Chapter 2.28 SPECIAL OR LOCAL IMPROVEMENT DISTRICTS

This chapter is adopted pursuant to Section 15.1 of the Charter of the city to prescribe procedures with respect to special or local improvement districts (“improvement districts”). (Prior code § 2-26)

2.28.020 Statutes superseded.

Pursuant to Article XX of the Colorado Constitution and the Charter, Part 5 of Article 25, Chapter 31, C.R.S., and all other statutes or portions of statutes relating to the creation of improvement districts or the levying of assessments for improvements, or the issuance of special assessments bonds, are superseded. (Prior code § 2-27)

2.28.030 Creation of improvement districts—Assessment units.

The improvements for which the City Council may create improvement districts may consist of any special or local improvements of every character which confer special benefits on property within the improvement district in addition to the general benefits conferred on the city at large. Improvement districts may be created for the purchase, other acquisition, repair, restoration or maintenance of existing works or improvements, or for the construction, installation or other acquisition of new or additional improvements, or any combination thereof (collectively, “improvements”). More than one kind of improvement may be combined in one improvement district, and improvement districts may consist of noncontiguous territory. The Council may provide for an improvement district to consist of more than one assessment unit if the Council determines that, due to differences in cost, character, nature or location of the improvements, the costs can be more equitably assessed by means of separate assessment units within the improvement district. (Prior code § 2-28)

2.28.040 Creation of improvement districts—Prerequisites.

The City Manager or the Council shall direct the engineer or engineering firm employed or designated by the city to prepare and present to the Council the following:

A. Preliminary plans and specifications of such improvements;

B. An estimate of the probable total cost of such improvements, which may include the cost of constructing or otherwise acquiring, installing, repairing, restoring and maintaining the improvements, and engineering, legal and advertising costs, collection costs, interest during construction and until interest on any installment payments of assessments is expected to be received by the city, and any other incidental costs; and

C. A map of the improvement district which is to be assessed for the cost of the improvements. (Prior code § 2-29)

2.28.050 Creation ordinance—Reading.

Upon such materials being presented to the Council, the Council shall consider the adoption on first reading of an ordinance creating the improvement district (the “creation ordinance”). The publication of the creation ordinance after first reading, as provided in the Charter, shall constitute notice of the public hearing on the Charter, shall constitute notice of the public hearing on the creation of the improvement district. The creation ordinance shall generally describe the nature and location of the improvements to be made, without mentioning minor details, and describe the area to be included within the improvement district, by boundaries or other brief description. The creation ordinance shall describe:

A. The extent of the improvement district to be assessed (by boundaries or other brief description) and the assessment units, if any;

B. The kind of improvements (without mentioning minor details);

C. The probable total cost, including incidentals, as shown by the estimate of the engineer, which estimate shall not constitute a limitation upon the cost of the project nor for any other purpose;

D. The estimated portion of the cost of the improvements to be paid by the city and not by assessment, if any;

E. The basis of assessment; and

F. The date, time and place of the public hearing on the creation of the improvement district, which may also be the date, time and place at which the Council will consider the creation ordinance on second reading. (Prior code § 2-30)

2.28.060 Creation—Notice of hearing.

Notice of the public hearing on the creation of the improvement district shall be given by publishing the creation ordinance one time, and by posting the creation ordinance, as provided in the Charter. The City Clerk shall, by registered or certified mail, send a copy of the creation ordinance to the last known address of each last known owner within the improvement district whose property will be assessed for the cost of the improvements, such addresses and owners being those appearing on the real property assessment rolls for general (ad valorem) taxes of Arapahoe County, Colorado, wherein the property is located. Any such list of names and addresses pertaining to any improvement district may be revised from time to time, but such a list need not be revised more frequently than at twelvemonth intervals. The creation ordinance shall be published, posted and mailed at least seven (7) days prior to the public hearing. (Prior code § 2-31)

2.28.070 Creation—Public hearing.

At the public hearing on the creation of the improvement district, the Council shall consider protests submitted by owners of property within the improvement district, as to the creation of the improvement district or other matters set forth in the creation ordinance. Protests must be in writing and must be received by the City Clerk no later than the close of business on the business day next preceding the public hearing. Protests must include the name and address of the protesting property owner, a reasonable description of the property to which the protest relates, and a statement of the reasons for the protest. After the public hearing, the Council may, in its sole discretion, either adopt the creation ordinance on second reading, with such modifications or deletions, if any, as the Council may deem appropriate, or abandon the proceeding. Nothing in this chapter prevents the creation of an improvement district by petition of owners as described in Section 15.2 of the Charter. (Prior code § 2-32)

2.28.080 Additional plans and specifications.

After the improvement district has been created, the city shall direct the engineer to prepare such additional plans and specifications as may be necessary to provide greater detail or to reflect any modifications made by the Council after the public hearing. The city shall have the right to make additional minor changes in time, plans and materials entering into the work at any time before its completion. (Prior code § 2-33)

2.28.090 Performance or contracting of work.

Except to the extent otherwise required by law, the city may either perform the work for the improvements itself or let one or more contracts for such work by means of competitive bids, requests for proposals, negotiation or such other means as the Council may find to be in the public interest. Contracts for improvement districts may be combined with contracts for other city work. (Prior code § 234)

2.28.100 Basis for assessment.

Whenever any improvement district is created, the cost of the improvements, or the portion thereof to be defrayed by special assessments, shall be assessed against the tracts or parcels of land included within the improvement district specially benefited thereby, but not including any tract or parcel owned by the United States of America or any agency, instrumentality or corporation thereof, or any streets or public highways. Such special assessments may be apportioned on any equitable basis, as may be determined by the Council. (Prior code § 2-35)

2.28.110 Assessments against public property.

When the city, county, school district or any other political subdivision (other than the United States of America or any agency, instrumentality or corporation thereof) owns any tract of land not used as a street or public highway, which if owned by a private person would be liable to assessment for benefits to pay for improvements, an assessment shall be made against the land as though the land were the property of a private person. If the assessment is not paid as provided in the assessing ordinance, suit may be brought to enforce the collection of the assessment, and judgment may be rendered against such political subdivision, but no land shall be sold under any such judgment. (Prior code § 236)

2.28.120 Equitable adjustments.

When any property is “V” shaped or of any irregular form, or whenever the Council otherwise determines that an adjustment is required in order to make the assessment proportionate to the benefit, the Council may, upon the recommendation of the engineer, make such allowance in the assessment on such property as seems equitable or just, so that the assessment against such property shall be in proportion to the special benefits thereby derived, if such were not the case in the absence of such an adjustment. (Prior code § 2-37)

2.28.130 Preparation of assessment roll.

A. At such time as the estimated costs of the improvements or any portion thereof are, in the judgment of the Council or the City Manager, reasonably ascertainable, the engineer shall, on direction of the Council or the City Manager, prepare a statement showing the total estimated cost of the improvements or of such portion thereof including incidental costs.

B. The engineer also shall prepare an assessment roll which shall contain:

1. The names of the last known owners of the property to be assessed or, if not known, a statement to the effect that the name is unknown;

2. A description of each tract or parcel of land to be assessed; and

3. The amount of the assessment thereon.

C. The engineer shall certify the assessment roll to the Council by filing the same in the office of the City Clerk. (Prior code § 2-38)

2.28.140 Assessment ordinance—Reading.

When the assessment roll is so certified and filed, the Council shall consider the adoption on first reading of an ordinance levying the assessments (the “assessment ordinance”). The publication of the assessment ordinance after first reading, as provided in the Charter, shall constitute notice of the public hearing on the assessment roll. Such ordinance shall state:

A. That such assessment roll is on file in the City Clerk’s office;

B. The date of filing the same;

C. The basis of assessment; and

D. The date, time and place of the public hearing on the assessment roll, which may also be the date, time and place at which the Council will consider the assessment ordinance on second reading. (Prior code § 2-39)

2.28.150 Assessment roll—Notice of hearing.

Notice of the public hearing on the assessment roll shall be given by publishing the assessment ordinance one time, and by posting the assessment ordinance, as provided in the Charter. The City Clerk shall, by registered or certified mail, send a copy of such ordinance to the last known address of each last known owner of land within the improvement district whose property will be assessed for the cost of the improvements, such addresses and owners being those appearing on the real property assessment rolls for general (ad valorem) taxes of Arapahoe County, Colorado, wherein the property is located. Any such list of names and addresses pertaining to any improvement district may be revised from time to time, but such a list need not be revised more frequently than at twelve-month intervals. The assessment ordinance shall be published, posted and mailed at least seven (7) days prior to the public hearing. (Prior code § 2-40)

2.28.160 Assessment roll—Public hearing.

At the public hearing on the assessment roll, the Council shall consider protests submitted by owners of property to be assessed, as to the amounts of such assessments. Protests must be in writing and must be received by the City Clerk no later than the close of business on the business day next preceding the public hearing. Protests must include the name and address of the protesting property owner, a reasonable description of the property to which the protest relates, and a statement of the reasons for the protest. After such hearing, the Council shall adopt the assessment ordinance on second reading with such modifications as the Council may deem appropriate, if any. Such ordinance shall be a final determination of the regularity, validity and correctness of the proceedings relating the assessment roll, of each assessment contained therein, and of the amount of each assessment levied on each tract and parcel of land, and such determination by the Council shall be conclusive upon the owners of the property assessed; provided, however, that if assessments are levied on the basis of less than the entire cost of the improvements to be assessed, additional assessments may subsequently be levied for the remaining costs to be assessed. (Prior code § 2-41)

2.28.170 Assessment liens.

All assessments made in pursuance of this chapter shall be a lien in the several amounts assessed against each tract or parcel of land from the effective date of the assessment ordinance and shall have priority over all other liens except general tax liens, prior assessment liens, and possibly certain liens by or in favor of the state or its political subdivisions or the United States of America or any agency, instrumentality or corporation thereof. (Prior code § 2-42)

2.28.180 Assessments final.

Except as otherwise provided in this chapter, the assessments when made and apportioned and adopted by the Council shall be final. The Council may, in the assessment ordinance, provide either (1) that assessments shall not thereafter be apportioned as to subsequent subdivisions of assessed tracts, and the entire tract so assessed shall remain liable for the entire assessment on the tract; or (2) that assessments may thereafter be apportioned as to subsequent subdivisions of assessed tracts, on a basis determined in the assessment ordinance. (Prior code § 2-43)

2.28.190 Remedies for defective or delayed assessments.

No delays, mistakes, errors, defects or irregularities in any act or proceedings authorized by this chapter shall prejudice or invalidate any final assessment, but the same shall be remedied by subsequent or amended acts or proceedings as the case may require, and when so remedied, the same shall take effect as of the date of the original act or proceeding. (Prior code § 2-44)

2.28.200 Terms of assessment payments.

Assessments shall be due and payable, without interest and without demand, within thirty (30) days after the effective date of the assessment ordinance. If the assessment ordinance so provides, the assessments may, at the election of the property owner, be paid in installments, with interest. If installment payments are so provided for, failure to pay the whole assessment within said period of thirty (30) days shall be conclusively considered and held an election on the part of all persons interested, whether under disability or otherwise, to pay in installments the amount of the assessment then unpaid. All persons so electing to pay in installments shall be conclusively considered and held as consenting to the improvements, and such election shall be conclusively considered and held as a waiver of any and all rights to question the power or jurisdiction of the city to construct or otherwise acquire the improvements, the quality of work, the regularity or sufficiency of the proceedings or the validity or correctness of the assessment. The owner of any piece of property may at any time pay the whole unpaid principal with the interest accrued to the next interest payment date, together with penalties, if any. Subject to the foregoing provisions, all installments both of principal and interest shall be payable at such times as may be determined in and by the assessment ordinance. (Prior code § 2-45)

2.28.210 Interest on installment payments.

In case of such election by a property owner to pay in installments, the assessment shall be payable at such times as may be provided by the assessment ordinance, with interest on the unpaid principal at a rate at least equal to the highest rate borne by any bonds theretofore issued in connection with the improvement district, or if no such bonds have been issued, at a rate determined by the Council. (Prior code § 2-46)

2.28.220 Cash payments—Notice.

Payments may be made to the City Treasurer at any time within thirty (30) days after the effective date of the assessing ordinance, without penalty or the payment of interest. The City Treasurer shall give notice by publication in a newspaper of general circulation in the city at least once, at least twenty (20) days before the end of the thirty-day period, of the place of payment and the time for the cash payment period to close. At the expiration of the thirty-day period, the City Treasurer shall prepare or cause to be prepared a permanent assessment roll reflecting the cash payments and the amounts remaining due in installments. (Prior code § 2-47)

2.28.230 Installment payments—Collection.

A. Assessment installment payments may be made payable at the office of the City Treasurer or at the office of the County Treasurer, as provided in the assessment ordinance.

B. If assessment installment payments are to be paid to the County Treasurer, the City Treasurer shall certify and deliver the final assessment roll to the County Treasurer with his warrant for the collection of the remaining assessments. If the assessment roll is so certified and delivered to the County Treasurer for collection, the County Treasurer shall receive payment of all assessments appearing upon the assessment roll, with interest. All collections made by the County Treasurer upon the assessment roll in any calendar month shall be accounted for and paid over to the City Treasurer on or before the tenth day of the next succeeding calendar month with a separate statement for all such collections for each improvement district.

C. In case of default in the payment of any installment of principal or interest when due, the City Treasurer shall advertise and sell, or cause the County Treasurer to advertise and sell, any and all property concerning which such default is suffered, for the payment of the whole of the unpaid assessment thereon, with interest and penalties. (Prior code § 2-48)

2.28.240 Delinquent payments—Penalties.

The assessment ordinances may provide such penalties for delinquent payments of any installments as the Council may deem appropriate, including, without limitation, acceleration of principal, penalty interest and payment of the costs of collection. (Prior code § 2-49)

2.28.250 Mandatory utility connections when.

Before commencing work in any improvement district pursuant to this chapter, the Council may order the owners of the abutting real estates to connect their several premises with the gas or water mains or sewer lines, or with any other utilities in the street in front of their several premises. On default of the owners for thirty (30) days after the order to make such connections, the Council may contract for and make such connections at the distance, under such regulations and in accordance with such specifications as may be prescribed by the Council. The whole cost of each connection shall be assessed against the premises with which the connection is made. Any number of such connections may be included in one contract, but the cost shall be paid upon the completion of the work, in one sum. Upon default in the payment of any such assessment, the city may enforce such assessment, or cause the County Treasurer to enforce such assessment, in the same manner as any other assessment levied pursuant to this chapter. (Prior code § 2-50)

2.28.260 Special or local improvement bonds.

For the purpose of paying all or such portion of the cost of any improvements constructed under the provisions of this chapter as may be assessed against the property specially benefited, special or local improvement bonds of the city may be issued on such date and in such form as may be prescribed by ordinance of the Council, and payable within a sufficient period of years after date to cover the period of assessment payments, but subject to call with or without premium. Special or local improvement bonds may be issued at any time after an improvement district is created, either before or after assessments are levied, based on the then current estimates of the cost of the improvements. Except as hereinafter provided, the bonds shall be payable out of the moneys collected on account of the assessments made for the improvements. All moneys collected from such assessments for any improvements shall be applied to the payment of the bonds issued until payment in full is made of all the bonds, both principal and interest, except that the city may reimburse itself for moneys advanced to pay bonds or interest thereon, from moneys subsequently received from assessments and not then needed to maintain or restore current payments of interest and substantially equal annual payments of principal on the bonds. The bonds may be used in payment of the cost of improvements as specified in this chapter, or the Council, in its discretion, may sell the bonds at public or private sale, at, above, or below par, to pay such costs in cash. The bonds shall bear interest as may be fixed by the Council. (Prior code § 2-51)

2.28.270 Redemption of bonds.

Whenever on any interest payment date there will be available funds derived from the assessment payments pledged to such bonds, it shall be the duty of the City Treasurer to call in and pay a suitable number of the bonds outstanding by giving notice as prescribed in the ordinance authorizing the bonds. (Prior code § 2-52)

2.28.280 Additional securities for bonds.

The Council, in the ordinance authorizing the issuance of special assessment bonds, may provide for the mill levies and bond payments authorized by Section 15.3 of the Charter and make covenants in regard thereto. (Prior code § 2-53)

2.28.290 Waivers.

Any procedure or right granted in this chapter may be waived by any property owner in writing. (Prior code § 2-54)

2.28.300 Mailed notice not received—Not to affect proceedings.

Whenever the City Clerk certifies that any notice was mailed as required in this chapter, the fact that the person to whom it was addressed did not receive it shall not in any manner invalidate or affect the proceedings provided for in this chapter. (Prior code § 2-55)

2.28.310 Limitation of actions.

No action or proceeding, at law or in equity, to review any acts or proceedings, or to question the validity of, or enjoin the performance of the issue or collection of any bonds, or the levy or collection of any assessments, or for any other relief against any acts or proceedings of the city done or had relating to improvement districts, including the adoption of this chapter, shall be maintained against the city unless commenced within thirty (30) days after the performance of the act or the effective date of the resolution or ordinance complained of, or else be thereafter perpetually barred. (Prior code § 2-56)