Mill Levy Training Curriculum

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Overview:

To become more informed on Metro District Mill Levies and how they work, I asked chatGPT several questions including one to generate a training curriculum. The result is this page. It includes changes and adidtions as I laarned more.

Module 1: Foundations of Metro Districts

• Definition of Metro Districts: Quasi-governmental entities created under Title 32, Colorado Revised Statutes (C.R.S.), to finance public improvements.

• Purpose of Mill Levies: Property tax rates (mills) used to repay bonds and fund operations.

• Key Stakeholders: Developers, boards of directors, homeowners, county commissioners, and the Colorado Division of Local Government (DOLA).

Module 1: Recommended Reading

• Understanding Property Taxes in Colorado explains the actual value of a property, the assessed value, the assessment rate, and the tax rate

• Metro District Overview provides a high-level description of special and metro districts. A "Metro District" is one type of "Special District."

• Recent Legislation: lists recent Colorado Property Tax legislation and provides a brief overview

• Overview of Title 32 Special Districts: Colorado Division of Local Government – Title 32 Overview Colorado Revised Statutes – Title 32 Full Text

• Metro District Education Coalition: pro-metro district "education" website.

Module 2: Legal Framework

• Special District Act (Title 32, Article 1, C.R.S.): Governs creation, powers, and mill levy caps.

• TABOR (Taxpayer Bill of Rights, Colo. Const. Art. X, Sec. 20): Requires voter approval for tax increases.

• Mill Levy Certification Process: Districts certify levies to counties by December 15; counties certify by December 22.

• Recent Transparency Laws (HB24-1302, HB25-1219): Require public posting of mill levy and debt information.

Module 3: Formulas and Calculations

• Basic Mill Levy Formula:

Mill Levy=Revenue RequirementAssessed Value of Property×1000\text{Mill Levy} = \frac{\text{Revenue Requirement}}{\text{Assessed Value of Property}} \times 1000

• Revenue Requirement: Debt service + operations budget.

• Assessed Value: Market value × assessment ratio (residential ratio recently reduced by law).

• Adjustments: Districts often adjust mill levies upward when assessment ratios fall, to maintain revenue neutrality.

Module 4: Oversight and Compliance

• Mill Levy Caps: Service plans approved by counties typically set maximum debt service mill levies.

• Disclosure Requirements: Homebuyers must be informed of mill levy caps and potential increases.

• County/DOLA Oversight: Counties certify levies; DOLA publishes them for transparency.

Module 5: Common Workarounds and Controversies

• Revenue Neutral Adjustments: Districts raise mill levies when property valuations drop, arguing they are maintaining—not increasing—revenue.

• Multiple District Structures: Developers create layered districts (e.g., Districts 1–6) to spread debt and levy authority.

• Debt Refinancing: Issuing new bonds with extended terms can justify maintaining or raising levies.

• Temporary Tax Credits: Districts keep official mill levy high but apply credits to avoid TABOR violations, then remove credits later.

• Valuation Manipulation: Adjusting property valuations or creating new districts to recalibrate levy authority.

Module 6: Case Studies

• Timnath Lakes Metro District: Adjusted mill levy to offset reduced residential assessment ratio.

• South Metro Fire District: Used ballot approval to expand levy authority.

• Cornerstone Development in Ouray County: Established a new district to control levy adjustments.

Module 7: Advocacy and Transparency Tools

• Public Records Requests: Access service plans, debt schedules, and levy certifications.

• DOLA Mill Levy Portal: Review certified levies statewide.

• Community Engagement: Educate homeowners on levy caps, TABOR rights, and board elections.

✅ Summary: Mill levies are calculated by dividing revenue needs by assessed property values. Colorado law (Title 32 + TABOR) sets caps and requires voter approval for increases, but districts often exploit “neutral adjustments,” layered structures, and temporary credits to raise effective taxes. Transparency reforms (HB24-1302, HB25-1219) aim to curb these practices.