety Code.

(d) A district may also finance the purchase of sewage treatment capacity that provides significant benefits to the area of the border development zone. The facility providing the sewage treatment capacity need not be physically located within the boundaries of the district.

history: (History: Amended by Stats. 2000, Ch. 595, Sec. 1. Effective January 1, 2001.)

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text:
(a) A district may not include any portion of a redevelopment project area that is or has been previously created pursuant to Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, whether the creation is or was proper or improper. A redevelopment project area may not include any portion of a district created pursuant to this chapter.

(b) A district may finance only the facilities or services authorized in this chapter to the extent that the facilities or services are in addition to those provided in the territory of the district before the district was created. The additional facilities or services may not supplant facilities or services already available within that territory when the district was created but may supplement those facilities and services as needed to serve new developments.

(c) A district may include areas that are not contiguous.

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text:
It is the intent of the Legislature that the area of the districts created be substantially undeveloped, and the establishment of a district should not ordinarily lead to the removal of existing dwelling units. If, however, any dwelling units are proposed to be removed or destroyed in the course of private development or public works construction within the area of the district, the legislative body shall do all of the following:

(a) Within four years of the removal or destruction, cause or require the construction or rehabilitation, for rental or sale to persons or families of low or moderate income, of an equal number of replacement dwelling units at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, within the territory of the district if the dwelling units removed were inhabited by persons or families of low or moderate income, as defined in Section 50093 of the Health and Safety Code.

(b) Within four years of the removal or destruction, cause or require the construction or rehabilitation, for rental or sale to persons of low or moderate income, a number of dwelling units that is at least one unit but not less than 20 percent of the total dwelling units removed at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, within the territory of the district if the dwelling units removed or destroyed were not inhabited by persons of low or moderate income, as defined in Section 50093 of the Health and Safety Code.

(c) Provide relocation assistance and make all the payments required by Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, to persons displaced by any public or private development occurring within the territory of the district. This displacement shall be deemed to be the result of public action.

(d) Ensure that removal or destruction of any dwelling units occupied by persons or families of low or moderate income does not take place unless and until there are suitable housing units, at comparable cost to the units from which the persons or families were displaced, available and ready for occupancy by the residents of the units at the time of their displacement. The housing units shall be suitable to the needs of these displaced persons or families and shall be decent, safe, sanitary, and otherwise standard dwellings.

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text: Any action or proceeding to attack, review, set aside, void, or annul the creation of a district or the adoption of an infrastructure financing plan, including a division of taxes thereunder, shall be commenced within 30 days after the enactment of the ordinance creating the district pursuant to Section 53398.21. Consistent with the time limitations of this section, such an action or proceeding with respect to a division of taxes under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure, except that Section 869 of the Code of Civil Procedure shall not apply.

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text: An action to determine the validity of the issuance of bonds pursuant to this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. However, notwithstanding the time limits specified in Section 860 of the Code of Civil Procedure, the action shall be commenced within 30 days after adoption of the resolution pursuant to Section 53398.43 providing for issuance of the bonds if the action is brought by an interested person pursuant to Section 863 of the Code of Civil Procedure. Any appeal from a judgment in that action or proceeding shall be commenced within 30 days after entry of judgment.

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text: An infrastructure financing district in the border development zone is a “district” within the meaning of Section 1 of Article XIIIA of the California Constitution.

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text:
A legislative body of a city may designate one or more proposed infrastructure financing districts in the border development zone pursuant to this chapter. Proceedings for the establishment of a district shall be instituted by the adoption of a resolution of intention to establish the proposed district and shall do all of the following:

(a) State that an infrastructure financing district is proposed to be established under the terms of this chapter and describe the boundaries of the proposed district, which may be accomplished by reference to a map on file in the office of the clerk of the city.

(b) State the type of public facilities proposed to be financed by the district. The district may only finance public facilities authorized by Section 53398.3.

(c) State that incremental property tax revenue from the city and some or all affected taxing entities within the district may be used to finance these public facilities.

(d) Fix a time and place for a public hearing on the proposal.

title: 5. LOCAL AGENCIES

path: 5. LOCAL AGENCIES > 2. CITIES, COUNTIES, AND OTHER AGENCIES > 2.9. Infrastructure Financing Districts in the Border Development Zone > 2. Preparation and Adoption of Infrastructure Financing Plans


text: The legislative body shall direct the clerk to mail a copy of the resolution of intention to create the district to each owner of land within the district.

title: 5. LOCAL AGENCIES

article: 2. Preparation and Adoption of Infrastructure Financing Plans


text: The legislative body shall direct the clerk to mail a copy of the resolution to each affected taxing entity.

title: 5. LOCAL AGENCIES


text: After adopting the resolution pursuant to Section 53398.10, the legislative body shall designate and direct the city engineer or other appropriate official to prepare an infrastructure plan pursuant to Section 53398.14.

title: 5. LOCAL AGENCIES


text:
After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.13 shall prepare a proposed infrastructure financing plan. The infrastructure financing plan shall be consistent with the general plan of the city within which the district is located and shall include all of the following:

(a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.

(b) A description of the public facilities required to serve the development proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the public improvements and facilities.

(c) A finding that the public facilities provide significant benefits to the border development zone.

(d) A financing section, which shall contain all of the following information:

(1) A specification of the maximum portion of the incremental tax revenue of the city and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.

(2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.

(3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.

(4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.

(5) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The date shall not be more than 30 years from the date on which the ordinance forming the district is adopted pursuant to Section 53398.20.

(6) An analysis of the costs to the city of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city as a result of expected development in the area of the district.

(7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.

(e) If any dwelling units occupied by persons or families of low or moderate income are proposed to be removed or destroyed in the course of private development or public works construction within the area of the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.5.

title: 5. LOCAL AGENCIES


text: The infrastructure financing plan shall be sent to each owner of land within the proposed district and to each affected taxing entity together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities or the proposed development project for which the public facilities are needed. The plan shall be made available for public inspection. The report shall also be sent to the planning commission and the legislative body.

title: 5. LOCAL AGENCIES


text: The designated official shall consult with each affected taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan.

title: 5. LOCAL AGENCIES


text: The legislative body shall conduct a public hearing prior to adopting the proposed infrastructure financing plan. The public hearing shall be called no sooner than 60 days after the plan has been sent to each affected taxing entity. In addition to the notice given to landowners and affected taxing entities pursuant to Sections 53398.11 and 53398.12, notice of the public hearing shall be given by publication not less than once a week for four successive weeks in a newspaper of general circulation published in the city in which the proposed district is located. The notice shall state that the district will be used to finance public works, briefly describe the public works, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the legislative body and object to the adoption of the proposed plan by the legislative body.

title: 5. LOCAL AGENCIES


text: At the hour set in the required notices, the legislative body shall proceed to hear and pass upon all written and oral objections. The hearing may be continued from time to time. The legislative body shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the adoption of the plan. The legislative body may modify the plan by eliminating or reducing the size and cost of proposed public works, by reducing the amount of proposed debt, or by reducing the portion, amount, or duration of incremental tax revenues to be committed to the district.

title: 5. LOCAL AGENCIES


text:
(a) The legislative body shall not enact an ordinance approving the infrastructure financing plan providing for the division of taxes of any affected taxing entity pursuant to Article 3 (commencing with Section 53398.30) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity that is proposed to be subject to division of taxes pursuant to Article 3 (commencing with Section 53398.30) has been filed with the legislative body at or prior to the time of the hearing.

(b) Nothing in this section shall be construed to prevent the legislative body from amending its infrastructure financing plan and adopting an ordinance approving the formation of the infrastructure financing district without allocation of the tax revenues of any affected taxing entity that has not approved the infrastructure financing plan by resolution of the governing body of the affected taxing entity.

title: 5. LOCAL AGENCIES


text: At the conclusion of the hearing, the legislative body may, in a manner consistent with Section 53398.19, adopt an ordinance approving the infrastructure financing plan, or the infrastructure financing plan as modified, and creating the infrastructure financing district with the full force and effect of law, or the legislative body may abandon the proceedings.

title: 5. LOCAL AGENCIES


text: The legislative body may submit a proposition to establish or change the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, of a district to the qualified electors of a district. The proposition establishing or changing the appropriations limit shall become effective if approved by the qualified electors voting on the proposition and shall be adjusted for changes in the cost of living and changes in populations, as defined by subdivisions (b) and (c) of Section 7901, except that the change in population may be estimated by the legislative body in the absence of an estimate by the Department of Finance, and in accordance with Section 1 of Article XIIIB of the California Constitution. For purposes of adjusting for changes in population, the population of the district shall be deemed to be at least one person during each calendar year.

title: 5. LOCAL AGENCIES


text:
Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance adopted pursuant to Section 53398.20 to create the district, shall be divided, subject to the provisions of Section 53993, as follows:

(a) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the ordinance adopted pursuant to Section 53398.20 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.

(b) That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city and each affected taxing entity that has agreed to participate pursuant to Section 53398.19 in excess of the amount specified in subdivision (a) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.

history: (History: Amended by Stats. 2016, Ch. 49, Sec. 3. (SB 975) Effective January 1, 2017.)

title: 5. LOCAL AGENCIES

article: 3. Division of Taxes

path: 5. LOCAL AGENCIES > 2. CITIES, COUNTIES, AND OTHER AGENCIES > 2.9. Infrastructure Financing Districts in the Border Development Zone > 3. Division of Taxes


text: All costs incurred by a county in connection with the division of taxes pursuant to Section 53398.30 for a district shall be paid by that district.

title: 5. LOCAL AGENCIES

article: 3. Division of Taxes


text: The legislative body may, by majority vote, initiate proceedings to issue bonds pursuant to this chapter by adopting a resolution stating its intent to issue the bonds.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds

path: 5. LOCAL AGENCIES > 2. CITIES, COUNTIES, AND OTHER AGENCIES > 2.9. Infrastructure Financing Districts in the Border Development Zone > 4. Tax Increment Bonds


text:
The resolution adopted pursuant to Section 53398.40 shall contain all of the following information:

(a) A description of the facilities to be financed with the proceeds of the proposed bond issue.

(b) The estimated cost of the facilities, the estimated cost of preparing and issuing the bonds, and the principal amount of the proposed bond issuance.

(c) The maximum interest rate and discount on the proposed bond issuance.

(d) A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.

(e) A finding that the amount necessary to pay the principal of, and interest on, the proposed bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (d).

(f) The date, hour, and place at which any person may appear before the legislative body and object to the proposal to issue bonds.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text:
The clerk of the legislative body shall publish the resolution adopted pursuant to Section 53398.40 once a day for at least seven successive days in a newspaper published in the city or county at least six days a week, or at least once a week for two successive weeks in a newspaper published in the city or county less than six days a week.

If there are no newspapers meeting these criteria, the resolution shall be posted in three public places within the territory of the district for two succeeding weeks.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text:
(a) At the hour set in the required notice, the legislative body shall proceed to hear and pass upon all written and oral objections. The hearing may be continued from time to time. The legislative body shall consider all evidence and testimony for and against the proposal to issue bonds.

(b) At the conclusion of the hearing, the legislative body may approve the issuance of bonds by adopting a resolution that shall provide for all of the following:

(1) The issuance of the bonds in one or more series.

(2) The principal amount of the bonds, which shall be consistent with the amount specified in subdivision (b) of Section 53398.41.

(3) The date the bonds will bear.

(4) The date of maturity of the bonds.

(5) The denomination of the bonds.

(6) The form of the bonds.

(7) The manner of execution of the bonds.

(8) The medium of payment in which the bonds are payable.

(9) The place or manner of payment and any requirements for registration of the bonds.

(10) The terms of call or redemption, with or without premium.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: The legislative body may, by majority vote, provide for refunding of bonds issued pursuant to this chapter. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The legislative body may not extend the time to maturity of the bonds.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: The legislative body or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of a district issued pursuant to this chapter are not a debt of the city, county, or state or of any of its political subdivisions, other than the district, and none of those entities, other than the district, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the district. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: The bonds may be sold at discount not to exceed 5 percent of par at public sale. At least five days prior to the sale, notice shall be published, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City and County of San Francisco and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: If any member of the legislative body whose signature appears on bonds ceases to be a member of the legislative body before delivery of the bonds, his or her signature is as effective as if he or she had remained in office. Bonds issued pursuant to this chapter are fully negotiable.

title: 5. LOCAL AGENCIES

article: 4. Tax Increment Bonds


text: The Legislature finds and declares that with the dissolution of redevelopment agencies, public benefits will accrue if local agencies, excluding schools, are provided a means to finance the reuse and revitalization of former military bases, fund the creation of transit priority projects and the implementation of sustainable communities plans, fund projects that enable communities to adapt to the impacts of climate change, including to improve air quality, mitigate wildfires, construct and rehabilitate affordable housing units, fund port and harbor infrastructure, fund projects to improve broadband internet access service, construct facilities for nonprofit community organizations that provide health, youth, homeless, and social services, and construct facilities to house providers of consumer goods and services in the communities served by these efforts.

history: (History: Amended by Stats. 2024, Ch. 599, Sec. 2.5. (SB 1140) Effective January 1, 2025.)

title: 5. LOCAL AGENCIES

article: 1. General Provisions

path: 5. LOCAL AGENCIES > 2. CITIES, COUNTIES, AND OTHER AGENCIES > 2.99. Enhanced Infrastructure Financing District > 1. General Provisions


text:
Unless the context otherwise requires, the definitions contained in this article shall govern the construction of this chapter.

(a) “Affected taxing entity” means any governmental taxing agency which levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed district in the fiscal year prior to the designation of the district, but not including any county office of education, school district, or community college district. An “affected taxing entity” may include a special district if the special district is providing any portion of the funding included in the infrastructure financing plan adopted pursuant to Section 53398.63. For the purposes of this section, “special district” means an agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries, and shall not include a school district or community college district.

(b) “County” means a county or a city and county.

(c) “Debt” means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals.

(d) “Designated official” means the city or county engineer or other appropriate official designated pursuant to Section 53398.62.

(e) (1) “District” means an enhanced infrastructure financing district.

(2) An enhanced infrastructure financing district is a district within the meaning of Section 1 of Article XIIIA of the California Constitution.

(f) “Enhanced infrastructure financing district” means a legally constituted governmental entity separate and distinct from the city or county that established it pursuant to this chapter for the sole purpose of financing public facilities or other projects as authorized by this chapter. An enhanced infrastructure financing district shall be a local agency for purposes of Chapter 9 (commencing with Section 54950).

(g) “Landowner” or “owner of land” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. The legislative body has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter, unless the public agency owns all of the land to be included within the proposed district.

(h) “Legislative body” means the city council or board of supervisors.

(i) “Public financing authority” means the governing board of the district established pursuant to this chapter.

history: (History: Amended by Stats. 2015, Ch. 320, Sec. 1. (AB 313) Effective January 1, 2016.)

title: 5. LOCAL AGENCIES

chapter: 2.99. Enhanced Infrastructure Financing District

article: 1. General Provisions


text:
(a) The public financing authority shall have a membership consisting of one of the following, as appropriate:

(1) If a district has only one participating affected taxing entity, the public financing authority’s membership shall consist of three members of the legislative body of the participating entity, and two members of the public chosen by the legislative body. The legislative body may appoint one of its members to be an alternate member of the legislative body who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the authority. The appointment of the public members shall be subject to the provisions of Sections 54970 and 54972.

(2) If a district has two or more participating affected taxing entities, the public financing authority’s membership shall consist of a majority of members from the legislative bodies of the participating entities, and a minimum of two members of the public chosen by the legislative bodies of the participating entities. A legislative body of a participating affected taxing entity may appoint one of its members to be an alternate member of the legislative body who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the authority. The appointment of the public members shall be subject to the provisions of Sections 54970 and 54972.

(3) If a district has more than three participating affected taxing entities, the legislative bodies of the taxing entities may, upon agreement by all participating affected taxing entities, appoint only one member and one alternate member of their respective legislative bodies to the public financing authority, and a minimum of two members of the public chosen by the legislative bodies of the participating entities. The appointment of the public members shall be subject to the provisions of Sections 54970 and 54972.

(4) For purposes of this subdivision, “legislative body” may include a directly elected mayor of a charter city who is not a member of the city’s legislative body under the city’s adopted charter.

(b) The legislative body shall ensure the public financing authority is established at the same time that it adopts a resolution of intention pursuant to Section 53398.59.

(c) Members of the public financing authority established pursuant to this chapter shall not receive compensation but may receive reimbursement for actual and necessary expenses incurred in the performance of official duties pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2.

(d) Members of the public financing authority are subject to Article 2.4 (commencing with Section 53234) of Chapter 2.

(e) The public financing authority created pursuant to this chapter shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)), the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).

(f) Notwithstanding any other law, any member of the legislative body of a participating affected taxing entity who serves as a member of the public financing authority pursuant to this section may also serve as a member of the governing body of an agency or entity formed pursuant to an agreement for the joint exercise of power that the participating affected taxing entity has entered into in accordance with the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1).

history: (History: Amended by Stats. 2022, Ch. 28, Sec. 72. (SB 1380) Effective January 1, 2023.)

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text:
(a) (1) A district may finance any of the following:

(A) The purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer that satisfies the requirements of subdivision (b).

(B) The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of property.

(C) The costs described in Sections 53398.56 and 53398.57.

(D) (i) The ongoing or capitalized costs to maintain public capital facilities financed in whole or in part by the district.

(ii) Notwithstanding clause (i), a district shall not use the proceeds of bonds issued pursuant to the authority in Article 4 (commencing with Section 53398.77) to finance maintenance of any kind.

(2) The facilities are not required to be physically located within the boundaries of the district. However, any facilities financed outside of a district shall have a tangible connection to the work of the district, as detailed in the infrastructure financing plan adopted pursuant to Section 53398.69.

(3) A district shall not finance the costs of an ongoing operation or providing services of any kind.

(b) The district shall finance only public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community, including, but not limited to, all of the following:

(1) Highways, interchanges, ramps and bridges, arterial streets, parking facilities, and transit facilities.

(2) Sewage treatment and water reclamation plants and interceptor pipes.

(3) Facilities for the collection and treatment of water for urban uses.

(4) Flood control levees and dams, retention basins, and drainage channels.

(5) Childcare facilities.

(6) Libraries.

(7) Parks, recreational facilities, and open space.

(8) Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles.

(9) Brownfield restoration and other environmental mitigation.

(10) The development of projects on a former military base, provided that the projects are consistent with the military base authority reuse plan and are approved by the military base reuse authority, if applicable.

(11) The repayment of the transfer of funds to a military base reuse authority pursuant to Section 67851 that occurred on or after the creation of the district.

(12) The acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income, as defined in Sections 50105 and 50093 of the Health and Safety Code, for rent or purchase.

(13) Acquisition, construction, or repair of industrial structures for private use.

(14) (A) Acquisition, construction, or repair of commercial structures by the small business occupant of such structures, if such acquisition, construction, or repair is for purposes of fostering economic recovery of a community and of ensuring the long-term economic sustainability of small businesses.

(B) For purposes of this paragraph and subject to subparagraph (C), “small business” means an independently owned and operated business that is not dominant in its field of operation, the principal office of which is located in California, the officers of which are domiciled in California, and which, together with affiliates, has 100 or fewer employees, and average annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three years, or is a manufacturer, as defined in subdivision (c) of Section 14837, with 100 or fewer employees. An “independently owned and operated business” shall include a formula retail business that is an independently owned franchise.

(C) A district may set a lower threshold for the average annual gross receipts over the previous three years and for the number of employees described in subparagraph (B).

(15) Transit priority projects, as defined in Section 21155 of the Public Resources Code, that are located within a transit priority project area. For purposes of this paragraph, a transit priority project area may include a military base reuse plan that meets the definition of a transit priority project area and it may include a contaminated site within a transit priority project area.

(16) Projects that implement a sustainable communities strategy, when the State Air Resources Board, pursuant to Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7, has accepted a metropolitan planning organization’s determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets.

(17) Projects that enable communities to adapt to the impacts of climate change, including, but not limited to, higher average temperatures, decreased air and water quality, the spread of infectious and vector-borne diseases, other public health impacts, extreme weather events, sea level rise, flooding, heat waves, wildfires, and drought. This paragraph includes projects intended to improve air quality.

(18) Port or harbor infrastructure, as defined by Section 1698 of the Harbors and Navigation Code.

(19) The acquisition, construction, or improvement of broadband Internet access service. For purposes of this section, “broadband Internet access services” has the same meaning as defined in Section 53167. A district that acquires, constructs, or improves broadband Internet access service may transfer the management and control of those facilities to a local agency that is authorized to provide broadband Internet access service, and that local agency when providing that service shall comply with the requirements of Article 12 (commencing with Section 53167) of Chapter 1 of Part 1 of Division 2 of Title 5.

(20) Facilities in which nonprofit community organizations provide health, youth, homeless, and social services.

(21) (A) For districts at least partially in high or very high fire hazard severity zones designated by the State Fire Marshal pursuant to Article 9 (commencing with Section 4201) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, the following:

(i) Heavy equipment to be used for vegetation clearance and firebreaks.

(ii) Undergrounding of local publicly owned electric utilities, as defined in Section 224.3 of the Public Utilities Code, against wildfires.

(iii) Equipment used for fire watch, prevention, and fighting, including, but not limited to, helicopters, air tankers, and technological advancements to weather and wind science infrastructure, risk modeling, and prediction.

(B) A district shall not use the proceeds of bonds issued pursuant to the authority in Article 4 (commencing with Section 53398.77) to finance the equipment described in clause (i) or (iii) of subparagraph (A).

(c) The district shall require, by recorded covenants or restrictions, that housing units built pursuant to this section shall remain available at affordable housing costs to, and occupied by, persons and families of very low, low, or moderate income for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.

(d) The district may finance mixed-income housing developments, but may finance only those units in such a development that are restricted to occupancy by persons of very low, low, or moderate incomes as defined in Sections 50105 and 50093 of the Health and Safety Code, and those onsite facilities for childcare, after school care, and social services that are integrally linked to the tenants of the restricted units.

(e) A district may utilize any powers under either the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1 of Division 24 of the Health and Safety Code) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code, and finance any action necessary to implement that act.

history: (History: Amended by Stats. 2025, Ch. 260, Sec. 2. (AB 417) Effective January 1, 2026.)

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text: Notwithstanding subdivision (b) of Section 53398.52, a district may reimburse a developer of a project that is located entirely within the boundaries of that district for any permit expenses incurred and to offset additional expenses incurred by the developer in constructing affordable housing units pursuant to the Transit Priority Project Program established in Section 65470.

history: (History: Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.)

title: 5. LOCAL AGENCIES

article: 1. General Provisions


text:
A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:

(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.

(b) The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state, if the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative body’s action to participate in an enhanced infrastructure financing district pursuant to Section 53398.68, or of its legislative body’s action to form an enhanced infrastructure financing district pursuant to Section 53398.69.

(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.

(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controller’s findings and orders stemming from the reviews as specified in subdivision (c).

(e) Notwithstanding subdivision (a), the City of Selma may initiate, participate in, finance, or govern an enhanced infrastructure financing district, if the City of Selma, acting as the successor agency to the former Selma Redevelopment Agency, is in compliance with subdivisions (b), (c), and (d), and has paid in full the amount outstanding specified in subdivision (b) of Section 34183.5 of the Health and Safety Code.

(f) Notwithstanding subdivision (a), the City of Merced may initiate, participate in, finance, or govern an enhanced infrastructure financing district if the City of Merced, and the Merced Designated Local Authority acting as the successor agency to the former Redevelopment Agency of the City of Merced, are in compliance with subdivisions (b), (c), and (d), and have paid in full the amounts outstanding specified in Section 34179.5 of, and subdivision (b) of Section 34183.5 of, the Health and Safety Code, including amounts remaining due under any applicable installment payment plan entered into with the Department of Finance.

history: (History: Amended by Stats. 2023, Ch. 678, Sec. 1. (AB 1259) Effective January 1, 2024.)

title: 5. LOCAL AGENCIES

article: 1. General Provisions