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File #: ID-115-25    Version: 1 Name:
Type: Informational Report Status: Agenda Ready
File created: 5/5/2025 In control: City Council
On agenda: 5/13/2025 Final action:
Title: A Presentation on Metro Districts, how the Gallagher Repeal has affected Residential Property Taxation, and a request for City Council direction on whether to include a Mill Levy adjustment in the Model Service Plan
Attachments: 1. Metro District Presentation (4.29.2025) FINAL
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Department of City Attorney’s Office

Reference:                     Metro District Presentation

To:                                                               Mayor Gregory Mills and Members of City Council

Through:                                          Michael P. Martinez, City Manager

Prepared By:                                          Alicia Calderón, City Attorney

Date Prepared:                     May 2, 2025

 

PURPOSE

To provide an overview of Metropolitan Districts and request direction from City Council on a policy issue involving the possibility of revising the mill levy adjustment language in the model service plan used by the City. 

 

BACKGROUND

 

The City of Brighton has adopted a model service plan that is used by each proposed metropolitan district that seeks approval in the City. This model service plan was drafted by the City’s special counsel for metropolitan districts, Butler Snow. The model service plan was vetted by City staff, legal counsel, and the City Council. While reviewing some proposed language by an upcoming metropolitan district, City staff realized that there was a new policy discussion to be considered by the City Council. Does the City Council want to revise its current language in the model service plan that  allows an adjustment to the mill levy  to be more tailored to the recent legislative changes made by the Colorado General Assembly to the methodology for determining the assessment rate for residential and commercial property?

Before jumping into the policy discussion, Dalton Kelley from Butler Snow, will provide a general overview of metropolitan districts, how they are formed, and how they raise revenue. The presentation will explain how the Gallagher Amendment used to work and what has happened with taxation on real property since that was repealed. Finally, Mr. Kelley will explain the mill levy adjustment language to seek City Council’s direction on whether or not to revise the current mill levy adjustment language in the model service plan. Jason Simmons will be available to answer questions about the financial planning that is used for metropolitan district service plans.

 

ATTACHMENTS

1.                     Presentation