General Information About the District
The Second Creek Farm Metropolitan District No 2 (District), a quasi-municipal corporation and political subdivision of the State of Colorado, was organized by order and decree of the District Court for Adams County on November 21, 2002, and is governed pursuant to provisions of the Colorado Special District Act (Title 32, Article 1, Colorado Revised Statutes). The District operates under a service plan approved by the City of Commerce City (the City) on September 16, 2002, as amended on September 19, 2005. The District’s service area boundaries solely encompass Filing No 1 and Filing No 2 of the Second Creek Farm subdivision, which is comprised of 412 single family homes.
Currently, the District provides no services to residents of the District. Its sole function is to collect taxes under a debt mill levy and remit such funds to Second Creek Farm Metro District No 3 under a 2019 Capital Pledge Agreement. Click HERE for more information regarding the 2019 Capital Pledge Agreement.
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DISTRICT REVENUE SOURCES
In order to fund the 2019 Capital Pledge Agreement, the District generates revenue from the following sources:
Property Taxes: Each year, the District assesses property taxes on the homeowners living within the District. Property tax assessments are the District's primary source of revenue and currently comprises approximately 91% of the District's total annual revenue. Restrictions exist on how much property tax revenue the District can collect to fund (1) its annual operations and (2) its annual debt service.
- Tax Revenue for Operations: In May 2014, the land developer established a $2 million/year maximum limit on property tax revenue that the District can collect from property owners to fund the operations of the District. If the District desires to raise the annual revenue limit, it must first obtain voter approval from the voters within the District.
- Tax Revenue for Debt Service: For its annual debt service requirements (i.e. the principal and interest payments due on its debt), the District can set a mill levy of up to a maximum of 59.403 mills (2024 maximum limit per Service Plan) to generate property tax revenue to fund its debt service.
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State Tax Subsidies: Each year, the District receives a "specific ownership tax" subsidy from the State of Colorado. The State funds this subsidy from its collection of annual vehicle registration fee taxes paid by owners of Colorado-registered vehicles. The subsidy is paid out in the form of a matching contribution to the District and is calculated as a percentage of the total property taxes assessed by the District. The State establishes the rate each year for matching contributions. A historic trend of the matching rates set by the State is provided in Exhibit 1.
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Interest Income: State laws restrict the types of funds in which the District may invest its cash. For the past several years, the District's investment income has been an insignificant source of revenue to the District due to the low interest rates paid by banks on savings accounts and certain low-risk money market funds.
District Contractors
Click here to lean more about the District's contractors.