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

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

denvergov.org/robinkniech

Twitter @kniechatlarge

Facebook – Like Robin Kniech,