Chapter 8 - § 8.4 • INTERGOVERNMENTAL AUTHORITIES

• Jurisdiction: Colorado

§ 8.4 • INTERGOVERNMENTAL AUTHORITIES

An increasingly popular method for providing ongoing services in multiple jurisdictions is the "separate legal entity" authorized by Colorado Constitution Article XIV, § 18(2)(a) and (b) and C.R.S. § 29-1-203 that can "provide any function, service, or facility lawfully authorized to each of the cooperating or contracting units, including the sharing of costs, the imposition of taxes, or the incurring of debt . . . ." These separate legal entities (authorities) are created by contracts among local governments having the same general powers, but none of which is willing or able to undertake the activity alone. For example, a city and a county may cooperate to create an authority that provides bus service to both.⁹⁰ The intergovernmental agreement (IGA) usually identifies the governments that are the initial members of the authority and the methods to add new members, provides for the procedure used to appoint the authority's governing body, lists its powers, authorizes its ability to raise and spend revenue, specifies its duration, and allows it to undertake special projects that benefit fewer than all of the members.⁹¹

The authority has the benefits of statutory governmental immunity.⁹² Authorities created under C.R.S. § 29-1-203 have been statutorily declared to be "separate legal entities." In 2015, the Colorado General Assembly amended this statute to clarify that this type of authority is also a "political subdivision" of the state, which simplifies its ability to issue its own tax-exempt debt.⁹³ Authority in C.R.S. § 29-1-203 provides the mechanism for several entities to cooperate, in which a few of the contracting entities issue bonds that are then repaid by all of the contracting units working together. The authority can be authorized to impose fees, rates, and charges for its services and may cooperate with a member or others to acquire property and furnish improvements and services. Typically, the governing bodies of all of the contracting governments review and approve the budget of the authority annually.

A few specialized types of intergovernmental authorities are recognized by specific statutes. These include power authorities,⁹⁴ water authorities (including sewers and drainage),⁹⁵ housing authorities,⁹⁶ public highway authorities (inside metro areas with over 1 million in population),⁹⁷ regional transportation authorities (outside of metro areas),⁹⁸ and local marketing districts.⁹⁹

Water authorities...