Colorado's cities and towns face some of the most restrictive constitutional limits on spending and taxing found in the nation. First, the Gallagher amendment has eroded municipal property tax bases by reducing the residential assessment ratio. In addition the TABOR amendment imposed revenue and spending limits. The impacts of both these amendments, working together and separately have changed municipal governance significantly.

Colorado has a highly decentralized revenue-raising structure compared to many other states. Although combined state and local taxes are somewhat below the national average, local taxes are among the highest and state taxes one of the lowest. This reflects the strong philosophy of "local control" in Colorado. It has also given rise to so many governmental or quasi-governmental structures that one exists for every 1900 of Colorado's 4.3 million citizens!...