Chapter 5 - § 5.9 • SPECIAL DISTRICTS

• Jurisdiction: Colorado

§ 5.9 • SPECIAL DISTRICTS

The term "special district" commonly is used to refer to entities that provide limited governmental services such as fire protection, water and sanitation service, park and recreational facilities, health services, ambulance services, tunnels, or some combination thereof. The statutory scheme regulating the creation, organization, consolidation, dissolution, and general governance of special districts is contained in the Special District Act, codified at Title 32 of the Colorado Revised Statutes.⁶⁵

A special district is defined by statute as a quasi-municipal corporation and political subdivision of the State of Colorado.⁶⁶ As a public entity and an arm of government, special districts must comply with a variety of laws pertinent to similar governmental entities. Their powers are quite broad even though their purpose is limited. Special districts have the power to sue and be sued; to enter into contracts; and to borrow money, incur indebtedness, and issue bonds.⁶⁷ They also have the power to fix and change "fees, rates, tolls, penalties, or charges for services, programs, or facilities furnished by the special district"⁶⁸ and to levy and collect ad valorem taxes on taxable property located within the district.⁶⁹ Nevertheless, a special district may exercise only those powers expressly conferred on it by the Colorado Constitution or a statute, or those implied powers reasonably necessary to carry out such express powers.⁷⁰

With respect to construction projects, special districts have the power to operate and maintain facilities pertinent to their services. Specific powers and authorities for each type of special district are set forth in the Special District Act.⁷¹

Colorado also has a number of specific statutory districts created by the state legislature pursuant to Title 32, C.R.S. These include the Moffat Tunnel Improvement District,⁷² the Regional Transportation District,⁷³ the Three Lakes Water and Sanitation District,⁷⁴ the Urban Drainage Flood Control District,⁷⁵ the Scientific and Cultural Facilities District,⁷⁶ the Denver Metropolitan Major League Baseball Stadium District,⁷⁷ and the Metropolitan Football Stadium District.⁷⁸ There also are general provisions for the creation of rail districts.⁷⁹

The legislature has enacted separate statutes defining the powers and procedures for some of these entities. For example, the Metropolitan Football Stadium District was given the authority either to renovate Mile High Stadium...