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What is a Metropolitan District?

A metropolitan district is a quasi-municipal corporation and political subdivision established under the Special District Act (Title 32, Article 1, Colorado Revised Statutes).  These local governments are formed to finance, construct, and sometimes operate public infrastructure and provide services that counties and municipalities may be unable to provide due to fiscal constraints, such as those imposed by the Taxpayer's Bill of Rights (TABOR).  Once formed, metropolitan districts must adhere to their governing documents and various laws that govern their operations.  These documents and laws address the district’s taxing authority, ability to impose and collect fees and other charges, describe infrastructure and services to be provided by the district, and contain requirements for transparency and accountability.

Special districts possess taxing authority and can issue tax-exempt bonds to finance infrastructure projects.  Property owners within the district are subject to property taxes (mills) levied by the district to repay these bonds.  This structure localizes the cost of public improvements to the specific development, rather than distributing expenses across the entire county or municipality.   As local governments, metropolitan districts can borrow money at lower interest rates, allowing them to finance public infrastructure more efficiently and affordably to the benefit of future district residents.

Metropolitan districts are formed by submitting a detailed service plan to the city council, town board of trustees, or county commissioners for review and approval following publicly noticed and conducted hearings.  These local authorities have oversight and control over limits on taxation, fees, and services.  Organizing elections are also conducted.

Metropolitan districts are operated by an elected Board of Directors.  Director elections are held in May of every odd year.  Initially, developer representatives may sit on the Board of Directors because the district is formed before there are any homes or homeowners.  Over time, residents who are eligible electors can run for board seats, allowing residents to participate in governance of their community.

For additional information about metropolitan districts please visit Metro District Education Coalition.

Services Provided by the District

The main purpose of the District is to finance, acquire, construct, install, operate, and maintain a range of public improvements for the benefit of its inhabitants and taxpayers. These include:

1. Public Improvements and Infrastructure

Street Improvements

  • Curbs, gutters, culverts, drainage facilities
  • Sidewalks, bridges, overpasses, bike paths, pedestrian ways, trails
  • Interchanges, median islands, paving, lighting, grading, landscaping, irrigation
  • Entry signs, directional/informational signs, benches, street furniture
  • Parking lots and structures
  • Street-related utilities (electric, telephone, gas, steam, heating, cooling)
  • All necessary, incidental, and appurtenant facilities, land, and easements, including extensions and improvements both within and outside the District boundaries

Traffic and Safety Controls

Facilities and services for traffic and safety controls and devices on streets, highways, and railroad crossings, including signalization and related infrastructure

Television Relay and Translation System

Design, acquisition, installation, construction, operation, and maintenance of television relay and translation system improvements (equipment, cable, communications, fiber optic, and other facilities)

Mosquito Control

Design, acquisition, installation, construction, operation, and maintenance of a system for the control and elimination of mosquitoes

Parks and Recreational Facilities

  • Parks, bike paths, pedestrian ways, developed and natural trails, open space, landscaping
  • Cultural activities, community recreational centers, tennis courts, playing fields, swimming pools, tot lots
  • Massey Draw recreational improvements, water bodies, irrigation facilities
  • Other active and passive recreational facilities and programs

2. Operations and Maintenance

The District is responsible for the operation and maintenance of the above improvements, including those not accepted by the County or other entities.

It will also handle expenses related to district formation and operation (organizational costs, legal, engineering, accounting, budget preparation, audits, elections, informational filings, etc.).

3. Financial Services

The District may issue bonds and impose fees, rates, tolls, penalties, or charges for services, programs, or facilities it provides (e.g., trail, driveway, parking lot maintenance, recreation center and pool use, landscape maintenance, snow removal).

4. Homeowners Association Support

The District may contract with homeowners associations to provide services such as landscape maintenance, snow removal, and recreational programs on a fee-for-service basis.

5. Intergovernmental Cooperation

The District may enter into agreements with other governmental units for joint financing or transfer of facilities (e.g., roads, parks) to the County or Foothills Park and Recreation District after construction.

Amount of Debt the District Can Incur

The total principal amount of debt that the District is authorized to incur is capped at $2,200,000. This limit is fixed unless the Service Plan is amended with prior approval from the County.

Revenue to Repay Debt

The primary source of revenue to repay the District’s debt will be ad valorem property taxes levied on all taxable property within the District. Additional revenue sources include:

  • Capitalized interest (to cover early interest payments before tax revenues are sufficient)
  • Investment income
  • Rates, tolls, fees and charges (if necessary)
  • Developer advances (to be reimbursed later)

These combined sources are expected to be sufficient to retire the proposed indebtedness, assuming projected growth occurs.

Max Mill Levy to Repay Debt

There is no legal limit on the mill levy that the District may certify for debt repayment. However, the plan estimates an initial mill levy of 30.00 mills, which is expected to decline over time:

  •  30.00 mills in the first year
  • 25.00 mills in the second year
  • 22.00 mills in the third year
  • 19.00 mills in the fourth year
  • 18.00 mills thereafter

These projections assume a residential assessment ratio of 10.36%, which may adjust due to the Gallagher Amendment.

How to Become a Board Member

Regular special district elections are elections held for the purpose of electing eligible electors to the Board of Directors of the special district.  Elections are held biennially on the first Tuesday after the first Monday of May in odd-numbered years.  C.R.S. 1-13.5-111(1).  A regular election may include the submission of questions to the eligible electors or any ballot issue required under TABOR.  A canceled election counts as having conducted an election; the directors are elected by acclamation.

Special elections may occur in February, May (even years), October, November, and December.  An election question may be asked at any election.  A TABOR ballot question may only be asked at a regular special district election date, the general election date, or the first Tuesday in November of odd numbered years.

Directors typically serve staggered 4-year terms.  For special districts with five Board members, two directors serve until the next regular election after the district organization and three directors serve until the second regular election after organization.  Term limits apply to special district Board members. The voters of any political subdivision may lengthen, shorten or eliminate the term limits.  Art. XVIII, Sec. 11 Colorado Constitution.

An eligible elector is an individual who is registered to vote in Colorado and is a resident of the special district (regardless of property ownership) OR an owner, or the spouse or civil union partner of an owner, of taxable real or personal property situated in the district.  A partnership, corporation, or trust cannot register to vote, is not a "person" in the context of voter registration and therefore is not an eligible elector.  CRS 32-1-103(5).

Under certain circumstances, a person may qualify as an eligible elector if the person is obligated to pay taxes under a contract to purchase taxable property within the boundaries of the special district.  Such individual is considered an owner of property for purposes of eligible elector status.  CRS 32-1-103(5).

A special district candidate must complete a self-nomination form, which form is due 67 days prior to the regular election date.   No earlier than January 1 and no later than the normal close of business on the 67th day before the date of a regular special district election, any person who desires to be a candidate for the office of a special district director shall file a self-nomination and acceptance form or letter signed by the candidate and the candidate’s signature/form must be witnessed by an eligible elector of the state.  An amended self-nomination form or letter may be accepted by the Designated Election Official up to the normal close of business on the 67th day before an election.  C.R.S. 1-13.5-303.

Alternatively, a special district candidate may complete a write-in affidavit, which affidavit is due 64 days prior to the regular election date.

All candidates must comply with the Fair Campaign Practices Act (FCPA) and Amendment 27 of the Colorado Constitution.  Information on campaign finance laws and regulations may be obtained from the website of the Colorado Secretary of State.

Under the election laws, the board of directors of the special district is charged with appointing a Designated Election Official (DEO) who oversees the election.  C.R.S. 1-13.5-103(2), C.R.S. 1-13.5-108(1).

If the number of candidates is equal to or less than the number of seats available, the election may be canceled, and the candidates are elected by acclamation.  The election may be canceled at any point in time after the 63rd day before the election.  C.R.S. 13-5-513(1).  However, if the electors are to consider the election of directors and ballot issues or ballot questions, the election may only be canceled if those ballot issues or questions have been withdrawn.  No election may be canceled in part.  C.R.S. 1-13.5-513(3),(4).

Additional information regarding special district elections can be found on the Department of Local Affairs (DOLA) Special District Elections website.