Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2025 Operating Plan and Budget for the Barnes & Powers North Business Improvement District
Presenter:
Allison Stocker AICP, Planner II, Planning Department
Kevin Walker, Interim Director, 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 2025 Operating Plan and Budget for the BID.
The District will increase its mill levy from 1.046 mill to 1.047 mills for operations and 51.293 mills to 51.349 mills for Debt Service, this is an increase of 0.057 mills as compared to the mill levy certified for 2024. 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 7, 2024.
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 District imposed 1.046 mills for operations and maintenance and 51.293 mills for debt service in 2024. The District anticipates imposing 1.047 mills for operations and maintenance and 51.349 mills for debt service in 2024.
The District has estimated an outstanding developer advance balance of $114,657 at the end of 2024, which accrues interest at a rate of 7% for operating advances and 8% for capital advances. As of December 31, 2024, the estimated accrued interest on the developer advance balance will be $81,433.
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:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move to approve the Resolution approving the Proposed 2025 Operating Plan and Budget for the Barnes & Powers North Business Improvement District.
Summary of Ordinance Language
N/A