A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2027 Operating Plan and Budget for the Interquest South Business Improvement District. Located in Council District #2 Presenter: Drew Foxx, Planner II, City Planning Department Kevin Walker, Planning Director, City Planning Department Summary: The Interquest South Business Improvement District (BID) is a legal entity separate from the City of Colorado Springs. However, as required by State statute, it is necessary for City Council to review and approve the proposed 2027 Operating Plan and Budget for the BID. The District imposed 1.00 mill for operations and maintenance and 5.00 mills for debt service in 2026, and it anticipates imposing 1.00 mills for operations and maintenance and 5.00 mills for debt service in 2027. There are no additional debt issuances, boundary changes, or planned improvements. This BID will continue servicing outstanding debt and perform operations and maintenance functions. Background: The boundaries of this development-specific BID were initially established pursuant to an election in 2004. The District contains just over seventy (70) acres located southwest of the intersection of Voyager Boulevard and Interquest Parkway. This BID has an elected board, comprised of developers associated with this property. The District is authorized to provide the acquisition and financing of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping. The District intends to maintain 2026’s mill levies into the 2027 budget year. These levies will consist of 5 mills for debt service and 1 mill for operations and maintenance. These mills are in addition to the 1.5% Public Improvement Fee (PIF) that applies within the District. This Operating Plan and Budget notes that the District does not anticipate development activity in 2027. The District’s eligible electors approved the waiver of the 5.25% property tax limit as set forth in C.R.S. § 29-1-1702 at an election that was held on November 4, 2025. The next regular election is scheduled for May 4, 2027. No changes to the Board or vacancies are anticipated for the upcoming year. This Operating Plan and Budget is provided in a format consistent with the standard template approved by Council in August 2022 for these documents. Previous Council Action: City Council approved formation of this BID in 2004 (Ordinance No. 04-238) and has approved the BID Operating Plan and Budget annually since its formation. In September 2015, Council approved a series of three ordinances and one resolution authorizing exclusions of certain property, inclusions of other property, and allowing for the temporary appointments of two directors for this otherwise elected board of directors. In 2017, City Council approved the temporary appointment of two additional directors, thereby allowing for the total membership to be increased to four individuals. Council subsequently approved an ordinance to exclude certain property on November 14, 2017 (Ordinance No. 17-103) and authorized the issuance of up to $4,000,000 in debt in the form of a bond issuance on October 24, 2017 (Resolution No. 116-17). This item was introduced in a City Council Work Session on October 12, 2026. Financial Implications: The current outstanding long-term debt of the District as of June 30, 2026, is $3,650,000. The District anticipates making a principal payment on December 1, 2026, which will bring the outstanding balance down to $3,575,000. The District issued $4,000,000 in Limited Tax General Obligation Bonds, Series 2017 to fund public improvements, pay bond issue costs, fund an initial deposit to the Surplus Fund, and fund capitalized interest. The proposed total mill levies for the BID in 2027 is 6.000 mills (1.000 mill for general expenses and 5.000 for debt service). The mill levy has not change compared to 2026. The pledged property taxes for these bonds are capped at no more than 50.0 mills. Some or all of the properties associated with this BID have a public improvement fee (PIF) covenant in place for up to 1.5%. This Operating Plan and Budget includes a PIF of 1.5% to be used for payment of the District’s Series 2017 Special Tax Revenue Bonds. For 2027, $390,000 in PIF revenues are projected. It is anticipated that at the end of 2026, the District will have total developer advances of $902,499, including principal and interest and by the end of 2027 this number will be reduced to $882,249. As a separate legal entity, the financial activities of the BID are separate from those of the City, such that any current or future financial obligations of the BID would be specific to the property in this BID and would not be an obligation of the City. City Council Appointed Board/Commission/Committee Recommendation: The BID Board of Directors recommends City Council’s approval of the 2027 Operating Plan and Budget. Stakeholder Process: N/A Alternatives: N/A

Committee

City Council

Requested by

Planning Department

Introduced

September 14, 2026

On agenda

October 27, 2026

Where it was heard

City Council Work Session Oct 12, 2026 referred

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