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Chaffee County conditionally approves Cleora metropolitan district service plan
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Summary
The Chaffee County Board of County Commissioners voted to approve, subject to final county‑attorney review, a service plan allowing formation of a Cleora Metropolitan District to fund water, streets and stormwater improvements through tax‑exempt bonds and a capped mill levy.
The Chaffee County Board of County Commissioners on Tuesday voted to approve, subject to final review by the county attorney, a service plan that would allow formation of the Cleora Metropolitan District to fund roads, water treatment and stormwater infrastructure for a planned residential development near Salida.
The commissioners' conditional approval follows a presentation from Jeffrey Herb, an attorney for the developer, who said the district would use tax‑exempt bond proceeds to pay for public improvements estimated at about $4.685 million and that the plan includes a debt cap of $7,050,000. The service plan sets a maximum mill levy cap of 60 mills, of which up to 50 mills would be available for debt, but Herb and the district's financial adviser said the actual levy would be set at whatever level is necessary to repay bonds — likely far lower than the cap.
Why it matters: Organizing a metropolitan district would create a local government entity with authority to issue bonds and levy property taxes within the district boundaries to build and maintain infrastructure that does not currently exist on the site, including streets, water distribution and a water treatment facility. The district would be organized under Colorado law and, if the commissioners' approval proceeds, the formation would be put to an election within the district and then reviewed by Chaffee County District Court.
Herb told the commissioners the district is proposed because roads, water, stormwater and a railroad crossing are not in place and because the type of infrastructure proposed is typically financed by a governmental entity rather than a private owner. "I would ask you to please approve our service plan today," Herb said. He also noted the district needs a quick timeline: if the commissioners approve, the group plans to seek a district court order to hold an organizing election on Nov. 4.
Commissioners asked how the county would be exposed financially if development slowed or the district could not meet bond obligations. Herb and the financial adviser said district bonds would be repaid from revenues the district can impose — principally property taxes and fees — and that the county would not inherit the district's debt. "It is not the case that Chaffee County would jump in," Herb said, describing the bonds as a limited pledge tied to the district's levy capacity and not to county general funds.
The board's approval was conditioned on final review by the county attorney to confirm that revisions provided to staff over the preceding weekend were acceptable. The commissioners' motion passed on a voice vote with all commissioners present saying "aye." The developer team and county staff said they would work to meet the court's timeline for the November election.
What's next: If the district's organizing election is successful, the district court would enter an order creating the metropolitan district and the entity would proceed to issue bonds as needed to construct the public improvements. The service plan includes a debt cap and use restrictions requiring funds to be spent on the public improvements specified in the plan.
(Ending) The county's conditional approval moves the proposal to a district‑court hearing and a property‑owner election; the district — if organized — would carry authority to levy property taxes and issue debt limited to the district and its voters.
