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by Robin Kniech
Denver City Councilwoman
At-large
As one of your
two Denver City Councilmembers At-large, I have the honor of serving the
entire City and County of Denver.
ROBIN KNIECH
Denver
City Council At-Large
I currently chair the Government and Finance
Committee, which monitors Denver’s finances. One of
the most important issues facing the future of our city is our long-term budget
sustainability.
Ours is a great city, but behind the scenes
we’ve had to cut more than $440 million dollars over four years and are looking
at up to $94 million in cuts for 2013. We have found a lot of efficiencies and
that’s good, but we’ve also had to cut services. No new police recruits to
replace retirements and attrition, libraries closed three days each week, and
reduced parks maintenance are just a few of the impacts to residents.
Cuts will continue even when the recession
is over, even though we are shrinking rather than growing your government
services, because we have a structural problem: expenses largely beyond our control,
like health care and utilities, continue to grow faster than inflation, while
our revenue is growing slower than inflation. Sales tax on goods makes up half
our budget, but our aging population is buying fewer goods, everyone is buying
more on-line that we’re not allowed to tax, and the new economy is based more
on services than goods. And, because of TABOR limitations, property taxes
shrank from 20 percent of our budget to 8 percent, and will continue shrinking
unless we act.
Last year the mayor convened a Structural
Financial Task Force of community and business leaders, which has provided
recommendations for addressing this challenge to Denver’s future. The task
force recommended, and I am committed to, doing everything we can to find
efficiencies and cut costs before raising fees or taxes. For example, Denver is
contemplating adjustments to employee retirement calculations and
contributions, and will pursue more efficiency among departments.
But the task force agreed that we can’t keep Denver a world-class city far into the future
without a more modern revenue structure that can keep pace with a changing
economy. Removing state TABOR limitations to allow our property taxes to grow
naturally with property values (called de-Brucing),
and recover what we’ve lost, is one powerful opportunity. We have the 2nd
lowest property tax in the region and property tax is less regressive than
other local taxes, especially if paired with a more robust property tax relief
program for low-income senior homeowners.
Currently we spend $1 million/year on
property tax relief for low-income senior homeowners or renters, but I have
recommended an increase to $2 million or more as a companion to any proposed
solutions focused on property taxes. De-Brucing would
require a vote of the people. (Editor’s note: Douglas Bruce wrote and
promoted TABOR, a spending limitation measure approved by Colorado voters in
1992; his name is so associated with the measure that attempts to bypass its
restrictions are known as “de-Brucing.”)
Another option being studied is to establish
a dedicated mill levy or an independent, special district for libraries, which
would also require a vote of the people because either would be funded with a
property tax.
Lastly, the task force recommended looking
at raising fees and fines, either those that haven’t been increased to keep
pace with inflation, or by adding fees to cover major city services that are
currently paid for out of the general fund, such as trash collection. Colorado
law does not require a vote of the people for a fee increase, but City Council
would be very committed to vigorous public input on any proposals in this
area.
Cutting employee benefits and increasing all
residents’ contributions to fees or taxes are both hard decisions, and cannot
be taken lightly. But doing nothing is not an option. We cannot close our
budget gap by deferring maintenance or closing the city’s door to our residents
five days a year for mandatory city employee furlough days for much longer. The
only other alternative is a significant cut to public services, like closing
fire stations/recreation centers or eliminating resident services. The task
force recommended moving forward, not backward, but doing so requires a
partnership with our residents.
It’s time to choose your Denver. What kind
of future do you want for Denver?
Please send me your feedback.
Councilwoman Robin Kniech
Phone: 720-337-7712
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denvergov.org/robinkniech
Twitter @kniechatlarge
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Council At-large |
