EAST BEND 
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. 

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.

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.

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. 

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. 

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. 

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. 

Please visit the link here: https://specialdistrictlaw.com/frequently-asked-questions-about-special-districts/

The Colorado Revised Statues 2016, Title 32, Special Districts, Special District Act, Article 1, Special District Provisions can be found by clicking this link.