Have you heard about Title 32 “met districts” and wondered how they affect your land near Windsor? If you own or plan to develop acreage in Weld County, understanding these districts can shape your taxes, your timeline, and your project budget. You want clarity, not jargon. This guide gives you a plain-English overview of how Title 32 districts work, what they cost, and the steps to protect your interests in the Windsor area. Let’s dive in.
What a Title 32 district is
A Title 32 metropolitan district is a special district under Colorado law that delivers public infrastructure and services inside a defined boundary. Common improvements include water, sanitary sewer, storm drainage, streets and lighting, and parks and recreation facilities.
In Northern Colorado, developers often use these districts to build large infrastructure packages when municipal services are not yet in place. The district spreads costs across future owners through property taxes and fees, instead of the developer carrying it all up front.
Districts are governed by a board of directors. Early on, the developer or landowners typically control the board through eligible elector rules tied to land ownership. As homes sell and people move in, control can transition to resident voters. The board sets budgets, issues debt, and levies property taxes known as mill levies.
How districts form and fund projects
Formation basics
District formation follows Colorado statutes. The usual path includes a petition by landowners or a developer, public notices, and approval of district boundaries and powers. You will see organizing documents, disclosure statements, and a service or infrastructure plan that outlines what the district will build and how it will pay for it.
Key documents at formation and early operations include:
- Formation petition and organizational filings
- Service or facilities plan and capital plan
- Initial budget and projected mill levy assumptions
- Any intergovernmental agreements with Weld County or the Town of Windsor
Financing tools you will see
Districts use municipal-style tools to finance improvements:
- Bonded debt. Bonds fund roads, utilities, drainage, and parks. Structures vary by project. Some bonds rely on property tax revenue, others on user fees.
- Property tax mill levies. The district can levy mills to pay debt service and fund operations. This is a key ongoing cost for owners inside the district.
- Service, tap, and connection fees. Utility users may pay one-time tap fees and ongoing rates.
- Special assessments and reimbursement agreements. Some districts use assessments or repay developers for eligible improvements when bonds are issued.
Property tax math in plain English
Property taxes are calculated on your county assessed value, not necessarily your market value. A mill is one dollar per one thousand dollars of assessed value. A simple formula is:
Assessed value × (total mill levy ÷ 1,000) = annual property tax.
Here is an illustrative example. If your parcel’s assessed value is $100,000 and the district’s levy is 20 mills, the district portion of your tax would be $100,000 × 20 ÷ 1,000 = $2,000 per year. This is only an example. Always confirm your actual assessed value and certified mill levies with the Weld County Assessor and Treasurer before you buy or build.
Developer control and timing
Early elections authorizing bonded debt usually occur while the developer and landowners are the eligible electors. The timing of bond issuance relative to lot sales is a major business decision. It affects carry costs, reimbursements to the developer, and when tax burdens start for buyers.
Local factors in Windsor and Weld County
Annexation and how it changes the plan
Windsor spans Weld and Larimer counties. If your acreage is in Weld County but may annex into the Town of Windsor, that change can alter utility standards, dedication requirements, and long-term ownership of assets. Municipal annexation often involves detailed agreements about who operates what services and whether certain facilities transfer to the town.
Intergovernmental agreements, or IGAs, between a district and the Town of Windsor or Weld County are common. They set clear roles for construction standards, operations, maintenance, and any future transfer of facilities. Review these early because they shape your long-term obligations and exit options.
Utilities and water rights are the chokepoint
Water and sewer typically drive feasibility in Northern Colorado. A district might own and operate the system, dedicate assets to the town, or coordinate with regional providers. Colorado water is rights-based. Projects may require specific water rights, augmentation plans, or contracts. Make sure the district’s plan addresses water rights and engineering, not just pipes and pumps.
Approvals to expect locally
If you stay in the county, plan for Weld County subdivision and access permits, drainage and floodplain reviews, and decisions about septic versus sewer. If you annex, expect Windsor’s utility extension standards and possible dedication requirements. In both cases, budget time to coordinate with planning, utilities, and engineering staff.
Market timing and interest rates
Northern Colorado has seen steady growth. That means high demand for infrastructure and materials. Interest rates matter too. Higher municipal borrowing rates raise district debt service and can increase mill levies. Lower rates can create refinancing opportunities that reduce tax burdens over time.
What it costs to carry a Title 32 district
Upfront and ongoing costs
- Upfront costs include deposits, engineering, and construction of trunk infrastructure. Developers often advance funds and plan to be reimbursed from bonds.
- Ongoing costs include property taxes for debt service, operations and maintenance fees, and utility rates. Some districts also use special assessments for capital replacements.
- Financing risk is real. Interest rate shifts and bond market conditions can raise or lower costs. Developer advances carry their own cost of capital.
Common risk scenarios
- Extended developer control if lot sales are slow, leaving the developer exposed to more advances and longer board oversight.
- High mill levies or overlapping districts that push total taxes higher than pro formas assumed.
- Delays in water rights, permits, or utility approvals that push out bond issuance and reimbursement timelines.
- Infrastructure that fails to meet municipal standards, which complicates annexation or transfer and can trigger additional costs.
Exit paths and transitions
- Bond payoff. When district bonds mature or are refinanced and repaid, the debt portion of the levy ends. Operations may continue unless assets transfer to a municipality.
- Consolidation or dissolution. Districts can merge or dissolve if they meet statutory criteria. Outstanding bonded debt must be handled before dissolution.
- Municipal takeover. A town may assume services and assets by agreement, often with clear terms about any remaining debt and maintenance.
- Developer buyout or refinance. In some cases, the developer buys out debt or restructures it to reduce mill levies or change obligations.
A practical due diligence checklist
Do this before you buy or advance a Windsor-area project in Weld County. It will save you time, money, and headaches.
Documents to request
- Formation and organizational documents, bylaws, and the service or facilities plan
- Current budget and multi-year capital plan
- All bond documents and a schedule of outstanding debt with rates and maturities
- Mill levy history and the current certified mill levy
- Capital improvements plan, phasing plan, and any reimbursement or acquisition agreements
- IGAs with the Town of Windsor or Weld County that govern operations, standards, and transfers
- Tap fee schedules, user rates, and policies for operations and maintenance funding
- Water rights records, augmentation plans, and related engineering reports
- Election records and eligible elector lists to understand governance control
- Engineer, geotechnical, environmental, and permit reports
People and offices to contact
- Weld County Assessor for assessed values and mill levy certifications
- Weld County Treasurer and Clerk & Recorder for tax collections and recorded district documents
- Weld County Planning and Zoning for subdivision standards and septic versus sewer guidance
- Town of Windsor Planning and Utilities for annexation steps, utility extension standards, and IGAs
- The district’s manager or counsel for financial statements and bond details
- Local civil engineers and water consultants who know Northern Colorado systems
- State-level support from the Division of Local Government and the Colorado Special District Association
Red flags to watch
- Large bonded debt compared to the number of sold lots or current assessed value
- No clear IGA with the town or county on who operates, maintains, or eventually owns facilities
- Unresolved water rights or augmentation requirements
- Operations budgets that rely on continuing developer subsidies
- Multiple overlapping special districts that stack mill levies on the same parcels
How to model your tax and fee exposure
Start with the county’s current assessed value and the certified mill levies for your parcel. Identify the district’s debt service mills and its operations mills. Add any overlapping special district mills that apply to your land. Ask the district for a tax impact estimate based on its bond schedule and any planned refinances.
Then layer in tap fees, monthly utility rates, and expected operations and maintenance charges. If you plan a long buildout, model how taxes change as bonds are issued in stages. Build a sensitivity for interest rate changes, and ask about call features that might allow future refinancing.
Governance and control, explained
Control matters because the board sets budgets, levies, and contracts. Clarify who controls the board now, how long that is expected to last, and what triggers a transfer to resident electors. If you are a developer, identify how board control aligns with your phasing and exit strategy. If you are a land buyer, understand how board decisions could affect your tax bill and service levels over time.
Annexation strategy and IGAs
If annexation into Windsor is on the table, plan for it early. Align your facilities design with municipal standards. Define who owns and operates each asset type after buildout. Decide whether the district continues to operate certain services or transfers them to the town. Use the IGA to remove ambiguity about maintenance, future replacements, and any payments tied to asset transfers.
Pro tips for Windsor-area landowners and developers
- Obtain the county’s current certified mill levy for your parcel and ask the district for a tax impact estimate based on its bond schedule.
- Confirm whether water and sewer service will be handled by the district, the Town of Windsor, or private systems, and verify that required water rights and augmentation plans are secured.
- Review the capital plan and the timetable for bond issuance so you know when mill levies start and how they might change.
- Clarify governance. Identify who controls the board today and when resident electors are likely to take over.
- Define exit strategies in advance, including annexation pathways, asset transfer costs, and potential debt buyout or refinance options.
The bottom line
Title 32 metropolitan districts can unlock development value in the Windsor area by funding roads, utilities, and parks at scale. They also create ongoing carry costs that need to be modeled, disclosed, and managed. Success in Weld County comes from early diligence, clear IGAs, and practical planning around water rights, annexation, and bond timing. With a disciplined approach, you can deliver infrastructure that meets standards, keep taxes in check, and protect your exit.
If you want a seasoned partner to help you review district documents, model tax impacts, or coordinate with Windsor and Weld County, reach out to NorthStar Realty. Schedule a Land Consultation and put our Title 32, water rights, and entitlement experience to work on your acreage.
FAQs
What is a Title 32 metropolitan district in Colorado?
- It is a special district that funds and delivers public infrastructure and services like water, sewer, drainage, streets, and parks within a defined boundary under Colorado statutes.
How do Title 32 districts affect property taxes near Windsor?
- Districts levy mill levies that become part of your property tax bill, often to repay bonds and fund operations. Always verify current assessed value and certified mills with Weld County.
Who controls a district’s board during early development?
- Early control usually rests with the developer or landowners as eligible electors. Control can transition to resident voters as homes sell and people move into the district.
What is the difference between district debt mills and operations mills?
- Debt mills fund bond repayment for capital projects. Operations mills and fees fund ongoing services, maintenance, and administration.
How does annexation into the Town of Windsor change a district?
- Annexation can shift utility standards, require facility dedications, and change who operates services. IGAs define responsibilities and any future transfer of assets.
Why are water rights so important for Windsor-area districts?
- Colorado water is rights-based. Projects often need specific water rights or augmentation plans. Without them, your utility plan, bond timing, and project phasing can stall.
What documents should I review before buying in a district?
- Start with the service plan, budgets, bond documents, mill levy history, IGAs, water rights records, and election records that show who controls the board.
Can a Title 32 district be dissolved after bonds are paid off?
- Dissolution is possible if statutory requirements are met and all obligations are addressed. Many districts continue for operations unless assets are transferred by agreement.
