Metro District FAQ

What is a Metropolitan District?

Metropolitan Districts or Special Districts are local units of government created to fund public infrastructure for new development with debt repaid by taxes and/or fees levied only within the new district’s boundaries without burdening the existing taxpayers of that City or County.  Public infrastructure can include streets, water, sewer, storm drainage, parks, and other similar improvements.


Metro Districts are formed to enhance the quality of the development in the City and enable development to deliver City objectives and public benefits such as environmental sustainability, critical public infrastructure, and public spaces. 

How is a Metropolitan District different from a Home Owners Association?

A District has significantly broader powers than a Homeowners Association (“HOA”), including the power to impose property taxes, and other fees and charges, and the power to condemn property. An HOA is separate and distinct from a District and is generally responsible for enforcing restrictive covenants in the community to help maintain property values. Although an HOA is normally responsible for the maintenance and operation of some improvements within a development, it may assess dues to its members but has no ability to impose taxes. A special district uses property taxes and fees and charges to pay for its services. Unlike HOA fees, property taxes are tax deductible and collected by the County.

How are Metropolitan Districts created?

The application process involves the submittal of a letter of interest to the City, a formal application and Service Plan submittal, a formal staff review, a Council Finance Committee meeting, and a Council Public Hearing. Formation of a new District requires the approval of a Service Plan by the City Council or County Commissioners.  Many cities and counties have specific policies addressing the formation of new Districts. Most often this approval is in response to a request for formation from an owner of vacant land requiring significant new public infrastructure.  At formation, the property owner usually also votes to authorize the issuance of debt by the new District and the initial Board of Directors.

How are Metropolitan Districts governed?

A Board of Directors are elected by registered electors within the District. Eligible electors who reside within the District or who own taxable property within the District are eligible to serve on the Board of Directors. 

Who approves Metro Districts?

Approval of a District Service Plan is at the sole discretion of the City Council. City Council may reject, approve, or conditionally approve Service Plans on a case-by-case basis and retains full authority regarding all Service Plans' approval, terms, conditions, and limitations. 

How is a Metro District Funded?

Metro Districts issue bonds or special assessments to finance their facilities, which are secured by the taxing authority of the Metro District. A mill levy is added to the annual property tax bill and the resources from that levy are used solely for the benefit of property owners and the neighborhood. Fees may also be imposed for facilities and services. 

How is the transparency of a Metro District ensured?

Metro Districts follow the same laws as any other governmental entity in Colorado, as well as additional requirements in the Metro District statutes. Metro Districts must notice all meetings by posting the time and place of the meeting. All State required annual financial reports are published on the Department of Local Affairs website and viewable by the public. 

Where can I find more information about Metropolitan Districts?

East Bend Metropolitan District

Please be advised that East Bend Metropolitan District is not a Homeowners Association. Metro Districts do not provide insurance information to real estate agents. The East Bend Metro District website contains all public Metro District documents . The information provided may not be all inclusive and is being provided for informational purposes only. 


To understand what a Metro District is and how it operates, please visit Colorado Department of Local Affairs

Click here to view the new Homeowner Introduction Letter going over the process for your closing paper work.


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