Council hears update on metro districts, directs model service plan change to preserve bond revenue

Dalton Kelly, bond counsel with Butler Snow, and Jason Simmons, the city's municipal advisor from Hilltop Securities, gave Brighton City Council a primer on metro districts and urged an update to the city's model service plan to address changes in residential assessment rates after the repeal of the Gallagher amendment.

Kelly told council that metro districts are "an independent quasi municipal corporation that's formed under Title 32," and that the districts exercise powers under that statute unless limited by the approved service plan. He explained that metro districts typically rely on property taxes and can be limited by caps set in a service plan, commonly "50 mills for debt and 10 mills for O&M." Kelly said the traditional Gallagher mechanism adjusted mills as assessment rates changed; after Gallagher's repeal the General Assembly now sets residential assessment…