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Artesia explores EIFD to help pay Metro station match and fund local projects; council asks staff to pursue county talks
Summary
The council received a presentation on enhanced infrastructure financing districts (EIFDs), discussed possible boundaries and uses — including paying Metro’s estimated 3% local match for the Southeast Gateway line — and voted to direct staff to advance outreach with Los Angeles County, targeting October–November follow-up steps.
City Manager and consultant Joe (Cosmont) briefed the Artesia City Council on Sept. 8 about an Enhanced Infrastructure Financing District (EIFD), a tax-increment financing tool the city could use to dedicate a portion of future property-tax growth within a defined boundary to pay for public infrastructure.
What was presented: Joe, a consultant on Metro’s advisory bench retained by Metro for outreach, outlined how an EIFD would capture only incremental growth in property tax within a district (not current tax shares). The district can be formed by a city alone or as a city–county partnership; the county may choose to match a portion of its own tax increment, which significantly increases financing capacity. Cosmont’s preliminary study-area boundary covers roughly 324 acres (about 31% of Artesia’s acres) and represents about 25% of the city’s current assessed value.
Why the city is considering it: The city faces a sizable local obligation for the planned Southeast Gateway (Metro) station; staff and the consultant estimated the city’s 3% contribution could be in the $11–15 million range (closer to $15 million in preliminary estimates). An EIFD could generate a financing stream to meet that obligation and pay for related infrastructure (streetscapes, first/last-mile improvements, utilities, park or public-safety investments, and housing-related uses), or to leverage additional county or state funds.
Financial scale and timing: The consultant presented scenarios showing present-value financing capacity across a multi-decade district could range as high as roughly $40–60 million under optimistic assumptions and county partnership; earlier, lower values (single-digit millions to low tens of millions) could accrue in the first 10 years. Forming a district and securing a county partner are preconditions to larger bond financings. If the council moves ahead rapidly, staff expects to return with recommended procedural steps (resolution of intent and public notices) within several weeks; Cosmont estimated a full formation process could finish by mid-2026 under an active schedule.
County role and requirements: LA County has a stated policy for partnering in EIFDs. County participation is discretionary and often conditioned on commitments for affordable housing or other public benefits. The county matches have in practice increased the financing capacity available to cities that meet the county’s criteria.
Council direction and vote: After substantive council discussion about priorities — several members called the Metro 3% match the top near-term priority — Mayor Pro Tem Trevino moved and Councilmember Ramoso seconded a motion directing staff to continue county outreach and seek to return with recommendation and possible resolution of intent in October or, at the latest, November 2025. The motion passed 5–0.
What comes next: Staff will continue technical analysis, refine the draft district boundary, discuss terms with LA County staff, and provide council with more detailed pro forma revenue projections and a proposed timetable for formation. If the county indicates willingness to partner, the city could proceed to the required public-notice and protest stages for EIFD formation.
Sources: Presentation by Joe (Cosmont) and staff at Artesia City Council meeting, Sept. 8, 2025; city manager comments; council debate and resolution to pursue county outreach.
