Metro Districts are used by real-estate developers to publicly finance improvements such as infrastructure and amenities within the community. Often they do so by issuing bonds and using the proceeds of the bonds to complete the infrastructure requirements for the community. The Metro District then issues a mill levy (i.e. property tax) to fund the repayment of the bonds.
The Special District Act (C.R.S. Article 32) under which the Metro District is formed, is fairly flexible as to the structure of the Metro Districts. Developers often take advantage of the 'loopholes' in the statutes in order to control the issuance of the bonds and how the proceeds are spent. Developers hire law firms that specialize in crafting agreements to the benefit of the developer within the context of the Special District Act.
One such scheme that developers and their lawyers use is to structure the district into two separate governing boards. One board is the taxing board and the other board determines how the monies collected with be spent. The two boards develop an intergovernmental agreement (IGA) which identifies the specific roles each board plays. The structure is developed such that the families that move into community can serve on the taxing board, but cannot EVER serve on the board that determines how the money is spent. These structures are essentially put in place prior to the development selling their first lot (and the developer still owns 100% of the land) and are nearly impossible to change.