Title
A Resolution of the City of Colorado Springs approving an amended Service Plan for the Tuscan Foothills Village Metropolitan District located northwest of the intersection of Centennial Boulevard and North 30th Street.
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
This amended service plan would replace the existing approved service plan for the Tuscan Foothills Village Metropolitan District (District) which was originally created in 2016 to serve an area that now consists of approximately thirty (30) acres northwest of the intersection of Centennial Boulevard and North 30th Street. The amended service plan would specifically allow for a higher debt service mill levy, a higher operational and maintenance mill levy, and for the increase in the pre-approved debt allowance. There are no changes proposed to either the District structure or the development assumptions.
The better portion of the planned development has already occurred within the District and the Board consists solely of residents who are making this request as well as the associated requested bond issuance.
This property is located in City Council District No. 1.
Background:
The Tuscan Foothills Village Metropolitan District was created in 2016 to finance street improvements, sidewalks, utility lines, and landscaping within the District boundaries. The initial District boundaries consisted of seventeen (17) acres as illustrated in Exhibit C of the 2016 Service Plan, but in 2017 eight (8) additional acres were added to the District. The latest proposal to come before Council was an inclusion request in 2022 to amend the boundaries of the District and add two parcels (one being 3.115 acres and the other 1.011 acres). Presently, the approximate acreage encompassed by the District is thirty (30) acres.
The current service plan allows for a maximum debt service mill levy of 30.0 mills, a maximum operational mill levy of 5.0 mills until the District’s board is made up of residents who can then vote to increase the operational mill levy up to 10 mills. This condition of raising the allowable operating mills based on the composition of the Board has never been a standard requirement of the State or the City but was at the request of a past City Councilor. At this time, the District’s Board is made up of residents who wish to raise the mill levies to bring the District’s policies in alignment with the City’s Model Service Plan and to better serve the District’s needs.
The present request is to raise the operational and maintenance mill levies from ten (10) to twenty (20) mills in an effort to continue upkeep of now that the District is more built out. This increase is consistent with the City’s model service plan. Additionally, the District would like to raise their maximum debt mill levy from thirty (30) to thirty-five (35) mills. Per the amended service plan, the language associated with the maximum debt mill levy is subject, “to upward or downward adjustments addressing any statutory or constitutionally mandated change in assessment ratios, actual valuation, tax credit, cut or any abatement occurring after, but not before July 12, 2022.” The current service plan was based on the assessment rates applicable after January 1st, 2006. These increases to the two mill levies would bring the total mill levy imposed by the District to fifty-five (55) mills.
The current service plan outlines a maximum authorized debt of $1,100,000. In 2019, the District was approved to issue debt up to their outline maximum of $1,100,000. The present request within the amended service plan is to raise the maximum debt permitted under the District to two (2) million dollars. The increased debt allowance will be used to support the related request to issue a bond of no more than $1,420,000 which will be considered by Council in a separate, but concurrent action. The possible 2025 Refunding Loan, which consists of a maximum of $1,420,000 dollars, shall not contribute to the overall service plan debt limit per Section V.A.10 of the Service Plan as refunding outstanding debt does not contribute to the debt limit. As such, the maximum debt limit is adhered to with the 2025 Refunding Loan.
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 access to these 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:
See above history.
Alternatives:
City Council has the options of approving or denying this 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 service plan for the Tuscan Foothills Village Metropolitan District located northwest of the intersection of Centennial Boulevard and North 30th Street.