First Regular Session

Sixty-first General Assembly

LLS NO. 97­0394.01 GWF HOUSE BILL 97­1271

STATE OF COLORADO

BY REPRESENTATIVE Hagedorn;

also SENATOR Perlmutter.

LOCAL GOVERNMENT

A BILL FOR AN ACT

CONCERNING THE AUTHORITY OF A BOARD OF A SPECIAL DISTRICT TO DIVIDE THE SPECIAL DISTRICT INTO AREAS, AND, IN CONNECTION THEREWITH, ALLOWING THE BOARD TO FURNISH SERVICES, PROGRAMS, AND FACILITIES WITHIN THE AREAS AND TO LEVY TAXES UPON PROPERTY WITHIN THE AREAS TO PAY THE COSTS ASSOCIATED WITH FURNISHING ANY SUCH SERVICES, PROGRAMS, AND FACILITIES WITHIN SUCH AREAS.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Authorizes the board of a special district to divide the district into areas for the purpose of providing services, programs, and facilities within the areas. Provides that the board has the authority to levy property taxes within an area, in addition to any levies for the district as a whole, to pay the costs associated with the services, programs, and facilities furnished within the area. Allows the board to pledge revenues from levies within the area for the repayment of bonds issued to finance services, programs, and facilities in the area. Allows the board to establish special improvement districts within the special district. Requires voter approval from electors within the area for tax increases and multiple­fiscal year debts or other financial obligations benefitting the area.

Specifies that the board of a special district shall notify certain counties and municipalities when the board divides the district into areas. Provides that counties and municipalities may elect to treat the division of a special district into areas as a material change of the district service plan.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  32­1­1101 (1), Colorado Revised Statutes, as amended, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

32­1­1101.  Common financial powers. (1)  For and on behalf of the special district, the board has the following powers:

(f) (I)  TO DIVIDE THE SPECIAL DISTRICT INTO AREAS CONSISTENT WITH THE SERVICES, PROGRAMS, AND FACILITIES TO BE FURNISHED THEREIN;

(II)  TO FIX FEES, RATES, TOLLS, SPECIAL ASSESSMENTS, PENALTIES, OR CHARGES AND FIX DIFFERENT RATES OF LEVY FOR PROPERTY TAX PURPOSES AGAINST ALL OF THE TAXABLE PROPERTY WITHIN THE AREAS OF THE SPECIAL DISTRICT ACCORDING TO THE SERVICES, PROGRAMS, AND FACILITIES FURNISHED OR TO BE FURNISHED THEREIN. THE BOARD MAY PLEDGE SUCH REVENUES FOR THE REPAYMENT OF ANY BONDS OF THE DISTRICT ISSUED TO FINANCE SERVICES, PROGRAMS, AND FACILITIES FURNISHED OR TO BE FURNISHED WITHIN THE AREA FROM WHICH SUCH REVENUES WERE COLLECTED.

(III)  IN ORDER TO DEFRAY ALL OR ANY PORTION OF THE COSTS OF THE IMPROVEMENTS PROVIDED BY THE DISTRICT, TO ESTABLISH SPECIAL IMPROVEMENT DISTRICTS WITHIN THE BOUNDARIES OF THE DISTRICT. SUCH SPECIAL IMPROVEMENT DISTRICTS MAY BE ESTABLISHED WHENEVER, IN THE OPINION OF THE BOARD, PROPERTY IN THE SPECIAL IMPROVEMENT DISTRICT WILL BE ESPECIALLY BENEFITTED BY SUCH IMPROVEMENTS. THE METHOD OF CREATING SPECIAL IMPROVEMENT DISTRICTS, MAKING THE IMPROVEMENTS, AND ASSESSING THE COSTS THEREOF SHALL BE AS PROVIDED IN SECTION 31­25­1219, C.R.S., AND IN GENERAL CONFORMANCE WITH THE PROVISIONS OF THIS ARTICLE; EXCEPT THAT THE BOARD SHALL PERFORM THE DUTIES OF THE GOVERNING BODY, THE SECRETARY OF THE DISTRICT SHALL PERFORM THE DUTIES OF THE CLERK, AND THE IMPROVEMENTS THAT MAY BE CONSTRUCTED SHALL BE THE IMPROVEMENTS THAT THE DISTRICT IS PERMITTED TO PROVIDE PURSUANT TO THIS ARTICLE.

(IV)  IF THE BOARD DIVIDES THE SPECIAL DISTRICT INTO AREAS PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH (f), TO DETERMINE THE AMOUNT OF MONEY NECESSARY TO BE RAISED BY TAXATION WITHIN EACH AREA, TAKING INTO CONSIDERATION OTHER SOURCES OF DISTRICT REVENUES WITHIN THE AREA, AND TO FIX A LEVY IN ADDITION TO ANY OTHER AD VALOREM TAXES OF THE DISTRICT THAT, WHEN LEVIED ON THE VALUATION FOR ASSESSMENT OF ALL TAXABLE PROPERTY WITHIN THE AREA, WILL SUPPLY FUNDS FOR THE PAYMENT OF THE COSTS OF ACQUIRING, OPERATING, AND MAINTAINING THE SERVICES, PROGRAMS, AND FACILITIES FURNISHED OR TO BE FURNISHED IN THE AREA AND WILL PAY WHEN DUE ANY PRINCIPAL AND INTEREST ON BONDS OR OTHER OBLIGATIONS ASSOCIATED WITH SUCH FACILITIES AS WELL AS THE AREA'S PRO RATA SHARE OF THE GENERAL OPERATING EXPENSES OF THE DISTRICT;

(V)  UPON APPROVAL BY A MAJORITY VOTE OF THE ELIGIBLE ELECTORS WITHIN THE AREA PURSUANT TO THE PROVISIONS OF THIS ARTICLE AND SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION:

(A)  TO IMPOSE OR INCREASE ANY TAX WITHIN AN AREA; OR

(B)  TO CREATE ANY MULTIPLE­FISCAL YEAR DIRECT OR INDIRECT DISTRICT DEBT OR OTHER FINANCIAL OBLIGATION USED TO FURNISH SERVICES, PROGRAMS, AND FACILITIES WITHIN AN AREA OF THE SPECIAL DISTRICT DESIGNATED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH (f);

(VI)  WHENEVER THE BOARD DIVIDES THE SPECIAL DISTRICT INTO AREAS PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH (f), TO PROVIDE NOTIFICATION OF SUCH ACTION TO THE BOARD OF COUNTY COMMISSIONERS OF EACH COUNTY THAT HAS TERRITORY INCLUDED WITHIN THE DISTRICT AND THE GOVERNING BODY OF ANY MUNICIPALITY THAT HAS ADOPTED A RESOLUTION OF APPROVAL OF THE DISTRICT PURSUANT TO SECTION 32­1­204.5. EACH BOARD OF COUNTY COMMISSIONERS AND MUNICIPAL GOVERNING BODY THAT IS ENTITLED TO SUCH NOTIFICATION MAY, WITHIN TWENTY DAYS AFTER SUCH NOTIFICATION, ELECT TO TREAT THE ACTION AS A MATERIAL MODIFICATION OF THE DISTRICT SERVICE PLAN IN ACCORDANCE WITH SECTION 32­1­207 (2).

SECTION 2.  Safety clause.  The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.