Major Provisions: None of the measures, if passed, will increase or add taxes. These measures will permit the town to retain and expend the full amount of revenues collected, without being held to the spending limits of the TABOR amendment. Issue 2A concerns revenues collected in 1994. Issue 2C concerns all revenue received by the town in any year. Issue 2B has to do with non-federal grants to the town. Issues 2A and 2C specify that the revenue will be spent for the purpose of paying debt and financial obligations of the town from prior to February 1, 1995.

Background: The TABOR constitutional amendment passed in 1992 limits increases in government spending. For Nederland and other municipal governments, the limit is inflation plus change in actual real property values. Voter approval is required in advance for any increase in tax or debt or policy change which results in revenue gain.

Arguments FOR the measures:

-- The arbitrary and inflexible spending limitations in the state constitution severely hamper towns where income and expenses tend to fluctuate widely and in unrelated directions. Often, the fluctations are related to seasonal or uncontrollable factors.

-- Town officials, elected to represent the citizens, will be able to make decisions for the best interest of the community.

-- The grants of issue 2B can provide benefits to the townspeople without the money coming directly from their pockets.

Arguments AGAINST the measures:

-- Under TABOR limits, Nederland spending is permitted to grow at the same rate as its economy. If the town expects to collect an excess amount, it should lower the tax rate, not pay off its obligations ahead of schedule.

-- If residents become accustomed to the facilities and services provided through grant money, they will expect and demand the same level of benefits after the grants expire. The town should not initiate programs that local taxpayers cannot afford to maintain.

-- The proposal of 2C has no time limit. The financial circumstances of the town may change in unforeseen ways. There should be a definite ending date.