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.

When a developer builds a neighborhood, they often form a metro district to issue bonds that pay for roads, water lines, sewer systems, parks, and other public improvements.

Homeowners within the district then repay those bonds over time through an additional property tax called a mill levy, which appears on your annual tax bill.

Metro districts are governed by a board of directors, which initially consists of people affiliated with the developer but eventually transitions to homeowner control.

Because metro district mill levies can add thousands of dollars per year to your property taxes, it is important to research any metro district obligations before purchasing a home in a new Colorado development.