City Council Approves Mayor Hancock’s $1.3B Budget, Increases Funding for Housing and Homeless Services

By Robert Davis

City Council is bullish on Denver’s economic future after it adopted Mayor Michael Hancock’s $1.3 billion budget for 2021 by a vote of 12-1 on November 9.

The budget includes spending reductions on capital improvement projects and city employees, while increasing funding for homeless outreach resources, shelter, and other housing services.

The Department of Housing Stability (HOST) will see its budget increase 28 percent increase overall, with substantial increases to the Homeless Service Revenue Fund and the Emergency Services Grant program.

Denver plans to spend approximately $5 million to operate the new auxiliary shelter on 48th Ave. through 2021. The City also budgeted $3.5 million for services at the Colorado Convention Center shelter, if the pandemic continues.

Human Services will see an overall increase of $187 million, with $2 million going directly to the Temporary Assistance for Needy Families program and $1 million in property tax refunds.

Meanwhile, Community Planning and Development, the Office of Economic Development, and nearly all of Denver’s independent agencies will see budgetary decreases. The Office of the Clerk and Recorder was the only independent agency to see an increase.  

Councilmembers praised the collaborative effort between the Mayor’s office and City Council to protect funding for Denver’s most vulnerable.

“This budget clearly shows our priority of supporting those who need it most, continuing to respond to the coronavirus pandemic, protecting our public health, keeping people safe and getting people back to work by rebuilding our local economy,” the 800-page document says.

However, the budget also assumes consumers will increase their spending in 2021. The Department of Finance estimates the City will see a 5% increase in sales and use tax collections. This year, Denver saw a 10 percent decrease in tax collection because of the virus, amounting to $220 million in losses.

Five amendments were offered by Councilmember Candi CdeBaca (District 9). However, Mayor Hancock made it clear to councilmembers he would not tolerate additional budget cuts, especially to the police force.

At-large Councilmember Robin Kniech likened the budgetary process as a whole to a bear, but praised the budgetary amendments providing funding for Denver’s STAR program and mobile restroom for its unhoused residents.

“It is not an easy year, but this budget was able to protect funding for housing and homelessness in a way that it was not able to for other city services,” she said.

After the vote, Hancock thanked City Council for acknowledging Denver’s financial issues “will continue to be a top priority in the year ahead.”

In a Facebook post, Mayor Hancock said, “The impacts of COVID-19 on our local economy have been devastating, making the 2021 budget one of the most challenging to produce in recent memory; yet, this budget is balanced, equitable and fiscally responsible.

It reflects the priorities of supporting those who are vulnerable, continuing to respond to the pandemic and protect public health, keeping our neighborhoods safe, and getting people back to work by rebuilding our local economy,” Hancock added.