Denver mayor focuses on affordable housing, police recruits in budget proposal
Denver Mayor Mike Johnston announced his budget proposal for 2024. The budget includes securing funding to develop 3,000 affordable homes next year.
The budget also includes a little more than $8 million to add 167 new police recruits, $21.5 million to complete work along the 16th Street Mall with an expanded tree canopy and more pedestrian spaces.
"I think what you will see today is a budget dedicated to an affordable Denver, a safe Denver, a vibrant Denver, and a greener Denver... and a Denver that will provide housing for all," said Johnston.
The plan also dedicates another nearly $40 million for putting another 1,000 homeless people into housing, either transitional or permanent.
Read the entire budget proposal here.
Additional Information from Mayor Johnston's Office:
Mayor Johnston's administration is focused on adding 25,000 units of permanently affordable housing over the next eight years, making sure that those who work in Denver can afford to live here without fear that constant increases in rent will push them out of the city they love and serve. Selected actions include:
• Leveraging up to $100 million in city, state, and federal funding to develop and preserve 3,000 affordable homes in 2024
• $365,000 for three inspectors on the Affordable Housing Review Team to reduce the time from design to doors-open for these critical projects
• $200,000 to launch a first-ever process reform study of building/zoning codes and procedures
While the city continues to leverage the one-time federal stimulus dollars awarded in 2021, it is no longer receiving new funding under the federal ARPA program. Despite this, the 2024 budget will still invest $242 million to help Denverites get out of homelessness and into transitional housing and support services. It will do this while continuing to invest in affordable home rental and homeownership opportunities for residents across Denver.
Safe Neighborhoods for All
Every Denverite deserves to feel safe and protected in their community. That's why the 2024 budget will ensure Denver has the officers it needs, while also expanding mental health services to ensure the right responder for the right incident at the right time. Selected actions include:
• $8.2 million to add 167 new police recruits in 2024 and put Denver on the path to meet the full authorized strength of the police department and improve ability to respond to 911 calls and follow up on investigations across the city
• $7.2 million to fund co-responder programs and grow the Support Team Assisted Response (STAR) program by expanding the number of team members and vans, increasing operating hours, and building out leadership support for clinical and paramedic teams
• $1.8 million to add a second Wellness Winnie team, doubling the city's capacity to provide mobile mental and behavioral care services directly to those in need
• $3 million in staffing and facility improvements to make 90 more beds available in community corrections as treatment alternatives to traditional incarceration
• $4.2 million for the Behavioral Health Solutions Center, a 24/7 treatment resource for those who are having a behavioral health crisis
A Vibrant Downtown and a Revitalized City
A strong city requires a thriving city center. Mayor Johnston's administration is committed to ensuring that downtown is a thriving, welcoming, and safe community where Denverites can live, work, and play. Fulfilling this promise requires the city to confront several challenges with its budget.
Downtown Denver faces among the highest commercial vacancy rates of any city in the nation. Reversing this trend will require a coordinated effort to revitalize not only the central business district but create a central neighborhood district where people of all income levels gather year-round. That vision requires aggressive steps to reactivate the downtown business corridor to make downtown the best place to live, work and play in all of the Rocky Mountain West.
A significant part of this reactivation starts with the plan on homelessness. The first step to revitalizing downtown is helping people experiencing homelessness get access to housing and then permanently closing encampments, while simultaneously working shoulder-to-shoulder with businesses and neighborhoods to reactivate these spaces and make downtown a vibrant neighborhood that is the economic, residential, and cultural center of our city. To meet that goal, the 2024 budget invests $58 million toward downtown revitalization. Selected actions include:
• $21.5 million to complete the 16th Street Mall with an expanded tree canopy and new pedestrian spaces
• $1 million to help stabilize businesses impacted by construction on the mall
• $16.6 million to ensure the success of the downtown Convention Center in both operations and maintenance
• $4.5 million for downtown activation, including to attract new businesses and visitors along and near the rejuvenated 16th Street and increase investments into a clean and safe downtown
• $14.7 million, which will allow the city to leverage $136 million in Federal Transit Authority funding for a fast, reliable, and safe bus rapid transit (BRT) option along Colfax
Greener Denver
It wouldn't be Denver without blue skies and beautiful mountain vistas. The city has taken strong steps to protect public spaces and reduce carbon footprint, but there's still more to do. With 45% of greenhouse gas emissions coming from transportation, the 2024 budget invests in moving Denver toward cleaner air with an electric future. Selected actions include:
• $2 million to accelerate the transition of city vehicles to electric vehicles (EVs) by replacing city vehicles that are at the end of their useful life with EVs
• $1.5 million for EV charging infrastructure that will expand public access to charging at city facilities that serve under-resourced neighborhoods and support Denver's municipal fleets.
• $15 million for multi-modal infrastructure investments, including bike lanes, Safe Routes to School, pedestrian crossings, neighborhood traffic calming, and implementation of Denver Moves plans
• $2.8 million to continue Denver's popular e-bike voucher program
• $1.3 million for additional community rebates, incentives, and electrified micro-transit to encourage a transition to EVs
This budget will also continue the city's commitment to supporting public transit by providing RTD EcoPasses for city employees to make it easier and more cost-effective to use public transportation to get to work. In addition to continuing this program for city employees, the city will actively partner with local businesses to help them provide free EcoPasses for their employees, reducing traffic congestion, reducing climate impact, and bringing more Denverites back downtown to work and play.
Housing For All
Denver faces a crisis of homelessness. In the last five years, the number of people experiencing homelessness in Denver has nearly tripled, and almost 1,000 Denverites have died on the streets of the city. Mayor Johnston's administration is mutually committed to two values: believing in a moral obligation to ensure everyone has access to stable, dignified housing with the services they need to get back on their feet; and believing that every resident of Denver deserves to feel safe where they live, work, and play while having shared, safe access to all of the city's sidewalks, parks, and public spaces.
As of today, the city is on track to move 1,000 people out of unsheltered homelessness and into housing this year. And, once housing is made available, the city is committed to closing the encampments and keeping those neighborhoods closed to new encampments. The 2024 budget will sustain the transitional housing launched in2023 and include the following:
• Allocate an additional $39.2 million toward bringing another 1,000 people out of unsheltered homelessness in 2024. This commitment will provide funding to bring on more hotels, micro-communities, and rapid rehousing.
• $12.6 million for rental assistance programs to prevent homelessness
• $2 million for free legal services for households facing eviction
In addition, the city is focused on creating more affordable housing options, both to rent and to buy, throughout Denver. This represents a significant increase in the city's support for this intervention. But as federal rental assistance expires, there is a risk of more Denverites losing housing, and the city is committed to working with state, federal, and philanthropic partners to increase funding to meet the total need.
Revenue Outlook and Next Steps
While 2024 revenue is projected to continue to grow, the rate of growth has begun moderating as we have normalized from the disruptions of the pandemic. As in 2023, high inflation and interest rates are likely to place limits on growth and continue to drive down consumers' refinancing, borrowing, and spending activity in 2024. In 2024, the city's General Fund revenue is forecasted at just over $1.7 billion, representing a 4% natural growth rate over 2023's revised revenue projections of $1.63 billion. The growth in 2024 is primarily driven by projected increases in tax revenues, mainly from sales, use, and property taxes. The city's investment income also continues to perform well due in part to higher yields as well as strong cash balances.
Heading into 2024, Denver continues to be in a strong financial position, with 15% held in reserves for any unforeseen economic challenges. This vital financial safeguard served the city well as recently as 2020 and 2021. In addition to reserves, the annual General Fund contingency is budgeted at $34.2 million to address unbudgeted expenditures, and the Capital Improvement Program will hold $6.4 million for unexpected needs in 2024.
City Council committees will begin budget hearings on Monday, Sept. 18, with final adoption in November. The Mayor's 2024 budget proposal can be found at denvergov.org/budget.