C.R.S. Section 32-1-502
Exclusion of property within municipality

  • procedure

(1)

Intentionally left blank —Ed.

(a)

The governing body of any municipality wherein territory within a special district is located, the board of any special district with territory within the boundaries of any municipality, or fifty percent of the fee owners of real property in an area of any municipality in which territory within a special district is located may petition the court for exclusion of the territory described in the petition from the special district. Within ten days after the filing of any petition for exclusion, the governing body of the municipality and the board shall be notified of the exclusion proceedings. The taxpaying electors shall be notified of the exclusion proceedings by publication. The governing body of the municipality, the board, and the taxpaying electors, as a class, shall be parties to the exclusion proceedings.

(b)

The provisions of this section shall not apply to health service districts.

(c)

The provisions of this section shall not apply in the event that the territory described in the petition for exclusion constitutes the entire territory of the special district.

(2)

Subject to the provisions of subsection (5) of this section, the court shall hold a hearing on the petition and order the territory described in the petition or any portion thereof excluded from the special district if the following conditions are met:

(a)

The governing body of the municipality agrees, by resolution, to provide the service provided by the special district to the area described in the petition on and after the effective date of the exclusion order.

(b)

The service to be provided by the municipality will be the service provided by the special district in the territory described in the petition for exclusion.

(c)

The governing body of the municipality and the board shall each submit a plan for the disposition of assets and continuation of services to all areas of the district. Said plans shall include, if applicable, provisions for the maintenance and continuity of facilities to be utilized by the territories both within and without the municipal boundaries and of services to all territories served or previously served by the special district. If the municipality and the special district agree upon a single plan and enter into a contract incorporating its provisions, the court shall review such contract, and if it finds the contract to be fair and equitable, the court shall approve the contract and incorporate its provisions into its exclusion order. The court’s review of the provisions of the contract shall include, but not be limited to, consideration of the amount of the special district’s outstanding bonds, the discharge by the municipality or the territory excluded from the special district of that portion of the special district’s indebtedness incurred to serve the territory proposed for exclusion, the fair market value and source of special district facilities located within the territory proposed for exclusion, the facilities to be transferred which are necessary to serve the territory proposed for exclusion, the adequacy of the facilities retained by the special district to serve the remaining territory of the special district, the availability of the facilities transferred to the municipality for use, in whole or in part, in the remaining territory of the special district, the effect which the transfer of the facilities and assumption of indebtedness will have upon the service provided by the special district in territory which is not part of the exclusion, and the extent to which the exclusion reduces the services or facilities or increases the costs to users in the remaining territory of the special district.

(d)

If the municipality and the special district are unable to agree upon a single plan, the court shall review the plans of the municipality and the special district and direct each to carry out so much of their respective plans in which there is no disagreement and make such other provisions as the court finds fair and equitable, and shall make such allocation of facilities, impose such responsibilities for the discharge of indebtedness of the special district, and impose such other conditions and obligations on the special district and the municipality which the court finds necessary to permit the exclusion of territory from the special district and the transfer of facilities which are necessary to serve the territory excluded without impairing the quality of service nor imposing an additional burden or expense on the remaining territory of the special district. For the purpose of making such determination, the criteria set forth in this paragraph (d) and paragraphs (b) and (c) of this subsection (2) shall be considered. The respective portions of the plans to be performed, the transfer of facilities, and the requirements for the discharge of indebtedness of the special district and other conditions and obligations imposed by the court shall be specifically set forth in the order excluding territory from the special district.

(3)

Intentionally left blank —Ed.

(a)

The following additional requirements shall be met before any court orders the exclusion of any area from any water, sanitation, or water and sanitation district or any metropolitan district providing water or sanitation services or both:

(I)

Such district’s outstanding bonds shall not exceed ten percent of the valuation for assessment of the taxable property in the remaining territory of the special district, or, as an alternative, the municipality or the territory excluded from the special district shall discharge that portion of the special district’s indebtedness incurred to serve the territory proposed for exclusion or the municipality shall have entered into a contract to purchase the entire system or systems of such district at a price at least sufficient to pay in full all of the outstanding indebtedness of such district and all of the interest thereon.

(II)

Provision shall be made that all areas of such district receive the service or services for which such district was organized in substantial compliance and fulfillment of the service plan of the district, if one exists, or in accordance with the petition for organization of such district if no service plan was originally adopted and approved pursuant to part 2 of this article.

(b)

If an election in a water, sanitation, or water and sanitation district or a metropolitan district providing water or sanitation services or both has been held pursuant to subsection (7) of this section and the majority of votes cast favor the municipality providing the service, the municipality and such district shall enter into a contract for the municipality to assume full responsibility for the operation and maintenance of the entire system or systems of such district and to integrate said system or systems with those of the municipality to the largest extent possible. The terms and conditions of service and the rates to be charged by the municipality for said service under the contract shall be uniform with the terms, conditions, and rates for similar service provided by said municipality to other users within the municipality.

(4)

If no election has been held pursuant to subsection (5) of this section, the following additional requirement shall be met before any court orders the exclusion of any area from any fire protection district: The quality of service including, but not limited to, the fire insurance costs for the improvements within the excluded area will not be adversely affected by such exclusion.

(5)

Intentionally left blank —Ed.

(a)

After the filing of a petition for exclusion under subsection (1) of this section, ten percent or one hundred of the eligible electors of the special district territory proposed for exclusion, whichever number is less, may petition the court for a special election to be held within the special district territory proposed for exclusion on the question of exclusion of the territory described in the petition for exclusion. If a petition for a special election is filed with the court and complies with this subsection (5), the court shall order a special election to be held only after it finds the conditions of subsections (2)(a), (2)(c), and (2)(d) and, if applicable, of subsection (3) or (4) of this section are met. The election shall be held and conducted, and the results thereof determined, in the manner provided in article 13.5 of title 1. The special district shall bear the costs of the election.

(b)

If a majority of the electors voting at such election approve the question of exclusion, the court shall order the territory excluded from the special district in accordance with its findings on the conditions specified in subsection (2) and, if applicable, of subsection (3) or (4) of this section. If a majority of those voting do not approve the question, the court shall conclusively terminate the exclusion proceeding.

(6)

Any order for exclusion of territory from a special district shall become effective on January 1 next following the date the order is entered by the court. The order for exclusion shall recite in the findings a description of any bonded indebtedness in existence immediately preceding the effective date of the order for which the excluded property is liable and the date that such bonded indebtedness is then scheduled to be retired. After July 1, 1993, failure of the order for exclusion to recite the existence and scheduled retirement date of such indebtedness, when due to error or omission by the special district, shall not constitute grounds for correction of the omission of a levy on the excluded property from the assessment roll pursuant to section 39-5-125, C.R.S.

(7)

Intentionally left blank —Ed.

(a)

After any exclusion of territory under this section, the court may order an election of the electors of the portion of the special district remaining to determine whether they desire the municipality to provide the service provided by the special district if either of the following conditions exists:

(I)

More than fifty percent of the territory within the special district as it existed prior to such exclusion has been excluded; or

(II)

The valuation for assessment of the area of the excluded territory is greater than the valuation for assessment of the area of the remaining territory in the special district.

(b)

If a majority of the electors voting at such election approve the question requiring the municipality to provide such service, the court shall request the governing body of the municipality and the board to enter into a contract which will govern the providing of the service. The terms and conditions of the contract shall be reviewed and approved by the court, but in no event shall the terms, rates, and conditions be less equitable than for services supplied by a municipality to any other users within the municipality. The court’s review of the contract or, if the municipality and the special district after good faith negotiations are unable to agree upon a contract, the court’s order shall be in accordance with the criteria set forth in paragraphs (b), (c), and (d) of subsection (2) of this section. The special district shall continue in existence for the purpose of fulfilling any obligation imposed upon it by the contract with the municipality or otherwise.

(c)

Any election held pursuant to this subsection (7) shall be held and conducted, and the results thereof determined, in the manner provided in articles 1 to 13 of title 1, C.R.S.

Source: Section 32-1-502 — Exclusion of property within municipality - procedure, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-32.­pdf (accessed Oct. 20, 2023).

32‑1‑101
Short title 32‑1‑102
Legislative declaration 32‑1‑103
Definitions 32‑1‑104
Establishment of a special districts file 32‑1‑104.5
Audit and budget requirements - election results - description on state websites 32‑1‑104.8
Information statement regarding taxes and debt 32‑1‑105
Notice of organization, dissolution, name change, or boundary change 32‑1‑106
Repetitioning of elections - time limits 32‑1‑107
Service area of special districts 32‑1‑108
Correction of faulty notices 32‑1‑109
Early hearings 32‑1‑110
Construction with other laws 32‑1‑111
Validation of special districts - bonds 32‑1‑112
Validation of boundaries of metropolitan districts 32‑1‑113
Liberal construction 32‑1‑201
Applicability 32‑1‑202
Filing of service plan required - report of filing - contents - fee 32‑1‑203
Action on service plan - criteria 32‑1‑204
Public hearing on service plan - procedures - decision 32‑1‑204.5
Approval by municipality 32‑1‑204.7
Approval by an annexing municipality 32‑1‑205
Resolution of approval required 32‑1‑206
Judicial review 32‑1‑207
Compliance - modification - enforcement 32‑1‑208
Statement of purposes - districts without service plans 32‑1‑209
Submission of information 32‑1‑301
Petition for organization 32‑1‑302
Bond of petitioners 32‑1‑303
Court jurisdiction - transfer of file - judge not disqualified 32‑1‑304
Notice of court hearing 32‑1‑304.5
Court hearing not required - health service district - health assurance district 32‑1‑305
Court hearing - election - declaration of organization 32‑1‑305.5
Organizational election - new special district - first directors 32‑1‑306
Filing decree 32‑1‑307
Park and recreation districts - metropolitan districts providing parks and recreational facilities or programs - exclusion proviso 32‑1‑308
Applicability of article to existing districts and validation - districts being organized 32‑1‑401
Inclusion of territory - procedure 32‑1‑401.5
Fire protection districts - inclusion of personalty 32‑1‑402
Effect of inclusion order 32‑1‑501
Exclusion of property by fee owners or board - procedure 32‑1‑502
Exclusion of property within municipality - procedure 32‑1‑503
Effect of exclusion order 32‑1‑601
Definitions 32‑1‑602
Procedure for consolidation 32‑1‑602.5
Consolidation and review by administrative action 32‑1‑603
Procedure after consolidation election 32‑1‑604
Advisory board members 32‑1‑605
Special election provisions for consolidated districts 32‑1‑606
Bonded indebtedness of consolidated districts 32‑1‑606.5
Elector approval of financial obligations of consolidating districts 32‑1‑607
Powers 32‑1‑608
Subsequent consolidations 32‑1‑701
Initiation - petition - procedure 32‑1‑702
Requirements for dissolution petition 32‑1‑703
Notice of filing petition 32‑1‑704
Conditions necessary for dissolution - permissible provisions - hearings - court powers 32‑1‑705
Election notice 32‑1‑706
Conduct of election 32‑1‑707
Order of dissolution - conditions attached 32‑1‑708
Disposition of remaining funds - unpaid tax or levies 32‑1‑709
Dissolution of health service district - limitation 32‑1‑710
Dissolution by administrative action 32‑1‑801
Legislative declaration - applicability 32‑1‑802
Acts and elections conducted pursuant to provisions which refer to qualified electors 32‑1‑803
Acts and elections conducted pursuant to provisions which refer to registered electors 32‑1‑803.5
Organizational election - new special district 32‑1‑804
Board to conduct elections - combined election - time for special election 32‑1‑805.5
Ranked voting methods 32‑1‑806
Persons entitled to vote at special district elections 32‑1‑807
Nonapplicability of criminal penalties 32‑1‑808
Transfer of property title to qualify electors - limitations - validation 32‑1‑809
Notice to electors 32‑1‑901
Oath or affirmation and bond of directors 32‑1‑902
Organization of board - compensation - disclosure 32‑1‑902.5
Increasing the number of board members 32‑1‑902.7
Director districts 32‑1‑903
Meetings - definitions 32‑1‑904
Office 32‑1‑905
Vacancies 32‑1‑906
Directors subject to recall - applicability of laws 32‑1‑907
Recall election - resignation 32‑1‑908
Recall procedures 32‑1‑909
Recall petition - designated election official - approval as to form - definition 32‑1‑910
Petition in sections - signing - affidavit - review - tampering with petition 32‑1‑911
Resignation - vacancy filled - election - ballot - nomination 32‑1‑912
Incumbent not recalled - reimbursement - definition 32‑1‑913
Second recall petition 32‑1‑914
Powers of designated election official and county clerk and recorder 32‑1‑915
Costs of recall 32‑1‑1001
Common powers - definitions 32‑1‑1002
Fire protection districts - additional powers and duties 32‑1‑1003
Health service districts - additional powers 32‑1‑1003.5
Health assurance districts - additional powers - legislative declaration - definitions 32‑1‑1004
Metropolitan districts - additional powers and duties 32‑1‑1005
Park and recreation districts - additional powers - limitations 32‑1‑1006
Sanitation, water and sanitation, or water districts - additional powers - special provisions 32‑1‑1007
Ambulance districts - additional powers - special provisions 32‑1‑1008
Tunnel districts - additional powers - special provisions 32‑1‑1009
Regional tourism projects 32‑1‑1101
Common financial powers - definition 32‑1‑1101.5
Special district debt - quinquennial findings of reasonable diligence 32‑1‑1101.7
Establishment of special improvement districts within the boundaries of a special district 32‑1‑1103
Special financial provisions - health service districts 32‑1‑1105
Special financial provisions - tunnel districts 32‑1‑1106
Special financial provisions - metropolitan districts that provide fire protection, parks or recreational facilities or programs, street improvement, safety protection, or transportation services 32‑1‑1201
Procedure 32‑1‑1202
County officers to levy and collect - lien 32‑1‑1203
Sale for delinquencies 32‑1‑1204
Liability of property included or excluded from district 32‑1‑1301
Legislative declaration - applicability 32‑1‑1302
Refunding bonds 32‑1‑1303
Limitations upon issuance 32‑1‑1304
Use of proceeds of refunding bonds 32‑1‑1305
Combination of refunding and other bonds 32‑1‑1306
Board’s determination final 32‑1‑1307
Construction of part 13 32‑1‑1401
Legislative declaration 32‑1‑1402
Definitions 32‑1‑1403
Petition 32‑1‑1403.5
Notice and hearing by board 32‑1‑1404
Powers 32‑1‑1405
Powers not limited by this part 14 32‑1‑1406
Validation of bankruptcy filings and approvals 32‑1‑1601
Legislative declaration 32‑1‑1602
Definitions 32‑1‑1603
Separate mill levies - certification to county commissioners 32‑1‑1604
Recording 32‑1‑1605
Limitations on actions - prior law 32‑1‑1701
Legislative declaration 32‑1‑1702
New business facilities - expanded or existing business facilities - incentives - limitations - authority to exceed revenue-raising limitation 32‑1‑1801
Short title 32‑1‑1802
Legislative declaration 32‑1‑1803
Definitions 32‑1‑1804
Integrated project delivery contracts - authorization - effect of other laws 32‑1‑1805
Integrated project delivery contracting process - prequalification of participating entities - apprentice training 32‑1‑1806
Requests for proposals - evaluation and award of integrated project delivery contracts 32‑1‑1807
Supplemental provisions
Green check means up to date. Up to date

Current through Fall 2024

§ 32-1-502’s source at colorado​.gov