Cotati Council votes to form enhanced infrastructure financing district to fund downtown projects

Cotati City Council voted unanimously on June 23 to declare its intent to form an Enhanced Infrastructure Financing District (EIFD) and to establish a Public Financing Authority (PFA) that would oversee long-term financing for public improvements and housing-related infrastructure.

Consultants from Cosmont presented the proposal and said the EIFD is designed to capture new assessed‑value growth from specified redevelopment areas to fund roads, parks, affordable housing and related infrastructure. Richard Carrian of Cosmont said the tool is not a new tax on existing residents: "It's not a new tax," he told the council, explaining instead that the EIFD captures a portion of future assessed-value growth tied to new development.

Why it matters: The district would allow Cotati to bond against future tax‑increment revenues and—if the county participates—leverage a county match that could materially increase funds available for infrastructure. Consultants presented a planning-scale estimate of roughly $25 million in present‑value capacity under an illustrative city/county partnership, while early revenue scenarios showed roughly $1 million–$2.5 million available within five years and $4 million–$8 million within 10 years depending on the city’s allocation percentage and county participation.

What the council heard: Cosmont’s presentation covered (a) why an EIFD was recommended versus other financing mechanisms; (b) a draft district boundary concentrated in downtown and priority development areas (about 162 acres, roughly 13.5% of city acreage, with current assessed value near $220 million); (c) an explanation of formation steps, required notices and protest rights for property owners; and (d) a range of contribution scenarios the city could consider (consultants modeled 25–50% of the city share with a likely county match in many scenarios).

Council members pressed for detail on several points, including how specific the infrastructure financing plan (IFP) must be, the timetable and governance for issuing bonds, administrative costs, and how the city would limit risk to its general fund. Consultants and staff responded that bond issuance typically follows several years of realized receipts, that the PFA would govern bond issuance, and that a final infrastructure financing plan and detailed fiscal analysis would return to the council for approval. Cosmont staff estimated modest annual administrative costs if the city retained outside administration (on the order of $5,000–$10,000 annually if Cosmont were retained to assist).

Public process and next steps: The resolution adopted tonight creates the PFA on paper and signals the city's interest to Sonoma County so staff can pursue county discussions. The formation process requires multiple public hearings, mailed notices, independent adoption of the IFP by the PFA and the city (and the county if participating), and a final protest period in which property owners within the boundary can object. City staff told the council they expect the process to proceed in phases and that the council will have multiple opportunities to review maps, fiscal assumptions, and commitments before any final transfers, bonding, or consultant-funded phases proceed.

Quote: "It gives you an opportunity to attract other sources of funding," Cosmont consultant Richard Carrian said, noting that some state and federal grants score higher when a jurisdiction has an EIFD in place.

What the council decided: After questions and requests for interim updates while negotiations with the county continue, the council voted 5–0 to adopt a resolution of intent to form the Katad (Cotati) EIFD and to establish a Public Financing Authority. The roll call recorded Savage, Sparks, Ford, Vice Mayor Harvey and Mayor Lemus voting yes.

What to watch for: Staff said next steps include outreach with the county, refinement of the draft boundary, completion of a formal infrastructure financing plan and a final fiscal-impact analysis; each of those will be publicly noticed and returned to the council (and the county board if it chooses to participate) for approval.