Lochbuie appeals court ruling on library-district parity lawsuit

WELD COUNTY — The chasm between two small Weld County towns has widened a bit more now that a Weld District Court judge has ruled against one in a library-tax parity case that has been ongoing for the last year and shows no sign of ending anytime soon.

The case involves the towns of Hudson and Lochbuie over library-district funds and who controls what —  similar to the tug-of-war the two are embroiled in on the location of the BNSF Railway Co. intermodal facility and logistics park. Representatives of both towns are in court-ordered mediation to settle their differences in that case.

Perhaps a bit of fuel to that fire is the lawsuit that Lochbuie filed against Hudson and High Plains Library District in August 2023, claiming that Hudson’s control of library tax funds was unfair to Lochbuie.

Lochbuie complained that as a town five times Hudson’s size and a significant contributor to the library taxes collected, that it should have commensurate library services. Rather, Lochbuie claimed, Hudson spent more money on its own library services and buildings, as well as those of Keenesburg, and limited Lochbuie’s services to an occasional bookmobile.

High Plains Library District collected funds from the Weld Re-3J School District service area, which included all three towns. The district distributed two-thirds of the taxes to Hudson to use for library services in south Weld. Hudson was designated as the entity to control the use of those tax funds because it had its own library and library district when High Plains Library District formed.

Lochbuie, however, has claimed that it was improperly included in the service area with High Plains Library District.

But Weld District Court judge Todd Taylor disagreed, ruling against the town’s claims. On Aug. 6, Lochbuie appealed the ruling to the Colorado Court of Appeals. Taylor, in his ruling, disagreed with Lochbuie’s assertions of improper use of tax funds and unfair treatment by denying Lochbuie residents public library services. Taylor stated that Lochbuie was improperly relying on the latest versions of the law when they should have been using the laws established at the time of its inclusion into the High Plains Library District in the 1980s.

According to court documents from Lochbuie, “The Hudson library facility is not reasonably accessible to Lochbuie residents, taxpayers and young library users, as they must travel approximately 8.5 miles and cross I-76 to reach the Hudson library facility.”

“Hudson has received a substantially unjust windfall in the form of taxpayer revenue … which allowed it to grow a reserve that is projected to amount to over $19 million as of December 31, 2024, while Lochbuie is only provided an occasional bookmobile under the IGA’s Shared Services (a relatively de minimis service and expenditure),” Lochbuie claimed.

The two towns have gone back and forth through the courts for more than a year until Taylor’s ruling on July 26.

In his 17-page ruling, Taylor stated: “Lochbuie’s real grievance here is not Hudson’s expansion of its service area; rather, it is the use of the tax revenues generated by Lochbuie’s residents to support Hudson’s library system. To be clear, Hudson does not collect those taxes from Lochbuie’s residents. As the 1985 resolution makes clear, the Weld Library District—now known as High Plains—is the taxing authority that collects taxes from the identified service area, which includes Lochbuie, and then distributes two–thirds of those taxes to Hudson so Hudson can use those tax revenues to support its existing library system.

“While Lochbuie makes several conclusory statements in its amended complaint about the lack of statutory authority for Hudson and High Plains to expand Hudson’s service area to include Lochbuie, none of Lochbuie’s statements are supported by law. Again, as discussed above, Lochbuie relies on statutory authority that did not exist at the time of Hudson’s 1985 resolution or when the library district was formed in 1986.”

In one court document seeking attorneys fees after Taylor’s ruling, Hudson stated: “Lochbuie’s unconscionable litigation tactics forced Defendants to expend public dollars to defend against its meritless claims. Lochbuie’s stubborn, unsupported, unpled, and contradictory arguments amount to groundless, frivolous, and vexatious prosecution of this case. Lochbuie’s repeated, confusing, and contradictory allegations and arguments throughout the life of this case have left both the Court and Hudson Library ‘dumbfounded.’”

Lochbuie has until Oct. 8 to file the court records and transcripts for the appellate court to consider the appeal.

Cases cited:

Town of Lochbuie, Colorado, a Colorado Statutory Town; v. Town of Hudson, a Colorado Home Rule Municipality; Hudson Library Board of Trustees, a Colorado Municipal Library Board of Trustees; and High Plains Library District Board of Trustees, a Colorado Library District Board of Trustees; first amended complaint, 24CV30664, March 15, 2024.

APPELLANT/PLAINTIFF: TOWN OF LOCHBUIE, COLORADO, a Colorado Statutory Town v. APPELLEES/DEFENDANTS: TOWN OF HUDSON, a Colorado Home Rule Municipality; HUDSON LIBRARY BOARD OF TRUSTEES, a Colorado Municipal Library Board of Trustees; HIGH PLAINS LIBRARY DISTRICT BOARD OF TRUSTEES, a Colorado Library District Board of Trustees; notice of appeal, 24CA1417, filed Aug. 6, 2024.