Colorado § 29-1-108 - Adoption of budget - appropriations - failure to adopt.

§ 29-1-108. Adoption of budget - appropriations - failure to adopt.

(1) The governing body of the local government shall hold a hearing to consider the adoption of the proposed budget, at which time objections of the electors of the local government shall be considered. The governing body shall revise, alter, increase, or decrease the items as it deems necessary in view of the needs of the various spending agencies and the anticipated revenue of the local government. Adoption of the proposed budget shall be effective only upon an affirmative vote of a majority of the members of the governing body.

(2) Before the mill levy is certified pursuant to section 39-1-111 or 39-5-128, C.R.S., the governing body shall enact an ordinance or resolution adopting the budget and making appropriations for the budget year. The amounts appropriated shall not exceed the expenditures specified in the budget. Appropriations shall be made by fund or by spending agencies within a fund, as determined by the governing body. Changes to the adopted budget or appropriation shall be made in accordance with the provisions of section 29-1-109.

(3) If the governing body fails to adopt a budget before certification of the mill levy as provided for in subsection (2) of this section, then ninety percent of the amounts appropriated in the current fiscal year for operation and maintenance expenses shall be deemed reappropriated for the purposes specified in such last appropriation ordinance or resolution.

(4) (a) If the appropriations for the budget year have not been made by December 31 of the current fiscal year, then ninety percent of the amount appropriated in the current fiscal year for operation and maintenance expenses shall be deemed reappropriated for the budget year.

(b) Repealed.

(4.5) Repealed.

(5) Notwithstanding any other provision of law, the adoption of the budget, the appropriation of funds, and the certification of the mill levy shall be effective upon adoption.

(6) All unexpended appropriations, or unencumbered appropriations if the encumbrance basis of budgetary accounting is adopted, expire at the end of the fiscal year.

Source: L. 90: Entire part R&RE, p. 1432, § 1, effective January 1, 1991. L. 2023, 1st Ex. Sess.: (4) amended and (4.5) added, (SB 23B-001), ch. 1, pp. 7, 9, §§ 4, 6, effective November 20.

Editor's note: (1) This section is similar to former §§ 29-1-110 and 29-1-111 as they existed prior to 1990.

(2) Subsection (4.5)(b) provided for the repeal of subsection (4.5), effective July 1, 2024. (See L. 2023, 1st Ex. Sess., p. 9.)

(3) Subsection (4)(b)(II) provided for the repeal of subsection (4)(b), effective July 1, 2025. (See L. 2023, 1st Ex. Sess., p. 7.)

ANNOTATION

Annotator's note. Since § 29-1-108 is similar to §§ 29-1-110 and 29-1-111 as they existed prior to the 1990 repeal and reenactment of this part 1, relevant cases construing those provisions have been included in the annotations to this section.

This section requires the governing body of such subdivisions to enact an appropriation resolution for each fiscal year and further states that the amounts appropriated shall not exceed the amounts established by the budget as adopted. Shannon Water & San. Dist. v. Norris & Sons Drilling Co., 29 Colo. App. 48, 477 P.2d 476 (1970).

Taxpayers may demand refund of excess school taxation. If school directors, although proceeding in form as required by law, certify an amount to be raised by taxation greatly beyond the school requirements, they thereby supply a basis for a demand by taxpayers for a refund of the excess. Lowden v. Bd. of County Comm'rs, 101 Colo. 52, 69 P.2d 779 (1937).

Circumstances to be considered by governing body in determining reasonableness of salaries include the amount of revenue available, the needs of other county departments, and the ability of the county's taxpayers to fund additional requests, as well as the requesting department's need for the expenditures. Tihonovich v. Williams, 196 Colo. 144, 582 P.2d 1051 (1978).

Purpose of subsections (3) and (4) is to prevent collapse of governmental subdivision. These provisions were designed to insure that various governmental subdivisions regulated by the budget law would not collapse through failure to adopt a budget or to appropriate moneys; rather, under it, subdivisions failing to budget or appropriate are at least allowed to maintain themselves and to carry out essential functions of public service until such time as a proper budget is adopted and appropriations made. Shannon Water & San. Dist. v. Norris & Sons Drilling Co., 29 Colo. App. 48, 477 P.2d 476 (1970).

Certification of tax levy no substitute. Certification of the tax levy to the board of county commissioners does not correct a water and sanitation district's failure to adopt a budget and pass an appropriation resolution. Shannon Water & San. Dist. v. Norris & Sons Drilling Co., 29 Colo. App. 48, 477 P.2d 476 (1970).

This section does not permit initiation of new projects or capital expenditures. Shannon Water & San. Dist. v. Norris & Sons Drilling Co., 29 Colo. App. 48, 477 P.2d 476 (1970).

Applied in City of Englewood v. Ripple & Howe, Inc., 150 Colo. 434, 374 P.2d 360 (1962); Gude v. City of Lakewood, 636 P.2d 691 (Colo. 1981).