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.
