Legal Corner: Year-end housekeeping and new legal requirements for 2026

Colorado law gives municipalities some routine tasks to accomplish every year. These can fall by the wayside with other operational issues, daily work, and staff turnover. As 2025 ends, be sure your municipality has a plan to check the boxes on these requirements. Check your ordinances, policies, and home rule charters, for additional local requirements. At the bottom of this article, we review some new statutory requirements that become effective in 2026.

Open meetings notices

The Colorado Open Meetings Law, C.R.S. § 24-6-402, requires that each “local public body” post notice of public meetings no less than 24 hours before the meeting. Unless those notices are posted on the municipality’s website, the notice must be posted in a public place that is designated annually at the local body’s first regular meeting of each calendar year. C.R.S. § 24-6-402(2)(c)(I). Remember that the place must be accessible to the public.

Municipalities that post notices on a website must provide the website address to the Department of Local Affairs (DOLA). The municipality also must establish a designated posting location that it will use if access to the online notice becomes unavailable in exigent or emergency circumstances. C.R.S. § 24-6-402(2)(c)(III). Electronic notices must be searchable by meeting type, date, time, and agenda comments. State law also recommends linking notices to social media accounts.

While taking care of this annual task, consider planning for the year to set meeting dates and locations, cancel or reschedule meetings that fall on holidays (or CML’s annual conference in Westminster, June 23-26), or approve recurring proclamations or recognitions (like recognizing Law Day, which occurs May 1 of every year).

Budgets & Audits

By now, your municipality likely has adopted its annual budget and, where applicable, certified any mill levy for the upcoming fiscal year. Mill levies must be certified to the board of county commissioners by Dec. 15. C.R.S. § 39-5-128(1). The Local Government Budget Law requires that local governments adopt the budget before certifying a mill levy but permit those that are not certifying a mill levy to adopt their budget by Dec. 31. Otherwise, 90 percent of the current appropriations for operation and maintenance are deemed reappropriated. C.R.S. § 29-1-108(2, 4). Budgets should be filed with DOLA’s Division of Local Government within 30 days after the start of the new fiscal year. C.R.S. § 29-1-113. DOLA provides a detailed budget timeline here.

The end of the fiscal year also triggers your timeline for completing audits when required by the Local Government Audit Law. If an audit is required, it must be submitted to the local government within six months after the close of the fiscal year (by June 30) and to the state auditor within 30 days of its receipt (by July 31). C.R.S. § 29-1-606(1). A one-time extension request could also be submitted by July 31. Failure to submit an audit can result in the withholding of property tax revenue.

Smaller municipalities can obtain exemptions from audit requirements by submitting a request by no later than March 31. C.R.S. § 29-1-604(3). Municipalities with revenues or expenditures not exceeding $1,000,000 qualify for this exemption. There is no exception for missing this deadline.

Land development charges

Local governments must publish, at least once annually, “a clear, concise, and user-friendly” summary detailing the accounting of land development charges collected and held by the local government. C.R.S. § 29-1-803(1). The information must include, for each account during the most recent fiscal year, dollar amounts, average interest rates, and the total amount disbursed.

Property inventory

State law also expects each municipality to compile an inventory of real and personal property of a local government each year. C.R.S. § 29-1-506(1). The inventory only needs to include items having an original cost equal to or exceeding an amount set by the local government’s governing body.

Key statutory obligations in 2026

Several state laws from the 2025 legislative sessions become effective in 2026 and deadlines set in prior legislative sessions come up next year. Review CML’s Laws Enacted publications from prior legislative sessions for additional details. Consult with your municipal attorney regarding the application of these laws and whether unfunded requirements are optional for your municipality.

• Prop 123 cycle ends: The first three years of the Proposition 123 commitment cycle end in 2026. By the end of the year, jurisdictions must meet their commitment and have established an expedited review process for affordable housing development projects.
• Nonfunctional turf: SB24-005 and HB25-1113 required local governments to prohibit the use of non-functional turf grass on certain new development and redevelopment projects by Jan. 1, 2026.
• Food truck fire permits: Beginning Jan. 1, 2026, fire safety permits issued to mobile food establishments are valid in any jurisdiction if certain requirements are met. Denver retail food licenses are reciprocal with state health department licenses.
• Building codes:
  • Model low energy and carbon codes are triggered by certain building code amendments beginning July 1, 2026; lesser standards apply for amendments before that date. HB22-1362.
  • After Jan. 1, 2026, the adoption or substantial amendment of a building code triggers new accessibility requirements for building codes. HB25-1030.
  • By July 1, 2026, the state will establish regional code standards for factory-built structures that preempt local building codes. SB25-002.
• Telecom permits: New review timelines for wireless telecommunications facilities are effective Jan. 1, 2026. HB25-1056.
• Massage facility background checks: Currently, local governments are expected to establish a process for conducting fingerprint-based criminal history checks for operators, owners, and employees of massage facilities by June 1, 2026. These requirements don’t apply if there are no massage facilities in the jurisdiction. C.R.S. § 30-15-401.4.
• Law enforcement training: Law enforcement agencies must implement and conduct training on the use of prone restrain by July 1, 2026. HB24-1372.
• 2024 land use laws: Several bills enacted in 2024 include deadlines in 2026.
  • Complete housing needs assessments (Dec. 31, 2026). SB24-174.
  • Include water supply element in comprehensive plan (Dec. 31, 2026). Plans adopted after Jan. 1, 2026, must include new elements. SB24-174.
  • Compliance with “transit-oriented community” requirements (Dec. 31, 2026). HB24-1313.
  • Reporting on parking minimums (Dec. 31, 2026). HB24-1304.
• All-gender bathrooms: Requirements for signage on non-gendered restrooms and building directors showing non-gendered restrooms and diaper changing stations signage apply July 1, 2026, in all public buildings. HB23-1057.
• Paratransit services: By Jan. 1, 2026, public entities providing paratransit services must establish a plan to communicate information and provide paratransit services during emergencies. Implementation reports must be submitted to the General Assembly by Sept. 1, 2026. HB25-1007.
• Unclaimed property: Colorado’s unclaimed property statute was amended by HB25-1224 to remove a municipal exemption. Municipalities are expected to report and remit unclaimed property to the state treasurer each year by Nov. 1.
• EV charging stations: Municipalities with a population of over 10,000 are expected to track electric vehicle (EV) charging station permits in 2026 and submit a one-time report Jan. 1, 2027. A recent CML Newsletter reminded members subject to the law of the Dec. 31, 2025, deadline to choose a path for EV charger permitting and report the decision by March 31, 2026.
• Graywater: Beginning Jan. 1, state law will permit collection, treatment, and use of graywater in new construction except where the municipality adopts a local prohibition by ordinances. Local ordinances can restrict the use and treatment entirely, allow only specific uses, and authorize construction of treatment works in existing buildings. Learn more here.