The California Assembly has approved a bill that would permit the creation of infrastructure financing districts without voter approval.
Current state law permits local governments to establish IFDs to construct public works such as highways, sewers, and other infrastructure, financed with bonds secured by the growth in property tax revenue over 30 years, according to an analysis of the bill by Assembly staff. The analysis compared the financing method to that used by redevelopment agencies.
It takes two-thirds voter approval to establish an IFD, a hurdle that has discouraged their creation, according to bill sponsor Mike Feuer, D-Los Angeles, who notes that there is no such restriction for redevelopment projects.
Only one local infrastructure financing district has been created in California since 1990, according to the Assembly staff report.
Feuer’s bill would eliminate the voter approval requirement, allow IFDs to collect tax increment revenue for 40 years, and eliminate legislative intent language that such districts are largely undeveloped areas.
The Assembly approved the bill last week on a largely party-line vote, with only Democrats voting in favor. It is awaiting a committee assignment in the Senate.
