Council repeals local code on unclaimed property to comply with recent state law change

Parker Town Council approved Ordinance 5.370.2 on Aug. 4 to repeal Chapter 4.05 of the Parker Municipal Code on unclaimed property after state lawmakers removed the municipal exception earlier this year. Staff explained the legislative change (HB 25-1224 as cited in the meeting) removed a prior exception that had allowed municipalities to retain unclaimed property under local code. Kelsey Hall told council the state statute now requires holders of unclaimed property (including municipalities) to transfer unclaimed items to the state’s unclaimed property process; the town may claim unreturned property that belongs to the town but must otherwise follow state procedures to locate owners. Why it matters: Town staff told council the operational effect to the town’s budget is limited; finance staff estimated unclaimed municipal items would previously have been recognized locally but will now be processed through the Colorado Unclaimed Property program. Hall estimated an impact to town funds around $30,000–$40,000 annually as a recognition timing issue rather than a new expense, and noted the statute contains administrative procedures for transfer and owner search. Council action: The council discussed and then unanimously approved the ordinance on second reading. Staff said finance had reviewed current holdings and did not identify active matters that would require immediate transfer to the state. Background: The change follows state action this session removing municipalities’ prior exemption; the town is updating its code to align with state law and to remove a code section that operations no longer use. What’s next: Staff will follow statutory procedures to submit unclaimed property to the state and will continue their internal owner-search process before turnover; staff will update the town’s public materials to direct owners to Colorado’s unclaimed property search process if needed.