2023 Colorado Revised Statutes › Title 31 - GOVERNMENT - MUNICIPAL (§§ 31-1-101 — 31-35-712) › POWERS AND FUNCTIONS OF CITIES AND TOWNS (§§ 31-15-101 — 31-35-712) › Article 15 - EXERCISE OF MUNICIPAL POWERS (§§ 31-15-101 — 31-15-1101) › Part 3 - GENERAL FINANCIAL POWERS (§§ 31-15-301 — 31-15-302) › Section 31-15-302 - [Effective 8/7/2024] Financial powers - legislative declaration

(1)
The governing bodies in municipalities shall have the following general powers in relation to the finances of the municipality:
(a)
To control the finances and property of the corporation;
(b)
To appropriate money for municipal purposes only and provide for payment of debts and expenses of the municipality;
(c)
To levy and collect taxes for general and special purposes on real and personal property;
(d)
(I)
To contract indebtedness on behalf of the municipality and upon the credit thereof by borrowing money or issuing the bonds of the municipality for any public purpose of the municipality, including but not limited to the following purposes: Supplying water, gas, heating and cooling, and electricity; purchasing land; and purchasing, constructing, extending, and improving public streets, buildings, facilities, and equipment; and for the purpose of supplying a temporary deficiency in the revenue for defraying the current expenses of the municipality.
(II)
The total amount of indebtedness for all such purposes shall not at any time exceed three percent of the actual value, as determined by the assessor, of the taxable property in the municipality except such debt as may be incurred in supplying water. No loan for any purpose shall be made except by ordinance, which shall be irrepealable until the indebtedness provided for is fully paid or discharged, specifying the purposes to which the funds to be raised shall be applied and providing for the levying of a tax which, together with such other revenue, assets, or funds as may be pledged, is sufficient to pay the annual interest and extinguish the principal of said debt within the time limited for the debt to run, which, except such debt as may be incurred in supplying water, shall not be more than thirty years, and further providing that said tax, when collected, shall only be applied for the purposes specified in said ordinance until the indebtedness is paid and discharged. No debt shall be created, except in supplying water, unless the question of incurring the same is submitted, at a regular or special election of the municipality, to the registered electors thereof as defined by the "Colorado Municipal Election Code of 1965" and a majority of the registered electors voting upon the question vote in favor of creating such debt.
(III)
No statutory provisions of any other law limiting or fixing tax rates shall limit the provisions of this paragraph (d).
(IV)
Bonds issued under this paragraph (d) may mature serially during a period of not more than thirty years from the date thereof, in which event the amounts of such annual maturities shall be fixed by the governing body; except that bonds issued to supply water may mature over a longer period. If the governing body so determines, said bonds may be redeemable prior to maturity with or without payment of a premium, not exceeding three percent of the principal thereof. In any event said bonds shall be subject to call commencing not later than fifteen years after the date thereof. The right to redeem all or part of said bonds prior to their maturity and the order of any such redemption shall be reserved in the ordinance authorizing the issuance of bonds and shall be set forth on the face of said bonds.
(V)
The ordinance or resolution submitting the question of contracting an indebtedness shall contain a statement of the maximum net effective interest rate at which said indebtedness may be incurred.
(VI)
(A)
The governing body of any municipality, having received approval at an election to issue bonds and having determined that the limitations of the original election question are too restrictive to permit the advantageous sale of the bonds so authorized, may submit at another regular or special election the question of issuing the bonds or any portion thereof at a higher maximum net effective interest rate than the maximum interest rate or maximum net effective interest rate approved at the original election; the question of issuing the bonds or any portion thereof to mature over a longer period of time than the maximum period of maturity approved at the original election; or both such questions.
(B)
An election held pursuant to this subparagraph (VI) shall be held in substantially the same manner as an election to authorize bonds initially except as may be required for the submission of the limited question permitted under this subparagraph (VI).
(C)
At an election held pursuant to this subparagraph (VI), if the changes submitted are not approved, such result shall not impair the authority of the governing body at a later time to issue the bonds originally approved within the limitations established at the first election.
(e)
To prescribe, by general ordinance, the manner in which the charge on the respective owners of lots or lands, and on the lots or lands, shall be assessed and determined for the purposes so authorized by law. Such charge, when assessed, shall be payable by the owners at the time of the assessment, personally, and also shall be a lien upon the respective lots or parcels of land from the time of the assessment. Such charge may be collected and such lien enforced by a proceeding at law or in equity, either in the name of such municipality or of any person to whom it has directed payment be made. In any such proceedings, where pleadings are required, it shall be sufficient to declare generally for work and labor done and materials furnished on the particular street, alley, or highway or for water rent or gas used. Proceedings may be instituted against all the owners, or any of them, to enforce the lien against all the lots or land, or each lot or parcel, or any number of them embraced in any one assessment; but the judgment or decree shall be entered separately for the amount properly chargeable to each. Any proceedings may be severed in the discretion of the court for the purpose of trial, review, or appeal.
(f)
(I)
For the purpose of providing and accumulating funds for the construction, acquisition, or improvement of public buildings, water facilities, sewer facilities, heating and cooling works, or other public works or to supplement bond issues for the same purpose, the governing body of each municipality is authorized to create, by resolution, a public works fund, setting forth in such resolution the description and location of the buildings, water facilities, sewer facilities, heating and cooling works, or other public works to be constructed, acquired, or improved; the estimated cost of the same; the annual tax levy required; and the number of years such a levy should be made; and the time of a public hearing. In lieu of an ad valorem levy, the governing body of the municipality may provide for other taxes or revenues authorized by law which will produce equivalent funds.
(II)
If the amount needed does not require a tax levy in excess of two mills, the governing body is authorized, after a public hearing, to make such a levy without putting the proposition to a vote of the qualified electors. If a special levy in excess of two mills for any one fiscal year is required, the governing body, by resolution, in their discretion may submit to the registered electors of such municipality the question of making such a special levy. The special election may be held on the same day as any other special or general election.
(III)
In submitting the question to said electors, a ballot shall be printed giving the description and location of the public buildings, water facilities, sewer facilities, or other public works to be constructed, acquired, or improved; the estimated maximum amount to be expended for each single purpose; and the maximum mill levy, if any, required for each specified year. Each project shall be printed separately on the ballot.
(IV)
The money derived from the special levy authorized shall be credited by the treasurer of the respective municipality to a special fund to be known as the public works fund. Such funds may be accumulated and held over for expenditure in subsequent years, but they shall be used only for the public works authorized. The governing body may change the purpose for which the fund may be expended after holding a public hearing. When the public works have been constructed, acquired, or improved and paid for, any unexpended balance in the public works fund shall be transferred to the general fund of the municipality.
(g)
To deposit any moneys of general or special funds in any depository authorized in section
24-75-603
, C.R.S. For the purpose of making such deposits, the governing body of a municipality may appoint, by written resolution, one or more persons to act as custodians of the moneys of the municipality. Such persons shall give surety bonds in such amounts and form and for such purposes as the governing body requires.
(h)
To enter into installment purchase contracts or shared-savings contracts or otherwise incur indebtedness under section
29-12.5-103
, C.R.S., to finance energy conservation and energy saving measures and enter into contracts for an analysis and recommendations pertaining to such measures under section
29-12.5-102
, C.R.S.;
(i)
(I)
For a municipality that has a population of twenty thousand or fewer residents, to enter into contracts with a health-care provider, who is licensed in this state, to provide health-care services to such municipality. Such health-care providers shall be known as "community contracted health-care providers".
(II)
The general assembly hereby finds, determines, and declares that access to health-care services in rural areas is an increasing problem in Colorado. Some rural Coloradans do not have access to a primary care provider in their town and are forced to travel. It is the intent of the general assembly to ease the strain on rural Coloradans' health-care needs by allowing a municipality with twenty thousand or fewer residents to contract with a health-care provider to provide health-care services to rural areas.
(III)
(Deleted by amendment, L. 2008, p. 212, § 1, effective March 26, 2008.)
(j)
To establish and administer an incentive program to directly incentivize improvement in an area of specific local concern related to the use of real property in the municipality in accordance with section 31-20-101.7.
Amended by 2024 Ch. 25,§ 4, eff. 8/7/2024.
L. 75: Entire title R&RE, p. 1106, § 1, effective July 1. L. 79: (1)(g) added, p. 1618, § 20, effective June 8. L. 81: (1)(d)(I) and (1)(f)(I) amended, p. 1454, § 2, effective May 27. L. 91: (1)(h) added, p. 733, § 6, effective May 1. L. 2001: (1)(i) added, p. 1164, § 13, effective June 5. L. 2007: (1)(i)(III) amended, p. 2046, § 85, effective June 1. L. 2008: (1)(i) amended, p. 212, § 1, effective March 26.
The provisions of this section are similar to provisions of several former sections as they existed prior to 1975.
2024 Ch. 25, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.
(1) For the "Colorado Municipal Election Code of 1965", see article 10 of this title. (2) For the legislative declaration contained in the 2001 act enacting subsection (1)(i), see section 1 of chapter 300, Session Laws of Colorado 2001.