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<br />ST~fiL~<<
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<br />January 15, 1999
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<br />Ms, Linda Bassi
<br />Office of the Attomey General
<br />State Services Building
<br />1525 Sherman Street
<br />Denver, Colorado 80203
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<br />RECEIVED
<br />JAN 1 5 1999
<br />
<br />Colorado Water
<br />Cons8lVatiO(l Board
<br />
<br />RE:
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<br />.,..,_.::.:;.",:,~~....-". .
<br />Legality of State Funds for Fj.qqdJ:>lain Mitigati.c1"
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<br />City of sterling
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<br />I have been requested by ltIe' Attomey G~~~~l's~ce:ici,submi(?n opinion as to whether or
<br />not the Cit-j wo...ld be in cvmpliance\';;itiT.tabl5r$'.:nh~:City receives state funds for partial
<br />payment of the construction of flood : {i1i!i9iltion . iiifrastIVcture. The) axpayer's Bill of Rights,
<br />Article X, Sec. 20 of theiColoradp Cons(itl.!tipr:l ~f!lViqe~}T9r; restriei[Qns on local govemment
<br />entities, excluding enterprises, for taXin!i~aifcFspendi6g:-'as'well as axcess revenue. Case law
<br />has well-established the; princiPIll!,. itia'~~th~ vc.ters 'iil;1ai~'0PJ 'out of;,revenue and spending
<br />limitations, if provided with an appropriate balIot:qu~tiqb. at:1gthe majorjty of the voters approve
<br />that question, :, ".,:, ,;,: ':.,.." ,:. ...' ,7,:,; ':;"". _~', ,: :'. '';"
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<br />In the case of the City of Sterling~'iMt ~s~dq!i~!:ruesdaY,c~oven1ber 8, 1994. The ballot
<br />, .. tol ....'".- <.0:;. 0...;- -...... ., - ~ .,
<br />question was phrased as lows:'-: ~':.:,"':' '" :;", '" ,,;: ,', ;,z. >>
<br />.,. . .'~~ ~~. :'~i .:~ ":: ; .=' .:~:\ . ~ ~:~ ". i:;
<br />.Shall the City of Sterling, ColoradoiNlthl:llJt increaSing or adding any taxes of any
<br />kind be permittee ':\0 collect; ~_tai?,al)\;t:~~'1? 'the full pro~eds of the City's
<br />sales and use tax, nonfederal :,Sniln.ts;'"~~s and' all other City revenues
<br />notwithstanding any~, state re~1qti~!\Qi:fi:ssal'o;.y~ar sp~flding, induding all
<br />restrictions of Article'X, Sec.'20of the..Colorado.:'Constitupon, from the date of
<br />. . '. , . ,., ".' . .
<br />January 1,1993 and tf\l~reafter:' ": ',', :,;,\ ',>~"'..
<br />......~. ~~ ~ -'~~:.:..~.. :.....,...;.:_~.J', ">r.:4~~':- .:;
<br />That ballot question was approved on No...e,rtib!lr'"er1994, by;;:a vote of 2,297 in favor to 1,266
<br />agains~ and from January 1. 1993-:and aiier~ tiie City..,ot"Sterling has not been subject to
<br />spending or excess revenue limitations"Q9pies o,un~ ,ballot question, as well as the election
<br />results are'ineluded with this letter. .:',^'".........
<br />
<br />Dear Ms. Bassi:
<br />
<br />The next issue, which arises by virtue of Tabor, is whether or not, pursuant to See, 20, 4(b), the
<br />debt creates a multiple fiscal year direct or indirect district debt or other financial obligation that
<br />does not have adequate present, cash reserves pledged irrevocably and held for future
<br />payments in all fis::al years. The City of Sterling currently has a sales tax with no sunset
<br />provision that has set aside 20% of 1 % of sales tax for drainage and flood control specifically.
<br />That amount for drainage and flcod control received in 1997 was 5283,358, In 1998, it was
<br />S285,751. The City is willing, pursuant to the terms of the agreement between the State of
<br />Colorado and the City of Sterling, to pledge the first dollars out of that fund for payment to the
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<br />CITY OF STERLING, CEIlTENNIAl SQUARE, 421 N, 4~ STREET, p,o, BOX 4000, STERLING..CO, 80751.0400
<br />CITY HALL POLICE LIERARY
<br />(970) 522.9700 FIRE (970)522.3512 REC CEmER (970) 522.2023
<br />FAX (97U) 521-0632 (970) 522-3823 FAX (970) 522.3511 (~70) S22.7BS:Z ~AX (9'10) 522.2657
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<br />20 'd
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<br />2E90 12S OL6 'ON X~j
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