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dta <br />w .FinanceDTA.com <br />SECTION IV <br />SCOPE OF WORK <br />Memorandum ("Memo") Discussing Each Alternative Financing Mechanism and its Application <br />to the Three Alternative EIFD Scenarios <br />Subtask 2.3 — Strategic Considerations <br />DTA will evaluate development proposals presented to the City by various landowners, as well <br />as the ownership of individual parcels to be included in each of the EIFD alternatives. DTA will <br />prepare a Financing Plan that summarizes the results of the analyses performed under <br />Subtasks 2.1 and 2.2, including the infrastructure improvements being considered for financing, <br />recommendations regarding the use of alternative financing mechanisms to complement EIFDs, <br />development absorption projections, etc. <br />Deliverable: Market and Future Investment Plan <br />Task 3 — Tax Increment Analysis <br />Subtask 3.1 — Revenue Generation <br />DTA will develop an existing property valuation and property tax rate base, which is an electronic <br />parcel database containing parcel data, including the existing land and property improvement <br />valuations from the most current County Assessor records, that will be assembled in an <br />electronic file at a parcel level. <br />DTA will then identify potential property tax apportionment rates that can be utilized by an EIFD. <br />Hopefully, both the City and County will participate in the EIFD. If not, it may be the City alone. <br />DTA will prepare its analyses of both possibilities to enable the City and County to make <br />informed choices regarding their participation in the EIFD. <br />DTA will also evaluate the amount of vacant zoned land by various residential densities and <br />non-residential floor area ratios to understand the level of future build -out capacity within the <br />selected alternative EIFD boundaries. DTA will also consider bond terms and pay-as-you-go <br />terms of 10, 20, 30, and 45 years and determine the City's ability to develop if TIF is not available <br />to the City. A range of bonded indebtedness and pay-as-you-go projections will be prepared <br />based on reasonable growth assumptions to be reviewed and agreed upon with City staff. <br />Based on the economic and demographic projections, market pricing, and absorption <br />projections determined above, DTA will prepare a set of property tax increment projections for <br />the EIFD analyses. Initially, several EIFD areas may be tested in order to maximize the future <br />property tax increment capacity. In order to establish the parameters for the tax increment <br />projections, the Assessor's parcel database established above will determine the existing base <br />year valuation estimate and list the existing property tax rates by the various Tax Rate Areas <br />("TRAs") within the proposed EIFD boundary. The property tax increment projections over the <br />base year will be prepared, along with reasonable phasing assumptions, based on the market <br />absorption analysis and key growth assumptions. <br />City of Santa Ana September 8, 2023 <br />Proposal for Consultant Services Related to the Evaluation of an EIFD and a CFD <br />15 <br />