SB 23-110

Senate Bill 23-110, also known as the Transparency for Metropolitan Districts Act, aims to increase transparency and accountability in metropolitan districts by requiring them to disclose financial information and hold annual public meetings. Starting January 1, 2024, sellers of residential properties within these districts must provide buyers with the district's official website during the property sale process. The bill also mandates that metropolitan districts include specific financial details like maximum mill levies and debt limits in their service plans when seeking approval from county commissioners or city officials. This legislation is now signed into law and will take effect on August 7, 2023, meaning it will start impacting how these districts operate and interact with the public soon after this date.

Official Summary

For a proposed metropolitan district that submits a service plan to one or more boards of county commissioners or one or more governing bodies of a municipality on or after January 1, 2024, the service plan is required to include: The maximum mill levy that may be imposed for the payment of general obligation indebtedness, as determined by the board of county commissioners of each county that is approving the service plan or the governing body of each municipality that is approving the service plan, as applicable; and The maximum debt that may be issued by the metropolitan district, as determined by the board of county commissioners of each county that is approving the service plan or the governing body of each municipality that is approving the service plan, as applicable. In addition to any other meetings held by the board of directors of a metropolitan district (board), beginning in the 2023 calendar year, the board is required to hold an annual meeting if the metropolitan district was organized after January 1, 2000, has residential units within its boundaries, and is not in inactive status. The board is prohibited from taking any official action at the annual meeting and shall ensure that the annual meeting includes a presentation from the metropolitan district regarding the status of public infrastructure projects within the metropolitan district and outstanding bonds, if any, a review of unaudited financial statements showing the year-to-date revenue and expenditures of the metropolitan district in relation to its adopted budget for that calendar year, and an opportunity for members of the public to ask questions about the metropolitan district. In addition, the board is required to provide a public comment period during the separate meeting at which the board adopts the annual budget for the metropolitan district. Prior to issuing debt to a director of a metropolitan district or to an entity with respect to which a director of a metropolitan district must make a disclosure pursuant to current law, the board is required to receive a statement of a registered municipal advisor certifying that specified limits on the maximum interest rate of the debt have been met. On and after January 1, 2024, the seller of residential real property that is located within a metropolitan district is required to provide the purchaser of the property with the official website established by the metropolitan district. The seller is required to provide the information on the Colorado real estate commission approved seller's property disclosure. APPROVED by Governor April 3, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

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