West Sonoma County Enhanced Infrastructure Financing District

On October 14, 2025, the Board adopted a Resolution of Intention to establish the West Sonoma County Enhanced Infrastructure Financing District and directed the creation of its governing body, the Public Financing Authority (PFA). Consistent with State law, the PFA is responsible for developing and approving the Infrastructure Financing Plan, conducting required public hearings, and overseeing the EIFD’s financing activities.

What is an EIFD?

An Enhanced Infrastructure Financing District, or EIFD, is a type of special financing district that uses a portion of property tax increment revenues generated by community growth from a specifically defined area to finance public infrastructure and economic development projects of community-wide significance. EIFDs impose no new taxes, nor does it result in any new taxes or fees to property owners. EIFD legislation was codified by the State of California in 2014 as an improved replacement to Redevelopment Agencies, which were disbanded in 2012.

Property tax increment revenues are derived by using a portion of the tax increment generated by the existing 1% ad valorem property tax. EIFDs are prohibited from using increments from educational agencies.

What is a Public Financing Authority?

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

The composition of the PFA includes three members of the Board of Supervisors and two public members, all appointed by the Board. Members serve at the pleasure of the Board until a successor is appointed.

How does an EIFD finance projects?

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

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

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

What types of projects are eligible for financing?

Infrastructure projects that provide community-wide benefit and have a useful life of at least 15 years. Examples of eligible projects include:

• Roads, highways, streets/streetscapes, parking facilities, and transit facilities
• Affordable housing
• Internet access services
• Childcare facilities
• Libraries
• Parks, open space, and recreational facilities
• Improvements related to fighting climate change
• Brownfield restoration and other environmental mitigation
• Transit priority facilities
• Sewer, reclamation, and water facilities
• Solid waste facilities
• Flood control facilities, retention bases, and drainage channels

Proposed West Sonoma County EIFD Boundaries map

Approximate West County EIFD Formation Timeline

Resolution of Intention and PFA formation documents:

• October 14, 2025: Sonoma County Board of Supervisors Staff Report
• Resolution of Intention to Establish the West Sonoma County Enhanced Infrastructure Financing District and Establishing the Public Financing District.
• October 14, 2025: EIFD Presentation