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About

Overview

Elbert & Highway 86 Commercial Metropolitan District was created to provide water and sanitation services and facilities to benefit the residential component of the Wild Pointe development.

The District's authority has subsequently expanded to additionally provide metropolitan services and facilities to the commercial component of the Wild Pointe development.

What is a Metropolitan District?

A metropolitan district is a quasi-municipal corporation and political subdivision established under the Special District Act (Title 32, Article 1, Colorado Revised Statutes).  These local governments are formed to finance, construct, and sometimes operate public infrastructure and provide services that counties and municipalities may be unable to provide due to fiscal constraints, such as those imposed by the Taxpayer's Bill of Rights (TABOR).  Once formed, metropolitan districts must adhere to their governing documents and various laws that govern their operations.  These documents and laws address the district’s taxing authority, ability to impose and collect fees and other charges, describe infrastructure and services to be provided by the district, and contain requirements for transparency and accountability.

Special districts possess taxing authority and can issue tax-exempt bonds to finance infrastructure projects.  Property owners within the district are subject to property taxes (mills) levied by the district to repay these bonds.  This structure localizes the cost of public improvements to the specific development, rather than distributing expenses across the entire county or municipality.   As local governments, metropolitan districts can borrow money at lower interest rates, allowing them to finance public infrastructure more efficiently and affordably to the benefit of future district residents.

Metropolitan districts are formed by submitting a detailed service plan to the city council, town board of trustees, or county commissioners for review and approval following publicly noticed and conducted hearings.  These local authorities have oversight and control over limits on taxation, fees, and services.  Organizing elections are also conducted.

Metropolitan districts are operated by an elected Board of Directors.  Director elections are held in May of every odd year.  Initially, developer representatives may sit on the Board of Directors because the district is formed before there are any homes or homeowners.  Over time, residents who are eligible electors can run for board seats, allowing residents to participate in governance of their community.

For additional information about metropolitan districts please visit Metro District Education Coalition.

Services Provided by the District

The District is authorized to construct, acquire, finance, operate, and maintain a range of public improvements and services for the Wild Pointe commercial and residential development. These include:

  • Streets
  • Traffic safety controls
  • Street lighting
  • Water facilities and services
  • Sanitary sewer facilities and services
  • Landscaping
  • Storm drainage
  • Television relay facilities
  • Mosquito control facilities and improvements

Scope and Limitations

The District does not provide fire protection, emergency medical, or park and recreation services or facilities. These are provided by other entities (Elizabeth Fire Protection District and Elizabeth Park and Recreation District, respectively).

The Districts' authority includes the ability to provide water and sewer services and facilities beyond its boundaries on a regional and statewide basis, subject to agreements with other entities.

Water and Sewer Services

The District is authorized to acquire, construct, finance, and maintain public water and sewer facilities, including:

  • Acquiring and appropriating water rights
  • Building pipelines, treatment works, and pump stations
  • Taking all necessary actions for water and sewer service delivery 

The District may also assume responsibility for operating and maintaining pre-existing water and sewer systems in other developments, if requested and agreed upon.

Other Metropolitan Services

The District may provide additional metropolitan services and facilities to the commercial component of the Wild Pointe development, as authorized by Colorado law.

Maintenance and Dedication

The District is responsible for the perpetual maintenance of improvements not dedicated to the County or other governmental/nonprofit entities.

Upon completion, some improvements may be dedicated to the County or other entities, except for water and sewer improvements, which the District typically retains.

Financing

The District may finance improvements through the issuance of revenue bonds and impose public improvement fees (PIFs), tap fees, and other charges to fund operations and maintenance.

Amount of Debt the District Can Incur

General Authorization

The District is authorized to issue debt in an amount and upon a basis sufficient to pay its financial obligations as they become due. Debt may be issued on a schedule and in such year(s) as the District determines to meet the needs of its FInancing Plan and phased to serve development and operations as they occur.

Existing Debt

The District previously issued $15,000,000 in Series 2008A Public Improvement Fee Revenue Bonds, which are outstanding and being repaid.

Additional Debt

The District may issue additional revenue bonds at such time and in one or more series as the financing capacity of the District permits, in accordance with applicable law. 

  • Maximum Repayment Term: All debt, including refunding bonds, shall have a maximum repayment term allowed by Colorado law, currently forty (40) years from the date of initial issuance.
  • Sample Finance Plans:
    • Sample Plan #1: $14,250,000
    • Sample Plan #2: $443,520,000
    • Sample Plan #3: $26,130,000
    • Total (across all scenarios): $483,900,000 (these are illustrative, not cumulative limits)

Revenue to Repay Debt

Primary Sources

  • Revenue Bonds: Secured by fees, rates, tolls, or charges imposed by the District through entities with which it contracts
  • Public Improvement Fees (PIFs): Imposed on all taxable transactions in commercial areas. PIFs are private fees, not taxes, and may be imposed on sales or lodging transactions. Revenues are remitted to the County to defray government service costs.
  • Ad Valorem Property Taxes: Within the District's boundaries, if PIF revenues are insufficient, a mill levy may be imposed for debt repayment (see below)
  • Tap Fees: $15,000 per single family equivalent at building permit issuance
  • Monthly Service Charges: For water service, plus other fees, rates, tolls, penalties, and charges for use of District systems and facilities.
  • Surcharges: $0.01 per 1,000 gallons on all District water system users in the County, remitted to the County for renewable water infrastructure. 

Maximum Mill Levy to Repay Debt

Debt Service Mill Levy

  • The District may impose a mill levy of up to 30.000 mills for debt purposes, but only if PIF revenues are insufficient to pay debt service.
  • The District may impose a mill levy for operation and maintenance up to 5.000 mills if other revenues are insufficient.
  • Adjustment Clause: If there are changes in the method of calculating assessed valuation or constitutionally mandated tax credits, the maximum mill levy may be increased or decreased to ensure the actual tax revenues generated are not diminished or enhanced due to such changes
  • Unlimited Mill Levy: If the District’s debt at the time of issuance exceeds 50% of the assessed valuation, the District may impose a mill levy in excess of the maximum, or even unlimited, to pay debt

How to Become a Board Member

Regular special district elections are elections held for the purpose of electing eligible electors to the Board of Directors of the special district.  Elections are held biennially on the first Tuesday after the first Monday of May in odd-numbered years.  C.R.S. 1-13.5-111(1).  A regular election may include the submission of questions to the eligible electors or any ballot issue required under TABOR.  A canceled election counts as having conducted an election; the directors are elected by acclamation.

Special elections may occur in February, May (even years), October, November, and December.  An election question may be asked at any election.  A TABOR ballot question may only be asked at a regular special district election date, the general election date, or the first Tuesday in November of odd numbered years.

Directors typically serve staggered 4-year terms.  For special districts with five Board members, two directors serve until the next regular election after the district organization and three directors serve until the second regular election after organization.  Term limits apply to special district Board members. The voters of any political subdivision may lengthen, shorten or eliminate the term limits.  Art. XVIII, Sec. 11 Colorado Constitution.

An eligible elector is an individual who is registered to vote in Colorado and is a resident of the special district (regardless of property ownership) OR an owner, or the spouse or civil union partner of an owner, of taxable real or personal property situated in the district.  A partnership, corporation, or trust cannot register to vote, is not a "person" in the context of voter registration and therefore is not an eligible elector.  CRS 32-1-103(5).

Under certain circumstances, a person may qualify as an eligible elector if the person is obligated to pay taxes under a contract to purchase taxable property within the boundaries of the special district.  Such individual is considered an owner of property for purposes of eligible elector status.  CRS 32-1-103(5).

A special district candidate must complete a self-nomination form, which form is due 67 days prior to the regular election date.   No earlier than January 1 and no later than the normal close of business on the 67th day before the date of a regular special district election, any person who desires to be a candidate for the office of a special district director shall file a self-nomination and acceptance form or letter signed by the candidate and the candidate’s signature/form must be witnessed by an eligible elector of the state.  An amended self-nomination form or letter may be accepted by the Designated Election Official up to the normal close of business on the 67th day before an election.  C.R.S. 1-13.5-303.

Alternatively, a special district candidate may complete a write-in affidavit, which affidavit is due 64 days prior to the regular election date.

All candidates must comply with the Fair Campaign Practices Act (FCPA) and Amendment 27 of the Colorado Constitution.  Information on campaign finance laws and regulations may be obtained from the website of the Colorado Secretary of State.

Under the election laws, the board of directors of the special district is charged with appointing a Designated Election Official (DEO) who oversees the election.  C.R.S. 1-13.5-103(2), C.R.S. 1-13.5-108(1).

If the number of candidates is equal to or less than the number of seats available, the election may be canceled, and the candidates are elected by acclamation.  The election may be canceled at any point in time after the 63rd day before the election.  C.R.S. 13-5-513(1).  However, if the electors are to consider the election of directors and ballot issues or ballot questions, the election may only be canceled if those ballot issues or questions have been withdrawn.  No election may be canceled in part.  C.R.S. 1-13.5-513(3),(4).

Additional information regarding special district elections can be found on the Department of Local Affairs (DOLA) Special District Elections website.