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PROJC01511
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Last modified
7/19/2010 12:39:20 PM
Creation date
10/6/2006 12:24:06 AM
Metadata
Fields
Template:
Loan Projects
Contract/PO #
C153380
Contractor Name
Ute Water Conservancy District
Contract Type
Loan
Water District
72
County
Mesa
Bill Number
SB 81-439
Loan Projects - Doc Type
Contract Documents
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<br />v <br /> <br />- <br /> <br />- <br /> <br />Mr. Ioannides, P.C. <br />July 8, 1986 <br />Page Three <br /> <br />added to the Colorado Constitution. Thereafter, the Colorado <br />Legislature passed a set of statutes dealing with service <br />authorities (see C.R.S. 32-7-101 et seq.), to implement the <br />provisions of Art. XIV, Sec 17. Since-the amendments to Art. XI, <br />Sec. 6 and the addition of Art. XIV, Sec 17, were both <br />accomplished pursuant to Senate Concurrent Resolution No.6 and <br />the subsequent election, it would appear that the reference to <br />"service authority" in Art. XI, Sec. 6 is a reference to the <br />service authorities created by Art. XIV, Sec. 17 and C.R.S. <br />32-7-101 et seq. The District probably does not qualify as a <br />"service authority" under Art. XIV, Sec. 17 and C.R.S. 32-7-101 <br />~ seq., and therefore, cannot utilize the "water supply <br />exception" contained in Art. XI, Sec. 6. <br /> <br />However, there is another reason why an election is not <br />required in order for the District to enter into the Contract. <br />In Heberer v. Board of County Commissioners, 88 Colo. 159, 293 P. <br />349 (1930), the Supreme Court interpreted a prior version of Art. <br />XI, Sec. 6. In that case, the question was whether an election <br />was needed before Chaffee County could enter into a twenty-five <br />year lease, for a total rental of $201,000, for a county <br />courthouse. The Supreme Court held that the lease did not create <br />an "indebtedness," and therefore, no election was needed, saying: <br /> <br />As the county does not own a courthouse or other <br />suitable building, the only way in which it can <br />furnish a place in which the business of the <br />district court and the county can be transacted <br />is by renting such a place. The rental provided <br />for in the lease is to be paid monthly. Such <br />expense is as much a necessary current expense <br />of the county as rentals for light and water are <br />current expenses of a city. If the monthly <br />rentals, together with all other current <br />expenses, are paid out of the current revenues, <br />there is no indebtedness incurred for such <br />expenses within the constitutional inhibition. <br /> <br />This "current expense" doctrine has been embodied in the <br />Water Conservancy Act, C.R.S. 37-45-101 et seq., under which the <br />District was organized. C.R.S. 37-45-13g-requires that a <br />contract be submitted to the voters for approval only when "the <br />annual obligation created will require a greater annual <br />expenditure than the annual income and revenue that [sic] the <br />district is estimated to permit." The Board of Directors of the <br />District, in approving the Contract, specifically found that the <br />obligation created by the Contract would not require a greater <br />annual expenditure than the District's income and revenue is <br />
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