(1) In
addition to the powers specified in section 32-1-1101, the board of any health service
district has the following powers for and on behalf of such district:
(a) (I) Repealed.
(II) To levy, in health service districts with a valuation for assessment on real
and personal property of fifteen million dollars or less contracting bonded
indebtedness not to exceed three percent of the total valuation for assessment
within the health service district to be fully paid within a twenty-year period from
the date of incurring the indebtedness, on all taxable property within such district
without limitations as to rate or amount for purposes of retiring the indebtedness
created in accordance with the provisions of section 32-1-1101 (2);
(III) To levy, in health service districts with a valuation for assessment on real
and personal property of over fifteen million dollars contracting bonded
indebtedness not to exceed five percent of the total valuation for assessment
within the health service district to be fully paid within a twenty-year period from
the date of incurring the indebtedness, on all taxable property within such district
without limitations as to rate or amount for purposes of retiring the indebtedness
created in accordance with the provisions of section 32-1-1101 (2);
(IV) To levy, in health service districts with a population of twenty thousand
or less with a valuation for assessment on real and personal property of over fifteen
million dollars contracting bonded indebtedness not to exceed twenty percent of
the total valuation for assessment within the health service district to be fully paid
within a twenty-year period from the date of incurring the indebtedness, on all
taxable property within such district without limitations as to rate or amount for
purposes of retiring the indebtedness created in accordance with the provisions of
section 32-1-1101 (2);
(b) To issue without an election, pursuant to an authorizing resolution and
subject to the provisions and contractual limitations in resolutions authorizing
outstanding bonds and other securities of the health service district, securities to
defray, in whole or in part, the cost of a project in the manner provided in and
subject to the limitations imposed by subsection (3) of this section.
(2) Notwithstanding any other provisions of this article, all moneys belonging
to or collected on behalf of the health service district shall be deposited, in the
discretion of the board, with either the treasurer of the county in which the greatest
percentage of the valuation for assessment of the taxable property of the district is
located or in a depository enumerated in section 24-75-603, C.R.S., to the account
of the health service district. All expenditures therefrom of the moneys shall be
made upon warrants or checks duly drawn on said account and signed by the
president and secretary-treasurer of the health service district. The board may
invest any moneys of the district not required to meet the immediate expenses of
the district in securities meeting the investment requirements established in part 6
of article 75 of title 24, C.R.S.
(3) (a) (I) The project for which securities are issued pursuant to paragraph
(b) of subsection (1) of this section may be the acquisition, by purchase,
construction, or otherwise, the improvement, or the equipment, or any combination
thereof, for the purposes set forth in section 32-1-1003 (1)(a) or any other building,
structure, or land necessary or desirable for use in connection with the operations
of a health service district.
(II) The cost of the project may include, in the board's discretion, all
incidental costs pertaining to the project and the financing thereof, including,
without limitation, contingencies and the capitalization, with proceeds of securities,
of operation and maintenance expenses appertaining to facilities to be acquired
and interest on the securities for any period not exceeding the period estimated by
the board to effect the project plus one year, of any discount on the securities, and
of any reserves for payment of principal of and interest on the securities.
(b) The board may issue interim securities, which may be designated bonds,
notes, or warrants, evidencing any emergency loans, construction loans, and
other temporary loans not exceeding three years, in supplementation of long-term
financing, such interim securities to be funded with the proceeds of long-term
securities, net pledged revenues, or further interim securities, or any combination
thereof, as the board may determine.
(c) (I) Except to the extent inconsistent with the provisions of this section,
any securities issued pursuant to this section for any project shall be issued in the
form and manner and with the effect provided in sections 11-54-111 and 11-54-112,
C.R.S., for public securities issued under the Refunding Revenue Securities Law.
(II) The authorizing resolution, trust indenture, or other instrument
appertaining thereto may contain any of the covenants, and the board may do such
acts and things, as are permitted in section 11-54-113, C.R.S.
(III) Revenue obligations issued to refund revenue bonds of a health service
district and to refund securities issued under this section may be issued under the
Refunding Revenue Securities Law.
(d) The securities shall be payable and collectible, as to principal, interest,
and any prior redemption premium, solely out of net pledged revenues, and the
holder thereof may not look to any general or other fund for the payment of such
securities except the net revenues pledged therefor. The securities shall not
constitute an indebtedness or a debt within the meaning of any constitutional or
statutory provision or limitation, if any provision or limitation appertains thereto.
The securities shall not be considered or held to be general obligations of the
health service district but shall constitute its special obligations, and the full faith
and credit of the health service district shall not be pledged for their payment. The
payment shall not be secured by an encumbrance, mortgage, or other pledge of
property of the health service district, except for its pledged revenues. No property
of the health service district, subject to said exception, shall be liable to be
forfeited or taken in payment of securities.
(e) A resolution providing for the issuance of bonds or other securities under
this section or an indenture or other proceedings appertaining thereto may provide
that the securities contain a recital that they are issued pursuant to this section,
which recital shall be conclusive evidence of their validity and the regularity of their
issuance.
(f) The determination of the board that the limitations imposed under this
subsection (3) upon the issuance of securities under this section have been met
shall be conclusive in the absence of fraud or arbitrary and gross abuse of
discretion, regardless of whether the authorizing resolution or the securities
thereby authorized contain a recital as authorized by paragraph (e) of this
subsection (3).
(g) Nothing in this section or in any other law shall be deemed to impair the
existing obligations of contract embodied in outstanding bonds validly issued under
the statutes in force at the times of their issue prior to July 1, 1971.
(h) Bonds and other securities issued under the provisions of this section,
their transfer, and the income therefrom shall forever remain free and exempt from
taxation by this state or any political subdivision thereof.
(i) (I) This section, without reference to other statutes of this state, except as
otherwise expressly provided in this section, constitutes full authority for the
exercise of the incidental powers granted in this section concerning the borrowing
of money to defray wholly or in part the cost of any project and the issuance of
securities to evidence such loans.
(II) The powers conferred by this section are in addition and supplemental to
and not in substitution for, and the limitations imposed by this section shall not
affect, the powers conferred by any other law.
(III) Nothing in this section shall be construed as preventing the exercise of
any power granted to the board or to a health service district acting by and through
its board or any officer, agent, or employee thereof by any other law.