Title
A Resolution of the City of Colorado Springs approving a Service Plan for the Terra Mesa Metropolitan District relating to 42 acres located east of the intersection of Powers Boulevard and Research Parkway.
Located in Council District 2
Presenter:
Drew Foxx, Planner II, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
This service plan would allow the formation of the Terra Mesa Metropolitan District (the “District”) to finance public improvements for the use and benefit of all anticipated inhabitants and taxpayers of the District as set forth in Exhibit D.
This item was heard at City Council Work Session on July 13, 2026.
Background:
The proposed District would finance public improvements and fund ongoing operational and maintenance costs for the service area as specified in Initial District Boundary Map (Exhibit C). 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 developable 42-acre area. Approval of this Service Plan for the District will allow the district to provide the financing and construction of public improvements as specified in Exhibit D and fund ongoing services as authorized by the service plan in Exhibit E. There is currently no commercial development proposed within the District’s boundaries.
Pursuant to the Special District Policy, all future district inclusions, if any, must be identified and presented with the initial petition and illustrated on the future district inclusions map to the Service Plan. The District shall not include any property outside the service area without the prior written consent of the City Council.
Approval of this petition to create the Terra Mesa Metropolitan District would set the proposed maximum debt authorization for the District is $15,000,000, based on $14,870,505 in estimated public improvements costs. The financial projections included in the service plan demonstrate that the requested debt is sufficient to cover the expected operations and maintenance costs located in Exhibit E of the Service Plan.
Exhibit D of the Service Plan provides a summary of public improvements to be constructed, addresses anticipated categorical costs and provides the timing of issuance of debt through the life of the District. This Financial Plan is based on projected development revenues as limited by the service plan through the maximum debt mill levy and the maximum operations and maintenance mill levy. Further, this plan outlines how the District calculated the proposed maximum debt authorization for the District and why that amount is appropriate based on the anticipated scope of work.
Exhibit E of the service plan authorizes the District to perform ongoing operations and maintenance functions related to stormwater detention, stormwater infrastructure, sidewalks within private tracts of land, common area maintenance, and park maintenance.
The maximum debt mill levy for any district or combination of districts (commercial and residential) shall be limited to no more than 50 mills, which is consistent with the City’s Model Service Plan. The maximum operations and maintenance mill levies will be 20.0 mill for residential districts. The District is limited to the maximum mill levies described here but can impose lower mill levies if desired.
Review Criteria: Colorado Revised Statutes include four criteria for which an affirmative finding must be made to approve this service plan, along with five other criteria which may be considered. These are all included within the body of the City’s Model Service Plans and this service plan. The nine criteria are as follows:
• There is sufficient existing and projected need for organized service in the area to be serviced by the District;
• The existing service in the area to be served by the District is inadequate for present and projected needs;
• The District is capable of providing economical and sufficient service to the area within its proposed boundaries; and
• The area to be included in the District does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis.
• Adequate service is not, and will not be, available to the area through the City or County or other existing municipal or quasi-municipal corporations, including existing special districts, within a reasonable time and on a comparable basis.
• The facility and service standards of the District are compatible with the facility and service standards of the City within which the special district is to be located and each municipality which is an interested party under Section 32-1-204(1), C.R.S.
• The proposal is in substantial compliance with the Comprehensive Plan adopted pursuant to the City Code.
• The proposal is in compliance with any duly adopted City, regional or State long-range water quality management plan for the area.
• The creation of the District is in the best interests of the area proposed to be served.
After review staff finds the Service Plan for the Terra Mesa Metropolitan District meets the above-listed criteria for approval.
Previous Council Action:
The area that this District will serve was annexed into the City of Colorado Springs via Resolution No. 181-25 on October 16, 2025, as the Peach Ranch Addition No. 1 Annexation. Upon annexation, Ordinance No. 25-98 was approved to amend the Zoning Map of the City of Colorado Springs, establishing the zone district for this area as Residential Flex Low with Airport and Streamside Overlays. Following the annexation and zone district establishment, the Peach Ranch Addition No. 1 Development Plan was approved via City File No. DEPN-25-0019 to allow for the development of 155 residential lots at a density of 3.66 dwelling units per acre (see Attachment #1_Peach Ranch Addition No. 1 Development Plan).
Financial Implications:
There are no direct implications to general City taxpayers and ratepayers outside of the boundaries of this District.
City Council Appointed Board/Commission/Committee Recommendation: N/A
Recommended Action
Proposed Motion:
Should the City Council wish to approve the Terra Mesa Metropolitan District Service Plan, the following motion is suggested:
Motion to adopt a Resolution of the City of Colorado Springs approving a new service plan for the Terra Mesa Metropolitan District located east of the intersection of Powers Boulevard and Research Parkway.
Should the City Council wish to deny the Terra Mesa Metropolitan District Service Plan, the following motion is suggested:
*Enter proposed motion.