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<br />SECTIOISEVEN <br /> <br />Funding Alternatives <br /> <br />previously developed areas and the relative impacts of both sources of storrnwater must be <br />computed to justifiably proportion the costs. <br /> <br />Permit and plan review fees can be used to offset the costs of specific functions within a <br />storm water management program. Typically, they are used to fund staff to conduct plan <br />reviews, issue permits, and conduct field inspection and enforcement activities. <br /> <br />7.5 WATER ACTIVITY ENTERPRISE STATUTE <br /> <br />In 1993 the Colorado Legislature, in a reaction to TABOR, passed the water activity enterprise <br />statute at 37-45.1-101 C.R.S. The statute pertains to districts, which are in part defined as any <br />state or local governmental entity which has authority to provide stormwater services as well as <br />those entities created under Title 29 of the Colorado statutes which would include authorities as <br />well as lGAs. Stormwater services are included in the definition of water activity. A water <br />project or facility includes a dam, storage reservoir, compensatory or replacement reservoir, <br />canal, conduit, pipeline, tunnel, power plant, water or wastewater treatment plant, and any and all <br />works, facilities, improvements, and property necessary or convenient for the purposes of <br />conducting a water activity. <br /> <br />The statute clearly states that any water activity enterprise established or maintained pursuant to <br />the statute is excluded from the provisions of TABOR. However, the statute limits certain <br />revenue activities that a water activity enterprise may participate in. Those limitations include <br />that the entelJlrise may not levy a tax, which is subject to TABOR, and it may not receive more <br />than ten percent of its ann\lal revenues in grants from all Colorado state and local governments <br />combined. <br /> <br />The statute does however limit the composition of an enterprise to one governmental entity and <br />does not permit one enterprise to be combined with any other water activity enterprise owned by <br />another district. <br /> <br />Each water activity entelJlrise shall be governed by either: <br /> <br />. The governing body of the district that owns the enterprise, or <br /> <br />. A different governing body as prescribed by applicable laws, city and county, county, or <br />municipal charters, county resolutions, municipal ordinances, or intergovernmental <br />agreements. <br /> <br />In addition to its ability to collect revenues from the fees that it collects based upon impervious <br />area (for example), a water activity enterprise has the ability to issue revenue bonds. <br /> <br />A water activity enterprise should be considered not as the main independent legal entity that <br />could be formed by the Project's participants, but should be viewed as an additional layer of <br />income generating authority that can be added to the vehicle that is ultimately selected by the <br />Project's participants. <br /> <br />The advantage of a water activity entelJlrise, as perceived by those governmental entities that <br />have created them to date, is that they are considered non-tax generating entities and thus do not <br />require an election of the public to impose a fee to support drainage activities of a water activity <br />enterprise. <br /> <br />1JRS <br /> <br />T:\PROJECTS\22236022_GRAND_ VALLEY\SUB_OO\6.0_PROJ_DEUV\FINAl REPORT\FINAl REPT REV 4.DOC\9-JUl-03\\ 7-4 <br />