Special District Information
What is a Special District?
A Special District is an established unit of local government with local and state regulatory oversight. These local governments are formed to finance, construct and operate public infrastructure and provide services such as roads, sewers, trails and parks, that counties and municipalities may be unable to provide due to fiscal limitations.
Special Districts can borrow money at lower interest rates, allowing them to build public infrastructure and homes more efficiently and affordably. Property owners within the boundaries of a Special District pay a higher tax that contributes to paying down the debt over time.
Special Districts are formed by submitting a detailed service plan to the city council, town board of trustees, or county commissioners for review and approval following publicly noticed and conducted hearings. These local authorities have oversight and control over limits on taxation, fees, and services. After the approval of a service plan, an organizational election is held.
Special Districts are operated by an elected Board of Directors. Director elections are held in May of every odd year. Initially, developer representatives may sit on the Board of Directors because the district is formed before there are any homes or homeowners. Over time, residents who are eligible electors can run for board seats, allowing residents to participate in governance of their community.
For additional information about metropolitan districts please visit Metro District Education Coalition.
How to Become a Board Member
The District holds regular elections for board members on the first Tuesday after the first Monday in May of each odd-numbered year. A person is qualified to be a candidate if they are a registered to vote under the Colorado Uniform Election Code of 1992 and are either (1) a resident of the District, or (2) the owner (or spouse or civil union partner of an owner) of taxable real or personal property within the District.
A special district candidate must complete and return to the District's Designated Election Official, a self-nomination form, which form is due no earlier than January 1 and no later than 67th day before to the election date.
If the number of candidates is equal to or less than the number of seats available, the election may be canceled, and the candidates are elected by acclamation. The election may be canceled at any point in time after the 63rd day before the election.
People interested in a position on the District’s Board of Directors may contact the District’s Designate Election Official for further information.
Budgeting Process
In accordance with State Statute, an annual budget must be prepared and submitted to the Board of Directors of the District on or before October 15th of each year. The District must adopt an annual budget prior to certifying the district’s mill levy. Adoption of the annual budget must be considered after the conduct of a public hearing.
Upon receipt of the proposed budget, the Board shall publish notice of a budget hearing stating the date, time and place of such hearing, that the budget is open for public inspection and location where budget can be reviewed and that any interest parties may file objections any time prior to final adoption.
The Board shall fix a rate of levy of taxes and shall certify that rate to the Board of County Commissioners by no later than December 15 of each year. The County Assessor shall certify the District’s preliminary assessed valuation by August 25th of each year with final assessed valuation to be provided by December 10th of each year.
A certified copy of the adopted budget, which includes the resolution to adopt the budget, set the mill levy rate(s) and appropriate funds, and the budget message must be filed with Division of Local Government no later than 30 days following the beginning of the fiscal year of the budget.
Auditing Process
Each district must have an audit performed annually, unless the District’s revenue and expenditures are less than $1,000,000. If neither the district’s revenues nor expenditures exceed $1,000,000 for the fiscal year, an audit exemption may be sought. To obtain an audit exemption, the district must file an application with the State Auditor within three months of the close of the fiscal year (by March 31).
Unless the district is exempt, the Board shall cause to be made an annual audit of the financial statements of the district as of the end of each fiscal year. The audit report must be submitted to the Board by the auditor by June 30, and filed with the State Auditor within 30 days after the report is received by the district. If required, a request for extension of time to file the audit may be filed with the State Auditor no later than seven months following the end of the fiscal year (July 31).
A copy of the audit report is available for public inspection at the Colorado Office of the State Auditor.