Keystone Town Council could ask voters to remove the town’s spending limit and implement a lodging tax in the upcoming general election. 

During a June 9 work session, council members discussed the possibility of asking the questions on Keystone voters’ ballots for the Nov. 5 election, with any ballot language needing to be finalized before the end of August. 

One question could seek to exempt the town from spending limits put in place under the Taxpayer’s Bill of Rights, a 1992 voter-approved amendment to the state constitution that placed a cap on how much revenue Colorado governments can take in. 

Many local municipalities and counties have since “de-Bruced” — a nod to the amendment’s author Douglas Bruce — by asking voters to opt-out of the revenue cap. According to Bell Policy Center, 51 of Colorado’s 64 counties and 230 of its 274 municipalities have de-Bruced. A cap remains in place on state government revenue, however. 

With concerns that a revenue cap could severely limit funding for essential projects and programs, Keystone council members said they were in favor of de-Brucing, should the voters allow it. 

“Given the limitations that non-debrucing would put on us, particularly in terms of grants, I would like to recommend that we go forward,” said council member Gretchen Davis. 

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According to town attorney Jennifer Madsen, local governments have wide latitude for determining the provisions of de-Brucing, including adding a time limit or dollar-amount limit to the revenue cap exemption and earmarking additional funds for specific purposes. 

Council members debated about the best way to ask the question on the November ballot, with some pushing for a broad exemption without spending earmarks while others said they wanted more specificity for where the additional funds would go.

“Sometimes, it takes two or three times to get the voters to recognize what is in it for them,” said council member Carol Keer, adding that specific language on how extra money would be spent could make voters more willing to de-Bruce. 

Council members discussed the idea of asking the question in a way that would allow the town flexibility for where it could spend additional funds while also outlining what some of those spending priorities would be. 

They also weighed asking voters to approve a lodging tax, revenue from which could be dedicated to a capital projects fund that would support public infrastructure and safety. Keystone had been under a 2% lodging tax collected by Summit County government, but that went away this month following the new town’s incorporation. 

Voter-approved lodging taxes differ between the county’s local governments. The town of Dillon has a 6%, Silverthorne has an 8% tax and Frisco has a 2.35% tax, according to a staff memo. 

Davis said reinstating a 2% tax in Keystone would be “very reasonable, particularly when you’re comparing us with other municipalities.”

Mayor Ken Riley estimated a 2% lodging tax would generate around $1.6 million in annual revenue, adding, “It would allow the town to jumpstart the correction of issues, particularly on Highway 6, as we’re starting to grow.”

Council members will need to finalize and approve any ballot language by August 27, before which point they also plan to launch a poll and hold a town hall to gauge how potential voters feel about the measures.