Metro District

1. Background

Metro districts are government entities with taxing authority that finance necessary public infrastructure and services the City cannot otherwise provide. A metro district is a type of special district created under Colorado's Special District Act: Title 32, Article 1, Colorado Revised Statutes.

In Fort Collins, the City creates metro districts to improve development quality. Metro districts help development achieve City goals and public benefits like environmental sustainability, critical public infrastructure, affordable housing and public spaces. The City adopted its metro district policy in 2008 to support commercial development. The City updated the policy in 2018 and 2021 to address changing residential development and secure public benefits when permitting metro districts.

2. Policy

The City updated its policy for reviewing metro district service plans in April 2021. The policy sets criteria, guidelines and processes City Council and City staff follow when considering service plans. It also guides applicants when submitting service plans for organizing metro districts or amending existing plans.

This document describes policy objectives, evaluation criteria, application process, service plan requirements, regional improvements and fees.

City Metro District Policy

5. Frequently Asked Questions

How are metro districts different from Homeowners' Associations?

A Homeowners' Association (HOA) is not a special district or government entity and has no taxing powers. An HOA is a private entity that enforces restrictive covenants and maintains HOA-owned common areas.

How does a special district work?

A metro district has a board of directors elected by registered voters within the district. Eligible voters who live in the district or own taxable property in the district can serve on the board of directors. The district board must hold at least one public meeting in three of the four quarters each calendar year, starting in the first full calendar year after the district forms.

Who approves metro districts?

City Council has sole authority to approve a district service plan. City Council may reject, approve or conditionally approve service plans case-by-case. City Council keeps full authority over approval, terms, conditions and limitations of all service plans.

How does the City form a metro district?

The application process gives early feedback to applicants, adequate time for comprehensive staff review and appropriate steps and meeting opportunities with decision makers. The application process includes submitting a letter of interest to the City, formal application and service plan submittal, formal staff review, Council Finance Committee meeting and a Council public hearing.

How does the City fund a metro district?

Metro districts issue bonds or special assessments to finance their facilities, secured by the metro district's taxing authority. The City adds a mill levy to the annual property tax bill and uses those resources solely for the benefit of property owners and the neighborhood. The City may also impose fees for facilities and services. In Fort Collins, City policy caps the mill levy at fifty (50) unless City Council approves a higher amount.

How does the City ensure transparency of metro districts?

Metro districts follow the same "sunshine" laws as any other government entity in Colorado, plus additional requirements in the metro district statutes. A metro district must notice all meetings by posting the time and place at three locations within the district and publish notice in a widely distributed publication. The State publishes all required annual financial reports on the Department of Local Affairs website for public viewing. Beyond these State requirements, the City has included the following items in the Metro District Policy and Model Service Plan:

  • Consent for the City to publish the annual report and fiscal statements a metro district submits on the City website.
  • All districts will host at least three meetings annually. The intent is to host these meetings generally quarterly with the ability to skip one quarter based on vacation and holiday schedules. A district may meet more frequently as it chooses.

What type of projects do the funds support?

The following examples show the types of projects that deliver the defined public benefits in this City of Fort Collins policy.

Environmental Sustainability Outcomes

1. Green House Gas Reductions

  • See subsequent sub-categories

2. Water and/or Energy Conservation

  • District-wide non-potable water systems
  • District-wide renewable energy systems
  • Delivery of 20% or more rooftop solar
  • Greywater reuse systems - if allowed by law

3. Multimodal Transportation

  • Buffered bike lanes
  • Wider than required sidewalks
  • Enhanced pedestrian crossings
  • Underpasses

4. Enhance Community Resiliency

  • Significant stormwater improvements (previously identified)
  • Improvements to existing bridges

5. Increase Renewable Energy Capacity

  • District-wide renewable energy systems
  • Set aside land for community solar gardens
  • Utility scale renewable projects

Critical Public Infrastructure

1. Within district area:

  • Community park land (beyond code requirements)
  • Regional stormwater facilities
  • Major arterial development
  • Parking structures (publicly accessible)

2. Adjacent to proposed district:

  • Contribution to major interchange/intersection
  • Contribution to grade separated railroad crossings

High Quality and Smart Growth Management

1. Increase density

  • Alley load construction
  • Smaller lot size
  • Increased multifamily development

2. Walkability and pedestrian friendliness

  • Wider than required sidewalks
  • Enhanced pedestrian crossings
  • Underpasses
  • Trail system enhancements

3. Increase availability of transit

  • Improved bus stops
  • Restricted access guideways for bus operations
  • Transfer facilities

4. Public spaces

  • Pocket parks
  • Neighborhood parks (beyond code requirements)

Strategic Priorities

1. Affordable Housing

  • Units permanently affordable to 805 Area Median Income
  • Land dedicated to City land bank program

2. Infill/Redevelopment

  • Address environmental contamination/concern
  • Consolidate wetlands or natural area (positive benefits)

3. Economic Health Outcomes

  • Facilitate job growth (at or above County median income)
  • Retain an existing business