FAQs

Metropolitan districts are quasi-governmental entities with taxing authority that are used to finance necessary public infrastructure and services that the City cannot otherwise provide. A metro district is a type of special district derived from Colorado's Special District Act.

Without diverse housing options, affordability can become an issue. A lack of new development can lead to housing shortages, increase housing prices and make it difficult for young families and first-time homebuyers to live in the area.

Opportunities are not lost to neighboring communities when a city is attractive to new development. A balanced metro district governance policy can help attract new development and diverse new businesses through incentives. When new, attractive businesses expand or relocate to the area, they create more local employment opportunities and more economically vibrant areas by drawing sales tax revenue into the community.

Metro districts help ensure that the development and those who purchase property in the development pay for its infrastructure and services, rather than burdening taxpayers who own property outside of the district.

When development goes elsewhere, sales tax is lost to other communities.

Metro districts can include businesses that provide retail and service options and a metro district can levy a sales tax, in addition to property tax, for various purposes such as covering public improvement costs and providing additional services or programs. I

If a metro district imposes a sales tax, it will increase the overall sales tax rate within the district's boundaries, on top of the state and county sales taxes. 

Yes, Colorado metro district property taxes, which are used to repay bonds issued to fund infrastructure and development, are typically paid through property taxes and are designed to be repaid over a period of time, often 20-30 years, but can extend longer.

As a potential homebuyer, it’s important to know if you are looking at property within an HOA or a metro district, or if the property has both.

An HOA differs from a Metro District in that residents living in an HOA do not have additional property tax obligation as they do in a metro district. An HOA relies on fees or dues and enforces neighborhood rules and covenants (e.g., lawn care standards, home appearance), and manages shared amenities.

A metro district is a taxing authority that is used to finance and maintain public infrastructure such as streets, and the initial water and sewer lines. They manage shared amenities and fund neighborhood projects through property taxes.

Colorado Revised Statutes Title 32 sets statewide requirements for metro districts. The Colorado Department of Local Affairs (DOLA) oversees metro districts, ensuring compliance with financial and operational regulations.

As a home rule municipality, the City of the Loveland City Council has limited ongoing oversight of metro districts, but is able to enact more controls through the approval of terms, conditions and limitations of service plans.

The service plan for each metro district outlines additional property tax mills to be paid, the interest rates on the debt, and what type of infrastructure can be constructed and maintained with the debt.