This study session covered multiple policy and operational topics, including an update on Metro Districts and a proposed mill levy adjustment, progress reports on the water treatment plant and LUTS Reservoir, a South Outfall IGA amendment, proposed ordinances on lodging tax, election petitions, and fireworks, introduction of the Target 36 pilot program, and a discussion on proclamation policies. Council provided direction on several items, with most decisions set to return for formal action.
Metro Districts & Mill Levy Adjustment: Dalton Kelly (Butler Snow) and Jason Simmons (Hilltop) presented an update on Metro Districts, their formation, and the city's role via the model service plan. They explained the need to adjust the mill levy language from a permissive 'Gallagher adjustment' (tied to a historical year) to a mandatory adjustment tied to the current residential assessment rate of 6.8%, as legislativ changes since Gallagher's repeal have made the old language obsolete. The adjustment is a hold-harmless mechanism to ensure revenues neither gain nor lose due to state law changes, not to cover development shortfalls. Council members expressed support for the change; Mayor Pro Tem Padilla favored the two proposed langage changes (rate reference and mandatory adjustment) but opposed adding ongoing oversight. Councilmember Fiddler expressed general dislike of Metro Districts but agreed the language update was appropriate. Direction: proceed with the model service plan amendent.
Water Treatment Plant & LUTS Reservoir Update: Scott Olsen and John (Corolla) provided construction updates. The water treatment plant is 46 calendar days ahead of schedule, with substantial completion targeted for December 17,2026. Total project cost is nearing approximately $170 million (including five change orders, with one pending). LUTS Reservoir is two months ahead of schedule, with final completion by March 1,2026. The reservoir will cover 40 surface acres and hold 140 acre-feet of water. Council received the updates positively.
South Outfall IGA Amendment: Scott Olsen presented an amendment to the Intergovernmental Agreement with Mile High Flood District for planning, design, maintenance, and construction of the South Outfall drainage project. The city and the district will each contribute $185,000 (total $370,000) to continue work on master planning, sediment removal, and corridor amenity planning. Council members supported the project and agreed to place the resolution on a future consent agenda.
Upcoming Ordinances:
Target 36 Pilot Program: City Manager Martinez introduced a pilot program starting July 7,2025. Full-time employees (salaried and hourly) will target a 36-hour work week with no reduction in pay. City Hall will close to the public at noon on Fridays, but other facilities (rec center, police, parks) will adjust schedules while maintaining service. The program will be data-driven and evaluated after six months. Council discussion raised concerns about public access on Friday afternoons, especially for utility payments; the city manager assured that online options exist, no water shutoffs will occur over weekends, and a kiosk may be added. Overall, council expressed support for the pilot, with caveats about clear communication and monitoring impact on residents.
Proclamation Policy: City Attorney Calderon presented options for a formal policy, based on other cities. Council discussion resulted in the following guidance: proclamations should have a strong local connection; require two council sponsors; be submitted four weeks in advance; annual/recurring proclamations may continue automatically; new or controversial ones should be discussed at a study session. The mayor recommended that national themed months (e.g., Black History Month) be handled by staff via social media rather than formal council proclamations. Council concurred and will incorporate these rules into the council rules of procedure.
Good evening. Let's call to call to order our uh study session for Tuesday, May 13th, 2025. I'm gonna ask Councilman or Mayor Pro Tempadilla to lead us in the Pledge of Allegiance. All right, thank you for doing that. Um next let's get on to the meeting of the agenda. First item a presentation on Metro Districts, how the Gallagher repeal has affected residential property taxation, and a request for city council direction on whether to include a mill levy adjustment on model service plan. That's probably one of the longest study session titles we've had in a while. Okay, so City Manager Oh City City Attorney Calderon. Thank you, Mayor. Um and members of council. Uh yeah, sorry for the long uh title. You can blame our presenters. Um who who are here to talk about metro districts you know it's it's been a little while. We talked about metro districts maybe two years ago is I think the last time that we presented to council. Uh so they're going to go through um a really kind of uh one oh one, what are they and how do they work. But we also have some requests at the end for some policy directions from you. So be sorry, my computer's being loud. Uh be prepared uh for that. And uh we have Dalton Kelly and Jason Sims, and they will let them go. Thank you very much. Um Dalton Kelly with Butler Snow, good to be uh with you all again tonight with me as Jason Simmons from Hilltop, who is um the city's municipal advisor. Um so we we work with the city as your bond council. We also advise the city on metro district service plan issues. And really what we're here tonight to talk about is really an update to your model service plan based off what the General Assembly has been doing with property tax legislation since the repeal of Gallagher. Um it's a pretty technical amendment, but um we thought it was a good opportunity to walk through um a high level overview of Metro Districts, really the city's role, um what are metro districts, what do they do, and then talk about um the the suggested adjusted language to handle um what was historically known as the Gallagher adjustment. So here's our brief agenda for the for the night. We'll go over um these these topics and um and then we'll have that conversation here at the end about the policy direction. So starting off, really, what are metro districts? Um they're an independent quasi-municipal corporation that's formed under Title 32. So they're a creature of statute that is its own quasi-municipal governmental entity once they are formed. And so that's an important part to always note that once they are formed, they're their own little government, they're their own board with their own powers and limitations. They're limited by Title 32 and the service plan that is approved by the city. And so that's really where your role is here. Um Metro districts have to provide two or more services. The applicable services are listed right on the screen. It's really some governmental services, most common stuff you could think of, you know, water, um, infrastructure, um, sewer, and streets. So, really um the way metro districts are formed, what's relevant to the city is if you want to form a metro district that's wholly uh contained within the boundaries of the city, then you have to submit your service plan to the city rather than the county. Um, when a service plan um is brought before council under statute, you have three options. You either approve it without condition, you deny it, or you can conditionally approve it. Um the city has a model service plan. Uh, I think the it was adopted in 2017, I think updated in 2021. We're talking about a slight update today, is what it would be. And so, what has governed your metro district formation in the city for about at least the last eight years has been a model service plan that was adopted by the city, sets certain uh policy parameters around things like maximum mill levy, um, debt limits, um, disclosure obligations, those types of things. So, when we're looking at this, and I think this is kind of a common misconception is when the city approves a service plan, that doesn't form the metro district. Really, what that is is a green light to then go to the district court, say the city's okay if we form within uh this uh the city's boundaries, they have to file a petition, the district court then calls an election. If the electors approve the formation of the metro district, the district court orders the metro district organized. So it's really that district court order that organizes the metro district. Um the city is kind of um step number one. You have to get a service plan approved by the city before you can form in the city. And so that's really the city's role on the front end.