What Is a Metro District in Denver?

If you are shopping for a home or preparing to sell in Central Park, you have likely heard the term “metro district.” It can feel confusing at first. You want to understand what you are paying for, how it affects your monthly costs, and what to ask before you sign. This guide breaks down metro districts in plain language, with Central Park context, so you can make confident decisions. Let’s dive in.

Metro districts in Colorado: the basics

A metropolitan district is a type of local government in Colorado created under Title 32 of state law. These districts finance, build, and sometimes operate public improvements for a defined area. In many new or master-planned neighborhoods, a metro district helps fund the infrastructure that makes the community function.

Districts are formed through a service plan that is approved by a city or county. The service plan defines what the district can do, its boundaries, debt limits, and mill levy limits. A board of directors governs the district, while day-to-day work is often handled by professional managers and advisers.

Typical powers include issuing bonds to pay for roads, water and sewer, stormwater, parks, trails, lighting, and public facilities. Districts can levy property taxes, collect fees, and enter into contracts to build and maintain improvements within the scope of the service plan.

How districts finance neighborhood infrastructure

Metro districts commonly issue municipal bonds to raise funds up front for large infrastructure needs. Over time, the district repays those bonds using property taxes collected from properties within the district.

Property taxes for a district are expressed as mill levies and typically include two parts:

Debt service mill levy that pays principal and interest on bonds
Operations and maintenance (O&M) mill levy that funds ongoing services, if authorized

What you pay depends on the district’s current mill levies, your property’s assessed value, and any parcel-specific assessments or covenants. Some developments include recorded repayment obligations that apply to certain lots. These can be found in a title search even if they do not appear on the tax bill.

In master-planned areas like Central Park, multiple districts may exist to handle different phases or services. That is normal and simply means you should verify which district or districts your property is in and how each one is funded.

What you will see on a Denver tax bill

Your Denver County property tax bill lists all taxing entities for your parcel. Along with county, city, and school district lines, you will see any metropolitan district listed by name. Some bills show separate entries for debt service and for general or operating levies.

Expect to see the total assessed value and the mill levy table that produces your total taxes due. The district’s portion appears as a dollar amount tied to its mill levy. If a district or an HOA bills separate assessments that are not collected by the county, those will not appear on the county tax bill. They arrive as separate invoices.

Some obligations can also be recorded as covenants or liens against a specific lot. These may not show up on the county bill but will appear in the title commitment or in district disclosure materials.

When you read your bill, identify the district line items and note whether they are for debt service or O&M. Compare the district’s total dollar amount with any HOA dues or separate assessments so you understand your full annual commitment.

Central Park context

Central Park is a large, master-planned community in Denver. Like many similar neighborhoods in the metro area, it used metro districts to finance public improvements such as roads, water and sewer lines, stormwater systems, parks and open space, trails, plazas, street lighting, and community facilities.

Because Central Park was developed over many years, it is common for parcels to be within one or more districts that relate to a phase or a set of improvements. This does not have to complicate your purchase or sale. It simply means you should confirm the official district name or names for the property and understand how each one is funded.

What to request before you write an offer

Gather the key documents early. These materials help you and your lender understand costs and timelines:

County assessor and treasurer records for current mill levies, assessed value, and tax history
Title commitment and public-record search for any recorded liens, covenants, or parcel-specific assessments
Seller disclosures stating the existence of special districts and any unpaid or upcoming assessments
District documents: service plan, annual budget, audited financial statements, current mill levy resolution, and any bond official statements
HOA or community association documents, if applicable, to see how services align with district services

These sources provide the facts you need to evaluate affordability, plan for escrow requirements, and set expectations for the long term.

Questions to ask your district, lender, and title team

Ask the district manager

Is this property inside one or more metropolitan districts? What are the official names?
What are the current mill levies for debt service and O&M, and the estimated annual dollar amount for this parcel?
How much outstanding bonded debt does the district have, and when do the bonds mature?
Are there any parcel-specific assessments, repayment covenants, or liens recorded against this property?
Are there planned bond issuances, refinances, or budget changes that could affect future mill levies?
Who is the contact for the service plan, audited financials, budgets, and official statements?

Ask the title company

Do the title commitment exceptions include any district liens, special assessments, or repayment covenants for this lot?
Will any district-related obligations remain after closing, and how will they be shown on the final title policy?

Ask your lender

Will the district taxes be included in an escrow account, and does the lender require escrow for special district taxes?
How do the district mill levies and any separate assessments factor into loan qualification and monthly payment calculations?
Does the lender treat ongoing district assessments differently from HOA dues for underwriting?

Simple evaluation checklist

Use this checklist before you make an offer and again during due diligence:

Basic identification
- Confirm whether the property sits inside one or more metropolitan districts. Note each official district name.
Document collection
- Get the current and prior year county tax bills and parcel tax history.
- Request the district’s service plan, annual budget, audited financials, mill levy resolutions, and any bond official statements.
- Obtain the title commitment and check for district-related liens, covenants, or assessments.
- Ask the seller to disclose all special district obligations and any unpaid assessments.
Key numbers to verify
- Current district mill levies for debt service and O&M, and the dollar amount for this parcel.
- Assessed value used on the tax bill and the district’s share of the total.
- Outstanding bonded debt and the bond maturity schedule, noting how long repayment will appear on the tax roll.
Operational and future issues
- Confirm whether district-funded amenities are complete or still planned.
- Ask whether future bond issuances, budget changes, or service expansions could increase mill levies.
- Check if any district assessments are billed separately and whether your lender will escrow for them.
Lender and title practicalities
- Confirm your lender and title company are accounting for district obligations in underwriting and closing.
- Determine if tax escrow is required and how that affects your monthly payment.
Local context
- Remember that Central Park commonly uses one or more metro districts. Expect multiple documents and confirm parcel-specific obligations.

How this affects buying and selling

District mill levies influence your monthly housing cost because lenders include property taxes in qualification and often require escrow. A higher levy can affect debt-to-income ratios, loan options, and required reserves. Understanding these numbers early helps you plan, compare homes accurately, and avoid surprises at closing.

For sellers, clear disclosure and well-organized documentation build trust and reduce friction. Buyers appreciate knowing what they will pay and for how long. If district obligations are significant, pricing strategy and timing may need to reflect that reality.

Work with trusted local advisors

Metro districts are part of how Denver grows, including Central Park. When you understand how they work, you can evaluate total cost, long-term benefits, and marketability with confidence. If you want help gathering documents, coordinating with your lender and title team, and reading the fine print, reach out to Gail Wheeler and Kelly Baca for hands-on guidance and a smooth, informed experience.

FAQs