Opinion ID: 1293270
Heading Depth: 1
Heading Rank: 6

Heading: Local Interests

Text: In contrast to the asserted state interests in forbidding municipal residency rules, the asserted local interests here are substantial. We first note that Article XX, Section 6(a) by its terms grants to home rule cities the power to legislate upon, provide, regulate, conduct and control [t]he creation and terms of municipal officers, agencies and employments; the definition, regulation and alteration of the powers, duties, qualifications and terms or tenure of all municipal officers, agents and employees.... Thus, the cities' claim that the residency of municipal employees is a matter appropriate for local regulation finds direct textual support in Section 6(a). Further, our cases have supported a broad interpretation of this provision. See Local No. 127, Int'l Bhd. of Police Officers v. City & County of Denver, 185 Colo. 50, 521 P.2d 916 (1974) (Denver city charter and not state statute controlled the question of whether Denver sheriffs have legal authority to make arrests); Coopersmith v. City & County of Denver, 156 Colo. 469, 399 P.2d 943 (1965) (Denver as home rule city has control over tenure and retirement of employees despite possible conflicts with state). On the other hand, the authority granted to home rule municipalities in Section 6(a) is not unlimited. For example, the cities do not dispute the applicability of laws which implement the state's general public policy regarding such matters as workers' compensation or employment discrimination even though such laws may interfere with a municipality's right to determine the terms or tenure of municipal employment. This result follows because, with respect to aspects of municipal employment which are of statewide concern, state statutes may supersede inconsistent municipal provisions. Evert v. Ouren, 37 Colo.App. 402, 549 P.2d 791 (1976). See City of Colorado Springs v. Industrial Comm'n, 749 P.2d 412 (Colo.1988) (eligibility of municipal employees for unemployment compensation benefits was a matter of statewide concern); City of Aurora v. Aurora Firefighters' Protective Ass'n, 193 Colo. 437, 566 P.2d 1356 (1977) (collective bargaining of public employees matter of both statewide and local concern). Although we agree with the state that the enumeration in Section 6 of matters subject to regulation by home rule municipalities is not dispositive, we also agree with the cities that it is significant. If the state is unable to demonstrate a sufficiently weighty state interest in superseding local regulation of such areas, then pursuant to the command of Section 6, statutes in conflict with such local ordinances or charter provisions are superseded. In addition to the textual support found in Section 6, Denver offered other reasons supporting local control of city employee residency. Denver Mayor Federico Pena testified before the district court and explained the policy reasons behind Denver's residency requirement. First, according to the Mayor, the residency requirement was intended to increase the investment of city tax dollars in the community under the assumption that Denver workers living in Denver are more likely to pay taxes in Denver. For example, as property owners, they will pay Denver property taxes and as consumers they will pay the sales tax. [10] Second, Pena testified that requiring employees to live within the city limits would make them more readily available in the event of a civic emergency. Third, requiring city residency for workers will make them more attentive, compassionate and diligent in their work. [11] We find all these reasons to be valid. Although the ready availability of employees for an emergency may be most applicable to a relatively small number of employees, such as fire fighters and police officers, the other legitimate reasons offered by the city apply equally to all city employees. Particularly, we are impressed with Denver's argument that requiring municipal employees to reside within the city limits will instill a sense of pride in their work by guaranteeing that the employees have a stake in the common enterprise of municipal government and thereby may make them more attentive, compassionate and diligent in the way that they provide municipal services to Denver residents. In finding that the residency of municipal employees is of local concern and therefore governed by a charter provision or ordinance of a home rule city rather than a conflicting state statute, we distinguish several cases. First, in City of Colorado Springs v. Industrial Commission, 749 P.2d 412 (Colo.1988), we found that unemployment compensation was a matter of statewide concern and thus that state statutory provisions superseded any conflicting local charter provisions or ordinances of home rule cities. City of Colorado Springs v. Industrial Comm'n, 749 P.2d at 416. Like the sign code at issue in National Advertising, 751 P.2d 632, unemployment compensation is subject to pervasive federal standards. See section 8-70-103(10)(f), 3B C.R.S. (1986) (federal law defines employment as including those employed by state and its political subdivisions). Undoubtedly, the state's interest in uniformity among municipalities and between government and private sector workers with respect to unemployment compensation as well as its concern for compliance with federal law and the integrity of the unemployment compensation fund justified the holding in that case and supports the notion that the state interest in the general applicability of unemployment compensation laws was substantial. In Huff v. Mayor of Colorado Springs, 182 Colo. 108, 512 P.2d 632 (1973), we held that the matter of fire fighters' pensions is one of statewide interest and concern. In Huff, we noted that fire fighting was a hazardous employment which required a great deal of physical strength, intelligence and skill. In order to attract the caliber of individuals necessary, municipalities must offer a competitive pension plan. Huff, 182 Colo. at 113, 512 P.2d at 634. Thus, we held that although the city had an interest in fire fighters' pensions, the state statute governing such pensions superseded municipal home rule provisions because the matter was of statewide concern. The establishment of a uniform fireman's pension plan statewide was in the exercise of the police powers of this state for the purpose of protecting the health, peace, safety and general welfare of the people of this state. City of Colorado Springs v. State, 626 P.2d 1122, 1129 (Colo.1980), citing § 31-30-802, C.R.S.1973 (1977 Repl.Vol. 12) (1980 Supp.) (legislative declaration). The state in this case cannot point to any similar state purpose in enacting section 8-2-120. [12] In Evert v. Ouren, 37 Colo.App. 402, 549 P.2d 791 (1976), the court of appeals rejected Denver's argument that it had an absolute right to set the salaries of employees of the Denver Department of Social Services. The court of appeals held that Article XX, Section 6(a) respecting the setting of conditions of employment relates only to municipal employees. Because social services in Colorado are provided by a state program, the court properly found that the setting of the salaries of social services employees was a matter of statewide concern. Evert, 549 P.2d at 794. We see no inconsistency between our decision here and the court of appeals' decision in Evert. The setting of salaries for persons administering state programs is clearly of substantial state interest. Once again, no similar interest can be claimed with respect to the residency of municipal employees.