Council hears how a General Improvement District could help fund West Greeley infrastructure

City staff briefed the Greeley City Council on the role a General Improvement District (GID) in the financing strategy for the West Greeley project, describing how a GID is formed, what it can fund and the timing and tax implications for properties in the district.

‘‘A general improvement district is a local taxing entity that’s authorized under Title 31 of state statute,’’ presenter Brian (staff member) said. He explained the GID could be used to finance major transportation, stormwater and water/sewer infrastructure and that the City Council would act as the GID governing board. Staff noted that property taxes are the primary revenue source but that GIDs can also use special assessments, revenue bonds or certificates of participation.

Staff said a GID can be initiated by a petition from a single property owner and would be established by council ordinance; initial ballot language would set millage rates, a maximum debt and permitted uses. If voters who are property owners inside the proposed GID approve the ballot, additional properties may be added by petition without subsequent elections, provided additions conform to the original ballot language.

Councilors asked about timing of tax revenue and scale. Councilor Debuti asked whether tax-exempt entities or nonprofit owners would affect early revenues; staff replied that revenue generation depends on the geographic size of the GID and the timeline for properties to join and start paying into it. Councilor Butler asked for a ballpark mill levy; staff said model assumptions currently use 10 mills for debt service and 2 mills for operations and maintenance (12 mills total) in modeling.

Staff listed advantages and disadvantages: advantages include isolating debt from the city’s general fund, allowing growth to help pay for regional infrastructure and providing a single board (the City Council) for oversight. Disadvantages included low initial assessed value on vacant land (which limits early borrowing capacity), the need to phase debt issuance, and stacking of mill levies with other local districts (such as metropolitan districts) that could affect developer economics.

Staff said a GID is one of the financing tools under consideration for the West Greeley financing puzzle and that petitions and further negotiation with the Water Valley company would likely follow pre-development-services agreement decisions. No ordinance or vote was taken at the session; staff said more detailed financial modeling and sensitivity studies are underway.

Councilors asked for and received clarification that some currently entitled properties might be asked to opt into the GID and that revenues would not necessarily begin immediately — they will ramp as properties develop or petition to join. Staff said that modeled mill levies and geographic scope would be negotiated with developers and that the council would see the financial model as it advances.

The council discussion closed with staff promising additional financial detail and sensitivity testing as the city negotiates the pre-development agreement.