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Downey council adopts resolution of intent to form EIFD, appoints city members to oversight authority
Summary
The Downey City Council voted unanimously to adopt a resolution of intent to form an Enhanced Infrastructure Financing District (EIFD), a tool to capture future property-tax increment for infrastructure projects; the council also named city representatives to the proposed Public Financing Authority and set next steps toward formation.
The Downey City Council on Tuesday approved a resolution of intent to begin formation of an Enhanced Infrastructure Financing District (EIFD), a value-capture financing tool the city says could generate millions of dollars for roads, water, sewer, parks and affordable housing.
Joel Diegas of Cosmont, presenting the item for staff, told the council the district is intended to set aside a portion of future property-tax growth within a narrowly defined boundary to finance public infrastructure. "Order of magnitude, we're talking about up to about $54,000,000 in present value funding capacity," Diegas said during his slide presentation.
Diegas and staff described the action as nonbinding: the resolution of intent begins the public process of drafting an infrastructure financing plan, holding public hearings and, if applicable, negotiating a county partnership. Los Angeles County Metro has offered technical assistance and support for the early feasibility work, staff said.
Council members stressed the tool is not a new tax. "No property owner, business, renter is gonna see any change on their tax bill," Diegas explained, noting that EIFDs use future growth within a boundary rather than a current tax increase.
Mayor Pro Tem Pemberton moved to adopt Resolution No. 25-83-28 and to appoint two council members to serve on the Public Financing Authority (PFA); the motion named Mayor Sosa and Councilwoman Ferroeta as the city's PFA members and Councilmember Ortiz as alternate. The motion passed unanimously.
Next steps identified by staff include preparing the infrastructure financing plan, public hearings for property owners and residents within the proposed boundary, and parallel county consideration if the county joins as a partner. Staff estimated a possible formation timeline that could culminate in mid-2026 if the council directs continued work.
The council packet and the slides referenced by staff are to be posted with meeting materials for public review; staff will return with specific plan documents and a public-noticing schedule.
