City Council Study Session Agenda and Packet 2019 11 12

Home Browse Search

PROPERTY Municipalities possess the power to acquire, hold, lease, and dispose of property, both real and personal.229 Article XI, section 2 of the Colorado Constitution, prohibits municipalities from making any "donation or grant" to private entities, and may apply where municipal property is disposed of without compensation, or for inadequate compensation. Statutes granting authority and providing procedures in connection with particular types of municipal property include: • C.R.S. § 31-15-701 (public buildings) • C.R.S. § 31-15-702 (streets and alleys) • C.R.S. § 31-15-714 (city and gas interests in municipally owned land) • C.R.S. §§ 31-25-201 et seq. and §§ 31-25-301 et seq. (parks) • C.R.S. §§ 31-25-701 et seq. (cemeteries) Statutory provisions for the disposition of municipal real property, by sale or lease, appear at C.R.S. § 31-15-713. Paragraph (a) requires an election to dispose of real property that is used or held for any governmental purpose. Property not so used or held may be disposed of merely by ordinance.230 C.R.S. § 31-15-801 authorizes municipalities to acquire property (including land, buildings, and equipment) through long-term rental and leasehold agreements. TABOR limitations concerning multiple fiscal year obligations and associated election requirements must be considered in connection with any lease -purchase arrangement. C.R.S. § 29-1-506 requires the governing body of each political subdivision to make an annual inventory of its real and personal property having an original cost that equals or exceeds an amount established by the governing body of each local government. The insurance of public property is the subject of C.R.S. article 13 of Title 29. UTILITIES Cities and towns have the power to acquire, own, and operate utilities are found at C.R.S. §§ 31-15-707 to 31-15-709, § 31 32 201, and § 31-35-402. These statutes contain election requirements for acquisition of utilities other than water and sewer utilities. An election is also required for the disposition of utility property pursuant to C.R.S. § 31-15-713(a). Article V, section 35 of the Colorado Constitution has been held to prohibit Public Utilities Commission (PUC) regulation of municipal utilities to the extent that they operate within the municipal boundaries. However, extraterritorial municipal utility services that are operated as "public utilities" are not constitutionally exempt from PUC regulation. The municipal provision of water service has been held to be in a different category from other utilities, however, because of the existence of C.R.S. § 31-35-402(1). This statute has been construed to prohibit PUC regulation of municipal water service regardless of whether that service is inside or outside municipal boundaries. There are federal and state constitutional constraints on the procedures used to terminate certain utility services for delinquencies. For this reason, municipal officials should work closely with the municipal attorney in situations where the possible termination of utility services arises. MISCELLANEOUS POWERS Many other powers have been granted to municipalities. A complete enumeration of the powers of the municipal governing body is impossible; many powers authorized decades ago remain in the statutes, although they have little application today. The primary goal for any municipality, of course, is not the exercise of all possible powers, but rather the discriminate use of those it needs. Before embarking on any new activity, the governing body should consult the statutes and obtain legal counsel to determine whether the municipality has authority to enter the field. 229 C.R.S. § 31-15-101(1)(d). 230 C.R.S. § 31-15-713(b). Heather Balser / City of Louisville Order # 42201 /Qrder Date: 10/31/2019 Copyright by C COLORADO MUNCIPAL GOVERNMENT.' AN INTRODUCTION