The City of Boulder is committed to exploring creative and sustainable funding, exploring options as part of its Fund the Future and Economic Development Plan and Program Enhancements initiatives. One of those tools being explored is support for Metropolitan Districts.
Metropolitan Districts are entities with limited authority that are requested by property owners within a defined area, and then established by the local government. They are one of many tools to help accelerate development or redevelopment through area-specific taxing and financing. They are typically formed in the early stages of development to finance and construct essential public infrastructure such as roads, water lines and sewer lines that are not currently funded by the local government. Funding for this essential public infrastructure is generated by taxing property owners within the district’s boundaries.
Recent state reforms have addressed many historic issues with metropolitan districts by requiring transparency and by creating a way for city councils to review property tax exemptions when conflicts of interest are disclosed. However, no single state body proactively regulates Metropolitan Districts. Therefore, it is in the interest of the city to impose local standards to ensure any use of metropolitan districts closely complies with city goals and interests.
The adoption of a comprehensive local ordinance is provides maximum legal protection for the city and future residents within a proposed district’s boundaries. While the state's Special District Act governs the broad formation process, a local ordinance can establish non-negotiable financial and governance standards. This ensures that any district formed within Boulder complies with specific city goals rather than defaulting to generic state minimums.
If approved by City Council, a Model Service Plan would set the rules for how a district operates and would clearly define what a district can and cannot do. The plan would outline the services the district provides, set dept limits and define how much it can tax property owners. Metropolitan Districts help ensure growth pays for its own infrastructure.
Once regulations are in place, if the city receives a service plan application a review process is conducted. City staff will conduct a rigorous interdisciplinary review to evaluate the district’s financial viability and technical compliance. This process often includes a referral to an independent financial advisor to verify that the proposed debt structure and market projections are reasonable.
City Council’s role is quasi-legislative, retaining sole discretion to approve, deny or conditionally approve a service plan by resolution following a public hearing. Council’s review focuses on whether the district is genuinely needed, whether the area has the financial ability to repay its debt and whether the service standards are compatible with the city’s regulations.
Consistent with City Council’s discussions on Nov. 20, 2025, and further direction on Jan. 22, 2026 to move forward with drafting an ordinance for consideration, the community is invited to review the ordinance and plan through March 16:
If you would like to share your feedback, please email MuellerB@bouldercolorado.gov.
City Council is tentatively scheduled to hear the proposed ordinance:
A Resolution adopting the Model Service Plan is also envisioned to be considered by City Council on April 16.
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