Department of Community Development
Reference: Prairie Center Metropolitan District No. 7 Service Plan Amendment
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Stephanie Iiams, AICP, Associate Planner
Date Prepared: June 30, 2026
PURPOSE
The Prairie Center Metropolitan District No. 7 (the “District”) is requesting to amend the Service Plan in order to refund existing debt, extend bond maturity limits, adjust restrictions on new debt issuance, and preserve flexibility for future financing. The development in the District is entirely composed of residential property and the board is entirely composed of residents within the District.
PROCESS
In accordance with the approved Service Plan for the District, approved on February 21, 2006, no modifications shall be made to the Service Plan without approval by the City of Brighton City Council. As part of this process, the City Council may consider a resolution consenting to the Service Plan Amendment.
BACKGROUND
The Service Plan for the District was originally approved in February of 2006 with the First Amendment effective in November 2008. The District was formed in conjunction with Prairie Center Metropolitan District Nos. 1-6, and 8-10 (collectively, the “Districts”). The service plans for the Districts allow for combined debt issuance of up to $750,000,000 to fund public improvements and, as reported in the December 31, 2024, audit for the District, there is $173,485,000 of debt capacity remaining.
The District has issued two series of bonds including its Limited Tax General Obligation Bonds, Series 2020, outstanding in the amount of $5,390,000 (the “2020 Bonds”) and its Subordinate Limited Tax General Obligation Bonds, Series 2021, outstanding in the amount of $3,990,000 (the “2021 Bonds”). The 2020 Bonds have a final maturity of 2045, and the 2021 Bonds have a final maturity of 2046. The District also has certain outstanding obligations payable to the developer as a result of advances made by the Developer which total $15,029,984 as reported in the December 31, 2024, Audit.
The draft resolution states that the District would like to refund all of the outstanding 2020 and 2021 Bonds. The Service Plan restricts the final maturity of any bond issuance to 25 years which is not a common restriction in a service plan and is also inconsistent with the City’s model service plan, which was adopted in 2017.
The District would like to amend the Service Plan to allow for a 30-year term which would allow the District board to lower the debt service mill levy more than it could otherwise be lowered if the final maturity was limited to 25-years. The preliminary financial model shows the ability to drop the debt service mill levy for collections in 2026 from 63.495 to 39.617 for collections in 2027. The proposed final maturity of the bonds is 2056, which is an extension of 10 years from the current final maturity of the outstanding debt obligations of the District.
The District would also like to remove language in the Service Plan that restricts the issuance of new money debt after December 1, 2025, and replace it with language stating that the District cannot impose a debt service mill levy for longer than 40 years. The 40-year limit of the imposition of a debt service mill levy is consistent with the City’s model service plan. Removal of the language would allow the District to issue additional new money debt but would require approval of the District board to do so.
OPTIONS FOR COUNCIL CONSIDERATION
The City Council has the following three options:
1. Approve the Resolution as drafted;
2. Approve a modified Resolution;
3. Deny the Resolution with specific findings to justify the denial.
ATTACHMENTS
• Draft Resolution
• Prairie Center Metro District No. 7 Service Plan Second Amendment (Exhibit A of the Resolution)
• Aerial Map by City Staff
• Draft City Staff Presentation