Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2027 Operating Plan and Budget for the Powers & Woodmen Commercial Business Improvement District.
Located in Council District #6
Presenter:
Drew Foxx, Planner II, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The Powers & Woodmen Commercial 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.
In 2027, the debt service mill levy will stay at 17.00 mills, and the operations and maintenance mill levy will have a minor increase from 1.074 mills to 1.158 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.
Background:
The boundaries of this development-specific BID were established pursuant to an election in 2003. The District does not anticipate any boundary changes in 2027, however, by State law, any future district inclusions or exclusions must be approved by City Council. This BID has an elected board, comprised of individuals associated with the Nor’wood Development Group. The BID is authorized to provide the acquisition of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping. No new commercial development is proposed in 2027.
No changes are proposed to the District’s boundaries, maximum debt authorization, governance structure, and does not anticipate any board vacancies in 2027.
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 2004 (Ordinance No. 04-52) and has approved the Operating Plan and Budget annually since its formation. City Council also approved the BID’s 2010 bond issuance (see below). In 2013, City Council excluded a property from this District based on its conversion to multifamily uses (Ordinance No. 13-15). In March of 2022, City Council approved the exclusion of a 12.234-acre parcel from the boundaries of the District based on its conversion to multifamily use (Ordinance No. 22-15). State statute does not allow BIDs to tax non-commercial property. In 2022 Council approved the District’s 2023 Operating Plan which included an Exhibit E that described a summary of public improvements supporting City Council authorization to issue debt in conformance with 7-100 of the City Charter (Resolution No. 169-22), as a result the District issued its Series 2022 Limited Tax General Obligation Bond on November 17, 2022 in the amount of $2,519,000 with an interest rate of 6.5%.
This item was introduced in a City Council Work Session on October 12, 2026.
Financial Implications:
The BID issued $1,850,000 in Limited Tax General Obligation Bonds, Series 2010 for public improvements. These bonds have an interest rate of 8.5% and are subject to optional redemption beginning December 1, 2011. In 2022 the District issued its Series 2022 Limited Tax General Obligation Bond in the amount of $2,519,000 with an interest rate of 6.5%. The Series 2022 Bond will mature on December 1, 2025, but is subject to prior redemption. As described in the 2027 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. The proposed mill levy for the BID in 2027 is 18.158 mills (1.158 mills for general expenses and 17.00 mills for debt service) which is a minor increase from the total mill levy in 2026 (18.074). This BID does not have an associated public improvement fee (PIF) at this time.
It is anticipated that the District will have completely repaid all developer advances by the end of 2026, with no funds being directed toward developer advancement repayments in 2027.
Fund balances and projected revenues are adequate to meet financial obligations. As a separate legal entity, the financial activities of the BID are separate from those of the City. Any financial obligations of this BID are specific to the property included within its boundaries 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 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 Powers & Woodmen Commercial Business Improvement District.
Summary of Ordinance Language
N/A