Department of Community Development
Reference: Amendment No. 1 to First Amended and Restated Service Plan for The Lakes Metropolitan District No. 1; Amendment No. 1 to First Amended and Restated Service Plan for The Lakes Metropolitan District No. 3; Amendment No. 1 to First Amended and Restated Service Plan for The Lakes Metropolitan District No. 4; Amendment No. 1 to Service Plan for The Lakes Metropolitan District No. 5; Amendment No. 1 to Service Plan for The Lakes Metropolitan District No. 6.
To: Mayor Gregory Mills and Members of City Council
Through: Jane Bais DiSessa, City Manager
Marv Falconburg, AICP, Deputy City Manager
Holly Prather, AICP, Community Development Director
Prepared By: Mike Tylka, AICP, Senior Planner
Date Prepared: August 25, 2021
PURPOSE / BACKGROUND
Pursuant to Article 1, Title 32, Colorado Revised Statutes, as amended (the “Special District Act”), the City of Brighton has the authority to approve service plans and amendments to service plans for special districts (also known as metropolitan or simply metro districts) that are organized within the City’s boundaries. City Council now has before it five proposals for amendments to service plans for the existing The Lakes Metropolitan District Nos. 1, 3, 4, 5, and 6 (the “Districts”). Note: The applicant is not amending District No. 2 as bonds have already been issued.
The items before the City Council are titled as follows:
• Amendment No. 1 to First Amended and Restated Service Plan for The Lakes Metropolitan District No. 1
• Amendment No. 1 to First Amended and Restated Service Plan for The Lakes Metropolitan District No. 3
• Amendment No. 1 to First Amended and Restated Service Plan for The Lakes Metropolitan District No. 4
• Amendment No. 1 to Service Plan for The Lakes Metropolitan District No. 5
• Amendment No. 1 to Service Plan for The Lakes Metropolitan District No. 6
On December 19, 2017, District Nos. 1, 3, and 4 were granted City Council approval (Resolution 2017-154) for amended and restated service plans and accompanying intergovernmental agreements (“IGAs”). These districts’ received initial approval of their service plans by the City on September 5, 2006. Also on December 19, 2017, District Nos. 5 and 6 were granted approval by City Council (Resolution 2017-155) for their initial service plans and accompanying IGAs.
Each of the Districts were approved with an inclusion area that covers the future Farmlore (formerly Brighton Lakes) development and/or the remaining unbuilt phases of the Indigo Trails development.
The formal applicant for each district is their respective board of directors (the “Applicant”) and each is represented by legal counsel from White Bear Ankele Tanka & Waldron.
The submissions use the amended Model Service Plan, adopted by the City Council on August 17, 2021, as the template for their requested amendments, and the Applicant is not asking for any deviations from it.
STRATEGIC FOCUS AREAS
• Recognizable and Well-Planned Community
• Financially Responsible
• Supportive, Sustainable Infrastructure
• Strong Regional Relationships and Partnerships
STATUTORILY REQUIRED CONTENTS OF A SERVICE PLAN / REVIEW CRITERIA
Per the Special District Act, service plans must include the following items:
• Description of the proposed services,
• Financial plan showing how the proposed services are to be financed,
• Preliminary engineering or architectural survey showing how the services, are to be provided,
• Map of boundaries,
• Estimated population at build-out,
• Estimated assessed valuation at build-out,
• General description of facilities to be constructed,
• Estimated costs of land acquisition, engineering, legal and administrative costs, initial proposed indebtedness and estimated proposed maximum interest rates and discounts, and other major costs related to the organization and initial operation of the district,
• Description and form of any proposed Intergovernmental Agreements (IGAs), and
• Other information set by State Statutes or required by the approving jurisdiction(s).
The City will hold a public hearing for each of the proposed Service Plan Amendments, and after hearing all the testimony and evidence for each agenda item will decide if it will approve the proposed Service Plan Amendments.
If the City decides to approve the proposed Service Plan amendments, it will be making the following findings:
a. There continues to be sufficient existing and projected need for the organized service in the area to be serviced by each of the respective Districts.
b. The existing service in the area to be served by each of the respective Districts continues to be inadequate for present and projected needs.
c. Each of the respective Districts is capable of providing economical and sufficient service to the area within its boundaries.
d. The area included in each of the respective Districts has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis.
STAFF ANALYSIS / SUMMARY OF FINDINGS
City staff has reviewed the items along with Butler Snow, LLP. Butler Snow offers specialization in the legal requirements of metro district formation. The following findings are those of City staff based on the internal reviews and those of the mentioned City supporting party.
Amendments to the Service Plans:
Each of the five (5) proposals outline a requested eight (8) items for amendment from their existing service plan. These are to the sections that speak to the inclusion and exclusion limitation, overlap limitation, compound interest, timing of debt issuance, maximum combined mill levy, use of issued debt, and meeting requirements. All of these requests bring their service plans in line with the recently adopted amended Model Service Plan.
City staff finds that:
a. There continues to be sufficient existing and projected need for the organized service in the area to be serviced by each of the respective Districts.
b. The existing service in the area to be served by each of the respective Districts continues to be inadequate for present and projected needs.
c. Each of the respective Districts is capable of providing economical and sufficient service to the area within its boundaries.
d. The area included in each of the respective Districts has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis.
IGA:
The IGAs between the City and the Districts have been updated to use the recently adopted amended Model Service Plan’s template IGA that includes advance notification provisions.
FINANCIAL IMPACT
As noted in the materials prepared for the consideration of the amended adopted Model Service Plan, any debt issued under a Service Plan continues to be subject to the maximum principal amount authorized in the Service Plan, the maximum debt service mill levy, the maximum term for imposing the debt service mill levy, and the discharge provisions. These provisions continue to provide protections to the taxpayers of the special districts. None of these important safeguards are being removed. The proposed amendments are in line with the Model Service Plan that is designed to allow the Districts to access the capital markets with terms and provisions that are expected by potential investors, and at the times designed to allow the Districts to obtain the most favorable terms.
PUBLIC NOTICE AND INQUIRY
Notice of the September 7, 2021 public hearings for the amendments to the Service Plans were published in the August 11, 2021 edition of the Brighton Standard Blade by the applicant as directed by the Special District Act. As of the date of this report, City staff has not received any public comment on the matter.
STAFF RECOMMENDATION
City staff is recommending the approval of the service plan amendments and their accompanying IGAs as it believes that the proposed service plans meet the requirements of Title 32-1-202(2) C.R.S. and are in line with the Model Service Plan.
OPTIONS FOR COUNCIL CONSIDERATION
City Council now has the following four (4) options for each of the five (5) items:
• Approve the Resolution as drafted;
• Approve the Resolution with changes;
• Deny the Resolution as drafted; or
• Continue the item to a date certain.
ATTACHMENTS
• Resolution for Approval
• Proposed Amended Service Plan
• Proposed IGA
• Current Service Plan & IGA
• Notice of Publication
• Draft Staff Presentation