1. Jefferson County What is a Special District?
Governmental entity with taxing authority approved by voters within the boundaries of the district.
Provides a specific set of services to a specific area.
Private property within a district boundary is subject to taxes and/or fees imposed by the district.
Types of Special Districts:
Ambulance
Park & Recreation
Fire Protection
Sanitation
Health Assurance
Water
Health Service
Water & Sanitation
Metropolitan

2. Metropolitan Districts
Jefferson County
Metropolitan Districts
A Metropolitan District is a special district that provides two or more of the following services:
Fire Protection
Solid Waste Disposal
Mosquito Control
Street Improvement
Parks & Recreation
Television Relay and Transmission
Safety Protection
Transportation
Sanitation
Water
Metropolitan districts are essentially a tax-exempt financing mechanism used for the installation, operation and maintenance of public infrastructure.

3. Metropolitan Districts
Jefferson County
Metropolitan Districts
A recent trend with Metro Districts is that they have taken over the function of the Homeowner’s Association (HOA). The Metro District will enforce covenants, and maintain common areas that used to be the duty of the HOA.
The benefits to the homeowner of the Metro District functioning as the HOA are that HOA dues can then be included in the mill levy (property tax), so the dues are then tax deductable.
The benefits to the ‘HOA’ are that the dues are paid on time, and no liens need to be filed for missing payments. Also, the ‘HOA’ then has tax-exempt status, as well as governmental immunity.

4. How are Special Districts Approved?
Jefferson County
How are Special Districts Approved?
Special districts submit Service Plans to the County. These Service Plans explain the services the district will provide, along with a Financial Plan that explains how the proposed services will be paid for.
The County approves the Service Plan, not the Special District. Local voters need to approve the Special District.
The Service Plan is what is being reviewed, not the proposed development. The development is approved or denied by a separate process.

5. What is in the Service Plan?
Jefferson County
What is in the Service Plan?
Required by State Statute:
Description of the proposed services
Financial Plan
Preliminary engineering survey
Map of special district boundaries
General description of facilities to be constructed
General description of the estimated costs
Description of arrangements of proposed agreements with other political subdivisions (other special districts, usually)
Information satisfactory to establish that each criteria in the C.R.S. is being met
Additional information required by BCC.

6. Jefferson County Review Process Timeline:
Pre-filing : allowed under state statute – no time frame in C.R.S.
Formal Filing: very short review period
Planning Commission Hearing: within 30 days of formal filing
Preliminary Board of County Commissioners Hearing
1st scheduled BCC hearing10 days after Planning Commission Hearing
Set formal hearing date only
Formal Board of County Commissioners Hearing
Within 30 days of preliminary Board of County Commissioners Hearing
District Court Hearing
Organizational Election
The review timeline is governed by state statute and outlines a very strict dates for the review and public hearings.
The process starts with the pre-application, then formal application, then Planning Commission within 30 days, then the preliminary BCC hearing within 10 days of the PC hearing, then the Formal BCC hearing within 30 days of the preliminary BCC hearing.
Should the BCC approve the service plan the next step would be district court and then the organization election.

7. Criteria in State Statutes:
Jefferson County
Criteria in State Statutes:
Statute says that denial of a service plan is required if the applicant does not satisfactorily establish:
There is sufficient existing or projected need for organized service in the area to be serviced by the proposed special district;
The existing service in the area to be served by the proposed special district is inadequate for present and projected needs;
The proposed special district is capable of providing economical and sufficient service to the area within its proposed boundaries;
The area to be included in the proposed special district has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis.

8. Criteria in State Statutes:
Jefferson County
Criteria in State Statutes:
Statute says that denial of a service plan may occur if the applicant does not satisfactorily establish:
Adequate service is not, or will not be, available to the area through the county, other existing municipal or quasi-municipal corporations, including existing special districts, within a reasonable time and on a comparable basis;
The facility and service standards of the proposed special district are compatible with the facility and service standards of each county within which the proposed special district is to be located;
The proposal is in substantial compliance with the master plan;
The proposal is in compliance with any duly adopted county, regional, or state long-range water quality management plan for the area;
The creation of the proposed special district will be in the best interests of the area proposed to be served.

9. Jefferson County Jefferson County Policy & Procedures Manual:
The Statutory requirements for approval of a Service Plan are intentionally not very specific. The statutes give considerable flexibility to the approval authority. The Colorado Department of Local Affairs encourages developing local guidelines for evaluating service plans.
Staff’s review of the Service Plans are guided by the direction given in the County’s Policies and Procedures Manual.
The Policies and Procedures Manual’s Purpose section regarding special districts states, among other purposes:
prevent unnecessary proliferation, duplication and fragmentation of local government;
avoid excessive diffusion and application of local taxes;
In addition, the Policies and Procedures Manual has a policy (#8) that discourages the use of special districts solely as a financing mechanism for the construction of required improvements for residential developments.
The Policies and Procedures Manual requires considerably more details than the State Statues require, including examining how the proposed Mill Levies compare with existing Mill Levies within three miles of the proposed Special District.
The proposed District meets some of the state statute criteria as discussed in the staff report. Some of the criteria are highlighted on the screen.
1 Staff is not convinced that there is a compelling need for this District related to funding the ordinary construction of public improvements within this single family residential development; however, staff does support the creation of a District to provide the ongoing services that would typically be provided by a homeowners’ association.
2 With the exception of Park & Recreation, staff agrees that the existing services in the area are inadequate.
3 Staff's opinion that the formation of the District will not result in the most economical way of providing services for the future residents in the service area..
4 The financial plan works with the assumptions used, however the service plan allows for issuing significantly more bonds, and at a higher rate than shown in the financial plan’s calculations. Staff cannot determine the potential impact of these allowances.

10. Jefferson County Board of County Commissioners Hearing August 6, 2013
Case No SV
Silver Leaf Metropolitan District
Service Plan
Case Manager: Russell D. Clark

11. Jefferson County Silver Leaf Metropolitan District:
Potential Services Outlined in Service Plan:
Street Improvements
Parks & Recreation
Mosquito Control
Covenant Enforcement
Development Summary:
Number of Residential Units: Patio Homes
Estimated Population: People
Service Area: acres
Build Out Time: years
The District proposes to provide park and recreation services to the residents by the creation and maintenance of trails and open lands. The service area for Foothills Park and Recreation District currently overlaps the proposed service area of this District. The applicant is of the opinion that this is not a duplication of services since Foothills Park and Recreation District provides “regional” services, while they would provide on-site services.

12. Jefferson County

13. Jefferson County

14. Jefferson County Silver Leaf Metropolitan District: Mill Levy Summary:
Max Mill Levy – Debt Service: 50
Max Mill Levy – Operations: 27
Max Total Mill Levy for District: 77
Total Mills for Property:
Fees Summary:
“Facility Fee” (one time): $3,000
Monthly Fee: $ 50
Projected Property Taxes:
Average Home Value: $700,000
Total Annual Taxes & Fees: $10, $600/yr fees

15. Jefferson County
# of Units
Total Mill Levy of Residential Properties in Unincorporated Jeffco for 2012.
Proposed Mill Levy
Mill Levy

16. Jefferson County
Total Mill
Levy for all properties for 2012.

17. Jefferson County Total Mill
Levy for all new construction built since 2000.

18. Jefferson County Silver Leaf Metropolitan District:
Financial Plan Indebtedness Summary:
Total Cost of Facilities: $3,608,944
Max Bonded Indebtedness: $4,000,000
Bonded Indebtedness per Finance Plan: $2,340,000
Financial Plan Interest Summary:
Max Interest Paid on Bonds 18%
Interest Paid on Bonds per Finance Plan: 6%
Projected Indebtedness Summary:
Average Indebtedness per Home: $46,800
Surrounding Home Values:
North (Foothill Green South): ~$200,000
East: Fun City Entertainment Center
South (Meadows) ~$396,000 - $493,000
West (Fairway Vista) ~$272,000 - $343,000

19. Jefferson County
“Total Actual Value” for residential properties for
Data from Assessor’s Office

20. Jefferson County Jefferson County Policy & Procedures Manual:
The Statutory requirements for approval of a Service Plan are intentionally not very specific. The statutes give considerable flexibility to the approval authority. The Colorado Department of Local Affairs encourages developing local guidelines for evaluating service plans.
Staff’s review of the Service Plans are guided by the direction given in the County’s Policies and Procedures Manual.
The Policies and Procedures Manual’s Purpose section regarding special districts states, among other purposes:
prevent unnecessary proliferation, duplication and fragmentation of local government;
avoid excessive diffusion and application of local taxes;
In addition, the Policies and Procedures Manual has a policy (#8) that discourages the use of special districts solely as a financing mechanism for the construction of required improvements for residential developments.
The Policies and Procedures Manual requires considerably more details than the State Statues require, including examining how the proposed Mill Levies compare with existing Mill Levies within three miles of the proposed Special District.
The proposed District meets some of the state statute criteria as discussed in the staff report. Some of the criteria are highlighted on the screen.
1 Staff is not convinced that there is a compelling need for this District related to funding the ordinary construction of public improvements within this single family residential development; however, staff does support the creation of a District to provide the ongoing services that would typically be provided by a homeowners’ association.
2 With the exception of Park & Recreation, staff agrees that the existing services in the area are inadequate.
3 Staff's opinion that the formation of the District will not result in the most economical way of providing services for the future residents in the service area..
4 The financial plan works with the assumptions used, however the service plan allows for issuing significantly more bonds, and at a higher rate than shown in the financial plan’s calculations. Staff cannot determine the potential impact of these allowances.

21. Jefferson County Silver Leaf Metropolitan District: No Yes ?
Statutory Criteria Analysis of Service Plan. Denial of a service plan is required if the applicant does not satisfactorily establish:
Meets Criteria 1
There is sufficient existing and projected need for organized service in the area to be serviced by the proposed special district No 2
The existing service in the area to be served by the proposed special district is inadequate for present and projected needs.
Yes 3
The proposed special district is capable of providing economical and sufficient service to the area within its proposed boundaries. ? 4
The area to be included in the proposed special district has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis.
The proposed District meets some of the state statute criteria as discussed in the staff report. Some of the criteria are highlighted on the screen.
1 Staff is not convinced that there is a compelling need for this District related to funding the ordinary construction of public improvements within this single family residential development; however, staff does support the creation of a District to provide the ongoing services that would typically be provided by a homeowners’ association.
2 With the exception of Park & Recreation, staff agrees that the existing services in the area are inadequate.
3 Staff's opinion that the formation of the District will not result in the most economical way of providing services for the future residents in the service area..
4 The financial plan works with the assumptions used, however the service plan allows for issuing significantly more bonds, and at a higher rate than shown in the financial plan’s calculations. Staff cannot determine the potential impact of these allowances.

22. Jefferson County Silver Leaf Metropolitan District: Yes No
Statutory Criteria Analysis of Service Plan. Denial of a service plan may occur if the applicant does not satisfactorily establish:
Meets Criteria 1
Adequate service is not, or will not be, available to the area through the county, other existing municipal or quasi-municipal corporations, including existing special districts, within a reasonable time and on a comparable basis
Yes 2
The facility and service standards of the proposed special district are compatible with the facility and service standards of each county within which the proposed special district is to be located. 3
The proposal is in substantial compliance with the master plan. 4
The proposal is in compliance with any duly adopted county, regional, or state long-range water quality management plan for the area. 5
The creation of the proposed special district will be in the best interests of the area proposed to be served. No
The proposed District meets all of the state statute criteria as discussed in the staff report. Some of the criteria are highlighted on the screen.
The Foothills Park and Recreation District does provide park and recreation services in the area, and does not consider the services proposed by Silver Leaf to be a duplication of services.
Staff is of the opinion that the formation of a District to perform the types of services that are provided by a homeowner's association may be in the best interest of the property owners to be served. The formation of the District eliminates the need for a homeowners' association, allowing the cost of the services provided to be collected by the County through taxes. This results in operational efficiencies, as the County collects the taxes that the District levies, eliminating the costs associated with managing and billing individual accounts, and expensive collection efforts on the part of a homeowners' association. Additionally, since taxes are collected for the cost of these management services a homeowner should be able to deduct the cost of these services on tax returns, rather than paying non-deductible HOA dues.
However, the construction of public improvements proposed by the District may be able to be provided through other financing methods (i.e. developer funds construction costs and is reimbursed through lot sales) which may be in the better interest of the area to be served. If approved, the mill levy (77 combined debt and operations, along with fees) imposed by the District will result in property taxes that are higher within the District than for other residential properties located in the vicinity of the proposed development. Moreover, the financial plan indicates the mill levies as proposed are higher than any existing District in the County.

23. Jefferson County Silver Leaf Metropolitan District: No Yes
Policies & Procedures Manual Criteria Analysis of Service Plan.
Meets Criteria 1
For residential developments, the use of special districts solely as a financing mechanism for the construction of improvements listed in the Land Development Regulation is discouraged. No 2
Special Districts are encouraged to provide information to developers or builders within the district to enable the developers or builders to describe, in marketing materials aimed at prospective homeowners, the amount of mill levy imposed by their particular district and how this translates into an annual cost/tax to homeowners.
Yes
The proposed District does not meet all of the Policies & Procedures Manual criteria as discussed in the staff report.
Based on this statement and the analysis of the District, Staff is of the opinion that ordinary improvements required by the Land Development Regulation should be funded by the developer and that the developer should recoup the costs associated with the construction of those improvements through the sale of lots and the construction of homes. The future owners of the houses within this development should not be burdened with significantly increased taxes. For these reasons, staff is not of the opinion that there is a compelling need to create a District for the purpose of funding of infrastructure costs within the single family residential areas.

24. Jefferson County Planning Commission Recommendation: Service Plan
The Planning Commission, on June 26th, and via a 5-2 vote, recommended Approval of the Silver Leaf Metropolitan District Service Plan, with conditions.
The conditions for approval have all been met.
Staff recommends the Board of County Commissioners APPROVE the exclusion requests based on the following findings:
The property owners that have requested their land to be excluded make up a small portion (4%) of the property owners within the district.
The total acreage of the properties requesting to be excluded is 4,338; which is 11% of the total taxable acreage in the district.
Once/if the district is formed, the process to include a parcel of land in the district boundary is easier than the process to exclude a parcel of land. A parcel of property that is excluded at this time can be included at a future time if the owner wishes.
and
Staff recommends that the Board of County Commissioners find that based on the information provided, the Conifer Area Park and Recreation District service plan is in compliance with Colorado State Statute requirements and that the Board of County Commissioners APPROVE the Conifer Area Park and Recreation District Service Plan with the following condition:
Revisions to the Service Plan legal description to reflect the approved exclusion requests.

25. Jefferson County Staff Recommendation: Service Plan
Staff recommends that the Board of County Commissioners DENY the Silver Leaf Metropolitan District Service Plan. However, if the BCC wishes to approve the Service Plan, staff recommends the following conditions.
The proposed special district submits annual reports to the County in accordance with C.R.S (3)(c).
A resolution from the West Meadows Metropolitan District either consenting to the organization of the Silver Leaf Metropolitan District as an overlapping district or excluding the subject property from the West Meadows Metropolitan District, which resolution shall be approved as to form by the Jefferson County Attorney’s Office.
That the service plan be revised so that the District is not being used as the primary funding mechanism for the ordinary improvements required by the Land Development Regulation.