Special District Glossary

Plain-language definitions of the key terms every Colorado home buyer should understand about special districts, property taxes, and district finances.

Metro District

A metropolitan district (metro district) is a type of special district in Colorado created by real estate developers to finance the infrastructure needed for new residential communities.

Special District

A special district is an independent unit of local government in Colorado that provides specific public services within a defined geographic boundary.

Mill Levy

A mill levy is a property tax rate used by local governments and special districts in Colorado to fund their operations and debt payments.

Fiscal health refers to the overall financial condition of a special district, and District Detective assigns each scored district a fiscal health tier to help homeowners quickly assess potential risk.

Assessed Value

Assessed value is the dollar amount assigned to your property by the county assessor for the purpose of calculating property taxes, and it is typically much lower than your home's market value.

Debt-to-AV Ratio

The debt-to-assessed-value (Debt-to-AV) ratio measures how much outstanding debt a special district carries relative to the total assessed property value within its boundaries.

TABOR

TABOR, the Taxpayer's Bill of Rights, is a provision in the Colorado Constitution (Article X, Section 20) that limits how much revenue state and local governments, including special districts, can collect and spend each year.

Service Plan

A service plan is the foundational legal document that authorizes the creation of a metropolitan district in Colorado and defines the boundaries of what that district can do.