A metro district lets a new community finance its public improvements, such as streets, water, sewer, drainage and parks, over time instead of up front. Forming one typically takes several months and involves the developer, district counsel, the city or county, and a district manager. Here is the usual path.
1. Plan the district
The developer and its consultants decide what the district will build and maintain, estimate costs, and project how much the district can responsibly borrow. Many master-planned communities use more than one district, coordinated under a single plan.
2. Prepare the service plan
The service plan is the district's founding document. It describes the district's boundaries, the improvements and services it will provide, a financing plan, and limits on debt and mill levies. District counsel usually drafts it with input from the developer, engineers and financial advisors.
3. Approval by the city or county
The service plan is submitted to the municipality, or to the county if the land is unincorporated. Staff review it, and it is considered at a public hearing. Many jurisdictions have model service plans or policies that set their expectations.
4. Court petition and organizational election
Once the plan is approved, a petition is filed with the district court, which orders an organizational election. At that election, eligible electors vote on forming the district, elect the first board, and decide the ballot questions for taxes and debt required by TABOR.
5. Court decree and recording
After a successful election, the court issues a decree creating the district. The decree, the public disclosure document and a boundary map are recorded with the county clerk and filed with the state.
6. First year of operation
The new board adopts its first budget, sets its mill levy, opens bank accounts, adopts policies and launches the district website. This is where a district manager keeps everything on schedule.
Where we fit in
Bring us in early. We work alongside your district counsel, bond counsel, engineers and auditors to set up budgets, filings, elections and reimbursement records correctly from the start. See Developer reimbursements, explained and our services for developers, or request a proposal.
This guide is general information, not legal or financial advice. For questions about a specific district, contact that district’s manager or attorney. Board members can find training and resources through the Special District Association of Colorado.