Shopping in Colorado Springs and wondering why two similar homes carry different monthly costs? You are not alone. Many neighborhoods in El Paso County use metropolitan districts that add taxes and sometimes fees to fund local infrastructure. In this guide, you will learn what a metro district is, how to translate mill levies into your monthly payment, where to find the right documents, and how to compare communities fairly. Let’s dive in.
Metro districts explained
A metropolitan district is a local government unit created under Colorado law to finance, build, and maintain public improvements for a defined area. Typical items include streets, water and sewer lines, stormwater, parks, and recreation. Metro districts are separate from cities and HOAs, and they have the power to levy property taxes, impose fees, and issue bonds to fund projects.
Developers usually form districts and may control the board during early phases. Over time, the board usually transitions to resident‑elected directors as the service plan allows. That governance timeline matters because the board makes decisions about budgets, taxes, fees, and new debt.
How metro taxes hit your monthly budget
Your monthly carrying cost in a metro district can include four pieces:
- The district’s property tax based on its total mill levy
- Any other district fees or special assessments
- HOA dues if the community also has an HOA
- Possible future increases if new bonds or fees are approved
Here is the practical formula most buyers use:
- Annual district tax = (Total district mill levy ÷ 1,000) × assessed value
- Monthly district tax = Annual district tax ÷ 12
A mill equals 1 dollar per 1,000 dollars of assessed value. The assessed value comes from the county and is not the same as market value. For accuracy, pull the assessed value for the exact parcel from the El Paso County Assessor or the most recent property tax bill.
Example: run the math
Use this simple illustration to see the impact:
- Assessed value: 60,000 dollars
- Total metro district mills: 40
- Annual district tax: (40 ÷ 1,000) × 60,000 = 2,400 dollars
- Monthly district tax: 2,400 ÷ 12 = 200 dollars per month
This is only an example. Replace the assessed value and mill levy with the exact figures for your property to get a real estimate.
Where to find the numbers in El Paso County
You can confirm the facts and collect documents from these sources:
- El Paso County Assessor for parcel‑level assessed values
- El Paso County Treasurer for parcel tax bills and mill levy details
- El Paso County Clerk & Recorder for recorded service plans, bonds, and agreements
- Colorado Department of Local Affairs, Division of Local Government for statewide special district listings and contacts
- District websites and managers for budgets, audits, meeting notices, agendas, and minutes
- Title companies for disclosure packets at contract or closing, especially on new builds
Compare communities step by step
Follow this process to make an apples‑to‑apples comparison across neighborhoods:
Step 1: Gather the same documents
- Service plan
- Latest adopted budget and mill levy certification
- Most recent audited financial statements and annual report
- Bond official statements or amortization schedule
- List of recurring fees or assessments
- Meeting minutes for the last 12 to 24 months
- District contact and posting locations for meetings
Step 2: Normalize the math
- Pull the assessed value for the specific home or use the same assumed value for all homes you compare
- Calculate the current annual and monthly district tax using the mill levy formula
- Add any flat district fees and HOA dues for the total monthly carrying cost tied to governance bodies
Step 3: Look forward, not just today
- Review outstanding bonded debt and the years remaining
- Check the service plan for the maximum authorized debt and any temporary mill levy or reimbursement provisions
- Note who controls the board today and when resident control begins
- Scan recent meeting agendas for plans to issue or refinance bonds, start big projects, or adjust fees
Step 4: Flag items that need a closer look
- Very high mill levy compared with nearby districts
- Fast‑rising mill levy history or recent bond issues without clear project completion
- Large authorized but unissued debt remaining in the service plan
- Ongoing developer control with no clear resident transition timeline
- Budgets that show operating shortfalls or reliance on developer advances
Step 5: Ask specific questions
- What is the current total mill levy, and how is it split between debt service and operations?
- How much bonded debt is outstanding, and what is the 5 to 10 year annual debt service schedule?
- Are new bonds planned or authorized but not yet issued?
- What recurring flat fees or user charges apply to this property, and are increases planned?
- Who controls the board now, and when do residents take seats?
- Where are meeting notices, budgets, and audited financials posted?
Stay informed through meetings and reports
Metro district boards must post public meeting notices and hold open meetings. Each year, districts adopt a budget and prepare financial statements or audits. Notices are commonly posted on district websites, at a physical posting location, and sometimes through county or state portals. Reviewing recent agendas and minutes can reveal pending bonds, budget gaps, capital projects, or fee changes that may affect your taxes.
Quick buyer checklist
- Request the district disclosure packet before you sign or close
- Get the parcel’s assessed value from the county
- Calculate annual and monthly district taxes using the mill formula
- Add flat district fees and HOA dues to see your true monthly cost
- Ask about outstanding bonds, planned issues, and board control timing
- Read recent meeting minutes for any red flags
- If anything is unclear, consult your title company or a real estate attorney for recorded documents and special assessments
Work with a local guide
Understanding metro districts is about more than one number. You want a clear view of today’s costs and tomorrow’s risks so you can buy with confidence. The Purple MTN Group team brings a coaching approach to help you request the right documents, translate mill levies into monthly dollars, and compare neighborhoods in Colorado Springs and across Colorado.
If you are weighing new construction versus resale or comparing two communities with different mill levies, reach out. We will walk you through the documents, connect you with the right contacts, and help you make a confident decision.
FAQs
What is a metro district in Colorado?
- It is a local government unit formed under state law to finance, build, and maintain public infrastructure for a defined area, funded through property taxes, fees, and bonds.
How do mill levies affect my payment in Colorado Springs?
- The district’s mill levy is applied to your parcel’s assessed value to produce an annual tax, which you can divide by 12 to estimate the monthly amount.
What is the difference between assessed and market value?
- Market value is what a home would sell for, while assessed value is the figure the county uses for taxes. In Colorado, taxes use assessed value set by law and county assessment.
Do metro districts replace HOAs?
- No. Metro districts and HOAs are separate. A neighborhood can have one, the other, or both, and each can charge different taxes or fees.
Can mill levies or fees change over time?
- Yes. Levies can stay high while bonds are repaid or increase if new bonds or projects are approved. Fees can also change through the district’s budget process.
Where can I find my parcel’s metro district taxes?
- Look up your parcel with the El Paso County Assessor for assessed value and the El Paso County Treasurer for tax bills and mill levy details. District websites often post budgets and audits as well.
