1) Sterling Ranch metros all have those 95 mil numbers. Districts 2 and 3 have residents and both pay 95.
2) Another driver for the mil rate is if the developer can exert control over resident taxation *even after* the residents take control of the metro district boards via shady intergovernmental "agreements" where the developer agrees with himself to give himself indefinite taxation authority.
As a licensed Colorado real estate broker, I’ve seen metro districts (and HOAs) increasingly discourage buyers. For example, (not in this report) the Rampart Metro District in the Ridge Gate area is another costly district. While these districts can be convenient for municipalities, reporting like this and greater public awareness are essential to ensuring transparency, fiscal responsibility, and fair treatment of homeowners.
Excellent article, but your closing point with The Meadows which states the unpaid principle and accrued interest of $454m+ is due in full June 2029 is factually incorrect and misleading. The amount owed at that time IS NOT due in full at that point. What is scheduled to occur June 2029 is the following. Interest stops accruing and property tax payments will continue at the same Mill Levy Rate as they have for the past 40 years. There will be no change to the taxes. There is no "lump-sum payment due" and there will be no change to the properties at that time. The Mill Levy rate of 35 is one of the lowest rates in Douglas County and all of Colorado. In June 2029 the interest stops accruing on the total accumulated debt, tax collections will continue, and the modifications will be seamless to the property owners. The issue I have been fighting for many years is that the debt and taxes will never go away in our lifetime. The 40 year bonds are structured to collect tax revenue for 100 years. Property owners should not be worried that there will be a "special assessment", "lump-sum payment due", or any other change to the current property tax. Everything will remain the same with taxes before and after June 2029. On the current course, they just won't ever stop.
Jim - thanks I made a correction and clarification. I'll mention it with our monthly recap too. Unless I'm mistaken I think you hold the honor of being our first published correction!
Please contact me at 720-519-3240 to learn more about the horror that is Fox Hill Metro District. Maybe the highest per capital property taxes in Douglad County.
Really clear and explosive reporting! We citizens need to be informed and advocate for changes to the current system that avoids the astronomical debt and hides the real costs to homeowners. Good for the homeowners in The Meadows!
Let’s get rid of all new metro districts moving forward and make developers pay for the infrastructure. Sure, houses will cost more but I’d rather pay $40,000 upfront than incur ongoing year after year in massive debt. Development will slow down but that’s just fine. Developers ought to incur the risk and cost associated with their projects - metro districts make it too easy and way too lucrative to those who hold the bond debt. Virtually no other states allow metro districts (there are a few in Florida)
This is the way. The metro district does not make the home "cheaper", it just hides the cost *and* allows private developers to secure more revenue via taxes.
Thanks for a well written deep dive into this subject. Every homeowner (or prospective homeowner) should read your article.
I agree
Fantastic article. Two notes:
1) Sterling Ranch metros all have those 95 mil numbers. Districts 2 and 3 have residents and both pay 95.
2) Another driver for the mil rate is if the developer can exert control over resident taxation *even after* the residents take control of the metro district boards via shady intergovernmental "agreements" where the developer agrees with himself to give himself indefinite taxation authority.
As a licensed Colorado real estate broker, I’ve seen metro districts (and HOAs) increasingly discourage buyers. For example, (not in this report) the Rampart Metro District in the Ridge Gate area is another costly district. While these districts can be convenient for municipalities, reporting like this and greater public awareness are essential to ensuring transparency, fiscal responsibility, and fair treatment of homeowners.
Barrett - thank you so much for the deep dive into Metro Districts around Douglas County. Very eye-opening.
Excellent article, but your closing point with The Meadows which states the unpaid principle and accrued interest of $454m+ is due in full June 2029 is factually incorrect and misleading. The amount owed at that time IS NOT due in full at that point. What is scheduled to occur June 2029 is the following. Interest stops accruing and property tax payments will continue at the same Mill Levy Rate as they have for the past 40 years. There will be no change to the taxes. There is no "lump-sum payment due" and there will be no change to the properties at that time. The Mill Levy rate of 35 is one of the lowest rates in Douglas County and all of Colorado. In June 2029 the interest stops accruing on the total accumulated debt, tax collections will continue, and the modifications will be seamless to the property owners. The issue I have been fighting for many years is that the debt and taxes will never go away in our lifetime. The 40 year bonds are structured to collect tax revenue for 100 years. Property owners should not be worried that there will be a "special assessment", "lump-sum payment due", or any other change to the current property tax. Everything will remain the same with taxes before and after June 2029. On the current course, they just won't ever stop.
Jim - thanks I made a correction and clarification. I'll mention it with our monthly recap too. Unless I'm mistaken I think you hold the honor of being our first published correction!
Please contact me at 720-519-3240 to learn more about the horror that is Fox Hill Metro District. Maybe the highest per capital property taxes in Douglad County.
Really clear and explosive reporting! We citizens need to be informed and advocate for changes to the current system that avoids the astronomical debt and hides the real costs to homeowners. Good for the homeowners in The Meadows!
Let’s get rid of all new metro districts moving forward and make developers pay for the infrastructure. Sure, houses will cost more but I’d rather pay $40,000 upfront than incur ongoing year after year in massive debt. Development will slow down but that’s just fine. Developers ought to incur the risk and cost associated with their projects - metro districts make it too easy and way too lucrative to those who hold the bond debt. Virtually no other states allow metro districts (there are a few in Florida)
I like that idea. And all the costs would appear upfront when you buy your home.
This is the way. The metro district does not make the home "cheaper", it just hides the cost *and* allows private developers to secure more revenue via taxes.
A nice deep dive here. Good Job!