There are several reasons why metro districts are prevalent in Colorado.
#1: Metro districts are a cost-efficient way to build housing developments. Colorado has experienced high demand for housing for decades and metro districts use low interest financing to build the public infrastructure and amenities needed to support large-scale residential communities with a diversity of housing.
#2: TABOR makes it difficult for cities and towns to build infrastructure. To pay for infrastructure (the new streets, sidewalks, water systems, sewer lines, etc.) needed to support new neighborhoods, cities would have to raise taxes on all of their residents – and that’s not feasible or fair.
#3: Growth pays its own way. Only residents within the boundary of a metro district pay higher property taxes – a system that ensures their non-metro district neighbors are not unduly burdened.
#4: Costs are spread out, keeping home prices lower. Residents of a metro district pay their share in the cost of the extra amenities and critical infrastructure over time through annual property taxes. This keeps their purchase price lower. If residents were to pay for these costs up front, this would result in a higher purchase price of $30,000 or more.