CITY OF OURAY

Ouray Mayor Pam Larson on Monday floated a proposal to ask city residents in November to approve a tax on short-term rentals to help pay for affordable housing.

Larson opened a scheduled discussion about long-term housing during Monday night’s City Council meeting by pitching the tax question. She didn’t identify a potential tax amount but said the idea is something she’s been thinking about. She made it clear she envisions only tourists and others who stay in short-term rentals paying the tax.

Councilors seemed to favor putting the question to voters but acknowledged they would have a lot of work to do in a relatively short period of time to get it on the fall ballot. Ballot language must be finalized by Sept. 6, leaving the city two months to solicit public input, identify the exact amount of tax, flesh out the precise wording of the question and launch an informational campaign.

Several councilors said they’re ready to go to the ballot on an issue that has engendered a lot of talk but little action.

“You have to let the people speak. You have so many people fired up on one side of the issue, and you have so many people fired up on the other side but they won’t come to the meetings. The only way we’re ever going to know is to ask,” Councilor Dawn Glanc said.

Conversation about a possible tax comes two weeks after the council agreed to start regulating short-term rentals, and a week after the Ouray School Board approved a 2019-20 budget that anticipates a $330,000 cut in state funding for students due to an expected enrollment drop in the fall. Superintendent Scott Pankow estimated as many as 22 students will leave the district, with some families citing the lack of affordable housing as the reason for their exodus.

Larson’s idea sparked discussion about steps the city can take in the interim to help blunt its high housing costs and encourage the development of less-expensive options.

Councilor Bette Maurer said a key component is for local governments to acquire and bank land for housing, then turn it over or lease it to developers.

“If you take land out of the equation, then people can build and build affordably,” she said.

City Administrator Justin Perry said he has met with dozens of people over the last five months who are interested in creating more affordable housing. He said while it can take years to acquire land and begin construction, local governments can do things now like offer incentives for residents or developers to provide accessory dwelling units for long-term rentals.

“There are things we can look at in the short-term to show that we know there is a problem and we’re working on it,” Perry said.

City resident Ethan Funk said he was glad to see the council talking about affordable housing but advised it will take a multi-pronged approach — not a silver bullet — to solve the problem.

“It’s going to be a lot of different things. Some will work, some won’t, but you gotta try a bunch,” he said.

In other business, councilors:

• Agreed to allow camping in Fellin Park Aug. 1-3 and close the Hot Springs Pool until late afternoon Aug. 2-4 for the 2019 Colorado Summer Swim Club Championships.

Perry said the event will bring in 300 participants and 900 to 1,200 spectators. Pool Manager Kentee Pasek said it’s common for pools hosting events of this size to close during the competition.

The city plans to open the pool to the public at 5 p.m. Aug. 2-4.

• Tabled a discussion about having Jennifer Peterson, the city’s communications and event coordinator, take on grant administrator duties with a $10,000 bump in annual pay.

Perry recommended the city pay Peterson to research, identify and apply for grants rather than contracting with a third party. He said it’s important for the city to unearth additional funding sources to help pay for its infrastructural and organizational needs.

Councilors said they want to see a formal grant writing job description before making any decision.