A Bill for an Act
Page 1, Line 101Concerning the provision of water service by special
Page 1, Line 102districts, and, in connection therewith, requiring a
Page 1, Line 103special district to satisfy certain requirements when
Page 1, Line 104establishing the amount of a tap fee.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
A tap fee is a fee that is paid by a developer or property owner in order to connect a property to a public water or sewer system. Current law allows the board (board) of any sanitation, water and sanitation, or water district (water district) to impose and set the amount of a tap fee.
The bill states that a board has a duty to provide water service if the water district has the capacity to do so. The bill also requires a board, in determining the amount of a tap fee, to:
- Ensure that the amount of the tap fee is reasonably related to the costs incurred by the water district in providing water service, which may include costs relating to the acquisition of water rights; and
- Take into consideration as supporting a reduced or proportional tap fee at least 2 of the following factors:
- Expected long-term water usage, both indoor and outdoor;
- The square footage of the unit;
- The presence of low-water-usage appliances, if applicable;
- The number of bedrooms and bathrooms; and
- The presence of graywater treatment works, if applicable.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 32-1-1006, amend (1)(g); and add (9) as follows:
Page 2, Line 332-1-1006. Water and sanitation or water districts - additional
Page 2, Line 4powers - special provisions - definition. (1) In addition to the powers
Page 2, Line 5specified in section 32-1-1001, the board of any sanitation, water and
Page 2, Line 6sanitation, or water district has the following powers for and on behalf of such district:
Page 2, Line 7(g) To fix and
from time to time toPage 2, Line 8decrease tap fees in accordance with subsection (9) of this section.
Page 2, Line 9The board may pledge
suchPage 2, Line 10(9) (a) The board of a water and sanitation or water
Page 2, Line 11district has a duty to provide water service if the special
Page 2, Line 12district has the capacity to do so; except that this subsection
Page 3, Line 1(9)(a) does not apply to service that is provided outside a
Page 3, Line 2district's boundaries or servicearea, includingpursuant to a
Page 3, Line 3contract. The terms of such a contract govern the terms of
Page 3, Line 4such extraterritorial service. As used in this subsection (9)(a),
Page 3, Line 5"capacity" includes consideration of the physical capacity of a
Page 3, Line 6district's existing infrastructure; the legal capacity of the
Page 3, Line 7district, including but not limited to the sufficiency of a
Page 3, Line 8district's existing water rights pursuant to the provisions of any
Page 3, Line 9relevant decrees to provide water or sewer service to new
Page 3, Line 10customers; and a district's financial capacity to fund all
Page 3, Line 11required infrastructure and water rights without creating detriment or harm to existing customers.
Page 3, Line 12(b) In determining the amount of a tap fee as described in
Page 3, Line 13subsection (1)(g) of this section, the board of a water and sanitation or water district shall:
Page 3, Line 14(I) Ensure that the amount of the tap fee is reasonably
Page 3, Line 15related to all costs incurred by the district in funding and
Page 3, Line 16providing water or sanitation service, which costs may include
Page 3, Line 17costs relating to infrastructure construction and acquisition,
Page 3, Line 18including permitted capacities for such infrastructure, as well
Page 3, Line 19as costs associated with water rights planning and the
Page 3, Line 20acquisition and development of water rights, but which costs do
Page 3, Line 21not include costs related to ongoing operations, maintenance, and usage that is considered routine monthly billing; and
Page 3, Line 22(II) Based on applicable plumbing codes and land use
Page 3, Line 23jurisdictional requirements,and subject to any contracts
Page 3, Line 24related to the provision or expansion of water or sewer service,
Page 4, Line 1which contracts exist on the effective date of this subsection
Page 4, Line 2(9),apply at least one of the following factors in supporting the calculation and setting of proportional or reduced fees:
Page 4, Line 3(A) Expected long-term water usage, both indoor and
Page 4, Line 4outdoor, including the existence of nonnative turf grass and
Page 4, Line 5use of water-wise landscaping, with an emphasis on native plants;
Page 4, Line 6(B) The square footage of the unit or the number of bedrooms in the unit;
Page 4, Line 7(C) The square footage of the lot or the equivalent residential unit;
Page 4, Line 8(D) The presence of low-water-usage appliances, if applicable;
Page 4, Line 9(E) Per-unit fixture counts in bathrooms, kitchens, and
Page 4, Line 10other spaces, interior and exterior, that provide water or sanitation service; and
Page 4, Line 11(F) The presence of graywater treatment works, as
Page 4, Line 12defined in section 25-8-103 (8.4) and as may be authorized within the district boundaries.
Page 4, Line 13(c) Nothing in this subsection (9) prohibits a district from
Page 4, Line 14conditioning a reduced or proportional tap fee on long-term
Page 4, Line 15compliance with the factors described in subsection (9)(b)(II) of
Page 4, Line 16this section, which factors serve as the basis for the tap fee. In
Page 4, Line 17the event that the water demands of a property expand after
Page 4, Line 18the issuance of a tap fee because of increased irrigation,
Page 4, Line 19increased unit size, increased fixture counts, or other changes
Page 4, Line 20that increase water demand, the district may require a supplemental tap fee based on the expanded water demand.
Page 5, Line 1SECTION 2. Act subject to petition - effective date. This act
Page 5, Line 2takes effect at 12:01 a.m. on the day following the expiration of the
Page 5, Line 3ninety-day period after final adjournment of the general assembly; except
Page 5, Line 4that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 5, Line 5of the state constitution against this act or an item, section, or part of this
Page 5, Line 6act within such period, then the act, item, section, or part will not take
Page 5, Line 7effect unless approved by the people at the general election to be held in
Page 5, Line 8November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.