City Council Minutes 1984 06 05 - Laserfiche WebLink

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6,5/84 Page -7- Special Improvement Mr. Caldwell advised that the Special Im- District Procedures provement District would be created by a peti- tion from the property owners for which they specify what they want. They would have to work over the course of this summer to create this District; and it would require a majority of the people requesting the im- provements to come before Council. Then if the petition is in order, Colorado law says Council will order the improvements m<~de. He further stated that their figures included some money for capitalized interest; the first interest payment on the bonds. Bf~cause of the construction cycle the bonding company does not want to immediately p:Lace the businesses in a situation where they have to start paying off bonds until they have created some new revenue. Sales Tax Revenue Bond Plzase II of the financing would be the Sales Tax Revenue Bond at an estimated $:1,000,000 - a to increase in sales tax would create $400,000 in terms of 1984 dollars. Time Frame for Financing The proposal for financing would take place during the summer and early fall by forming the Special Improvement District. Then the bonds would .not be issued until it was known that the other portion of the money was available. The Special Improvement District would be created that will show thhat the merchants have demonostrated their ability and willingness to tax themselves for portions of the improvements. The ear- mark election would be held in February, 1985 a:nd simultaneously do both bond issues. Mr. Caldwell stated that Phase II would require some additional Sales Tax Revenue Bonds and a General Improvement District. A General Improvement District does not require that an election be held. In the Special Improvement District the merchants can be assessed on such factors as front footage, area, create different zones, lot sizes, etc. that the law permits. A General Improvement District only allows for the repayment of those bonds based upon a mill levy against the assessed value of properties. This could have a disadvantage i.e. people who had upgraded their property would pay more than people who hadn't done anything.