City Council Study Session Agenda and Packet 2020 01 28

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1/22/2020 Denver Post investigation into Colorado's metro districts reveals billions in debt paid by homeowners Joe Amon, The Denver Post Home construction continues in the Thompson River Ranch community in Johnstown on Oct. 14, 2019. The proposers of the district, usually developers who own all the land, create a plan for what's to be built and a rough parameter for how that will happen and how much it is likely to cost. The plan typically outlines how high property taxes can go to repay that cost — all of it dependent on a developer actually building all of the houses promised. Once approved by the sponsoring authority, such as a city or county government, the proposers must petition the nearest state district court to be formed and legally recognized. Then, there is a vote of the property owners within the proposed district - generally just the developers, their spouses and a select handful of business associates who were given an interest in a small piece of property. In a review of thousands of pages of special district documents, The Post found one example where 12 people voted and another where the electorate was two people. The average is about six voters, the review found. Those same voters also get to decide who will serve on the district's board of directors — nearly always each other — and formalize how much debt the district can incur, debt that's based on no concrete formula yet will be paid by homeowners who eventually move into the district. In the most https://www.denverpost.com/2019/12/05/metro-districts-debt-democracy-colorado-housing-development/ 34 8/19