Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the Barnes & Powers North Business Improvement District.
Related Files: N/A
Council District #6
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
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 2026 Operating Plan and Budget for the BID.
The District will decrease its mill levy from 1.047 mill to 0.985 mills for operations and increase from 51.348 to 53.703 mills for debt service in 2026. 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:
This District was formed in 2004 to serve the northeast corner of the intersection of Barnes Road and Powers Boulevard. Since its creation, the District has held the same boundaries including approximately twenty-eight (28) acres. 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.
The District’s mill levies consist of debt service and operation and maintenance mills. In 2024, these mill levies consisted of 51.384 mills and 1.047 mills respectively. Whereas in 2025, these mills will change to 53.703 mills and 0.0985 mills. The District incurs additional revenue in the form of Public Improvement Fees (PIF). There are no major changes proposed to the District’s operating plan or budget in the 2026 operating year with the exception of a vacancy on the Board and an election planned for November 4, 2025. This election will allow eligible electors to decide whether to approve a waiver of the 5.25% property tax limit. No other elections are planned for 2026.
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 remove 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 13, 2025.
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%. At the end of 2025, this debt is anticipated to be approximately $2,465,000. The District anticipates imposing 0.985 mills for operations and maintenance and 53.703 mills for debt service in 2026.
The District has estimated an outstanding developer advance balance of $101,147 at the end of 2026, which accrues interest at a rate of 7% for operating advances and 8% for capital advances. As of December 31, 2026, the estimated accrued interest on the developer advance balance will be $3,429. The total balance for developer advances and accrued interest at the end of 2024 totaled $207,190.
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 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 Barnes & Powers North Business Improvement District.
Summary of Ordinance Language
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