August 20th 2024.
In November, the residents of Denver will have the opportunity to voice their opinions on the city's largest proposed sales tax increase. The City Council, in a 9-4 vote, has decided to refer the measure to the ballot. This half-percent tax hike aims to address the growing issue of affordable housing in the city.
Councilman Darrell Watson, who voted with the majority, emphasized the importance of taking action now. However, the specific plan for how the estimated $100 million in new annual tax revenue will be utilized is yet to be determined. Mayor Mike Johnston and supporters on the council have suggested using the funds for programs such as rental assistance and downpayment assistance to help lower-income Denverites enter the housing market and build wealth. The mayor has even suggested the possibility of the city becoming an equity investor in new developments, giving city leaders a say in the number of affordable apartments and rent prices.
During Monday night's meeting, the council made several last-minute amendments to the measure. One of these changes clarified the council's role in reviewing and approving the first-year spending plan for the fund in January. The council also solidified their authority to approve prioritization plans for future years.
Councilwoman Jamie Torres, who initially had concerns about the lack of clarity in the measure, changed her vote after a public hearing and preliminary vote last week. She stated, "I will support it going to the voters, but we have to be honest; good intentions exist, but the clarity and specificity doesn't." Torres was among the members who wanted to ensure that the tax revenue would be used to support those in the greatest need, specifically renters making 80% of the area median income or below. An amendment was added to address this concern, mandating that the funds only support projects and programs serving this demographic.
Another major change approved by the council was the inclusion of a sunset date for the tax. Without intervention from the council or voters, the tax will expire on December 31, 2064. Despite this distant end date, four council members voted against sending the measure to the ballot, including Kevin Flynn, Flor Alvidrez, Stacie Gilmore, and Amanda Sawyer.
Gilmore expressed frustration with the process by which the tax measure made it to the council, stating that there was not enough public input. She also voiced concerns about the potential financial burden on low-income Black and Latino families in her district. Flynn, who has opposed the tax increase since it was first proposed, stated, "We have to stop talking about making Denver affordable by raising the cost of living here."
If approved by voters, the Affordable Denver fund would join another proposed sales tax increase on the ballot aimed at raising money for Denver Health, the city's struggling social safety net hospital. The cumulative sales tax rate in Denver would increase to 9.65%, one of the highest in the state outside of select mountain communities.
Despite concerns about competing measures, Councilman Chris Hinds acknowledged the importance of stable housing as a social determinant of public health. Mayor Johnston, who was present at the meeting, credited the five council sponsors of the referral measure for their work in passing amendments to get the measure passed.
Looking ahead to the November vote, Mayor Johnston stated, "We'll need to talk to voters about what this fund will do, how we'll help bring on 45,000 units, how we'll serve people at all levels of need across the city, and how it puts Denver on a path to be a city that is both the fastest-growing economic engine in the country and a place where a second-grade teacher can still afford to live in the neighborhood where she teaches." He is confident that the city is on the right track and is committed to addressing the issue of affordable housing. Stay up-to-date with Colorado Politics by subscribing to our weekly newsletter, The Spot.
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