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 Homeowners in metro districts frequently say they're caught by surprise when the first property tax bill arrives, often with an enormous increase because Colorado is always a year behind in assessing its taxes. This year's bill pays for last year's assessment, so a new home in a metro district won't see the actual property tax costs for a year or two after the buyer moves in. Homebuyers already have various self-help tools they can use to determine whether they live in a metro district, SDA's Terry said. There's also a paragraph in real estate closing paperwork that lets them know they could be in a special district that has additional taxes, she said. Some say the paragraph is hardly specific enough and others say it's too confusing: "Special taxing districts may be subject to general obligation indebtedness that is paid by revenues produced from annual tax levies on the taxable property within such districts.... Buyers should investigate the special taxing districts in which the property is located by contacting the county treasurer, ... the board of county commissioners, the county clerk and recorder, or the county assessor." There is also transparency paperwork filed with county officials and available online with the Colorado Division of Local Affairs, whose task it is to monitor districts. "If a homebuyer is considering a home in a planned community, realizing they will have more mills assessed for a house than they would in Lakewood or Denver, for example, those are the choices they can make," Terry said. "That's the beauty of a democracy." Tlene Sterkel said that's fine and good, but thinks there's a simpler way: "Why can't they just tell me what it's going to cost?" Like others, the Sterkels' troubles began long before they ever thought of moving in. Eight years earlier, in 2006, the board that represented their metro district issued more than $24 million in bonds to pay for installing the subdivision's infrastructure. Made up entirely of members tied to Oakwood Homes and WR Investments, the board approved bonds that were long-term promises to repay the developers for money they fronted on the project. The more homes they built, the more tax money available to pay it all back. https://www.denverpost.com/2019/12/05/metro-districts-debt-democracy-colorado-housing-development/ 39 13/19