Title
A Resolution of the City of Colorado Springs approving an Amended and Restated Service Plan for the Rock Metropolitan District serving an area in the center of the northern portion of Colorado Springs.
Presenter:
Kyle Fenner, Senior Planner, Planning and Neighborhood Services
Kevin Walker, Interim Director, Planning and Neighborhood Services
Body
Summary:
This amended and restated service plan would replace the existing approved service plan for the Rock Metropolitan District (“District”) which was originally created in 2022 to serve the residential uses of this not-yet-developed but approved project. The amended plan conforms with Council’s recently adopted Special District Policy and Model Service Plan. The amended service plan would specifically allow for potentially higher debt service and operational mill levies for these residential districts, and for the “pre-authorization” of limited future debt issuances, without the need to come back to Council for separate approval.
As of this date, there are no residential property owners in this District.
This item was discussed by the City Council Budget Committee on August 27, 2024. Approval of this amended and restated service plan requires a simple majority vote of City Council.
This property is located in City Council District No. 2.
Background:
This metropolitan district was organized in mid to late 2022 following Council’s approval of the original service plan earlier that same year on February 22, 2022. This metropolitan district is intended to encompass various phases and infrastructure of the residential property within the Heights at Cottonwood Creek development. The District sits entirely within the Norwood Special Improvement and Maintenance District and currently encompasses about 8.9 acres. One-hundred and twenty-four total dwelling units are anticipated within the district.
Consistent with the new Special District Policy, this service plan allows for debt service mill levies of up to 50.0 mills for these residential districts, up from 30 mills in the former Model Service Plan and the District’s original service plan. The District will also be allowed to have an operations and maintenance levy up to 20 mills, up from 10 mills in the former Model Service Plan and original service plan.
The maximum debt limit of no more than $5,000,000 remains unchanged from the original approved service plan. This amount is consistent with Exhibit D financial plan, and better reflects the proportion of all potential public debt to be borne by this residential metropolitan district. The authorized District functions would all be unchanged.
The cost estimates are based on detailed calculations for a variety of public improvements now included in Exhibit D. A total of about $3,998,366.71 in improvements costs are identified for the district.
Exhibit D also includes a financial plan which contemplates an issuance of a total of about $4,250,00.00 in senior and subordinate bonds anticipated for December 2024. This information is provided in support authorization to issue debt in the future without the need to return to Council for separate approval.
If approved, this amended and restated service plan would supersede and fully replace the original 2022 service plan for this District.
The City Council Budget Committee considered this item at their February 28, 2023, meeting.
Financial Implications:
There are no direct implications to general City taxpayers and ratepayers outside of the boundaries of these applicable metropolitan districts.
Board/Commission Recommendations:
N/A
Stakeholder Process:
The staff-level Special District Committee has been provided with the materials associated with this request. No comments or concerns have been received as of the date of this cover memo.
Previous Council Action:
City Council approved the original service plan for this District on February 22, 2022, (Resolution 22-22). The original development plan for Heights at Cottonwood was approved in May of 2004 and most recently amended in September 2022. The land was a part of the Pring Ranch Addition #3.
Alternatives:
City Council has the options of approving or denying this amended and restated service plan. Council could also continue the item with specific direction provided to staff and the petitioners.
Recommended Action
Proposed Motion:
Adopt a Resolution of the City of Colorado Springs approving an Amended and Restated Service Plan for the Rock Metropolitan District.