Ouray city councilors vowed on Monday to impose fines and other penalties after learning close to 20% of the short-term rentals in the city may be operating illegally.

In a report to the council, Community Development Coordinator Lily Oswald said she found potentially 23 unpermitted short-term rentals operating in the city. She said the city holds a total of 112 short-term rental licenses.

The council in 2019 adopted a series of regulations on properties leased for less than 30 days and required t...