Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the Interquest South Business Improvement District
Related Files: N/A
Council District #2
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The Interquest South 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 2026 Operating Plan and Budget for the BID.
The District imposed 1.00 mill for operations and maintenance and 5.00 mills for debt service in 2024 and in 2025. These mill levies are to carry over into 2026. There are no additional debt issuances, boundary changes, or planned improvements. This BID will continue servicing outstanding debt and perform operations and maintenance functions.
Background:
The boundaries of this development-specific BID were initially established pursuant to an election in 2004. The District contains just over seventy (70) acres located southwest of the intersection of Voyager Boulevard and Interquest Parkway. This BID has an elected board, comprised of developers associated with this property. 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 intends to maintain 2025’s mill levies into the 2026 budget year. These levies will consist of 5 mills for debt service and 1 mill for operations and maintenance. These mills are in addition to the 1.5% Public Improvement Fee (PIF) that applies within the District. This Operating Plan and Budget notes that the District completed the construction of public improvements in 2022 therefore does not anticipate development activity in 2026.
Although no elections are planned for 2026, the District is planning to hold an election on November 4, 2025 to determine whether a waiver of the 5.25% property tax limit should be approved. All eligible electors will be able to participate.
This Operating Plan and Budget are provided in a format consistent with the standard template approved by Council in August 2022 for these documents.
Previous Council Action:
City Council approved formation of this BID in 2004 (Ordinance No. 04-238) and has approved the BID Operating Plan and Budget annually since its formation. In September 2015, Council approved a series of three ordinances and one resolution authorizing exclusions of certain property, inclusions of other property, and allowing for the temporary appointments of two directors for this otherwise elected board of directors. In 2017, City Council approved the temporary appointment of two additional directors, thereby allowing for the total membership to be increased to four individuals.
Council subsequently approved an ordinance to exclude certain property on November 14, 2017 (Ordinance No. 17-103) and authorized the issuance of up to $4,000,000 in debt in the form of a bond issuance on October 24, 2017 (Resolution No. 116-17).
This item was introduced in a City Council Work Session on October 13, 2025.
Financial Implications:
The District issued $4,000,000 in Limited Tax General Obligation Bonds, Series 2017 to fund public improvements, pay bond issue costs, fund an initial deposit to the Surplus Fund, and fund capitalized interest. The proposed total mill levies for the BID in 2026 is 6.000 mills (1.000 mill for general expenses and 5.000 for debt service). The mill levy has no change compared to 2024 or 2025. The pledged property taxes for these bonds are capped at no more than 50.0 mills.
Some or all of the properties associated with this BID have a public improvement fee (PIF) covenant in place for up to 1.5%. This Operating Plan and Budget includes a PIF of 1.5% to be used for payment of the District’s Series 2017 Special Tax Revenue Bonds, except for $141,887.00, which is to be transferred in 2026 to the General Fund for operations and maintenance funding, the amount transferred will increase by 1% each year. For 2025, $375,000 in PIF revenues were projected, and the 2026 revenue is projected to be $10,000 of additional funding. The total projected PIF revenue is $385,000. The District has outstanding developer advances with three developers which are estimated to total $916,611 at the end of 2025. The advances accrue interest at a rate of 7% or 8% depending on the developer owed.
As a separate legal entity, the financial activities of the BID are separate from those of the City, such that any current or future financial obligations of the BID would be specific to the property in this BID and would not be an obligation of the City.
City Council Appointed Board/Commission/Committee Recommendation:
The BID Board of Directors recommends City Council’s approval of the 2026 Operating Plan and Budget.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Approve the Resolution approving to approve the proposed 2026 Operating Plan and Budget for the Interquest South Business Improvement District.
Summary of Ordinance Language
N/A