Title
A Resolution of the City of Colorado Springs approving a limited amendment to the amended and restated consolidated service plan of the Allison Valley Metropolitan Districts No. 1 & No. 2 to all an increase of the maximum operational mill levy from 10.0 mills to 20.0 mills.
Presenter:
Allison Stocker, Planner II, Planning and Community Development Department
Kevin Walker, Interim Planning and Community Development Director
Body
Summary:
This is a request to approve an increase of the maximum operational mill levy for Allison Valley Metropolitan Districts No 1 and No 2 from the current 10.0 mills to 20.0 mills. This request is made because 10 mills does not provide sufficient funding for ongoing maintenance and operational costs.
The Allison Valley Metropolitan District was created under the City’s prior model service plan which had a maximum operations and maintenance mill levy of 10 mills. However, in the prior model service plan January 1, 2006 was the date to which the assessment valuation rates were tied. The rate on January 1, 2006 was 9.15%.
The Applicant is requesting 20 mils which aligns with the new model service plan for operations and maintenance, if approved, they will be required to tie the assessment valuation rate to July 12, 2022, as required in the new model service plan. The rate on July 12, 2022 was 6.95%.
As such, this request is being reviewed as a limited amendment to the service plan.
Background:
The Allison Valley Metropolitan Districts Nos. 1 and 2 were originally approved on July 12th, 2006 and were established as Allison Valley Metropolitan District No 1 and Allison Valley Metropolitan District No 2. These districts were established by Resolution 129-06 and were approved on August 22, 2006.
The original service plan for the Allison Valley Metropolitan Districts Nos. 1 and 2 was amended in 2015 to correct certain errors and discrepancies found in the 2006 original approval. This was the last and only amendment to the service plans. Additionally, the 2015 amendment consolidated the service plans for Allison Valley Metropolitan District No 1 and No 2 which allows this amendment to be handled with a single application and single resolution. These amendments were approved by Council per Resolution 87-15 and were consistent with the applicable City policy at time of approval.
The Allison Valley Metropolitan Districts Nos. 1 and 2 has issued the following debt:
1. Allison Valley Metropolitan District No 2 - Debt Issuance in 2015
Per Resolution 88-15, the Allison Valley Metropolitan District No 2 received City Council approval for the issuance of limited tax general obligations and loans. This request allowed for formal debt in the aggregate amount of up to $12,500,000.
2. Allison Valley Metropolitan District No 1 - Debt Issuance in 2017
Per Resolution 17-17, the Allison Valley Metropolitan District No 1 received City Council approval for the issuance of debt in the form of limited tax general obligation loans. This request allowed for formal debt in the aggregate amount of up to $16,500,000.
3. Allison Valley Metropolitan District No 1 & 2 - Debt Issuance in 2020
Debt issuance in the form of a general obligation limited tax refunding bonds in the aggregate amount not to exceed $10,000,000 was approved for Allison Valley Metropolitan District No 1 per Resolution 71-20. Debt issuance in the form of a general obligation limited tax refunding bonds in an aggregate amount not to exceed $13,500,000 was approved for Allison Valley District No 2 per Resolution 72-20.
Financial Implications:
There are no direct implications to general City taxpayers and ratepayers outside of the boundaries of these applicable metropolitan districts.
Board/Commission Recommendation:
N/A
Stakeholder Process:
The staff-level Special District Committee has been provided with the materials associated with this request. As of the date of this staff report, there have been no comments or questions from the Committee on this request.
Previous Council Action:
City Council approved a consolidated service plan for the Allison Valley Metropolitan Districts (Resolution 184-17), and in 2020 Council approved a issuance of debt to Allison Valley Metropolitan District No 1 in the form of a $10,000.00 (ten thousand dollar) General Obligation Limited Tax Refunding bond (Res 71-20).
Alternatives:
City Council could choose to approve, deny or modify the proposed resolution.
Recommended Action
Proposed Motion:
Adopt a Resolution of the City of Colorado Springs approving a limited amendment to the service plans of the Allison Valley Metropolitan District No 1 and District No 2 allowing an increase of the operational mill levy from 10.0 mills to 20.0 mills in both districts.
Deny a Resolution of the City of Colorado Springs approving a limited amendment to the Allison Valley Metropolitan District Consolidated Service Plan for Districts Nos. 1 and 2 to allow an increase of the operational mill levy from 10.0 mills to 20.0 mills in both districts.
Summary of Ordinance Language
N/A