Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the Gold Hill North Business Improvement District.
Related Files: N/A
Council District #3
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The Gold Hill North Business Improvement District (BID) is a legal entity separate from the City of Colorado Springs. However, as required by State statute, it is necessary for City Council to review and approve the proposed 2026 Operating Plan and Budget for the BID.
The Operating Plan and Budget for this District anticipates they will primarily be engaged in improvement planning and possibly infrastructure work in late 2025 or early 2026. The District will certify an operating Mill Levy of 10.074 mills for 2025 and 53.703 mills toward debt service. The District will continue to install public improvements such as street improvements, waste services, parking facilities, and lighting. The costs of these improvements will be allocated between the District and Gold Hill North Metropolitan Districts Nos. 1 & 2.
Background:
The District was organized in 2021, and a special election for the District consisting of debt and related issues and questions, was held on November 2, 2021. The District is governed by an elected board of directors. The boundaries of this BID encompass about 52.346 acres initially; however, the District has had several inclusions and exclusions over recent years bringing the new acreage of the District to approximately 50.648 acres. The District is located southeast of the intersection of State Highway 24 and South 21st Street.
This District intends to complete services and improvements such as the following within the District: water services, safety protection devices, sanitation services, street improvements, curbs, gutters, culverts, drainage facilities, sidewalks, parking facilities, paving, lighting, grading, landscaping and storm and wastewater management facilities and associated land acquisition, mitigation, and remediation. These services shall be provided by the District in collaboration with the Gold Hill North Metropolitan Districts Nos. 1 & 2 and the Colorado Springs Urban Renewal Authority pursuant to the Urban Renewal Agreement for development of the Gold Hill Mesa Commercial Urban Renewal District.
This Operating Plan and Budget allows for a mill levy cap of up to 50.000 mills for debt service and up to 10.000 Mills for general operations and administrative expense. However, in 2026 the District will only be certifying the operating mill levy of 10.740 mills for operation services and is imposing a new mill levy of 53.703 for debt service. Additionally, this BID proposes to make use of public improvement fee (PIF) revenues as an additional source of revenue for bonding. The PIF is anticipated to bring in an additional $5,000 dollars of revenue in 2026.
In 2025, the District completed improvements related to environmental mitigation, grading, storm facilities, sanitary sewer, detention pond, and streets and alley construction. In 2026, the District intends to limit their activities to improvement planning and preliminary construction actions. The District may consider appointing a new board member to fill a vacancy, but no other major actions are anticipated.
This Operating Plan and Budget is provided in a format consistent with the standard template approved by Council in August 2022 for these documents.
Previous Council Action:
City Council approved creation of this BID in 2021 (Ordinance No. 21-62).
An inclusion and an exclusion and an issuance of debt were presented at the City Council Work Session on September 23, 2024. This issuance of debt was approved by City Council by resolution on October 8, 2024. Both the inclusion and exclusion will be heard by City Council on October 22, 2024.
Since that time, an additional exclusion was completed via Ordinance No. 25-44 in April 2025. This exclusion was completed to correct an error in the land included in the District and excluded approximately 0.041 acres / 1,767 square feet of land.
This item was introduced in a City Council Work Session on October 13, 2025.
Financial Implications:
The District has issued debt in the Form of 2024A and 2024B bonds for a total debt of $21,106,000. These bonds are in the form of a Limited Tax General Obligation and Special Revenue Bonds and a Subordinate Limited Tax General Obligation and Special Revenue Bonds respectively.
The District may enter into agreements with other districts encompassing adjacent developments in order to cooperate on infrastructure projects. Intergovernmental revenue is transferred into the District from Gold Hill North Metropolitan District Nos. 1 & 2 in order to pay operation and maintenance and administrative expenditures. The combined maximum debt authorization for this BID and the Gold Hill North Metropolitan District Nos. 1 & 2 is $90,000,000.
At the end of 2026, it is anticipated that the District will have an outstanding developer advance obligation in the amount of $5,662,972 in principal and interest. For developer agreements entered prior to January 1, 2023, interest accrues at a rate of 7% for operating advances and 8% for capital expenses. Total long-term debt remaining at the end of 2026 is approximately $30 million dollars, which accounts for developer advances and outstanding debt from the Series 2024 bonds.
The proposed mill levy for the BID in 2026 is 10.740 mills for general operations and administrative expense and a 53.703 mill levy for debt service. The debt service mill levy only started being imposed on property owners within the District within the last few years.
As a separate legal entity, the financial activities of the BID are separate from those of the City. Its financial obligations are specific to the properties included in the BID and do not constitute an obligation of the City.
City Council Appointed Board/Commission/Committee Recommendation:
The BID Board of Directors recommends City Council’s approval of the 2026 Operating Plan and Budget.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Approve the Resolution approving the proposed 2026 Operating Plan and Budget for the Gold Hill North Business Improvement District
Summary of Ordinance Language
N/A