A metropolitan district is a type of special district similar to a school, fire or water district. Developers establish them to finance the infrastructure necessary to support a new subdivision. By forming a governmental entity separate from the city, the developer (through the metro district) can obtain more favorable bonds guaranteed by future tax revenue to pay for things like roads, sewer lines, drainage facilities, and similar services necessary to support new development.

The taxes homeowners pay to a metro district pay off the debt incurred in building the development's infrastructure. This mechanism lowers the initial price of a home, which would otherwise include these infrastructure costs and localizes costs so residents in other parts of the City don't have to pay for new residential development. Additionally, metro district projects can include affordable housing, public spaces such as parks, and environmental sustainability improvements, which can help increase neighborhood livability and vitality. The metro district model has been a driver of residential growth in Commerce City’s northern range in recent decades. 

Metro District FAQ Handouts: English | Español

Relationship to the city

Metro districts are governed under Title 32 of the Colorado Revised Statutes and exist separately from the city government. The city does not receive any taxes collected by metro districts, nor can it directly intervene in a district's operations without cause. The relationship between metro districts and the city is laid out in a district’s service plan. The service plan details what services (such as infrastructure development, parks operation, etc.) the district will undertake and its limitations. While the city can stipulate certain terms/regulations during the negotiation of the service plan, once city council approves it, it cannot be amended without both the city and the district agreeing to the amendment. Additionally, the city cannot enforce new regulations on existing districts unless the district agrees to it.

Metro District Audit

During discussions about city regulations governing new metro districts in 2023, City Council requested a complete audit of all currently operating metro districts in Commerce City to ensure their operations are in aligment with approved service plans. The results of that audit are presented below, as posted on July 3, 2024:

Metropolitan District Audit and Compilation - Memo
Metropolitan District Audit and Compilation - Data
Metro District Regional Comparison

Current Special Districts

The city's interactive map of special districts shows information about all the taxing entities in the city. Find your address or neighborhood and see information about metro districts and other special districts such as water, fire, school, transportation and library districts, in addition to the city and Adams County.

All metro districts are required to publish financial and other records annually with the Department of Local Affairs. Those documents can be found at dola.colorado.gov/lgis/

Commerce City Special District Financing Public Meeting

Commerce City is considering alternatives to metro districts. Metro districts have allowed new growth to fund its own infrastructure and facilitated the development of the Northern Range. The city, however, has limited oversight on metro districts. Council is considering alternative forms of districts (such as General Improvement Districts) that afford the city more control and oversight. This meeting is designed to inform residents and stakeholders of various options and hear their feedback on key questions: who should bear the cost of growth, and how directly should the city be involved?

The city held a public listening session on Feb. 15, 2024 to collect community feedback and suggestions about metro districts and financing options. Watch the full public meeting below and fill out this survey to provide your feedback.

Metro District Regulations

On Nov. 27, 2023, City Council passed Ordinance 2549 and Resolution 2023-136. These measures enacted a variety of new regulations on metro districts. These measures will be enforced on any newly formed metro district; the city does not have the power to change existing service plans. These regulations ensure best practices by developers and district boards and are designed to protect residents.

Ordinance 2453, which imposes a moratorium on the processing of applications for new residential metro districts, remains in effect. Existing metro districts will continue to function as they have previously. The moratorium will remain in effect and prevent the formation of new residential metro districts unless repealed by City Council. It does not prohibit applications for non-residential metro districts (those with less than 10% of their land used for residential development) or amendments to existing residential metro districts.

The passage of these regulations was the culmination of an effort that began early in 2021 to achieve metro district reform. The process included significant public and stakeholder input, with the growing concerns of many residents (about property tax increases and other practices) moving the conversation forward and helping to inform the city’s actions. The city thanks everyone who participated in the public engagement process as the city worked through updating the regulations.

For additional questions, please contact Jordan Roberts at jroberts@c3gov.com.