Title
Request to set November 24, 2020 as the Public Hearing date for consideration of adopting the proposed 2021 Colorado Springs Briargate General Improvement District Budget and to advertise as required by law
Presenter:
Charae McDaniel, Chief Financial Officer
Body
Summary:
Council sits as the Board of Directors (Board) of the Colorado Springs Briargate General Improvement District (District). In accordance with State statute, it is necessary for the Board to make a motion to establish November 24, 2020 as the Public Hearing date for consideration of the proposed 2021 District budget. Following that November hearing, the Board will certify the District mill levy and then adopt and appropriate the final budget. A copy of the proposed budget for the 2021 calendar year for the District is attached. This proposed budget is submitted as information only and requires no action on the part of the Board at this time.
The attached budget proposes a total appropriation of $1,604,460 for required debt service payments and related expenditures. This includes an additional principal payment on the bonds of $1,000,000, for a total principal payment in 2021 of $1,500,000. This additional payment of $1,000,000 and the total of $3,000,000 additional principal payments made in 2019 and 2020 will result in a reduction of interest paid for the remainder of the term of approximately $940,000, with final payment made five years early in December 2025. Sources of funds for the District are property taxes of $1,419,711, specific ownership taxes of $166,483, interest income of $25,000, and an estimated beginning 2021 fund balance of $1,045,988. Property tax revenue is based upon a mill levy of 12.000 mills and preliminary assessed valuation of $121,968,280. The 2020 levy of 12.000 mills for taxes payable in 2021 was unchanged from the 2020 budget.
Background:
City Council sits as the Board of Directors for each of the General Improvement Districts and is required to conduct a public hearing and adopt an annual budget for the district. Pursuant to State statute, the Board must be provided a proposed budget on or before October 15 of each year.
The remaining principal balance of the bonds as of December 31, 2021 is projected to be $1,725,000. Due to the additional principal payments totaling $3,000,000 made in 2019 and 2020, and the additional $1,000,000 principal payment planned in 2021, the bonds for this District are scheduled to be paid off in December 2025, which is five years earlier than originally anticipated.
Previous Council Action:
City Council created this District in 2000 (Ordinance No. 00-127). In 2003, acting as the Board, Council approved the $8,800,000 in bonds issued for this District (Ordinance No. 03-214). The Board annually adopts the budget for the District.
City Council Ordinance No. 91-14 was approved on October 14, 2014, authorizing the issuance of General Obligation Refunding Bonds, Series 2014 (Series 2014 Bonds) in a principal amount of $8,960,000. The Series 2014 bonds refunded the remaining General Obligation Bonds, Series 2003 (Series 2003 Bonds) in the amount of $8,640,000, funded accrued interest on the Series 2003 Bonds from the June 15 interest payment date to the closing date of approximately $225,120, and funded the costs of issuance.
Financial Implications:
Since the Colorado Springs Briargate General Improvement District is a separate entity, and its indebtedness is not an obligation of the City, there are no direct financial implications for the City of Colorado Springs.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Motion to establish November 24, 2020 as the date of the Public Hearing to consider the 2021 Colorado Springs Briargate General Improvement District budget.
Summary of Ordinance Language
N/A