Our Vision
To place the power of our town’s future and growth back in the hands of every resident through research, facts, and communication.
Our Mission
To work together as a community to preserve our rural way of life.
To safeguard our most vital natural resource; water.
To advocate for smart growth through involvement in local government decisions by keeping up and speaking up.
To monitor the fiscal responsibility of development and infrastructure: schools, roads, and emergency services.
To minimize taxes on current residents by demanding developers fund new infrastructure and not create Metro Districts.
Our Purpose
To be a voice in the Town of Elizabeth’s future.
About Our Group
We are a group of concerned citizens who reside in Elizabeth, Franktown, and unincorporated Elbert County. We love our community and are determined to keep the rural, small town feel. We want smart, managed growth, with density that matches the surrounding neighborhoods and is conscious of water, traffic, and schools.
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Important Links & Info
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What Are Metro Districts?
Metropolitan Districts are quasi-governmental entities with taxing authority that are used to finance necessary public infrastructure and services that the City/County cannot otherwise provide. A Metro District is a type of special district derived from Colorado's Special District Act.
How Does A Metro District Work?
Developers put in the infrastructure for a subdivision (roads, utilities, water, sewage, light fixtures, open space) and then recover their expenses by establishing a Metropolitan District. The Metro District then issues tax-exempt municipal bonds that are sold on the open market. The bonds will typically span 30-40 years with interest payments made every six months. The bonds will gradually be retired over the life of the bond. The money from these bonds goes directly to the Developer. The bond debt (which is like a mortgage) is repaid as a “property tax” on each home in the sub-division.
How Much Is the Bond Debt Per House?
The initial bond debt is typically $30,000 to $40,000 per home. Depending on the amortization (payments of principal and interest) of the bond debt, the total payback will be two and a half to three times the original debt. In addition to repayment of the bond debt, there will be Metro District Management fees (Accountant, Attorney, Auditor and District Manager) that will add another $15,000 to $20,000 to the property taxes. The property tax for the Metro District will typically be about 42% of the total property taxes.
Why Is A Metro District Used?
Without a Metro District, the Developer would provide all of the infrastructure and then absorb the cost with the sale of each home. Since the home sale is market sensitive, the amount of profit to the Developer would be less. By recovering the costs with the Metro District financing, the Developer will make more money at the time of initial sale and not bear as much financial risk. All the risk has been transferred to the homeowner/taxpayer who will then pay financing and District Management costs over the next 30 to 40 years.
What Is Subordinated or Junior Debt?
When the Metro District is established and funded there are no homeowners/ taxpayers to pay the interest on the Bond Debt. Therefore, the Developer has to make the interest payments until enough homes have cycled through the tax year to be assessed. The Developer does this with Developer Advances. After the development can pay all the payments on its own, the Developer then creates another bond issue known as subordinated or junior debt to reimburse the Developer Advances. Since it is unlikely that any homeowners/taxpayers are involved with the Metro District Board, the Developer typically sets the interest rate on the bonds. Payments on subordinated debt cannot be paid until the original bond debt is paid off. The original bonds are usually paid off in 30 years. During that time period, the subordinated debt accrues compound interest. For example, Ritoro Metro District issued $3.1 million in subordinated debt in 2022. No payments can be made until 2050, after the original bond debt is paid off in 2049. The accrued interest in 2049 on the subordinated debt will be $19.5 million for a total debt of $22.6 million. Paying that debt off in equal payments over the next 13 years will be at a total cost of $36.3 million - all tax free to the bond holder. The average annual property tax will be $8,334 per homeowner/ taxpayer plus District Management fees.
Buyer Beware - Independence Community
When the Elbert County Commissioners approved the Service Plan for the Independence Metro District, Commissioner Grant Thayer said after the vote, “Buyer Beware”. If they truly felt that way, it never should have been approved. Each home built will have a $200,000 portion of the debt, not including interest. This doesn't even include the cost of the house! If it were to be amortized over 40 years, it would be $5,000/year plus interest on the bonds. Add that to other “property taxes”, such as county, school, fire, etc, and most buyers will not be able to afford their home. It’s that simple.