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Commissioners probe mill-levy, debt and who pays if Bloom bonds fall short
Summary
Commissioners pressed staff and applicant counsel on the Bloom plan's financing: staff outlined a 50-mill debt levy and 10-mill operations levy (60-mill cap), $20 million authorized debt, $20.8 million estimated improvements and $38 million in developer advances; counsel said bondholders—not the county—bear unpaid bond risk.
Commissioners used the Bloom Metropolitan District hearing to drill into the financial assumptions underlying the proposed service plan. Staff told the board the plan shows an initial debt-service mill levy of 50 mills and an operations-and-maintenance levy of 10 mills, capped at 60 mills; the service plan lists an authorized debt limit of $20,000,000 and estimated improvements of $20,800,000.
DJ Beckwith said independent reviews (BBC Research and Hilltop Securities) examined the market and financial assumptions; Hilltop concluded that, given the plan’s assumptions, the district could extinguish bonds within the parameters of the service plan. Commissioners asked about a worst-case scenario: who would be on the hook if market conditions made it impossible to service bonds. Staffer Lauren Pulver said the property owner or developer would be responsible for paying back bonds if the developer extended them; if residents ultimately purchase homes in the district, they would be subject to the mill levies included in the plan for debt service.
Applicant counsel Megan Murphy added that if bonds are issued and cannot be repaid, bondholders (institutional investors) would bear losses rather than Douglas County taxpayers. Commissioners acknowledged that metropolitan districts are a tool to finance infrastructure that local government might otherwise provide, while also noting the long-term indebtedness seen in some metro districts.
