What is a Metropolitan District?
A metropolitan district is an independent government organization and political subdivision established under the Special District Act (Title 32, Article 1, Colorado Revised Statutes). These districts are formed to finance, construct, and sometimes operate public infrastructure and services that 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 local government laws that place limits on taxation, fees, and services and state laws dealing with transparency and accountability.
These 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 municipality. Metropolitan districts can borrow money at lower interest rates, allowing them to build public infrastructure and homes more efficiently and affordably.
Metropolitan districts are formed by submitting a detailed service plan to the local city or town council, board of trustees, or county commissioners for review and approval during a public hearing. These local authorities have oversight and control over limits on taxation, fees, and services.
Metropolitan districts are operated by an elected Board of Directors. Elections are held every odd year. At first, developers sit on the Board of Directors because it is formed before there are homes and homeowners. Over time, residents can run for a board seat, allowing them to participate in important decisions.
For additional information about metropolitan districts please visit Metro District Education Coalition.
