The Colorado Court of Appeals this week heard oral arguments in a lawsuit challenging the financing of the South Boulder Creek flood mitigation project at CU South.
The lawsuit, brought by Save South Boulder in April 2025, alleges that Boulder’s stormwater utility fees require voter approval under the Taxpayer Bill of Rights. It also contests the Boulder City Council’s approval of an ordinance allowing the city to issue $66 million in bonds to help fund the project. The Boulder County District Court last year sided with the city and the plaintiffs appealed.
During the May 27 hearing, the three-judge panel questioned lawyers for both sides about the connection between the stormwater fee and the benefit to residents, the city’s role in billing and collecting fees through its stormwater enterprise, and broad language in a recent ordinance allowing fee revenue to be used for “any lawful purpose.” A decision is expected within the next few months.
The flood mitigation project includes building a concrete spillway along U.S. 36 and creating a detention pond to reduce flooding risk for about 2,300 people living in the South Boulder Creek 100-year floodplain. City officials have said the litigation has prevented them from issuing bonds for the project, which was scheduled to break ground in early 2025. For more on the project, see our previous reporting.