Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2024 Operating Plan and Budget for the Barnes & Powers North Business Improvement District
Presenter:
Peter Wysocki, Director, Planning and Community Development
Michael Tassi, Assistant Director, Planning and Community Development
Body
Summary:
The Barnes & Powers 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 2024 Operating Plan and Budget for the BID.
The District will increase its mill levy from 1.000 mill to 1.039 mills for operations and from 50.000 mills to 50.931 mills for Debt Service, this is an increase of 1.97 mills as compared to the mill levy certified for 2023. Other than the mill levy change the Operating Plan and Budget for this BID includes no significant anticipated activities or changes, the District will continue to service its remaining debt and providing ongoing operations services on behalf of Barnes & Powers South BID.
Background:
The boundaries of this development-specific BID were established pursuant to an election in 2004. This BID has an elected board comprised of individuals associated with Nor’wood Development Group. The District is authorized to provide the acquisition and financing of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping.
This Operating Plan and Budget is provided in format consistent with the standard template approved by Council in August 2022 for these documents.
Previous Council Action:
City Council approved the creation of this BID in 2004 (Ordinance No. 04-49) and has approved the BID Operating Plan and Budget annually since its formation. In 2007, City Council approved issuance of $4,000,000 in bonded indebtedness to reimburse the developers for eligible public improvements costs. In 2014, Council approved a minor exclusion of property from this District in order to add property to the Barnes & Powers South BID for the purposes of allowing that District to continue to operate with its current board of directors (Ordinance No. 14-4).
This item was introduced in a City Council Work Session on October 9, 2023.
Financial Implications:
The District issued privately placed $4,000,000 Limited Tax General Obligation Bonds, Series 2007 to complete capital improvements in an area that was built by the developer as outlined in the 2005 and subsequent Operating Plans. The interest rate on these existing bonds is 6.5%. The proposed mill levy for the BID in 2024 is 51.97 mills (1.039 mills for general expenses and 50.931 mills for debt service), which represents an increase from 2023 of 1.97 mills.
The District has estimated an outstanding developer advance balance of $119,657 at the end of 2023, which accrues interest at a rate of 7% for operating advances and 8% for capital advances. As of December 31, 2023, the estimated accrued interest on the developer advance balance will be $72,707. The 2024 budget includes a developer advance repayment of $10,000 for operating expenditures.
The Operating Plan and Budget project sufficient revenues to meet the financial obligations of the BID and to maintain positive fund balances. As a separate legal entity, the financial activities of the BID are separate from those of the City. Responsibility for its indebtedness is specific to the property in the BID and is not an obligation of the City.
City Council Appointed Board/Commission/Committee Recommendation:
The BID Board of Directors recommends City Council’s approval of the 2024 Operating Plan and Budget.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move to approve the Resolution approving the Proposed 2024 Operating Plan and Budget for the Barnes & Powers North Business Improvement District.
Summary of Ordinance Language
N/A