To: Honorable Mayor and Members of Town Council
From: Robert J. Slentz, Town Attorney
Title
Resolution Approving the First Amendment to Service Plan for Hillside at Castle Rock Metropolitan District [northwest of the intersection at Coachline Rd and Wolfensberger Rd]
Body
________________________________________________________________________________
Executive Summary
The Hillside at Castle Rock Metropolitan District (“District”) Service Plan was approved by Council in 2016 (“Service Plan”), however development within the District is just now commencing. There are no residents in the District and no district general obligation debt outstanding currently. As a result of the delay, the original Service Plan projections are required to be updated under the terms of the Town’s Special District Oversight provisions found in Chapter 11.02 of the Municipal Code. This amendment presents the opportunity to review current projections for capital expenditures, debt issuance and District property tax.
Background
The purpose of this Service Plan amendment is to increase the District’s total anticipated debt issuance from $3.7 to $6.5 million, and to revise the District’s estimated costs of the Public Improvements from $5.5 to $7.3 million. Since approval of the Service Plan in 2016, the District has received updated anticipated assessed valuation and cost information concerning the public infrastructure costs related to the Wolfensberger project which demonstrate a substantial increase in those valuations and costs.
The District proposes to construct approximately $7.3 million in public improvements to serve approximately 120 patio homes and 80 apartment units and to issue up to $6.5 million in 30-year term bonds in a $5.4 million 2021A series and an $1.1 million 2021B series. The financial pro forma projects that the debt may be retired with a 55.277 mill levy, as adjusted, is within the debt service mill levy cap. The Service Plan amendment projects patio home construction in 2018-2020 and the apartment buildings construction in 2019-2020, in accordance with land use approvals.
Service Plan Amendment Review Standard
The Special District Control Act, Article 1, Title 32, C.R.S. and Chapter 11.02 of the Castle Rock Municipal Code govern the Town Council’s consideration of the request for approval of the service plan for the District. The Special District Act specifically authorizes the Council to approve the Service Plan amendment as submitted, to disapprove the request, or to conditionally approve the Service Plan amendment. In order to approve this request the Council must find that the District is capable of providing economical service and that the District has the ability to retire the proposed indebtedness on a reasonable basis.
The proponents may appeal an adverse decision by the Council to the District Court.
Staff Recommendation
Staff recommends approval of the Service Plan amendment as presented. The modifications to the capital and financial plan reflect current financial conditions. The absorption schedule is aggressive, but mill levy cap protects individual taxpayers from financial exposure in the event the absorption takes a longer period of time.
Proposed Motion
I move to approve the Resolution Approving the First Amendment to Service Plan for Hillside Metropolitan District
Attachments
Attachment A: Resolution
Exhibit 1: First Amendment