SACRAMENTO – Legislation authored by Senator Connie M. Leyva (D-Chino) to ensure that local communities are able to properly maintain public facilities that they build with public dollars was signed into law by Gov. Jerry Brown.

Specifically, SB 1145 authorizes Enhanced Infrastructure Financing Districts, or EIFDs, to perform maintenance on the facilities that they build. EIFDs are an important economic development finance tool for local jurisdictions to move community economic development projects forward.

Cities and counties can create these types of financing districts to build facilities that benefit the local community, including libraries, water systems, child care facilities, parks, and affordable housing.

Currently, over 25 EIFDs across California are either already approved or are in the study phase. Unfortunately, EIFDs cannot pay for maintenance or routine repairs to ensure public investments are protected throughout many years of use.

SB 1145 does not include new funds, taxes or fees, but rather expands flexibility for ongoing funding of maintenance costs.

“SB 1145 will help communities build bridges, provide clean water, and encourage community development by supporting the maintenance of the important public projects that they build,” Senator Leyva said. “Having earned bipartisan support, this legislation allows local governments to collaborate and proactively budget maintenance costs from EIFD revenues instead of having to rely on unpredictable general funds. The governor’s signature will help protect local taxpayer investments long term and make sure that these public projects continue to benefit residents for many years and decades to come.”

Sponsored by the California Association for Local Economic Development and supported by the American Planning Association, California Business Properties Association and League of California Cities, SB 1145 will take effect on Jan. 1, 2019.