Title:
Resolution Amending Resolution 93-18 and Specifically Confirming Authority to Overlap the Authorized Maximum Debt Mill Levies of the Banning Lewis Ranch Metropolitan District Nos. 8-11 and Banning Lewis Ranch Regional Metropolitan District No. 2 Pursuant to Resolutions 93-18 and 94-18 (Legislative).
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning and Community Development
Body
SUMMARY:
This resolution addresses errors/omissions associated with the 2018 City Council approval of these metropolitan district service plans. At that time the petitioners represented and Council affirmatively intended to allow a unique overlap of these districts these districts with the Banning Lewis Ranch Regional Metropolitan District No. 2 authorized to certify an additional separate and limited purpose mill levy of no more than 10 mills (Gallagher adjusted), over and above the maximum mill levies allowed for the applicable districts (one of Banning Lewis Ranch Metropolitan District Nos. 8-11 . However, the Council resolution and service plan as adopted for Banning Lewis Ranch Metropolitan District Nos. 8-11, in particular, inadvertently included language that could be interpreted to preclude this overlapping imposition of mill levies. The service plan for Banning Lewis Ranch Regional Metropolitan District No. 2 also contains language incorrectly revering to the base districts. This resolution clarifies and reaffirms Council’s 2018 direction and action to authorize this overlapping metropolitan district structure, with limited overlapping mill levies, without otherwise modifying any other provisions and limits of the prior approvals.
This item was introduced at a March 8, 2021 Council Work Session, at which time there were no requests by Council for follow-up or changes.
BACKGROUND:
For parts of the Oakwood portions of Banning Lewis Ranch (BLR), City Council has uniquely allowed for the overlapping of a traditional metropolitan district with an overlay district for the purpose of a authorizing an additional mill level to be used for financing of specified “regional” scale” improvements. The Oakwood area of BLR is authorized to have conventional metropolitan districts with operational mill levy caps of up to 20 mills along with debt service caps of 30 mills for residential and 50.0 mills for commercial districts- all Gallagher adjusted. In addition, they have been authorized to create overlay districts that can levy up to 10 more mills (1 for operations and 9 for debt service) for qualifying regional improvements.
This unique approach to district structure began in 2010 when the original Banning Lewis Ranch Regional Metropolitan District was created to allow up to 10 additional mills to be earmarked for specified major wastewater improvements. In 2016, after Colorado Springs Utilities regional wastewater requirements changed, Council approved the repurposing of this district to allow for financing of other qualifying large-scale improvements (i.e. arterial roadway costs). Then in 2018, Council approved a scaling back of the originally intended boundaries of the 2016 regional district and the creation of a second regional overlay district (Banning Lewis Ranch Regional Metropolitan District No. 2), which was similar in taxing authority and function to the 2016 overlay district. On the same day (August 28, 2018) City Council approved the service plan for Regional District No. 2, they also approved a new service plan for additional traditional metropolitan districts (Banning Lewis Ranch Metropolitan District Nos. 8-11) to be used by this developer within this new regional district. Resolution 93-18 inadvertently included language in Section 5 that could be interpreted to prohibit the intended overlap of Regional Metropolitan District No. 2 with one of Banning Lewis Ranch District Nos. 8-11. Although Paragraph V.A.8 of the service plan for District Nos. 8-11 is intended to refer to an overlap among just those districts subject to this consolidated plan, it could also be interpreted to preclude the overlap with Regional Metropolitan District No. 2. Additionally, the service plan Regional Metropolitan District No. 2 inadvertently defined the term “Other Banning Lewis Ranch Districts” in a way that omitted District Nos. 8-11.
This new resolution clarifies the intended overlap of Banning Lewis Ranch Regional Metropolitan District No. 2 with one of Banning Lewis Ranch Metropolitan District Nos. 8-11 along with its additional mill levy capped at 10.0 mills, Gallagher adjusted.
These attachments are provided:
• Draft City Council Resolution
• Original Resolutions 93-19 and 94-19
• District Boundary Context Map
FINANCIAL IMPLICATIONS:
Action on this clarifying resolution as has no financial impacts on taxpayers or rate payers outside of the boundaries of these districts. For properties within these districts, it simply reaffirms Council’s prior intention to allow overlapping mill levies for these districts as described herein.
PREVIOUS COUNCIL ACTION:
The Banning Lewis Ranch Metropolitan Districts No. 8-11 (“Districts”) were established by election in November 2018, following approval by Council of an initial service plan on August 28, 2018 (Resolution No. 93-18). The Banning Lewis Ranch Regional Metropolitan District No. 2 was also created in 2018 following Council of an initial service plan on August 28, 2018 (Resolution No. 94-18).
BOARD/COMMISSION RECOMMENDATION:
N/A
STAKEHOLDER PROCESS:
Not applicable.
ALTERNATIVES:
City Council could choose to approve, deny or modify the proposed resolution.
Recommended Action
PROPOSED MOTION:
Move approval of the Resolution Amending Resolutions 93-18 and 94-18 To Confirm Authority to Overlap the Authorized Maximum Debt Mill Levies of the Banning Lewis Ranch Metropolitan District Nos. 8-11 and Banning Lewis Ranch Regional Metropolitan District No. 2