Title
An Update on the Proposed Resolution of the City of Colorado Springs approving a service plan for the Banning Lewis Ranch Metropolitan District No. 5 serving an area of approximately 159 acres generally located southwest of the intersection of Dublin Boulevard and Banning Lewis Ranch Parkway
Located in Council District 6
Presenter:
Allison Stocker, Senior Planner, Planning Department
Kevin Walker, Planning Director, Planning Department
Body
Summary:
Banning Lewis Ranch Metropolitan District No. 5 (“the District”) requests the approval of an independent service plan and to separate from the consolidated service plan currently utilized by Banning Lewis Ranch Metropolitan District Nos. 1-5 and 7. The District Board for Banning Lewis Ranch Metropolitan District No. 1 is aware and in support of the separation proposed by the District (refer to the Letter of Support).
The District does not anticipate taking on any additional debt in the future, will not change mill levies, and has no anticipated future capital improvements. Also, the District held debt is separate from the remainder of the consolidated service plan which allows the District to continue paying down its debts without impact to the other Banning Lewis Ranch Metropolitan District’s budgets.
Additional revisions are anticipated on the proposed service plan prior to the October 27, 2026 City Council hearing. These revisions include filing in several blank spots on the service plan and updating the maximum operating mill levy for residential districts to be subject to upwards and downwards adjustments based upon the Mill Levy Adjustment date, July 12, 2022, that is consistent with the City’s Model Service Plan.
Background:
Banning Lewis Ranch Metropolitan District No. 5 (“the Retreat” at Banning Lewis Ranch) is made up of single family detached and attached age-restricted units, community exclusive amenities, and various services that are provided independent of the broader Banning Lewis Ranch community. Due to the unique nature of the fifty-five (55) plus community compared to the rest of the Banning Lewis Ranch Metropolitan Districts, the District’s Board felt that creation of a standalone service plan would allow them to better utilize the mill levies taken in by the District and provide amenities and services more appropriate to their unique population.
The proposed District would provide public improvements and operation and maintenance services for the service area as specified in Initial District Boundaries (refer to Exhibit C) which contain approximately 159 acres. The District’s purpose is to plan, design, engineer, finance, and refinance costs associated with providing the public improvements and services necessary to support the project. The service plan will undertake the financing and construction of public improvements and provide any necessary administrative functions and ongoing services as authorized by the service plan.
The service area of the Initial District Boundaries includes approximately 159 acres of developed land. The property is bordered by land annexed into the City on the north, south, and east sides, and is bordered by vacant or low-density County uses to the west. Per Colorado State Statute, if the Disttocides to ever include or exclude land in the future, the District will not be permitted to alter the service area without providing an updated service plan with a Future Inclusion Area Map and receiving written consent from City Council to allow the proposed inclusion.
The District does not intend on taking on any new debt, and per the drafted service plan, the Total Debt Issuance Limitation caps the permitted debt to the aggregate principal amount of the original par amount of the Series 2018 Bonds. The Series 2018 Bonds included three bonds issued on December 11, 2018, as described below:
1. Servies 2018A Limited Tax General Obligation Bonds (Senior Bonds) in the amount of $6,585,000. These are fixed principal and interest bonds with an interest rate of 5.75%.
2. Series 2018B Subordinate Limited Tax G.O. Bonds (Subordinate Bonds) in the amount of $1,011,000. This cash flow bond has an interest rate of 8%.
3. Series 2018C Junior Lien Limited Tax General Obligation Bonds (Junior Lien Bonds) in the amount of $1,942,000. These cash flow bonds have a 8% interest rate for the first five (5) years and a 6% interest rate thereafter.
The total of these bonds is $9,538,000 which is less than the current Total Debt Issuance amount established in the current service plan (refer to Resolution 52-08) which allowed a total of one hundred (100) million dollars permitted to Banning Lewis Ranch Metropolitan District No. 5. The maximum debt mill levy for the District shall be limited to no more than 50 mills, and operations and maintenance mill levies will be 20.0 mill. Both proposed mill levies are consistent with the City’s Model Service Plan. Exhibit D of the service plan provides a summary of public improvements addressing anticipated categorical amount(s) and timing of issuance of debt through the life of the Districts.
The Financial Plan (Exhibit D) and the Description of Permitted Services (Exhibit E) are consistent with the current service plan for the District and will allow the District to continue providing the same amenities and services without interruption. The primary function of the District moving forward will be to take on operational and maintenance activities and repayment of the debt which is anticipated to begin in 2027.
Minor adjustments to the service plan have been requested to the drafted service plan, and staff will provide the updated version to City Council as soon as it becomes available. These proposed changes to not materially impact the proposal or the manner of its assessment.
Previous Council Action:
The original service plan was approved in 2005 and there was a subsequent amendment that was approved by Resolution No. 52-08 to allow an increase in the maximum operating mill levy.
Financial Implications:
As with other Metropolitan Districts, there are no direct implications to the City or it’s taxpayers who are outside the boundary of the Metropolitan District.
City Council Appointed Board/Commission/Committee Recommendation:
N/A.
Recommended Action
Proposed Motions:
Should the City Council wish to approve the Banning Lewis Ranch Metropolitan District #5 application, the following motion is suggested:
Move to approve a resolution of the City of Colorado Springs approving a service plan for the Banning Lewis Ranch Metropolitan District No. 5 serving an area of approximately 159 acres generally located southwest of the intersection of Dublin Boulevard and Banning Lewis Ranch Parkway
Summary of Ordinance Language
N/A.