Laserfiche WebLink
<br />November 9, 2006 <br /> <br />INTRAOFFICE MEMORANDUM <br /> <br />TO: Eric Hecox, Manager, Office ofInterbasin Compact Negotiations, <br />Colorado Department of Natural Resources <br /> <br />THRU: Casey Shpall <br />Deputy Attorney General <br /> <br />FROM: Amy F. Stengel <br />Assistant Attorney General <br />Natural Resources and Environment Section <br /> <br />RE: TABOR and Grants from the Water Supply Reserve Account <br /> <br />The Office ofInterbasin Compact Negotiations is requesting guidance from the Attorney <br />General's Office regarding whether grants from the Water Supply Reserve Account (SB-06-179) <br />for water activities are exempt from TABOR. The Rio Grande Water Conservation District, and <br />other conservation districts, would like to apply for a grant from the Reserve Account but it is <br />not clear whether these districts will need to hold a ballot election to apply for the grants because <br />of TABOR's spending restrictions. The opinions contained in this memorandum are the author's <br />alone, and do not reflect the opinion of the Attorney General. <br /> <br />ISSUE: Whether grants from the Water Supply Reserve Account for water activities are <br />exempted from TABOR's spending limitations. <br /> <br />SHORT ANSWER: No. There is no TABOR exception for grants from the Water Supply <br />Reserve Account. Districts will either need to hold an election to spend the grant money or <br />establish a water activity enterprise which is exempted from TABOR restrictions. <br /> <br />ANALYSIS: <br /> <br />1. Conservation Districts are Subiect to TABOR limitations <br /> <br />Amendment I of the Colorado Constitution (Taxpayers' Bill of Rights, or "TABOR") <br />requires districts to hold elections to obtain voter approval in advance for increases in taxes and <br />spending and for direct or indirect debt increases. Colo. Const. art. X, ~ 20, cl. (2)(b). <br />"Districts" are defined as "the state or any local government, excluding enterprises." Colo. <br />Const. art X, ~ 20, cl. (2)(b). The express statutory language in the water activity enterprise <br />statute makes clear that the legislature intended conservation districts to be subject to the <br />provisions of TABOR: <br />