Colorado Springs City Council Work Session - March 9, 2026

The Colorado Springs City Council held a work session on Monday, March 9, 2026, from 9:04 AM to 11:07 AM in Council Chambers. All nine council members were present. The meeting featured a comprehensive presentation on tax increment financing (TIF) and special/metropolitan districts, along with a discussion of proposed amendments to the City Council Rules and Procedures. No public comments were made, and the consent calendar and executive session items were approved by consensus.

Consent Calendar

• Approval of February 23, 2026 Work Session Minutes: Approved by consensus of City Council.

Executive Session

• Authorization to Defend Officer (David Meray v. Christopher Laabs, Case No. 2025CV32838): Rebecca Greenberg, Senior Attorney, City Attorney’s Office, stated that the Civil Action Investigation Committee recommended authorization to defend the officer. President Crow-Iverson polled Council, and consensus was reached to authorize representation.

Presentations for General Information

• Public Finance Tools: Tax Increment and Special Districts – Carolynne White, Brownstein Hyatt Farber Schreck, presented a detailed overview of Urban Renewal Authorities (URAs), Tax Increment Financing (TIF), special districts, and metropolitan (metro) districts. Key points included:
  • History: URAs were enacted in Colorado in 1958; TIF was added in 1981 after federal funding for slum clearance dried up.
  • Blight Determination: 11 statutory factors; City Council makes a legislative determination based on a blight study. The “but for” test (whether the project would occur without TIF) is a policy filter used by the Colorado Springs URA.
  • TIF Mechanics: TIF captures the incremental increase in property (and sometimes sales) tax revenue generated by new development over a 25-year period. No increase in tax rates; the base value is reassessed biennially.
  • Post-2015 Changes: House Bill 15-1348 requires negotiation with county, school district, and special districts for sharing of TIF increment, and adds three seats on the URA board for those entities.
  • Special/Metro Districts: Formed under Title 32 C.R.S., these are local governments with limited powers to finance, construct, and maintain public improvements. Metro districts must provide two or more services. Colorado has about 2,800 special districts, including 1,700 metro districts. Key features: mill levy caps (commonly 50 mills for debt, 10-15 for O&M), 40-year maximum debt term, and mandatory disclosures to homebuyers.
  • Transparency: Districts are subject to open meetings (Sunshine Law), open records (CORA), annual filings with DOLA, and real estate disclosure requirements.
  • Benefits vs. Drawbacks: Benefits include growth paying its own way, off-budget financing, and localized tax burden. Drawbacks include complexity and multiple layers of government.

Councilmember Questions and Discussion:

• Councilmember Donelson asked about the 1958 origins of URAs and TIF (confirmed TIF added in 1981). He also asked about the “but for” test being presented to Council (confirmed by Jariah Walker, CSURA Director).
• Councilmember Henjum inquired about the tension between the statutory purpose of eliminating slum/blight and the downstream benefits of economic development. Ms. White noted that while the primary purpose is blight remediation, the positive outcomes are relevant metrics. Henjum also asked about the City Auditorium URA (learned it has no sales TIF component, only property tax increment, and the Auditorium is a schedule improvement if the Hyatt hotel pays out predetermined improvements before 25-year plan expiration). She also asked about TIF discretion in reassessment (Ms. White clarified it is not discretionary; Assessor’s Manual Chapter 12 provides factors, but interpretation can lead to differences).
• Councilmember Rainey asked about objective determination of blight (the statutory list is the basis, and blight is a legislative determination; consultants use data like police calls). He also asked about a ceiling on TIF (no statutory ceiling, but pledge agreements typically cap the amount).
• Councilmember Bailey added that the URA board reviews blight studies and makes recommendations to Council.
• Councilmember Leinweber asked about board turnover in metro districts (elections every two years; in residential areas, it takes about eight years for non-developer board members to appear). He also asked about a community forming a metro district for a library or rec center (difficult if existing residents oppose new taxes; existing districts’ consent required; General Improvement Districts (GIDs) are more common for specific improvements). He requested information on tourism improvement districts (Ms. White referred to CML).
• Councilmember Henjum asked about special district infrastructure becoming City responsibility (internal streets typically remain with district or HOA; major arterials and utilities are conveyed to City after a two-year warranty period). She also asked if TABOR caused the growth of special districts (Ms. White said TABOR was a factor but not the sole cause). Henjum asked if Fort Collins’ point-based system for metro districts (environmental, affordable housing, etc.) could be replicated in Colorado Springs (legally possible, but Fort Collins has seen no new districts since adopting that high-bar policy in 2021).
• Councilmember Donelson asked about master planned communities maintaining their own roads (Kevin Walker, Planning Director, said only Kissing Camels, a gated community, does so; the City typically accepts roads after two years).
• Councilmember Leinweber asked about the sunken road in Gold Crown Mesa (if the City accepted maintenance, it is responsible; otherwise, it falls on the developer/ district).

Discussion Items

• A Resolution Amending Resolution 39-25 and Adopting Amendments to the “City Of Colorado Springs Rules And Procedures Of City Council” Effective March 24, 2026 – Michael Montgomery, Deputy City Council Administrator, presented the proposed changes. Amendments included:
  • Rule 1-2: President responsible for scheduling invocations (amended to clarify “scheduling an invocation of any faith or belief system with an established presence in the city”).
  • Rule 2-8: Recognitions – guidelines for proclamations and resolutions of recognition aligned; added “in writing” requirement for expressing interest.
  • Rule 2-9: New rule for policy resolutions (mirrors recognition process).
  • Rule 2-10: Invocation guidelines (two-minute limit, no discrimination, no compensation, etc.).
  • Rule 3-13: Motion to reconsider timeline changed from 30 to 45 days to align with public noticing requirements.
  • Rule 4-1: Hearing process for rate cases updated to allow utilities to make changes at least seven days before hearing, with publication and notification requirements.
  • Rule 8-2: Added process for additional council member allocation (transfer of funds upon written notice to President).
  • Councilmembers Bailey and Williams proposed minor amendments (accepted by consensus). The resolution will be considered for formal adoption at the March 24 regular meeting.

Councilmember Reports and Open Discussion

• Councilmember Henjum reported on attending the opening of the Art Space (affordable housing for creatives), the Youth Documentary Academy (YDA) event, the GRIT Conference, Lunar New Year Celebration, CSPD Annual Awards, Pikes Peak Housing Network’s State of Housing report, and a tour of Superior Connections (sober living facility).
• Councilmember Leinweber attended the Military Affairs Council (MAC) tour of Fort Carson (noted communications upgrade to Starlink with 150 Mbps per unit) and the State of Housing event.
• Councilmember Gold noted that all nine council members were featured in a YDA documentary and participated in a CSPD ride-along.
• Councilmember Rainey highlighted the CSPD awards, reminded about the Red Cross Proclamation on March 11 at the Fire Department Headquarters, spoke at a daycare grand opening in District 6, the D11 Gifted and Talented Forum, and the National Security Space Institute. He also promoted a Tuskegee Airmen presentation at the WWII Aviation Museum on March 14.

Key Outcomes

• Consensus Items: Approval of February 23 minutes, authorization to defend officer in David Meray v. Laabs.
• Rules and Procedures: Council accepted amendments proposed by Bailey and Williams; the final resolution will be presented for a single vote at the March 24 regular meeting.
• Next Steps: The City will continue to use TIF and special districts as tools for infrastructure financing, with ongoing policy refinement. Councilmember Williams requested information on the Southeast Strong Plan’s agenda timeline.