Colorado § 31-32-201 - Financing acquisition of utilities.

§ 31-32-201. Financing acquisition of utilities.

(1) In any municipality possessed of authority to acquire public utilities operating under general law or under article XX of the state constitution, unless otherwise provided by the charter of such municipality, no public utility shall be acquired until the plan for such acquisition has been adopted by ordinance and such ordinance has been approved at a regular or special election in the manner provided for authorization of bonded indebtedness by section 31-15-302 (1)(d). Nothing in this subsection (1) shall prevent the institution of condemnation proceedings as may be provided by law or require an election with respect to water facilities or sewerage facilities.

(2) Such ordinance shall describe the property to be acquired, the full purchase price to be paid by such municipality therefor, and the method of payment thereof as well as the total obligations to be incurred by such municipality in making such acquisition, whether by way of general obligation bonds of such municipality issued under the provisions of section 6 of article XI of the state constitution or by way of obligations chargeable solely or in part against the income of such utility, or both. In the event of the issuance of obligations payable solely out of income, all operating and other costs shall be met solely out of income of the utility acquired.

(3) Said ordinance may provide for the payment into such income fund for service to be rendered for municipal purposes, but such payments shall at all times be reasonable.

Source: L. 75: Entire title R&RE, p. 1244, § 1, effective July 1.

Editor's note: This section is similar to former § 31-32-201 as it existed prior to 1975.

ANNOTATION

This section in exact language provides for what must be included in a utilities plan ordinance. Citizens Util. Co. v. City of Rocky Ford, 132 Colo. 427, 289 P.2d 165 (1955).

And by its mandatory provisions discloses that a plan under a plan ordinance must give an accurate description of the property to be acquired. Citizens Util. Co. v. City of Rocky Ford, 132 Colo. 427, 289 P.2d 165 (1955).

Also, the plan ordinance must specify the exact amount to be paid, or the exact amount of the total obligation to be incurred, or the exact amount of the interest the obligations were to bear or fall far short of the statutory requirement. Citizens Util. Co. v. City of Rocky Ford, 132 Colo. 427, 289 P.2d 165 (1955).

Under this section, it is sufficient if the ordinance is adopted by a majority of the qualified electors voting and it is not necessary that it be adopted by a majority of all the qualified electors in the city. Weybright v. Klein, 104 Colo. 590, 92 P.2d 734 (1939).

Courts generally are hesitant to interfere with a will of the people as expressed in an election. Citizens Util. Co. v. City of Rocky Ford, 132 Colo. 427, 289 P.2d 165 (1955).

Courts should, and do, attempt to protect the people against incurring indebtedness where it appears that such is incurred without a full understanding of the true import of the indebtedness proposed. Citizens Util. Co. v. City of Rocky Ford, 132 Colo. 427, 289 P.2d 165 (1955).

This section recognizes the power of home rule cities to provide by charter the methods for acquiring or constructing light and power plants. It lays down the plan to be followed even by home rule cities "unless otherwise provided by the charter of such city or town". A recognition of the fact that they may so provide is an acknowledgment that they possess the power to do so. Cook v. City of Delta, 100 Colo. 7, 64 P.2d 1257 (1937).

This section does not apply to bonds issued for extension of municipally owned lighting system. The provisions of this section, providing that no public utility shall be acquired by a municipality until the ordinance therefor shall have been approved by the electors, has no application to the issuance of bonds for extension and improvement of a municipally owned electric lighting system. Searle v. Town of Haxtun, 84 Colo. 494, 271 P. 629 (1928).

But does apply where method of payment is by so-called revenue bonds. This section provides that no public utility shall be acquired by any city until the plan for such acquisition shall have been adopted by ordinance, approved by a majority of the qualified property electors. The ordinance shall describe the property to be acquired, the full purchase price to be paid, the method of payment, and the total obligation to be incurred, whether by way of general obligation bonds or by way of obligations chargeable solely or in part against the income of such utility. It would seem that the general assembly intended this section to apply to a situation where so-called revenue bonds are provided for. Colo. Cent. Power Co. v. Municipal Power Dev. Co., 1 F. Supp. 961 (D. Colo. 1932).

An ordinance providing alternate plans for acquiring an electric plant is not invalid. Colo. Cent. Power Co. v. Municipal Power Dev. Co., 1 F. Supp. 961 (D. Colo. 1932).

Applied in City of Thornton v. Pub. Utils. Comm'n, 157 Colo. 188, 402 P.2d 194 (1965).

ARTICLE 35

Water and Sewage

PART 1

WATER RIGHTS AND WORKS - GENERAL

31-35-101. Powers - canals - water rights - diversion - ratification of prior rights.

31-35-102. Ditch and canal management.

31-35-103. Trustees of waterworks - duties.

31-35-104. First election of trustees.

31-35-105. Trustees - qualifications.

31-35-106. Regular election of trustees.

31-35-107. Trustees - quorum - existing boards - secretary.

31-35-108. Acts of board - meetings - vacancies - compensation and bond.

31-35-109. Semiannual statement of condition.

31-35-110. Annual statement of estimate.

31-35-111. Election.

PART 2

LEASING WATER RIGHTS - CITIES OF OVER 200,000

31-35-201. Leasing of water - no rights vested.

PART 3

WATER MAINS AND OTHER IMPROVEMENTS - CITIES AND TOWNS

31-35-301. Construction of water mains.

31-35-302. Petition - plans - contract.

31-35-303. Necessity declared by ordinance.

31-35-304. Streets and alleys - eminent domain.

31-35-305. Sidewalks - assessment - hearing - lien.

31-35-306. Other laws not affected.

PART 4

SEWER AND WATER SYSTEMS

31-35-401. Definitions.

31-35-402. Powers.

31-35-403. Authorization of facilities and bonds.

31-35-404. Bond provisions.

31-35-405. Signatures on bonds.

31-35-406. Tax exemption.

31-35-407. Covenants in bond ordinance.

31-35-408. No municipal liability on bonds.

31-35-409. Remedies of bondholders.

31-35-410. Construction of part 4.

31-35-411. Pledge of other utility revenues.

31-35-412. Refunding bonds.

31-35-413. Incontestable recital in bonds.

31-35-414. Application of bond proceeds.

31-35-415. Continuing rights of bondholders.

31-35-416. Validation.

31-35-417. Effect of and limitations upon validation.

PART 5

MUNICIPAL WATER AND SEWER BOARDS

31-35-500.3. Definitions.

31-35-501. Creation of board.

31-35-502. Board - appointments - removal - bonds - meetings.

31-35-503. Oath - officers.

31-35-504. Board's administrative powers.

31-35-505. Meetings of board.

31-35-506. Additional administrative powers.

31-35-507. Budgets, accounts, and audits.

31-35-508. Records of board.

31-35-509. Conflicts in interest prohibited.

31-35-510. Authorization of facilities.

31-35-511. Implementing powers.

31-35-512. Additional powers of municipality.

31-35-513. Financial powers of municipality.

31-35-514. Other powers of board.

PART 6

SEWER CONNECTIONS - COMPULSORY

31-35-601. Owner to be notified.

31-35-602. Resolution adopted.

31-35-603. Cost of connection ascertained.

31-35-604. Work accepted - assessment - certified copy filed - lien.

31-35-605. Appropriation from general fund.

31-35-606. Assessments payable - proviso.

31-35-607. Payment in installments optional.

31-35-608. Installment payments - due date - interest.

31-35-609. Default in payment - penalty.

31-35-610. Discount for cash payment.

31-35-611. Payment of assessments - default - sale.

31-35-612. Owner of interest may pay his share.

31-35-613. When collections paid to municipality.

31-35-614. Construction of part 6.

31-35-615. Governing body to fix rates and charges.

31-35-616. Revenue kept in separate fund.

31-35-617. Failure to pay rates and charges - lien.

31-35-618. Prior rates and charges declared valid.

31-35-619. Surplus revenue diverted to general fund.

PART 7

SEWER RATES - AREA OUTSIDE CITIES OR TOWNS

31-35-701. Cities or towns may provide service outside boundaries.

31-35-702. Governing body agency of state.

31-35-703. Publication of ordinance.

31-35-704. Contents of ordinance.

31-35-705. Protest - board of adjustment.

31-35-706. Continuing annual charges.

31-35-707. Date and place of payment.

31-35-708. Nonpayment - penalty - lien.

31-35-709. Voluntary discontinuance by owner.

31-35-710. Duty to maintain system.

31-35-711. Rates may be collected by action.

31-35-712. Owner to obtain permit - penalty.

PART 1

WATER RIGHTS AND WORKS - GENERAL