Michael B. Hancock Mayor City and County of Denver OFFICE OF THE MAYOR CITY AND COUNTY BUILDING DENVER, CO 80202-5390 TELEPHONE: (720) 865-9090 FAX: (720) 865-8787 TTY/ TTD: (720) 865-9010 September 12, 2017 Dear Denver City Council Members, City Employees and Residents of Denver: The people of Denver are what make this city so great. We take pride in our neighborhoods because we take pride in the whole of Denver. We care about this city, where it has been and where it is going. And we care about each other. We do not want to see anyone left behind and we never doubt we can do better. A city s budget should reflect the priorities and values of its people, which is why I am pleased to present my 2018 budget proposal. This spending plan will help to improve transportation and mobility, connect all residents to economic opportunities, make Denver more affordable for families, assist those in need and address behavioral health challenges, and strengthen our healthy, livable neighborhoods. To meet the critical needs of a changing, diverse city, I am proposing a $1.39 billion General Fund budget, an increase of 5.4 percent from 2017, which will allow us to responsibly manage population growth and continue to deliver quality services. The state of our city is indeed strong and I want it to be strong for everyone. My administration continues to focus on improving people s lives, serving the needs of our most vulnerable, and keeping our neighborhoods safe for everyone. My 2018 budget proposes smart investments that will allow us to directly meet our most pressing challenges, like affordability, particularly in our housing market; traffic; and behavioral health, including a worsening opioid epidemic. This proposal calls for: Funding initial components of my Mobility Action Plan to move more people, more efficiently and more safely; Expanding our efforts to make Denver more affordable for more residents and businesses so they can stay and build their lives and futures here; Bolstering our safety net services and support for those grappling with behavior health challenges; Increasing our uniformed police force to provide the highest level of protection for our growing population; Creating a new $1 million, community-driven budgeting opportunity that will give residents a direct ability to engage in decision-making and priority-setting for neighborhood improvement projects. Denver s financial management practices are strong, as we continue to be rated AAA by the top three credit rating agencies. This 2018 budget proposal is fiscally responsible and balanced because we take seriously our obligation to wisely manage each and every taxpayer dollar. Increasing Mobility Options Revolutionizing transportation and mobility in our city will take a significant investment, and we are going to have to act fast before gridlock becomes a way of life. Denver needs a funding commitment that matches our resolve to address congestion. 1
My 2018 budget proposal includes an additional $31.5 million to fund initial elements, which will accelerate the policies and projects necessary to offer mobility freedom to all by supporting the choices we know our residents want to make. This includes a $3.5 million investment to make roadway and intersection improvements at top crash locations, create neighborhood transportation management plans, expand photo radar enforcement, and increase roadside electronic message boards and other safety signage across the city to meet the goals outlined in the Denver Vision Zero Action Plan. We also are proposing an additional crew to enhance signal maintenance operations and intersection and crosswalk safety. The 2018 budget will allow us to add 10 miles of bike lanes, three miles of neighborhood bikeways and two additional miles of protected bike lanes. A $5 million transfer of funds from marijuana tax revenues will boost our overall investment in deferred capital maintenance for transportation. In 2018, we will also be making a $4.5 million investment in a new sidewalk repair program to assist property owners with repairs and replacement of out-of-compliance sidewalk sections. This program, to be managed by Denver Public Works, will require coordination with commercial and residential property owners. A revolving fund will be available for residential property owners who need financial assistance to make any necessary sidewalk repairs. Expanding Housing Options Right now, Denver has a market that is responding to the greatest return on investment, not to the greatest needs of our people. We are working tirelessly to make this a market and a city that works for everyone. That is why we are pulling every lever we can to offer more affordable options to our people. The 2018 budget will leverage $21.6 million in investments for affordable housing, including $15 million for our new 10-year, $150 million dedicated housing program. I am also proposing $76,000 in eviction assistance for low-income renters, as well as increasing Denver s Senior and Disabled Property Tax Rebate by $500,000 to serve more eligible residents. Making Denver More Affordable The truth is, our people need more than just a roof over their heads to live a good life. In addition to good housing, Denver is helping families and businesses reduce and manage their monthly bills or onetime expenses, access programs to live healthier lives both physically and financially, and keep longtime businesses in the neighborhood and build access to upcoming job opportunities. I am pleased to propose a new $500,000 affordability fund to help residents with home, utility or medical bills through one-time assistance funds. We can and will do more to stabilize residents who may be vulnerable to displacement. My 2018 budget proposal also expands the reach of our Financial Empowerment Centers, which have an incredible record of providing residents with the tools they need to pay off debt and save for their futures. As of 2018, the city will have credited a total of 4.58 mills since the passage of ballot measure 2A in 2012, saving the median residential owner $119 and saving $1,328 for every $1 million of commercial property value in 2018. Expanding Local Business and Job Opportunities My administration remains focused on expanding workforce training, job opportunities and contract work for our local businesses. I am committed to bringing opportunities to communities especially communities of color that lift residents and businesses up, not push them out. This budget will allow us to better support our Minority and Women-Owned Business Enterprises and fund a disparity study that will track the composition 2
of women- and minority-owned businesses that are awarded city contracts. In 2018, the Office of Economic Development will also receive $250,000 to provide strategic investments in low-income neighborhoods and build capacity among minority- and women-owned businesses. My 2018 budget proposal will also allocate $500,000 to promote business development in the area surrounding the airport in collaboration with Adams County. It will increase staffing of the Business Development Team to ensure we are supporting local businesses as they grow. It will build more capacity for small business and international business development as well as establish a revolving loan fund for potential new Business Improvement Districts that may need help forming. Making Behavioral Health Options More Accessible One in three Denver residents receives assistance benefits and protection and prevention services from the Department of Human Services. The department s work is vital to the people of this city, which is why my 2018 budget proposal will fund additional child welfare, child support and adult protection services to better protect and assist our children and seniors. We will also be funding additional social worker positions for the Denver Public Library system and the Office of Behavioral Health Strategies to reach more people in need of services and assistance. Denver has not been immune to the uptick in opioid use and overdoses happening across the county. It is a very real problem that requires a coordinated response. My 2018 budget proposal allocates more than $1 million for opioid support services, including the creation of a $500,000 grant fund to provide resources for those in our community who are addressing this crisis. The budget also provides for the extension of the Opioid Resource Coordinator position in the Department of Environmental Health and expansion of Denver Health s methadone program and Medication-Assisted Treatment program in our jails. Serving Vulnerable Populations Providing access to a good home, good health and a good job is a strategy that works for all of us. We do not just want people to have a home we want them to be able to stay in it, build their lives and build their futures. My 2018 budget proposal will add up to 100 permanent supportive housing apartments to our successful Social Impact Bond program, bringing the total to 350 units. We will also be increasing our investment in emergency homeless services and facilities by $3.7 million, including funds to help divert people out of shelters and improve our street outreach efforts. My 2018 budget proposal also calls for continuing and expanding our successful Denver Dayworks program, which we launched in 2017 to provide a low- to no-barrier work experience for homeless individuals, while also connecting participants to supportive services such as food, shelter and other necessities. Denver stands with our immigrant and refugee communities and we are committed to remaining a city that is safe and welcoming for all. My 2018 budget proposal calls for an additional Immigrant Services Director position in the library system, an additional Immigrant Refugee Affairs staff member in the Office of Human Rights and Community Partnerships, and an Immigrant Services contract in the Office of the Municipal Public Defender to connect clients to immigration services. Strengthening Neighborhoods to Help Residents Lead Healthy Lives In a city nearing 700,000 people, it has never been more important to protect, preserve and enhance our neighborhood parks, libraries, recreation centers and other facilities. Just as the MY Denver Card gives all Denver kids free access to our recreation centers, my 2018 budget proposal will create a MY Denver PRIME program to expand discounted access for all residents 60 and older. I am also proposing to extend operating hours at several recreation centers, grow the downtown urban parks maintenance team, add park rangers to ensure the safety of our downtown parks, and direct $4 million from marijuana revenues toward needed maintenance in parks and recreation centers. In 2018, we plan to extend library hours at the Hampden and 3
Hadley branches and make improvements to how we keep library patrons safe, by expanding our security and janitorial services at the downtown central library. We also will be giving library patrons better, more reliable Internet access through additional wi-fi pucks. Keeping Denver Safe The safety of Denver s residents and neighborhoods remains one of my highest priorities. In 2018, I plan to add 22 uniformed police officers, bringing our total authorized strength to 1,525 officers, because a growing population brings with it a greater demand for police services. The budget proposal also calls for extending the successful ShotSpotter program that has helped solve crimes faster, as well as adding civilian report technicians. In the Sheriff Department, I am proposing the addition of 28 deputies to staff the new Building 24 women s facility, records management staff and nursing support in our jails. We plan to continue medical unit funding in the Fire Department as well as our fire inspection services of food trucks and building fire systems, as well as increasing our arson investigation staff. In our county court system, we will expand our electronic warrant program and establish a second weekend court to help with processing backlogs. The budget also will allow us to enhance our Emergency Operations Center, the control center for any kind of emergency that may happen in the city, as well as improve the delivery of emergency information to the public. Becoming More Sustainable Denver is a leader in sustainable practices and the 2018 budget will strengthen our efforts even more. I am proposing funds to complete our recycling program, increase the recycling services we offer to Denver Public Schools and provide in our city parks, and continue an analysis of how we can most effectively increase the amount of solid waste we divert from our landfills to recycling and composting. Our fleet of city vehicles will begin converting to electric models in 2018 to reduce our gas consumption, and we will install 16 additional electric vehicle charging stations throughout the city. Serving Our Youth Supporting our young residents has been part of the foundation of my administration since I took office. In 2018, we plan to invest $315,000 in youth programs to expand Science, Technology, Engineering and Math resources, enhance our summer youth employment program, continue our Healthy Lifestyles programming and outreach campaign, and extend the Safe Routes to School program. Improving Customer Service Every resident and visitor to our great city is our customer, and we aim to provide each person who does business with the city with high-quality customer service. Our 311 division is the front line in interacting with customers who have questions or want to report something to the city. The division has worked hard to reduce wait times through a variety of innovations, but additional call center employees are needed to meet the demands of our growing population. The 2018 budget will add six employees to the 311 staff, as well as 10 employees to the 911 call center staff to maintain the quickest possible emergency response times. My 2018 budget will expand e-permitting and increase the plan review, permitting and inspections staff in the Department of Community Planning and Development. Our Elections Division works to make each election as accessible as possible, which is why my budget includes funding for a second mobile van to bring the voting process directly to the people. 4
2018 Budget Proposal The total operating budget for 2018 for all appropriated funds is $2 billion, an increase of 3.7 percent from 2017. The city s General Fund will increase to $1.39 billion, as base expenditures grow by a net 5.4 percent. The total General Fund transfer to the Capital Improvement Fund for 2018 is $33.7 million. This budget will increase Denver s fulltime employee count by 262, which includes 59 new uniformed employees in our law enforcement agencies. Revenue Performance The General Fund revenue forecast for 2018 totals $1.34 billion. This is a net increase of 3.9 percent over the 2017 revised estimate. The 2018 forecast for tax revenue is increasing by $40 million, a 4.7 percent increase over the 2017 revised forecast. Most of this projected increase is attributable to growth in sales tax and property tax revenue. The 2018 sales and use tax projection totals $670 million, a 3.8 percent increase over the 2017 revised estimate. Core collections comprise over 90 percent of this estimate and are projected to grow by 3.7 percent. This core growth rate factors in the full-year impact of the charitable organization tax exemption that took effect July 1, 2017 and will be phased in fully by 2019. Without this tax exemption, projected core sales and use tax would have reflected 4.9 percent growth in 2018. In November 2012, voters approved ballot measure 2A, eliminating TABOR growth restrictions on the city s property tax revenue. In place of the TABOR growth cap, property tax revenue to the General Fund and other affected funds is subject to a cap equal to 6 percent plus local growth. For property taxes due in 2018, this cap is being triggered due to significant increases in property valuation during the 2017 re-appraisal. To stay within the city s allowable growth limit in 2018, 2.232 mills are being credited. Reserves To ensure we can weather any unexpected changes in the economy, my 2018 budget maintains the General Fund reserve at 15.2 percent of expenditures, an amount that is consistent with the city s reserve policy of 15 percent of expenditures. In addition, the annual General Fund contingency is budgeted at $34.4 million and the Capital Improvement fund will hold $4.9 million for unexpected needs in 2018. I am pleased to submit this 2018 budget proposal for consideration by the Denver City Council, city employees and the residents of Denver. Working together, we can ensure that we maintain our Denver values and grow responsibly. Respectfully, Michael B. Hancock Mayor 5