City Council

City of Littleton Littleton Center 2255 West Berry Avenue Littleton, CO 80120 Meeting Agenda - Final City Council Tuesday, February 11, 2025 6:30 PM Council Chamber Study Session 1. Study Session Topics a) ID# 25-021 Littleton Business Chamber Annual Update Title: Littleton Business Chamber Annual Update Body: From:James L. Becklenberg, City Manager Prepared by: Kathleen Osher, Deputy City Manager Presentations:Korri Lundock, Executive Director, Littleton Business Chamber Littleton Business Chamber Members: Kate Eckel of bluSpark HR Solutions; Bruce Oyler of State Farm Insurance; and Zoemi Romero of Cencalli Taqueria PURPOSE: This is the annual update of the Littleton Business Chamber. LONG-TERM OUTCOME(S) SERVED: Robust and Resilient Economy DISCUSSION: Littleton Business Chamber will provide an update on 2024 accomplishments and anticipated items for 2025. BACKGROUND: The mission of the Littleton Business Chamber is to serve as a principal representative of businesses in its market area, contribute to its members’ success and prosperity, and promote the economic and civic interests of the community. Prior Actions or Discussions Council held a joint breakfast with the Littleton Business Chamber on May 17, 2022. The city provided ARPA funding to expand small business support activities provided by the Chamber that was finalized in 2023 and Chamber leadership provided an annual update in 2024. FISCAL IMPACTS: City of Littleton Page 1 Printed on 7/31/2026 City Council Meeting Agenda - Final February 11, 2025 N/A STAFF RECOMMENDATION: N/A ALTERNATIVES: N/A Scheduled time - 30 minutes b) ID# 25-020 Littleton Downtown Development Authority Annual Update Title: Littleton Downtown Development Authority Annual Update Body: From:James L. Becklenberg, City Manager Prepared by: Kathleen Osher, Deputy City Manager Presentations:Jenny Starkey, Executive Director, LDDA PURPOSE: This is the annual update of the Littleton Downtown Development Authority. LONG-TERM OUTCOME(S) SERVED: Vibrant Community with a Rich Culture; Robust and Resilient Economy DISCUSSION: Littleton Downtown Development Authority will provide an update on 2024 accomplishments and anticipated items for 2025. BACKGROUND: The Littleton Downtown Development Authority was formed two years ago. The attached Annual Report captures the key initiatives, programs, and accomplishments that LDDA staff will share with City Council. Prior Actions or Discussions · Voters approved all three ballot questions related to the formation and funding of the LDDA on November 8, 2023. · Council approved Ordinance 29-2022 creating and establishing the Littleton Downtown Development Authority (LDDA) and determining organizational aspects of the LDDA on December 6, 2022. · Council approved Resolution 34-2024 an Intergovernmental Agreement between the City of Littleton and the Littleton Downtown Development Authority (LDDA) for Downtown Development Authority Support and City of Littleton Page 2 Printed on 7/31/2026 City Council Meeting Agenda - Final February 11, 2025 Services on April 2, 2024. FISCAL IMPACTS: N/A STAFF RECOMMENDATION: N/A ALTERNATIVES: N/A Scheduled time - 30 minutes c) ID# 25-034 2025 Economic Development Update Title: 2025 Economic Development Update Body: From:James L. Becklenberg, City Manager Prepared by: Rachel King, Economic Development Director Presentations:Rachel King, Economic Development Director PURPOSE: The Economic Development Department will provide an update of 2024 accomplishments and an overview of 2025 workplan initiatives. LONG-TERM OUTCOME(S) SERVED: Sustainable Community with Natural Beauty; Robust & Resilient Economy; Safe Community; High Quality Governance; Vibrant Community with a Rich Culture DISCUSSION: The Economic Development Department overview will share accomplishments from 2024, provide a preview of 2025 initiatives particularly in relation to the citywide strategic framework, and highlight challenges and opportunities. BACKGROUND: The 2025 Economic Development Update highlights the Economic Development team’s progress in 2024 and outlines key initiatives for the upcoming year. The 2024 accomplishments include the creation and adoption of the Comprehensive Economic Development Strategy, which established six strategic pillars to guide the city’s work to support businesses, workforce, and residents. Additionally, the city’s first Incentive Policy was adopted by council in 2024, and two major incentive agreements - Number 38 and Mineral Place - were approved. Other initiatives and programs such as the Open Rewards platform and the Revitalization Incentive Grant program saw increased participation, driving over $1,000,000 of private investment into the city. City of Littleton Page 3 Printed on 7/31/2026 City Council Meeting Agenda - Final February 11, 2025 Looking ahead to 2025, the department’s work plan includes an arts & culture economic impact analysis, small business advocacy, continuation of incentive grants and visitor programming, and regional positioning initiatives. A strong economic foundation, community support, and establishment of the city’s Horizon 2027 and CEDS plans provide key advantages. However, challenges to business growth such as housing affordability, workforce training, and cost of living require continued discussion. The focus remains on fostering a livable, competitive, and culturally rich economy while expanding business opportunities and regional influence. Prior Actions or Discussions · The Comprehensive Economic Development Strategy was adopted March 5, 2024. · The city’s Updated Economic Incentives Policy was adopted on August 6, 2024. FISCAL IMPACTS: N/A STAFF RECOMMENDATION: N/A ALTERNATIVES: N/A Scheduled time - 45 minutes d) ID# 25-033 Accelerating Capital Projects through Debt Financing: The Basics Title: Accelerating Capital Projects through Debt Financing: The Basics Body: From:James L. Becklenberg, City Manager Prepared by: Adrienne Burton, Interim Finance Director Presentations:Adrienne Burton, Interim Finance Director Kevin Orton, Budget Manager Kim Crawford, Bond Counsel; Butler Snow Melissa Buck, Financial Advisor; UMB PURPOSE: The purpose of this discussion is to provide the City Council with essential information about municipal bonds to support informed decision-making regarding potential debt issuance in the context of the city's financial planning, particularly regarding funding options for major capital projects. In partnership with staff, the city’s professional City of Littleton Page 4 Printed on 7/31/2026 City Council Meeting Agenda - Final February 11, 2025 debt consultants will provide basic information and context for upcoming strategic discussions about accelerating reinvestment in the city’s assets. LONG-TERM OUTCOME(S) SERVED: High-Quality Governance DISCUSSION: Municipal bonds are debt securities issued by local and state governments to finance public projects. These bonds allow cities to fund capital improvements by spreading costs over time rather than requiring large upfront payments. Typically, municipal bonds have terms of 20 to 30 years, aligning with the useful life of the projects they support. To finance major capital projects, cities can choose from several options, including pay-as-you-go funding, where cash reserves are used, or intergovernmental revenues, such as state or federal grants. However, many large-scale initiatives require debt financing, which involves issuing municipal bonds or securing bank loans. This approach enables cities to accelerate project timelines and distribute costs among future taxpayers, following a “pay-as-you-use” model. Advantages and Disadvantages of Issuing Debt One of the primary benefits of borrowing is that it allows cities to expedite projects, ensuring residents benefit from infrastructure improvements without waiting for full cash reserves to accumulate. Additionally, borrowing spreads costs over the beneficiaries who will use the project in the future, helping the city avoid rising costs due to inflation. However, taking on debt also presents challenges, such as interest costs, long-term financial commitments, and potential impacts on the city’s credit rating. There is also the risk of revenue shortfalls, which could affect the ability to repay the debt. Types of Municipal Bonds Several types of municipal bonds are available to the City of Littleton, each with unique benefits and requirements. · General Obligation (GO) Bonds are backed by the city’s taxing authority and require voter approval. These bonds are commonly used to finance public safety facilities, schools, and other essential infrastructure. · Revenue Bonds are secured by revenues from a specific source, such as water and sewer fees or sales taxes. While these bonds may require voter approval, an exemption applies if issued by a TABOR enterprise. · Certificates of Participation (COPs) function as lease-financing arrangements, where investors purchase a share of lease revenues. Unlike GO bonds, COPs City of Littleton Page 5 Printed on 7/31/2026 City Council Meeting Agenda - Final February 11, 2025 do not require voter approval, though they may have slightly higher borrowing costs. · Special Assessment Bonds are secured by assessments on benefitting property owners. Issuing these bonds requires public notice and voter approval. Bond Issuance Process The process of issuing bonds involves several key steps. Municipalities sell bonds to investors to finance capital improvements that serve the public. Investors then receive regular interest payments, with the principal repaid upon maturity. Bonds can be issued through three primary methods: · Competitive Sale - Bidders submit offers, and the city selects the option with the lowest borrowing cost. · Negotiated Sale - The city works directly with an underwriter throughout the transaction. · Private Placement - Bonds are sold directly to a private lender, typically for shorter maturities. Legal and Financial Considerations Bond issuance is primarily governed by Colorado’s Taxpayer Bill of Rights (TABOR) and the state constitution. TABOR generally requires voter approval for most forms of government debt unless an exemption applies. If an election is necessary, the city must finalize ballot questions at least 60 days before the vote and comply with all public notification requirements. The City of Littleton’s debt capacity is also an important factor in financing decisions. The city’s General Obligation (GO) debt limit is set at 3.7% of the total assessed property value, by charter. This amount is equal to $44.1 million, per the city’s 2024 Assessed Valuation. However, alternative funding mechanisms, such as Revenue Bonds and COPs, offer additional flexibility. Littleton’s historical debt trends and current market conditions play a crucial role in determining the most strategic financing approach. Next Steps As 2024 year-end financial processes are underway, staff is updating cash balances in capital funds and updating project estimates for projects which may be considered for debt financing. With Council’s concurrence, staff will facilitate a discussion at Councils’ planning retreat on March 14th, to review project needs, assess potential debt strategies for each need (i.e., whether GO Bonds, Revenue Bonds, or COPs), and determine the relative affordability of annual debt service payments associated with different debt strategies. If voter approval is required, staff will seek direction to City of Littleton Page 6 Printed on 7/31/2026 City Council Meeting Agenda - Final February 11, 2025 begin preparing for a November election. Once a financing strategy is selected, the city will move forward with finalizing offering documents, marketing the bonds, and completing the issuance process. BACKGROUND: At the October 8, 2024, City Council Study Session, staff presented several debt service concepts for the potential funding of Phase I improvements (Main Street) for Project Downtown, a portion of Sante Fe & Mineral intersection improvements, Belleview Service Center improvements, and mechanical systems rehabilitation at Town Hall Arts Center. Currently, the city has no General Obligation debt and recently completed paying the debt service on COPs issued in 1999 (through the Littleton Colorado Municipal Building Authority) for municipal courthouse improvements. The only remaining debt, 2004 bonds issued in conjunction with the City of Englewood for improvements to the jointly-owned wastewater treatment plant, are scheduled to be paid off in August, 2025. FISCAL IMPACTS: N/A STAFF RECOMMENDATION: Staff recommends that the staff proceeds preparing for a project-specific discussion of potential debt strategies through the spring and summer of 2025. ALTERNATIVES: N/A Scheduled time - 45 minutes 2. Updates a) Council Members b) Mayor c) City Manager d) City Attorney 3. Adjournment City of Littleton Page 7 Printed on 7/31/2026 City Council Meeting Agenda - Final February 11, 2025 The public is invited to attend all regular meetings or study sessions of the city council or any city board, commission, or committee. Please call 303-795-3780 at least 48 hours prior to the meeting if you believe you will need special assistance or any reasonable accommodation in order to attend, or participate in, any such meeting. For any additional information concerning city meetings, please call the city clerk’s office at the above referenced number. City of Littleton Page 8 Printed on 7/31/2026