Shopping for a home in Greenwood Village and hearing about “metro districts”? You are not alone. Many Denver-area neighborhoods use these special districts to build and maintain local infrastructure, which means you might see extra taxes or fees on top of the standard county bill. This guide explains what metro districts are, the charges you can expect, how to evaluate the numbers, and the steps to protect your interests. Let’s dive in.
What a metro district is
A metro district is a local government entity created under Colorado law to fund and operate public infrastructure for a defined area. Think streets, water and sewer lines, stormwater systems, parks, open space, street lighting, and landscaping. Districts can issue bonds to build improvements and then repay that debt with property taxes and other revenues over time.
Cities or counties approve the district’s service plan and formation. The district is run by a board of directors. In many new communities, the developer controls the board early on during construction and sales, and over time board control can shift to residents.
You see metro districts frequently in newer or master-planned neighborhoods around the Denver Tech Center and Greenwood Village. They are a way to finance big public improvements up front, then spread costs over many years across the properties in the district.
How districts collect money
Districts use a mix of property taxes and fees. Here are the key pieces you will see as a buyer:
- Property tax mill levies
- Districts often levy two separate mills. One is for debt service that repays bonds. One is for operations and maintenance.
- A mill is one dollar of tax per one thousand dollars of assessed value. Property tax equals assessed value times the total mills divided by one thousand.
- Special assessments or flat fees
- Some districts charge flat annual fees or special assessments. These may appear on your property tax bill or be billed separately.
- District fees vs HOA dues
- District fees are separate from HOA dues. Responsibilities can overlap, so review both to understand who pays for what.
- Developer or reimbursement agreements
- A district may have contracts with a developer or a municipality. These agreements can influence future costs and tax needs.
District mill levies and fees can change over time. New bonds, refinancings, or budget changes can raise or lower what you pay. Some districts carry debt for 20 to 30 years or longer.
What to expect in Greenwood Village
There is no single average because each district’s financing plan is unique. That said, Denver-area patterns offer helpful context for your planning.
- In many local districts, the district portion of the tax bill is a meaningful share of total property taxes. It can be material relative to county and school taxes.
- A single large development may operate through multiple related districts, which can make the tax picture more complex for a given parcel.
- Additional district charges can range widely. In lower-debt or mature districts, the extra cost may be a few hundred dollars per year. In high-debt districts, it can be several thousand dollars per year. Flat annual fees, where used, can range from a few hundred dollars to more than a thousand.
Because results vary by parcel, a quick model for your specific home is essential before you finalize your offer.
Your due diligence checklist
Use this checklist before you remove contingencies. It helps you understand both current costs and what could change.
- Identify the district(s)
- Confirm the legal name and number of every district that covers the property. Some parcels are in more than one.
- Request a district disclosure packet
- Certified current mill levy with a breakdown of debt service and operations mills
- Bonded debt schedule and amortization table showing outstanding principal and annual payments
- Current budget and the most recent audited financials or annual report
- A list of all current fees, parcel charges, or special assessments, including how they are billed
- The approved service plan and any amendments
- Recent meeting minutes or resolutions that affect taxes or fees
- Any intergovernmental or reimbursement agreements with a developer or municipality
- Review title and tax items
- Ask your title company for the preliminary title commitment and flag any district liens or special assessments
- Get the current property tax bill or estimate that breaks out each district component
- Check HOA and developer documents
- Compare HOA responsibilities with district services to avoid double counting
- Ask if there are developer subsidies or paydowns that might expire
- Look at the ballot calendar
- Check for upcoming ballot measures that could authorize new debt or increase mills
Questions to ask the district
- What are the current operations and debt service mill levies for this property?
- What is the outstanding bonded debt and the projected annual debt service for the next 5 to 10 years?
- Are there plans to issue additional bonds or increase the operations budget?
- Which services does the district provide directly, and which are handled by the city or HOA?
- How many taxable parcels remain to be developed, and what is the assumed growth of the tax base?
- Who controls the board today, and when is resident control expected?
Model your total cost
A simple model can clarify the impact of a metro district on your annual carrying cost. Build from official numbers whenever possible.
- Confirm the home’s market price and the most recent assessed value. If you need to estimate assessed value, use the current residential assessment rate for the tax year you are modeling.
- Get the combined mill levy for the parcel. Include all mills for county, city, schools, and special districts. Separate out the district’s operations and debt service mills so you can see the district portion of the total.
- Calculate annual property taxes. Assessed value multiplied by total mills, then divided by one thousand. Remember, a mill equals one dollar per one thousand dollars of assessed value.
- Add any district flat fees or special assessments. These may be on the tax bill or billed directly.
- Add HOA dues and your expected maintenance and insurance. This shows your full annual carrying cost.
- For multi-year planning, review the district’s bond schedule and budget notes. If there are planned bond issuances or expected mill changes, adjust your projections.
Hypothetical example
Inputs for illustration only
- Market price: 700,000 dollars
- Assumed residential assessment rate: 6.8 percent, verify the current year rate
- Assessed value: 700,000 times 6.8 percent equals 47,600 dollars
- Combined non-district mills: 60
- District mills, operations plus debt service: 30
- Annual district flat fee: 500 dollars
- HOA dues: 1,200 dollars per year
Calculations
- Total mills: 90
- Annual property tax: 47,600 times 90 divided by 1,000 equals 4,284 dollars
- District share of that tax: 47,600 times 30 divided by 1,000 equals 1,428 dollars
- Total district cost, tax plus flat fee: 1,928 dollars per year
- With HOA, the combined addition is 3,128 dollars per year
Takeaway
- The district line item can be a meaningful part of your annual cost. Your actual result will depend on the exact mills, the assessed value for your home, and any fees.
Practical next steps and local resources
- Arapahoe County Assessor
- Find assessed values and a breakdown of mill levies by parcel.
- Arapahoe County Treasurer
- Review current property tax bills and how special district charges appear.
- District office or website
- Request budgets, bond schedules, meeting minutes, and the service plan.
- Title company
- Ask for the preliminary title and any special assessments or liens tied to the district.
- Colorado Division of Local Government
- Learn about special district reporting and governance requirements.
- Special District Association of Colorado
- Get educational materials that explain how districts work.
Strategy for Greenwood Village buyers
- Make the contract contingent on district review. Build time into your due diligence to receive and evaluate the district packet.
- Consider a tax-burden threshold. You can ask for a contingency that allows cancellation if district taxes and fees exceed an agreed limit.
- Scrutinize the bond amortization. The schedule shows how long the debt runs and whether payments step up in future years.
- Ask about board control and development timelines. Developer control and remaining build-out can signal future mill changes as the tax base grows.
- Compare district and HOA scopes. Overlaps can affect both dues and taxes. Understanding who maintains parks and streets can help you forecast long-term costs.
A calm, methodical review will help you decide whether the home’s location and amenities justify the district costs for your goals.
If you want a clear, property-specific view of metro district impacts before you write an offer, reach out. As a local advisor who works across Denver’s premium submarkets, I can help you coordinate the right documents, model carrying costs, and craft a smart negotiation plan. Connect with Crowell Realty for a private consultation or to explore off-market options.
FAQs
What is a metro district in Colorado?
- It is a special district formed under state law to finance and operate public infrastructure in a defined area using property tax mills, fees, and bond financing.
Do metro districts raise my property taxes?
- They can. District mills and fees are added to standard county and school taxes, and the total impact varies by district and parcel.
How long do district debt payments last?
- Many bond schedules run 15 to 30 years or more. The district’s amortization table shows the remaining term and annual payments.
Can district taxes or fees change after I buy?
- Yes. Annual budgets, new bonds, or changes in operations can affect mills and fees. Board decisions and ballot measures are the usual drivers.
Are district fees different from HOA dues?
- Yes. District fees are public charges tied to infrastructure and services, while HOA dues fund community association responsibilities. Review both to avoid surprises.
How do I find the mills for a specific home?
- Check the Arapahoe County Assessor and Treasurer for parcel details, then confirm with the district’s budget and certified mill levy for the current year.
