A new kind of financing mechanism approved by the Los Angeles County Board of Supervisors on Tuesday will keep future property tax revenues within unincorporated Altadena, instead of flowing into the county’s general fund.
Why is that earmark important?
Because the county will use these local funds to pay for replacing damaged Altadena infrastructure such as streets, curbs, sewer lines, street trees, as well as rebuilding Farnsworth Park, the Altadena Senior Center and the Eaton Canyon Nature Center all vaporized by the Eaton fire in January.
Some of these potential projects are aimed at repairing the hidden destruction caused by the extensive and severe firestorm that demolished 9,400 structures including homes, businesses, schools, parks and government buildings.
The county estimates the toll amounts to $2 billion in infrastructure damage — and that includes public parks — as a result of the fire. Without replacing them, the town of Altadena would never come back to life.
To get what’s called tax increment financing, the board approved formation of the Altadena Wildfire Recovery Infrastructure Financing District. The District hopes to raise $500 million over 50 years to use toward projects approved by a five-member Public Financing Authority or PFA.
The PFA would be made up of three Los Angeles County Supervisors and two public members. The first to join so far is Fifth District Supervisor Kathryn Barger, who represents Altadena. The rest will be appointed by the county’s Chief Executive Office. Anyone from the public interested in joining should contact the county CEO, said Barger.
“This is just one more tool we are using to rebuild — especially on the infrastructure side,” said Barger in an interview on Wednesday, Oct. 22.
“This is clearly a vehicle that would be beneficial, especially as it relates to infrastructure needs in Altadena,” she added.
Michele Zack, Altadena historian and author of historical books on the town, said the new financing district would help with not just replacing Farnsworth Park, but rebuilding it back better.
“You might be able to finance a watershed management project at the park. To try to build in more climate resiliency,” she said on Wednesday. The watershed management at the park had consisted of sandbags, she said. She’d like to see the park used for underground storage of rainwater and mountain runoff.
The new financial district falls under state law that allows creation of Enhanced Infrastructure Financing Districts (EIFDs) or Climate Resilience Districts (CRDs), which usually take one to two years to get started.
Creation of this district got a boost from the state Legislature. Senate Bill 782 from State Sen. Sasha Perez, D-Pasadena, allowed for a new take on these financial instruments, called Disaster Recovery Districts. The bill, passed by the Legislature and signed by Gov. Gavin Newsom last week, shortens the time needed to form a district to only a few months.
“This new law provides a streamlined option for cities and counties to establish these districts whose revenues will be dedicated to repairing, rehabilitating, or replacing disaster-damaged infrastructure and to projects such as economic recovery initiatives, resiliency enhancements, small business support, and workforce development programs, while maintaining strong public oversight,” said Perez in a statement on Wednesday.
The county has already established the tax base year of 2024-2025. Any increases in property taxes in Altadena after that is the increment, or difference. That is the money that will go to the Altadena Wildfire Recovery Infrastructure Financing District.
Governing this new district is the PFA, which should be up and running by the first week in December, said Anish Saraiya, aide to Barger who is also a civil engineer. It’s first task is to approve an infrastructure financing plan that allows the county to freeze the tax increment on Altadena properties, he said.
“We need an incredible amount of resources immediately to help us rebuild almost $2 billion dollars worth of damaged infrastructure,” said Saraiya.
Since tax increment monies take awhile to flow, the district will buy bonds to raise capital quickly, he said. “You access the financial markets to issue bonds, to accelerate the funding you need.”
Infrastructure projects will be the District’s main goal. But even with $500 million, it will not be enough to meet the $2 billion need.
Barger said to fill in gaps, she’s looking at philanthropic donations, especially for rebuilding a new Eaton Canyon Nature Center. The L.A. Dodgers Foundation helped fund the rebuilding of Loma Alta Park, she noted.
“Infrastructure includes parks because they are a vital part of Altadena,” Barger said.
Zack said she expects many from Altadena would be interested in serving on the new authority. “For those two community positions there will be a lot of jockeying,” she said.