Colorado is a beautiful state with much to offer residents. If you're considering relocating to Colorado or moving to a new community within the state, your real estate information may include details about metropolitan districts. Colorado has over 1,800 metro districts, but what are they, and what do they do? Here's what you should know about metropolitan districts in Colorado.

What Is a Metro District?

A Colorado metropolitan district is a local government established to fund public infrastructure and new developments. It's a separate entity from the city government. The debt incurred from developing residential and commercial properties and maintaining parks, schools, and roads comes from taxes and fees paid by residents within the metropolitan district lines. By having a government entity separate from the city, developers can receive bonds with guaranteed payments from future tax revenue. 

How Do Metropolitan Districts and City Governments Work Together?

Metro districts in Colorado are governed under Title 32 of the Colorado Revised Statutes. City and metro governments will remain separated under these regulations, and the city will not receive tax revenue from any district. The city also must have reasonable cause to intervene in the governing of a metropolitan community. 

The precise relationships between city governments and metro districts are outlined in each district's service plan. The service plan contains information about the services the district government will provide and its limitations. City governments can negotiate terms with metro districts during the creation of service plans. 

How Do Metro Districts Impose and Collect Taxes?

Taxes from metropolitan districts work similarly to Colorado property taxes, which you might learn about when researching real estate information in the area. The mill levy or tax rate applies to a property's assessed value as determined by the County Assessor. The calculation for residential properties' annual tax obligation is the property's actual value times the assessment ratio times the mill levy. The County Treasurer is responsible for collecting the funds from taxpayers. Most metro district service plans include mill levy limitations to ensure taxpayers can meet their obligations regardless of the district's debt. 

Metro District Education Coalition is a team based in Englewood, CO, dedicated to giving Colorado homeowners valuable real estate information and education resources relating to the many metropolitan districts in the state. The coalition is a non-profit organization that provides transparency about the districts to taxpayers while outlining their benefits and regulations. If you need municipal resources or real estate information, call (720) 710-9172 or visit their website.