The URL can be used to link to this page

Home My WebLink AboutBOCC.packet 05 28 2014 - Woody Creek Subdivision Metro DistrictMEMORANDUM TO: Pitkin County Board of County Commissioners FROM: Lance Clarke, ]Xssistant Director SUBJECT: Woody Creek Subdivision Metropolitan District Service Plan, 2nd Reading and Public Hearing DATE: May 28. 2014 SUMMARY: The Applicant has submitted a Service Plan for the purpose of establishing a metropolitan special taxing district as provided for under State law (C.R.S. 32 -1 -202). This District initially will provide street improvements, water distribution, waste disposal, recreation space and facilities. Special District formation requires approval by the BOCC and ultimately by the electors of the proposed district. APPLICANT: Woody Creek Subdivision REPRESENTATIVE: Rhonda Bazil, Attorney DISTRICT AND SERVICE AREA BOUNDARIES: The proposed Woody Creek Metro District boundary area includes all 58 lots within the platted, built out BOCC approved Woody Creek Subdivision PUD (the Residential Service Area). Services will be provided by an extraterritorial agreement to the two commercial properties (the Commercial Service Area) that are not part of the Subdivision but receive services from the Subdivision; these are the Woody Creek Tavern and the Woody Creek Community Center. BACKGROUNDIEXISTING CONDITIONS: Currently the Subdivision through its HOA provides a number of services to the residents and the adjacent commercial properties. Most notably, the Subdivision provides sewer and potable water services, as well as maintaining roads and other infrastructure. The "redevelopment " of this Subdivision has included significant infrastructure upgrades that have imposed financial burdens on the owners that can partially be addressed by the formation of a special taxing district. Such a district also facilitates collections, as most homeowner fees can be transferred from "dues" to property taxes. REFERRAL COMMENTS: Staff has referred the request to the County finance Department, County Treasurer, County Engineer, and Woody Creek Caucus. The initial comments from Tom Oken, the County Treasurer, are attached. I le has noted some items of concern in the financial feasibility analysis that might require a higher mill levy and result in less net savings to homeowners. The Woody Creek Caucus Planning Commission expressed its support. The County Engineer has no issues with the proposal. AUTHORITY: In accordance with the requirements of the Special District Act (CRS 32 -1 -101 et seq.), the Board of County Commissioners is the approving authority for a proposed special district in the unincorporated area. The proposed service plan of a proposed special district is to be referred to the Planning Commission which "shall consider and make a recommendation on the service plan to the Board of County Commissioners ". Neither the Land Use Code nor the State Statutes have specific standards for the Planning Commission review. The Planning Commission recommended approval by a 5 -0 vote on April I, 2014. The BOCC has the authority to approve the proposed district, if the following can be demonstrated, pursuant to CRS 32 -1 -203, el seq.: There is sufficient existing and projected need for organized service in the area to be served I of :� 2. That existing service in the area to be serviced by the proposed district is inadequate for present and projected needs. 3. The proposed district is capable of providing economical and sufficient service within its proposed boundary. 4. The District has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. The County shall also consider the following-. 1. Adequate service is not, or will not be, available to the area through the county or other existing municipal or quasi- municipal corporations, including existing special districts, within a reasonable time and on a comparable basis. 2. The facility and service standards of the proposed special districts are compatible with the facility and service standards for each county within which the proposed special district is to be located and each municipality which is an interested party. 3. The proposal is in substantial compliance with a master plan. 4. The proposal is in compliance %A ith any duly adopted county, regional, or state long -range water quality management plan for the area. 5. The creation of the proposed special district will be in the best interests of the area proposed to be served. COUNTY REVIEW ABILITIES AND ISSUES: Sufficient Need!4dequac.], of'Existing Service: The Applicant states there is a need to farm the District due to the existing water and wastewater systems that are in place serving all the owners in the proposed District and which have ongoing costs and capital replacement reserve needs. Service Standards: Some services still need to be added to the infrastructure and funding for proper maintenance and upkeep and replacement of infrastructure is needed. Capability of Fanrcling Financial Abdii.v. A feasibility analysis concluded that the services can be provided economically through the District. Available Municipal Services: There is no other County. City, or District provider of service that could take on the prosed responsibilities for provision of theses services. Compliance with Hasler Plans'll'uter (lualit'v Plans and Count -v Policies' The proposed Metro District boundary is within the Woody Creek Master Plan area. 1 he Woody Creek Master Plan encourages the preservation and enhancement of the Subdivision and its infrastructure. The 208 Water Plan encourages state of the art water and sewer infrastructure. A taxing district could support that goal. Best Interests of the Area- A stable, feasible financial structure for the completion and maintenance of the subdivision infrastructure could be enhanced by the formation of a special taxing district. RECOMMENDATION: Staff and the Planning Commission recommend that the Board of County Commissioners approve the Woody Creek Subdivision Metropolitan District Service Plan subject to the conditions in the attached Resolution. 11 Attachments A. Qken comments B. WCC comments Application provided separately Iancee /caseslmetrodistrictw oudycre:vkbocc2ndmcmo The Feasibility Study mentions that the county treasurer deducts a 5% fee for property tax collection but does not include this fee in the pro forma. Consequently, the property tax levy will need to be 5% greater than that shown in the study. The study also assumes that all property tax levied will be collected. While that is a valid assumption for real property, it is not for mobile homes due to a lack of buyer interest at the tax lien sale. 30 properties in the proposed metro district are assessed as mobile homes, and property tax was not collected by year -end in 2013 for two those mobile homes. Fortunately mobile homes only account for 20% of the district's assessed valuation (the remainder is real property), but the district probably should allow for another 5% of taxes to not be collected. As a result the average monthly property tax per homeowner will likely be 10% more than stated in the study, or $151 instead of $137 ($1,812 vs. $1,639 annually). The $29 average monthly income tax savings from converting to property tax instead of homeowner association dues is probably overstated. The study assumes a 25% marginal tax bracket for homeowners, but many are probably in a lower bracket or do not itemize deductions on their income tax return (in which case there is no tax savings). Neither of these issues is a fatal flaw; they just reduce the projected savings from substituting metro district property tax for homeowner association dues. 1 4111120114 Pitl4n County Mail -Woody Creek Subdi\Asi on Metro District seNce Plan Woody Creek Subdivision Metro District service Plan W-C Caucus <caucus81656@gmaH.com> Fri, Apr 11, 2014 at 11:32 AM To: Lance Clarke <lance. clarke@pitki ncounty . corn > The Woody Creek Caucus District Planning Commission has the following comments on the subject plan: We find that the residents are generally in favor of the plan, with some reservations in regard to methods of financing. We recommend approval. Janet K. Schoeberlein for The Woody Creek Caucus District Planning Commission Janet K. Schoeberlein 7274 Upper River Rd. PO Box 423 Woody Creek, CO 81656 970-923-0040, fx970-922-7295 htttps:llniail.google corrVrriail/?ui=2&ik--eb4lOf3ac7&mew=pt&search=inboyAth=1455ld9803eeea79&sirN=1465ld9803eoea79 RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, APPROVING THE WOODYCREEK SUBDIVISION METROPOLITAN DISTRICT SERVICE PLAN Resolution No. -2014 RECITALS 1. The Woody Creek Subdivision ("Applicant') has submitted a Service Plan to the Pitkin County Board of County Commissioners ( "BOCC") to establish a metropolitan taxing district for street improvements, water distribution, waste disposal, recreation space and facilities, and other improvements. 2. The Planning and Zoning Commission reviewed and recommended approval of the proposed Service Plan, subject to conditions, on April 1, 2014. 3. The BOCC reviewed the proposed Service Plan at a regular meeting on April 23, 2014, and at a duly noticed public hearing on May 28, 2014, at which time evidence and testimony were presented with respect to this application. 4. The BOCC makes the following findings with regard to the proposed Service Plan: A. There is sufficient existing and projected need for organized service in the area to be serviced by the proposed special district. B. The proposed special district is capable of providing economical and sufficient service to the area within its proposed boundaries. C. The area to be included in the proposed special district has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. U. Adequate service is not, or will not be, available to the area through the county or other existing municipal or quasi - municipal corporations, including existing special districts, within a reasonable time and on a comparable basis. NOW, THEREFORE, BE IT RESOLVED by the Pitkin County Board of County Commissioners that it does hereby approve the Woody Creek Subdivision Metropolitan District Service Plan, subject to the following conditions: The Applicant shall adhere to all material representations made in the current or prior applications or in public meetings or hearings and shall consider those representations to be conditions of approval, unless amended by other conditions. Amendments to the service plan, including any expansion of the service area, are subject to review by the Planning and Zoning Commission and approval by the Board of County Commissioners. V' INTRODUCED AND FIRST READ AND SET FOR A PUBLIC HEARING AT A REGULAR MEETING on the 23rd day of April, 2014. NOTICE OF PUBLIC HEARING AND TITLE AND SHORT SUMMARY OF THE RESOLUTION PUBLISHED IN THE ASPEN TIMES WEEKLY on the day of NOTICE OF PUBLIC HEARING AND THE FULL TEXT OF THE RESOLUTION POSTED ON THE OFFICIAL PITKIN COUNTY WF.BSITE (ass► «.as eg )itkin.com) ON THE DAY OF 2014. APPROVED AND ADOPTED AFTER SECOND READING AND PUBLIC HEARING on the 28" day of May. 2014. PUBLISHED BY TITLE AND SHORT SUMMARY AFTER ADOPTION IN THE ASPEN TIMES WEEKLY on the day of . ?014. POSTED BY TITLE AND SHORT SUMMARY ON THE OFFICIAI. PITKIN COUNTY WEBSITE ON THE DAY OF 2014. ATTEST: Jeanette Jones, Clerk to the BOCC APPROVED AS TO CONTFNT, Cindy Houben Community Development Director Case # P024 -14 PID 4264316105812 Lance /cases /metrodismoodycreekreso IN BOARD OF COUNTY COMMISSIONERS, PITKIN COUNTY, COLORADO By Robert A. Ittner, Jr. Chair APPROVED AS TO FORM: John Ely County Attorney