Department of Finance
Reference: 2026 South Brighton GID Mill Levy Proposal
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Director of Finance
Date Prepared: August 26, 2025
PURPOSE
To propose a levy of 15 mills for the South Brighton GID for 2026.
BACKGROUND
The South Brighton GID was formed in 2004 for the purpose of generating funds for the City to construct infrastructure necessary to support new development in the area. The GID formation was approved by a vote of property owners within the boundaries and authorized the levy of property taxes to generate revenue up to $400K annually. The ballot language did not place a limit on the number of mills allowed. A map of the GID area is included in the attached Presentation.
Since the time of formation, the City has not levied any property taxes on the properties within the GID.
Development in this area remains slow to start, due in part of the continuing need for infrastructure improvements to support said development. In particular, storm drainage outfalls would be required for development but cannot be funded by the existing resources of the City’s Storm Drainage Fund.
In early 2025, the City engaged the support of Economic & Planning Systems, a consulting firm specializing in revenue analysis, to review the GID and determine the impacts of levying taxes. While the land in the GID is undeveloped and would generate little in tax revenue in 2026, once developed it would likely reach the $400K annual limit. Additionally, as adjacent properties are developed, the City intends to include them in the GID and have them be subject to the taxes and benefits of the GID.
Staff is proposing a levy of 15 mills in 2026 which would be expected to generate about $20K in property tax revenue. While this is not a large amount, it would grow as the properties develop and future revenue would support infrastructure needs of the region.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
While the City has had the authority to levy tax on this area since 2004, this would be the first time that the tax has been levied. While the area is currently undeveloped and the tax impacts only a few property owners, the mill levy would apply to homes and businesses that would eventually be constructed. The levy is proposed at a level that would keep the total property tax level similar to other neighborhoods in the City, such as Prairie Center.
Mill levies are set annually by the governing body of the GID and are subject to the restrictions of the formation of the GID.
FINANCIAL IMPACT
The proposed levy of 15 mills would generate approximately $20K in 2026 and would increase as properties are developed and brought into the GID area. Once the GID is generating $400K in revenue, the mill levy would need to be reduced so as to not exceed the voter approved cap on the GID as a whole.
Attachments:
Ø Presentation