Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2027 Operating Plan and Budget for the First and Main Business Improvement District.
Located in Council District #6
Presenter:
Drew Foxx, Planner II, Planning Department
Kevin Walker, Planning Director, Planning Department
Body
Summary:
The First and Main 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 2027 Operating Plan and Budget for the BID.
The District will increase its mill levy from 1.074 mills to 1.159 mills for operations and increase the Debt Service mill levy from 53.703 mills to57.968 mills. Other than the mill levy change, the Operating Plan and Budget for this BID includes no significant anticipated activities or changes other than District administration and payment of outstanding bonds in 2027.
Background:
The boundaries of this development-specific BID were established pursuant to an election in 2003 and were modified in 2009. This District’s elected board is comprised of individuals associated with Norwood Development Group. The District consists of approximately 17.88 acres at the northeast of the intersection of North Powers Boulevard and South Carefree Circle. The District is authorized to provide the acquisition of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping.
In 2027, the District intends to increase the debt service mill levy from 53.703 to 57.968 mills, and the operation and maintenance mill levy from 1.074 to 1.159 mills. Aside from the changes to mill levies, the District held an election on November 4th of 2025 and approved the waiver of the 5.25% property tax limit. The District’s next regular election is scheduled for May 4, 2027.While the District issued debt (Resolution No. 47-25) in 2025, it does not anticipate issuing new debt in 2027 as the District is near their maximum debt authorization. The District presently holds approximately $4.4 million in debt where $5 million is the maximum debt permitted.
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 formation of this BID in 2003 (Ordinance No. 03-37) and has approved the BID Operating Plan and Budget annually since its formation. City Council also approved the BID’s issuance of its 2009 and 2011 bonds (see below), as well as a boundary modification associated with formation of the First and Main Business Improvement District No. 2 in 2008. In 2014, Council approved an ordinance authorizing this BID to convert from a Council-appointed to an elected board of directors. This conversion was subsequently formalized via a May 2014 election.
In 2025, City Council approved the Series 2025 Limited Tax General Obligation bond in the principal amount of $3,290,000 pursuant to Resolution 47-25. As such, the present debt held by the District is approximately $4.4 million.
This item was introduced in a City Council Work Session on October 12, 2026.
Financial Implications:
The BID issued $1,650,000 in Limited Tax General Obligation Bonds, Series 2009 for infrastructure improvements. The 2009 bonds carry an interest rate of 8.5% and are subject to optional redemption beginning December 1, 2012 and mandatory redemption on December 1st of each year. As described in the 2021 Operating Plan, the District will annually review the interest rates on its bonds regarding market interest rate and evaluate possibilities to refund such bonds to the extent allowed, pursuant to the bond documents. In 2011, the BID issued a small $55,816 special revenue bond that has been paid off. The latest bond issuance was approved earlier this year via Resolution No. 47-25 which allowed the District to issue bonds in the principal amount of $3,290,000. The approximate total debt is $4.4 million. The District does not currently have any outstanding developer advance obligations.
In 2026, the District imposed a mill levy of 1.074 mills and a debt service mill levy of 53.703 mills. In 2027, the District is proposing to raise these mill levies to 1.159 and 57.968 mills respectively.
The District entered into an Intergovernmental Agreement for Operational Cost Sharing on January 1, 2014 with First and Main Business Improvement District No. 2. The intergovernmental expenditures represent transfers to First and Main Business Improvement District No. 2 to provide funding for the overall administrative and operating costs of the two Districts. Thereafter, on April 10, 2025 the District entered into an Intergovernmental Agreement for Cost Sharing pertaining to Public Improvements between First and Main Business Improvement District and First and Main Business Improvement District No. 2, which established the means for sharing of the costs of public improvement costs between both districts.
As a separate legal entity, the financial activities of the BID are separate from those of the City and the obligations of the BID are limited to the properties within its boundaries.
City Council Appointed Board/Commission/Committee Recommendation:
The BID Board of Directors recommends City Council’s approval of the 2027 Operating Plan and Budget.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Approve the Resolution approving the proposed 2027 Operating Plan and Budget for the First and Main Business Improvement District.
Summary of Ordinance Language
N/A