Metropolitan districts are local governments that finance public improvements and provide services to promote the health, safety, prosperity, security, and general welfare of the inhabitants of the districts and the people of the state of Colorado. Metropolitan districts fill the gaps that may exist in services that other local governments will not provide, and the services residents may desire. The Wyndham Hill Metropolitan District Nos. 1-3 (the “Districts”) provide the following improvements and services: water, streets, traffic and safety, sewer sanitation, parks and recreation, mosquito control, and transportation. 

Pursuant to the District’s Consolidated Service Plan, approved by the Town of Frederick on February 12, 2004, as amended August 11, 2005, October 12, 2006, February 14, 2008, and April 14, 2020, (collectively, the “Service Plan”), the Districts are authorized to issue debt not to exceed $36,000,000  and impose a maximum debt mill levy of 50 mills subject to adjustment, as defined in the Service Plan, for repayment of such debt. The Service Plan authorizes the repayment of debt from the following sources: ad valorem taxes, specific ownership taxes, fees, and all other legally available revenues as permitted by law.

The Boards of Directors (the “Boards”) govern the Districts. Board members are elected for four-year terms. During election years, the Districts must provide the Call for Nominations to the electors of the Districts noting the Board seats up for election. If an owner or resident would like to run for a Board seat up for election, he or she must submit a self-nomination form to the Designated Election Official by the applicable deadline as provided in the Call for Nominations. When a vacancy occurs on the Boards between elections, an owner or resident may contact the Districts and request to submit a letter of interest to be appointed to Boards. When an individual is appointed to the Boards, the term for that appointment runs to the next regular election.

To qualify as a director of a district, a person must be an “eligible elector” which is defined as a registered voter of Colorado and either: (1) a resident of the District, or (2) the owner (or the spouse or civil union partner of the owner) of taxable real or personal property located within the District. A person who is under contract to purchase taxable property and is obligated to pay taxes prior to closing is also considered an “owner.”

The Districts file their annual report for the prior year with the Town of Frederick.

Initially, growing cities and towns financed and installed public infrastructure serving their municipalities, literally “paving the way” for new homes and businesses.  However, cities and towns began to struggle to pay for the public infrastructure needed to grow.  In the late 70’s and early 80’s a change to “Growth pays its own way” occurred.  This shift by municipalities put the cost burden of growth on the shoulders of future property owners.  To facilitate continued growth, the State of Colorado passed reenactment of Title 32 in 1981, the Special District Act, to allow Metropolitan Districts to satisfy the public need for infrastructure and allow the Districts to use tax exempt financing to pay for the public infrastructure.  There are now approximately 2,000 Metro Districts operating throughout Colorado and the majority of States across the country having their own versions of the Special District Act using similar structures as Colorado’s special districts.

District No. 1 is an operating district.  The operating District in a multi-district configuration typically covers a very small portion of the community where there will be no homes or commercial properties built.  The area is so small that the operating District rarely collects property taxes and instead relies on the property taxes and debt proceeds from the financing districts to cover its operational costs.  An operating district is used to consolidate public infrastructure construction, financing and administrative management of all districts within a community.  This structure mitigates cost redundancies and allows for a more efficient management of the districts’ financial obligations.  Over time, as the community is built out and the financing is in place, the need for an operating district diminishes and eventually this district will be dissolved.