Governance and Intergovernmental Relations Committee Meeting - September 16, 2025

The Denver City Council's Governance and Intergovernmental Relations Committee met on September 16, 2025, at 10:30 AM (as noted in minutes; transcript indicates a 9:30 AM start) to receive briefings on the state special legislative session, Colorado's budget challenges, and to begin discussing the city's 2026 state legislative priorities. The committee also approved multiple mayoral appointments to boards and improvement districts via consent.

Consent Calendar

• 25-1310: Approved the Mayor's appointment of Devron McMillin-Morrison to the Denver Convention Center Hotel Authority (term 10-01-2025 through 9-30-2028).
• 25-1311 to 25-1315: Appointments/reappointments to the West Colfax BID: Travis Young, Tomas DeFrancia, Rene Doubleday, Jennifer Sevcik, Dennis Gonzalez (terms 09-01-2025 through 8-31-2028).
• 25-1316 to 25-1319: Appointments to the Old South Gaylord BID: Matthew Hubbard, Joyce Bickel, Philippe Failyau, James De Sena (same term).
• 25-1321 to 25-1322: Colfax Ave BID reappointment of Alex Barakos and appointment of Roger Howard.
• 25-1323 to 25-1327: Federal Boulevard BID reappointments of Nikki Mohaupt, Marshall Vanderburg, Marne Wills-Cuellar, Luis “Gilbert” Vasquez, David Berton (terms through 12-31-2028). All consent items were approved without objection.

Discussion Items

1. Update on Special Legislative Session and State Legislation

• Overview: The General Assembly considered 21 House bills, 3 House resolutions, 9 Senate bills, and 1 Senate resolution; only 11 bills advanced. Measures adopted only partially address the state's 2025-26 revenue losses and do little to resolve anticipated larger challenges in 2026-27.
• AI Legislation: Two bills (consumer protections for AI interaction and increased transparency for algorithmic systems) died or were delayed. A strike-below amendment extended implementation of SB 24-205 to June 30, 2026. The mayor's office expressed concern about balancing privacy protection and innovation, and ensuring local government carve-outs.
• Healthy School Meals for All: A bill updating Proposition MM to allow SNAP eligibility for remaining funds passed; estimated $70 million for SNAP but a $150-200 million gap remains.
• Budget Shortfall: The governor's office forecast a $1.2 billion shortfall for the current fiscal year, leading to a $783 million hole. The state used one-third from reserve, one-third from revenue-generating bills (raising ~$245 million ongoing), and one-third from cuts. The cuts included $105 million from Proposition 123 affordable housing funds (mostly from OEDIT side), a provider rate increase freeze (estimated $1.3 million impact on counties), and elimination of some grant programs. The use of reserve triggers the governor's office to submit a balancing plan with expanded authority.
• Fiscal Outlook: A new revenue forecast on September 22 will clarify next year's deficit, expected to again approach $1.2 billion due to structural issues and HR1 implementation costs (especially SNAP and Medicaid).
• TABOR & Ballot Initiatives: Discussion of TABOR's role in limiting revenue; two November ballot measures (LL and MM) are certified. A potential initiative to cap fees may also be on the ballot.
• Specific Concerns Raised by Council:
  • Councilmember Flynn asked how the $783 million hole was filled; staff explained reserve cuts plus revenue bills plus cuts.
  • Councilmember Torres requested a list of programs created with one-time funds and items on the November ballot.
  • Councilmember Parady inquired about the state's openness to city input on unfunded mandates; lobbyists noted ongoing outreach from the governor's office.
  • Councilmember Watson asked about social equity in cannabis funding; staff will follow up.
  • Councilmember Pro Tem Romero Campbell asked about Proposition 123 impacts; $105 million of the $121 million allowable taken, affecting affordable housing programs.
  • Chair Sawyer noted CCAP funding was preserved in special session cuts.

2. Council Discussion of 2026 State Legislative Priorities

• Process: The committee reviewed the eight existing budget goals and aligned state committees. Council members will receive a survey to rank priorities by October 13, with a final meeting in November to formalize joint priorities with the mayor's office.
• Local Control: Chair Sawyer and multiple council members expressed strong concern over state preemption of local authority, citing examples like ADU mandates, parking minimums, and transit-oriented communities. Councilmember Flynn noted Denver was already acting on ADUs before the state mandate. Councilmember Torres offered nuance, noting pressure on Denver from neighboring jurisdictions that limit growth.
• Legislative Fixes: Chair Sawyer highlighted the need to fix the ADU setback mandate (a promise from the prior year was not kept) and to exempt gun buyback programs from background checks, which she called a barrier to voluntary turn-ins.
• HR1 Impacts: Councilmember Flynn requested an analysis of how HR1 will affect each budget priority in 2026.
• Vote Threshold: Council Pro Tem Campbell clarified that to take an official city position, council and mayor's office must agree; due to past non-response, Council President Sandoval recommended a majority of respondents (not necessarily seven) as the threshold, though Councilmember Flynn questioned whether that violates charter. The issue will be revisited.

Key Outcomes

• Consent Items: All 17 appointments were approved by consent, will move to full council.
• Briefings Received: Committee received updates on special session outcomes, budget outlook, and AI/housing legislation; staff to provide follow-up materials (e.g., November ballot items, HR1 impact analysis).
• Next Steps: A survey on 2026 legislative priorities will be sent to all council members by late September/early October (due October 13). The committee will meet again in November for a deeper discussion, followed by a December reception with the Denver delegation.
• Positions Noted:
  • Chair Sawyer stated the city must defend home rule and fix the ADU mandate.
  • Council expressed support for a background check exemption for gun buybacks.
  • Committee acknowledged the need to monitor TABOR and fee-limitation ballot initiatives.
  • Staff will provide a list of programs created with one-time funds and a breakdown of the governor's cuts.