Photo: Public testimony in opposition to a developer-initiated metro district policy, at Pagosa Springs Town Hall, June 3, 2025.
The Pagosa Springs Town Council meeting attracted a sizable crowd on Tuesday, June 3, on account of a tentative proposal to establish a new policy allowing metropolitan districts — ‘metro districts’ — within the town limits.
Spoiler alert: the Town Council decided not to approve a policy.
The policy, if one exists, was not shared with the public in the June 3 agenda packet. Nevertheless, a number of members of the public shared their thoughts about metro districts in general.
All the public testimony offered at the meeting offered reasons why metro districts might be harmful to the community.
A few samples.
“I know you’ve all gotten information from me about metro districts, asking that you listen to Mr. [John] Henderson and hear the other side from those who have dealt with metro districts before. I received comments from other community members and what they thought about metro districts, and I will just paraphrase them. ‘I moved from Dallas… I moved from Denver… I moved from a metros district and I don’t ever want to live in a metro district again…’
“I have quotes from developers, saying, ‘If the developer can’t fund the infrastructure himself, he has no business starting a development.’
“After sitting through some of the Town’s metro district discussions, I’m very concerned about the trickiness… I don’t know if that’s the right word… but we’re not experts. We don’t have the expertise that developers and attorneys have — and that’s their job: to figure out how to get the best profit for the developer…
“To pass the costs on to the home buyers, who are already paying property taxes, and will now be paying double, is just not right…”
We will pause here for a bit of clarification. Archuleta County allows metro districts — a form of government that can to impose and collect property taxes — when those districts meet certain needs that the County can’t meet. But the metro districts in Archuleta County were all created by the property owners themselves.
In some Colorado communities, however, developers have created metro districts prior to developing the subdivision, in which case the developer — as the sole property owner — creates government regulations and establishes (possibly oppressive) property taxes for the subdivision, which continue long into the future, leaving no ability for the future subdivision residents to change their tax structure or even to elect their own metro district board.
The phrase “taxation without representation” comes to mind.
As far as I know, in every subdivision within Archuleta County, the original developer funded the streets and infrastructure, and added that cost to the price of the parcels.
In the case of metro district-funded infrastructure, the developer can collect property taxes for decades.
Metro districts are not currently allowed, however, within the municipal boundaries of the Town of Pagosa Springs. The developers of the proposed ‘Pagosa West’ subdivision — planned for a 100-acre parcels near the Pagosa Springs Medical Center — requested that the Town Council create a metro district policy, to allow ‘Pagosa West’ to collect property taxes from its future residents.
We discussed metro districts more fully earlier this year in the Daily Post, in a seven-part editorial series. That series included a link to a document written by metro district researcher John Henderson, the 19-page ‘Handbook for Residents and City/County on Metro District Reform’, which you can download here.
Here’s another comment from the public at the April 3 Council meeting:
“My concern is about the policy you’re about to approve, about metro districts. I’ve read a substantial amount about metro districts in Colorado, and the hefty property taxes that come about…
“I think the way metro district are being used in Colorado, to transfer the risks to the homeowners and businesses within the district, rather than to the developer, this may provide a benefit for the developer, but it may backfire if the Town is promoting workforce housing. I think your proposed policy is not the way to go.
“We have a metro district in the Alpha subdivision, and they receive 10 mills, and they maintain the roads. That’s the kind of metro district that makes sense. But a metro district that transfers the risk and the loan that the developer will take out, to the [future property owners]…? I just think that’s a poor policy.”
Another member of the public mentioned his experiences in Lakewood, Colorado.
“Lakewood has lived through metro districts… I think there were six of them. Five of them went bankrupt, and the City of Lakewood ended up having to take over all of the infrastructure cost…
“Is the Town willing to take over the bonds that don’t get paid off? I don’t think so.
“I really don’t think this is a bright idea…. Turn this sucker down.”
One more sample comment:
“I applaud the Council for taking the time to learn about the risks associated with metro districts. But I think it’s safe to say, that the past attempts to rein the abuses of metro districts have only been partially successful.
“What has happened with the situation right now, is a ‘buyer beware’ situation. And one of the buyers, potentially, is the Town of Pagosa Springs…”
When the Council arrived at the agenda item, ‘Metropolitan District Policy and Model Service Plan’, Mayor Shari Pierce noted that the Council had spent a few hours in previous meetings learning about and discussing metro districts.
“At the end of our last joint meeting with the Town Planning Commission, I felt like we needed to bring [the decision] here, so I asked my fellow Council members if they’d want to come here this evening and make a decision on whether we continue to move forward with this tool for potential development, or whether we’re ready to just lay it aside.
“I will point out that, even if we don’t do metro districts, that will not stop [the Pagosa West]property from being developed. So just be aware of that. A private developer, if they purchase that land and follow the guidelines that we have in place, through our Land Use and Development Code, may develop that land.
“That said, I want to open the discussion to Council member comments…”
These comments suggest, to me, that no policy had yet been developed. The discussion would be around whether to dismiss the whole idea.