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Home My WebLink AboutEIFD Resolution - - 2025-1 - 06/23/2025RESOLUTION NO. 2025-1 A RESOLUTION OF THE PUBLIC FINANCING AUTHORITY FOR THE FRESNO ENHANCED INFRASTRUCTURE FINANCING DISTRICT, ADOPTING THE ANNUAL REPORT FOR FISCAL YEAR 2024-2025 WHEREAS, in accordance with Government Code Section 53398.660), the Fresno EIFD Public Financing Authority (PFA) is required to review the IFP on at least an annual basis and document the status of implementation of the Fresno Enhanced Infrastructure Financing District (Fresno EIFD) under the adopted Infrastructure Financing Plan (IFP); and WHEREAS, in accordance with Government Code Section 53398.660)(2) and (3), the PFA prepared its annual report for fiscal year 2024-2025 (Annual Report); and WHEREAS, at least 30 days prior to the public hearing, the Annual Report was posted on the Fresno EIFD's website, and notice of its availability was mailed to property owners and residents in the Fresno EIFD and to participating taxing agencies; and WHEREAS, the PFA has conducted a public hearing on the Fresno EIFD Annual Report. NOW, THEREFORE, BE IT RESOLVED by the Public Financing Authority of the Fresno Enhanced Infrastructure Financing District, as follows: 1. The Annual Report for the fiscal year 2024-2025 of the Fresno EIFD is attached hereto as Exhibit A and on file with the City Clerk for this meeting is hereby approved. 2. This resolution shall be effective immediately upon its adoption 1 of 3 Date Adopted: 06/23/2025 Date Approved: 06/23/2025 Effective Date: 06/23/2025 Resolution No. 2025-1 * * * * * * * * * * * * * * STATE OF CALIFORNIA ) COUNTY OF FRESNO ) ss. CITY OF FRESNO ) I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing resolution was adopted by the Councilmembers of the Fresno EIFD Public Financing Authority, at a special meeting held on the 23rd day of June 2025. AYES Gurm, Arias, Maxwell, Esparza NOES None ABSENT : Miktarian ABSTAIN: None TODD STERMER, MMC City Clerk By: a�- DeWy 6 41k-zate APPROVED AS TO FORM: ANDREW JANZ City Attorney By. S Sukhman S. Sekhon bate Deputy City Attorney Attachment: 1. Exhibit A — Annual Report for Fiscal Year 2024-2025 of the Fresno Enhanced Infrastructure Financing District 2of3 Exhibit A Annual Report for Fiscal Year 2024-2025 of the Fresno Enhanced Infrastructure Financing District 3of3 t� OF FRCS City Of Aa4 1,y. ENHANCEDINFRASTRUCTURE FINANCING DISTRICT ANNUAL REPORT FY2024-25 JUNE 2025 City of Fresno EIFD Annual Report June 2025 Page 2 Table of Contents Section Page 1.0 Introduction ...... ............... ......... ................... ..... ................................................. 3 2.0 Description of Projects in FY 2024-25.................................................................. 5 3.0 Actual vs. Budgeted Revenue and Expenses....................................................... 6 4.0 Tax Increment Revenue Received........................................................................ 7 5.0 EIFD Project Status.... ................ ........... .......................................... 8 6.0 Revenue Expended for Private Business............................................................. 9 City of Fresno EIFD Annual Report June 2025 Page 3 1.0 Introduction The City of Fresno established the Public Financing Authority ("PFA") for the Enhanced Infrastructure Financing District ("EIFD") at its regularly scheduled Council Meeting held on April 23, 2020. The purpose of the PFA is to establish and implement the EIFD. The governing Infrastructure Finance Plan ("IFP") was adopted by the City Council at a special meeting on September 17, 2020 by the City Council, and separately by the PFA (which includes representatives from the City) on October 7, 2020. On January 1, 2020, California EIFD legislation was revised to incorporate Assembly Bill 116 ("AB 116"), which modified both the process by which EIFDs are formed and the requirements to achieve approval to issue debt secured by EIFD revenues. Pursuant to the revised EIFD statute, the PFA conducted a series of public meetings and hearings from April 2020 through October 2020, and an ordinance was adopted to culminate the IFP approval and EIFD formation process under the updated EIFD statutory requirements. The City of Fresno EIFD encompasses approximately 4,237 acres of land, representing approximately 5.8% of the City's total approximately 73,400 acres. The District can be characterized as a catalyst for private sector investment and critical infrastructure with transformative potential for the EIFD area and the City of Fresno as a whole. The EIFD includes the City's Downtown Planning Area and the southern portion of the Blackstone Avenue Bus Rapid Transit ("BRT") Corridor as described in the City General Plan. It includes overlap with the Tower District Specific Plan, Fulton Corridor Specific Plan and Fresno Chandler Downtown Airport Specific Plan areas. Land use designations in the District include residential, commercial, retail and office. The specified areas were chosen based on their capacity to benefit from catalytic infrastructure improvements with communitywide and regional benefit. It is anticipated that the EIFD will assist the funding of approximately $2.3 billion (present value dollars) in future private development of residential, commercial, retail and hotel properties, and approximately $100 million (present value dollars) in multi -modal transportation. This Annual Report is prepared pursuant to Government Code Section 53398.66 and presents the following information: a) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress. b) A chart comparing the actual revenue and expenses, including administrative costs, of the PFA to the budgeted revenues and expenses. City of Fresno EIFD Annual Report June 2025 Page 4 c) The amount of tax increment revenue received. d) An assessment of the status regarding completion of the EIFD's projects. e) The amount of revenue expended to assist private businesses. City of Fresno EIFD Annual Report June 2025 Page 5 2.0 Description of Projects in FY 2024-25 There were no projects undertaken in Fiscal Year ("FY") 2024-25, which is consistent with the progress expected to be made at this point. City of Fresno EIFD Annual Report June 2025 Page 6 3.0 Actual vs. Budgeted Revenue and Expenses Projected and actual revenue and expenses for FY 2024-25 are shown in Table 1 below: Table 1: Projected and Actual Revenue and Expenses for FY 2024-25 EIFD Revenues and Expenses City Contribution Administrative Expenses Net Revenue Eligible Project Expenditures Projected FY2024-25 $ 1,059,927.00 0.00 1, 059, 927.00 $ 18 Actual FY2024-25 819,053.92 1,991.60 817,062.32 M OR The California State Board of Equalization approved the EIFD and provided the Tax Rate Area Change Notice to the County of Fresno on January 21, 2022, which was later than expected when the EIFD Formation Documents were compiled. As a result, the Base Year for the Tax Increment was shifted to FY2021-2022 from FY2020-2021. Projected amounts were based on the assumption that the Base Year would be FY2020-2021, and Actual amounts are based on a Base Year of FY2021-2022. City of Fresno EIFD Annual Report June 2025 Page 7 4.0 Tax Increment Revenue Received Gross tax increment revenue received by the EIFD are shown in Table 2 below. Table 2: EIFD Gross Tax Increment Revenue City RDA Total Annual Cumulative FY City TI Residential EIFD TI EIFD TI Contribution Contribution Revenue Revenue $162,249.50 $0.00 $162,249.50 $162,249.50 2022-23 2023-24 427,585.80 0.00 427,585.80 589,835,30 2024-25 819,053.92 0.00 819,053.92 1,408'889.22 In FY 2024-25 the Fresno County Auditor-Controller/Treasurer-Tax Collector's office notified the City of Fresno that 25 Tax Rate Areas were mistakenly omitted from prior reporting. This affected FY 2022-23 and FY 2023-24 tax increment amounts previously reported. In FY 2024-25, the City TI Contributions for FY 2022-23 and FY2023-24 were adjusted for this correction, resulting in increases of $82,450.40 and $158,857.54 respectively. City of Fresno EIFD Annual Report June 2025 Page 8 5.0 EIFD Project Status The EIFD is in the early phase of building a stabilized revenue stream that could be leveraged for future projects and potential debt issuance(s) accordingly. No EIFD projects have been funded, which is consistent with City and the PFA expectations at this time. It should be noted that the California State Board of Equalization approved this EIFD and provided the Tax Rate Area Change Notice to the County of Fresno on January 21, 2022, which was later than expected when the EIFD Formation Documents were compiled. As a result, no Tax Increment was received in FY 2021-2022. 'k �1y P z �n n m p AO� Rti� �Tro Oct City of Fresno E/FD Annual Report June 2025 Page 9 6.0 Revenue Expended for Private Business As of the date of this Annual Report, no revenues have been expended to assist private businesses. This is consistent with the City and the PFA expectations at this time.