Cape Elizabeth voters will be asked to ratify existing Town indebtedness when they go to the polls Nov. 2.

The local referendum question, approved by the Town Council Sept. 13, is in anticipation of the statewide referendum question to impose a 1-percent cap on property taxes.

If the tax-cap referendum passes, property taxes in communities throughout Maine would be limited to $10 per $1,000 of assessed valuation.

Municipalities would, however, be allowed to exceed the cap in order to pay debt approved by voters before July 1 1999, and by 2/3 of voters in general elections after July 1, 1999.

"Cape Elizabeth citizens have approved debt a number of times, but as general elections are held only in November and in even numbered years, it appears that the statewide vote within the Palesky initiative would remove the local decision impact of the prior votes," said Town Manager Michael McGovern in a memo to the Town Council. Click here for full text of tax-cap referendum.

The tax-cap referendum is known as the Palesky referendum after Maine Taxpayers Action Network leader Carol Palesky, petitioner for the vote.

"It is proposed to give Cape Elizabeth voters an opportunity to ratify all of our previously authorized debt so that it is outside the cap limit," the memo says.

Town Councilors voted to put a local referendum on the Nov. 2 ballot asking Cape Elizabeth citizens to ratify more than $25 million in bonds that were approved either by the Town Council, or by the voters in non-general elections, since 1999.

"The basic message is that we are not ratifying anything new," said Town Council Chairman Anne Swift-Kayatta. "This is saying that it's OK to pay the debt we are legally obligated to pay."

If the statewide property tax cap initiative passes Nov. 2, and if Cape voters ratify the debt, Cape Elizabeth would be allowed a tax rate of $11.83 per $1,000 of assessed valuation.

If the tax cap passes and Cape voters do not ratify the local debt, Cape Elizabeth would only be allowed a tax rate of $10.68. The 68 cents, over and above the 1-percent cap, represents taxation for debt approved prior to 1999, and includes bonds for Middle School and Pond Cove School renovations approved by voters in 1993; and, swimming pool expansion approved by voters in 1998.

The ratification question is similar to that being posed to voters in other Maine municpalities, including Portland and Bangor.

McGovern said that a letter explaining the bonded indebtedness ratification vote would go out to citizens before Election Day.

Here is a table showing Cape Elizabeth's bonded indebtedness:

Referenda Issue	Election Date	Yes Votes	No Votes	% Voter Turnout	Subject to Cap
Sewer Expansion $1,900,000	Jan 29, 1985	1225 64.44%	790	28.0%	No Pre 1999
Middle School Renovations $11,700,000	Nov 2, 1993	1982 52.43%	1798	50.8	No Pre 1999
Swimming Pool Expansion $2,200,000	Nov 3, 1998	3186 75.03%	1060	57.0%	No General Election
High School Improvements $7,930,000	Nov 4, 2003	3356 70.19%	1425	62.0%	Yes Not General Election
Pond Cove School Improvements $1,520,000	Nov 4, 2003	3450 72.75%	1292	62.0%	Yes Not General Election
Existing Debt That was Council Approved Per Charter
Project	Year Issued	Original Issue Amount	6/30/04 Balance	Final Maturity	Subject To Cap
Northern Sewer	1978	1,692,000	401,305	2008	Yes
Northern Sewer	1978	417,000	119,657	2008	Yes
Southern Sewer	1986	375,000	75,000	2006	Yes
Misc. Capital Improvements	1998	300,000	200,000	2015	Yes
Public Works etc.	1999	3,500,000	2,800,000	2019	Yes
Police, Fire, Land	2000	4,100,000	3,440,000	2021	Yes
Community Center	2002	1,500,000	1,420,000	2022	Yes

Local  referendum question to appear on Nov. 2 ballot:

"Shall the Town of Cape Elizabeth's currently outstanding and authorized debt which has not previously been approved by the votes in a general election, including direct debt of $25,189,962, and all contingent debt and overlapping debt, be ratified and approved?"