El Paso County approves amended Rock Creek service plan, raising debt cap to $48 million and allowing up to 75-mill levy

On June 11 the El Paso County Board of County Commissioners approved an amended and restated service plan for the Rock Creek Metropolitan District that raises the district's debt authorization to $48 million and allows a combined mill levy of up to 75 mills, with an operations-and-maintenance (O&M) component that could reach 20 mills.

Nicole Pov, speaking for the applicant, asked the board to approve the amended plan, saying the project has "changed significantly" since the district was formed in 2018 and that the updated plan reflects those changes. "We're here to request that you approve the amended and restated service plan for the Rock Creek Metropolitan District," Pov said.

County planner Carrie Parsons told commissioners the district now covers about 70.77 acres, with roughly 22.53 acres directly implicated in the request and about 48.24 acres annexed into the city of Colorado Springs. Parsons said the applicant is asking to increase the maximum debt authorization from $8 million to $48 million and to raise the potential combined mill levy to 75 mills to cover higher infrastructure and ongoing maintenance costs. She said the district's independent engineer estimated about $37.8 million in public-improvement costs, including a roughly $4.5 million hydronomatic pump station.

Parsons outlined the levy mechanics: debt-service millage remains capped at 50 mills under state statute, and the applicant is asking for flexibility to impose up to 20 mills for operations and maintenance and an additional 5 mills for special purposes, producing the 75-mill maximum in the proposal. She also summarized system-development fees the district proposes to impose on new units: about $4,000 per detached single-family unit, $2,500 for attached units and $2,500 per multifamily unit.

Developer and project consultant Danny Mena said much of the cost escalation stems from Colorado Springs Utilities' engineering requirements. "If you're going to extend these lines through the state park, would you consider upsizing the lines to be able to serve an existing water district," Mena said, describing how those upsizing and a required redundant water line and lift station increased the project's capital needs. Mena said the upsized infrastructure was designed to serve other nearby needs and that the Rock Creek Mesa Water District has not agreed to take on a share of the capital cost.

Parsons also presented an illustrative tax impact: using the plan's 75-mill maximum, a $600,000 residence would face just over $3,000 per year in property taxes from the metropolitan district portion of the levy, she said. Parsons emphasized that 75 mills is the authorized maximum and not necessarily the amount the district would impose.

Commissioners spent an extended period questioning the applicant and county staff about the request. Several commissioners expressed concern that Colorado Springs Utilities' design requirements have shifted costs onto the new development, and that the district's O&M increase could make housing less affordable for the military and other workers the project is intended to serve. "It just doesn't seem right to put this on the backs of new residents," Commissioner Williams said, while also acknowledging the need for housing close to Fort Carson.

County attorney representative Erica Key told the board the statutory process for preserving mill levies when property is annexed into a municipality is set out in state law (CRS 32-1-502), and she said the board has discretion to grant exceptions to the county model service plan if the applicant sufficiently justifies deviations.

On the traffic and road-fee question, the applicant said the district's traffic impact fee would be a one-time $300-per-unit charge intended to help fund signal improvements on Highway 115.

The public input portion of the hearing drew no speakers. After additional debate about conditions and about correcting a typographical error in the draft resolution (a stray extra zero that would have read 200 mills), a motion to approve the amended and restated service plan with the proposed conditions passed on a 5-0 roll call vote (Commissioners Weissong, Nelson, Applegate, Williams and the Chair voting yes).

The board's approval authorizes the district to seek higher bonding capacity and to retain flexibility to impose up to 20 mills for operations and maintenance, subject to the conditions adopted by the commission and the statutory limits that apply to debt-service millage. The meeting then moved to non-action reports and adjourned.