Denver’s $450 million bond package passes first hurdle

(The Center Square) – Denver Mayor Michael Hancock’s proposed $450 million general obligation (GO) bond package received its first approval from City Council on Tuesday.

The package includes more than 80 projects across the city and would require voter approval via five ballot questions on how the funds are spent. The questions cover categories such as new facilities, housing, transportation, and public lands.

A final vote on the bond package by City Council could come in November with issuances starting in 2022.

Laura Perry, capital planning and program director at Denver’s Department of Finance (DOF), said that “capital investment [like this] can create the kind of economic stimulus needed during these hard economic times.”

However, not every city leader was on board with the package, which was pared down from a list of more than 130 projects totaling over $1.7 billion.

Councilwoman Amanda Sawyer, District 5, noted that nearly 75% of the projected economic output from the package is contingent upon new facility construction such as a new $160 million arena near the National Western Center and a new market in the Globeville neighborhood.

According to estimates by DOF, more than $294 million of the total package would be invested in capital construction projects. In turn, the investment could create over 7,500 jobs, $483 million in wage income, and create an economic impact of more than $1 billion, the mayor’s administration claims.

“I’m concerned that if voters fail to approve that ballot question, it could significantly impact the project’s overall value for city residents,” Sawyer said.

GO bonds are underwritten by a city’s ability to raise taxes and levy new fines and fees on its residents. Councilwoman Candi CdeBaca, District 9, said the package is being sold as one that won’t initially raise taxes, even though city revenues are paying the bond principal.

“There’s no guarantee that it won’t raise taxes when we start our annual debt service, especially if we have a revenue shortfall,” she said.

Brendan Hanlon, Denver’s chief financial officer, said if the package doesn’t pass, it could “result in the city not achieving the economic recovery we want.”

Disclaimer: This content is distributed by The Center Square