To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
Title
Resolution Approving the First Amendment to the Intergovernmental Agreement between the Villages at Castle Rock Metropolitan District No. 6 and the Town of Castle Rock
Body
________________________________________________________________________________
Executive Summary
On February 6, 2024, Town Council authorized the preparation of an Intergovernmental Agreement (IGA) with the Villages at Castle Rock Metropolitan District No. 6 (District) which would alter the existing 2004 IGA. On June 14, 2004, the District and the Town entered into an IGA for the primary purpose of funding fire protection and emergency response services to be provided by the Town to District residents. This was largely in recognition of the extraordinary distance of the District’s development from the rest of the then-built community. Pursuant to paragraph 2 of the 2004 Agreement, the District pledged to levy a tax in the amount of ten (10) mills on all taxable property of the District, the revenues from which would be remitted to the Town to fund fire/emergency services. At the time the 2004 Agreement was executed, the property within the District was located a substantial distance away from the nearest Town fire station. Since that time, the Town has continued to grow in the general direction of the District.
As a result of such growth, the Town has announced its plans to construct a new fire station, Fire Station No. 156, near the boundaries of the District, which is expected to be fully operational in 2026. Given these changed circumstances, it was desired by both the Town and the District to gradually reduce the mill levy from ten (10) mills to five (5) mills over a five-year period, commencing in 2026 and ending in 2030.
A recommended phase down in the metro district mill levy would be:
|
Certification Year of Metro District Mill Levy |
Recommended Phased Down Mill Levy |
|
2026 |
9 |
|
2027 |
8 |
|
2028 |
7 |
|
2029 |
6 |
|
2030 and all years thereafter |
5 |
The revised agreement would provide for this phase down and would continue the mill levy at 5 mills, beginning for the 2030 mill levy year. The result will be an approximately 50% reduction in the mill levy.
On June 27, 2024, Town staff was informed that the District had approved the attached amendment to the IGA making the phased mill levy reduction. So, it is now appropriate for Town Council to consider the amendment to the IGA as well.
Staff Recommendation
Staff recommends Town Council approve the resolution amending the IGA with the metro district reflecting a phased reduction in the mill levy, beginning after Fire Station No. 156 is operational, to a new permanent based of 5 mills.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Attachment B: IGA Amendment