Title
Resolution approving a service plan allowing for the creation of the Mountain Valley Metropolitan District.
(Legislative)
Presenter:
Carl Schueler, Planning Manager- Comprehensive Planning, Planning & Development Department
Body
Summary:
This service plan would allow formation of the Mountain Valley Metropolitan District.
Previous Council Action:
This would be a new single metropolitan district. City Council approved annexation, PUD zoning and a concept plan for this property in early 2016. This agenda item was introduced to City Council at a work session on August 22, 2016. On September 13, 2016, City Council continued the hearing on this item to today’s date (October 11, 2016). On September 16, 2016, additional discussion of this item occurred as part of that Informal City Council meeting.
Background:
This would be new single district metropolitan district conforming to the City’s currently adopted Model Service Plans and Special District Policy. As of the date of this staff report no deviations from the standard documents are being proposed. This will be a small exclusively residential district consisting of about 37.5 acres which includes 141 planned single-family dwellings, in the Mountain Valley Preserve development along the north Marksheffel Road corridor.
The maximum approved debt authorization would be $7,267,000. Consistent with the City’s Special District Policy and Model Service Plans, the maximum allowable Gallagher-adjusted debt service mill levy will be 30.0 mills and the maximum operational mill levy will be 10.0 mills.
Pursuant to the Special District Policy, all future district inclusions must be identified and presented with the initial petition and illustrated as Exhibit C-2. The petitioners do not propose to include any future properties. Therefore, Exhibit C-2 is not required and has not been provided.
This service plan contemplates the District providing some ongoing operations and maintenance functions including maintaining landscaping and common areas.
The petitioners have provided an estimate of eligible public improvements costs totaling approximately $5.8 million. These include roadway, utility and other local improvements as well as some arterial roadway improvements to Marksheffel Boulevard.
Included as attachments are a clean copy of the most recent version of the service plan including exhibits, along with a “redline” showing changes made since the August 22, 2016 Informal City Council meeting. A revised executive summary has also been provided subsequent to that meeting, as well as the form of an additional disclosure being provided by this petitioner. Also attached is a copy of a proposed 3-year budget as provided by the petitioner at the September 26, 2016 City Council meeting.
The draft City Council resolution contains a finding that the “existing service in the area to be served by the district is inadequate for present and projected needs”. This finding is required by Colorado Revised Statutes 32-1-204.5 along with a number of others. Across the state, municipalities have commonly created districts with the predominant or even sole function of providing financing for eligible public improvements rather that for ongoing “services”. Therefore, the basis of the finding would logically need to include public financing as part of the services.
City staff has also provided an annotated copy of all of the applicable statutory criteria, with some limited staff background and comments. At the hearing, the petitioners may desire to elaborate on these criteria and findings.
Approval of this service plan could be considered consistent with the City Strategic Plan - language - Create an environment that promotes job creation and stimulates strong, diverse, and sustainable economic development and opportunity for all of our citizens.
This would arguably not be considered an infill project as contemplated by the City’s 2016 Comprehensive Plan Infill Supplement.
The petitioner has been separately provided City Council with examples of home owners association (HOA) budgets from other projects as example of typical monthly fees. In this case the petitioners have indicated they do not intend to create and utilize an HOA for this project.
Financial Implications:
There are no direct implications to general City taxpayers and ratepayers outside of the boundaries of this district. The required mill levy caps effectively limit the financial tax exposure of property owners to no more than a combined total of 40.0 mills, Gallagher-adjusted. However, as the Council is aware, property owners within the district will be obligated to pay the additional mil levy associated with the metro district.
Board/Commission Recommendation:
N/A
Stakeholder Process:
The staff-level Special District Committee has been provided with the materials associated with this request. As of the date of this staff report, there have been no comments or concerns.
Alternatives:
City Council has the options of approving or denying this service plan. Council could also approve the service plan with changes.
Recommended Action
Proposed Motion:
Move to approve a resolution of the City of Colorado Springs approving a service plan for the Mountain Valley Metropolitan District with a maximum debt authorization of $7,267,000.
Summary of Ordinance Language
N/A