City Charter - Chapter XII
Section 12.1. Power To Construct Improvements and Create Improvement Districts.
The City shall have the power to contract for, construct, or install special or local improvements of every character within designated districts of said City, and to assess the cost thereof wholly or in part upon the property especially benefited. The City Council shall by ordinance prescribe the method and manner of making such improvements, of letting contracts therefor, assessing the cost thereof; and issuing and paying bonds for costs and expenses of the organization of said districts and of construction or installation of said improvements. The creation of any local improvement district shall be subject, however, to protest by the majority of the owners of the property to be assessed, except in case the City shall pay one-half or more of the total cost of the improvements made. Nothing herein contained shall be construed to limit the power of the City Council to otherwise act in accordance with the Constitution and statutes of Colorado in carrying out such purposes.
Section 12.2. Surplus and Deficiency Fund.
All special or local improvements, except as the City may contribute to the cost thereof, shall be paid for in public improvement bonds, and all monies collected on account of the assessments for any improvements shall be applied to the payment of the bonds (and interest) issued therefor, until the payment of all the said bonds. Where all outstanding bonds of a special or local improvement district have been paid and any monies remain to the credit of the district, they shall be transferred to a special surplus and deficiency fund; and whenever there is a deficiency in any special or local improvement district fund to meet the payments of outstanding bonds and interest due thereon, the deficiency shall be paid out of said surplus and deficiency fund. Whenever a special or local improvement district has paid and canceled three-fourths of its bonds issued, and for any reason the remaining assessments are not paid in time to take up the remaining bonds of the district and the interest due thereon, and there is not sufficient money in the special surplus and deficiency fund, the the City shall pay said bonds when due and the interest due thereon, and reimburse itself by collecting the unpaid assessments due said district.
Section 12.3. Improvement District Bonds - General Benefit.
In consideration of the general benefits conferred on the City at large from the construction or installation of improvements in special or local improvement districts, the City Council may levy annual taxes on all taxable property within the City at a rate not exceeding two (2) mills in any one (1) year, to be disbursed as determined by the City Council for the purpose of advancing money to maintain current payments of interest and equal annual payments of the principal amount of bonds issued for any special or local improvement district thereinafter created. The proceeds of such taxes shall be placed in a special fund and shall be disbursed only for the purposes specified herein; provided however that in lieu of such tax levies, the City Council may annually transfer to such special fund any available money of the City, but in no event shall the amount transferred in any one (1) year exceed the amount which would result from a tax levied in such year as herein limited. In addition to the above, the Council may finance the City's share of the cost of any special improvement project, whether or not such cost is assessed against City-owned property, by the issuance of special improvement district bonds, and shall appropriate annually an amount sufficient for the payment of that portion of the share of such costs then due. Such bonds shall not be subject to any election requirement or debt limitation which might otherwise exist pursuant to this Charter or other applicable law. (As amended 11-4-75)
Section 12.4. Review of Improvement District Proceedings.
No action or proceeding, at law or in equity, to review any acts or proceedings, or to question the validity or enjoin the performance of any act, or the issue or collection of any bonds, or the levy or collection of any assessments, authorized by this Chapter, or for any other relief against any acts or proceedings done or had under this Chapter, or of the City, with reference thereto, whether based upon irregularities or jurisdictional defects, shall be maintained, unless commenced within thirty (30) days after the performance of the act or the passage of the resolution or ordinance complained of, or else be thereafter perpetually barred. (As amended 9-24-74)