In a recent government meeting, officials discussed the pressing need to address the city's structural budget imbalance and the implications of recent ballot outcomes on funding. Sales tax, identified as the largest revenue source for the general fund, remains a focal point for potential increases, particularly in the tourism sector. However, officials acknowledged that any significant changes would require time and may not yield immediate relief.

The council is exploring various revenue options, including potential increases in cigarette and marijuana taxes, which could be implemented by 2025. However, these measures are not expected to generate sufficient revenue to mitigate the current financial challenges. A lodging tax increase was also mentioned, but it is currently earmarked for marketing purposes and does not contribute to the general fund.

The most critical discussion centered around the possibility of a sales tax adjustment, which officials believe could prevent necessary program reductions. This would require a successful election, with the council needing to act by August 2024 to place any measures on the November ballot. The council is weighing whether to focus on overall city services or targeted initiatives, considering the potential for competing ballot questions from other entities.

Additionally, the status of the city's TABOR (Taxpayer's Bill of Rights) override was highlighted. The city is currently under a TABOR override until the end of 2024, but a recent attempt to extend this measure was narrowly defeated by voters. This outcome poses significant challenges for the city's capital program and overall financial health, particularly in light of the ongoing impacts of recent budgetary constraints.

Officials emphasized the importance of transparent communication with the community regarding how any retained funds from TABOR refunds have been reinvested into infrastructure and public works, underscoring the need for continued community support in future funding initiatives.