Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2027 Operating Plan and Budget for the Barnes & Powers North Business Improvement District.
Located in Council District #6
Presenter:
Drew Foxx, Planner II, Planning Department
Kevin Walker, Planning Director, City 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 2027 Operating Plan and Budget for the BID.
The District will increase its mill levy from 1.047 mill to 1.159 mills for operations and increase from 53.703 mills to 57.995 mills for debt service in 2027. The only other change that will impact the District’s financial and operational state is the proposed dissolution of Barnes and Powers South BID, which has been in an intergovernmental agreement with the subject BID since 2011. The District will continue to service its remaining debt and service the commercial properties northeast of the intersection of Barnes Road and Powers Boulevard.
Background:
This District was formed in 2004 through Ordinance 04-49 to serve the northeast corner of the intersection of Barnes Road and Powers Boulevard. Since its creation, the District has held the same boundaries including approximately twenty-eight (28) acres. 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.
The District’s mill levies consist of debt service and operation and maintenance mills, which will be assessed at 57.995 mills and 1.159 mills respectively in 2027. The District incurs additional revenue in the form of Public Improvement Fees (PIF). There are no major changes proposed to the District’s operating plan or budget in the 2027 operating year with the exception of a vacancy on the Board and an election planned for May, 2027.
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 remove 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 12, 2026.
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%. At the end of 2025, this debt is anticipated to be approximately $2,465,000. The District anticipates imposing 1.159 mills for operations and maintenance and 57.995 mills for debt service in 2027.
The District has estimated an outstanding developer advance balance of $38,610 in principal and $75,115 in interest at the end of 2026, which accrues interest at a rate of 7% for operating advances and 8% for capital advances. The total balance for developer advances and accrued interest at the end of 2024 totaled $207,190.
The dissolution of Barnes and Powers South will terminate the intergovernmental agreement with the subject BID will remove the option for joint funding and consolidated administrative and operating costs. This means that intergovernmental revenue which provided the District additional revenue will no longer be an option while administrative and operating costs will remain roughly the same as previous years. The District also has an ongoing intergovernmental agreement with First and Main BID No. 2 for the collection of Public Improvement Fees on behalf of the subject District.
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:
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 Barnes & Powers North Business Improvement District.
Summary of Ordinance Language
N/A