Mayor and Denver City Council Debate Affordable Denver Fund Sales Tax, Honor President Torres (July 10, 2024)

On July 10, 2024, the Mayor and Denver City Council convened for their weekly session. The sole agenda item was a discussion of the proposed Affordable Denver Fund, which would be funded by a 0.5% sales tax increase. The Mayor presented the rationale and answered council questions. The meeting also included announcements of upcoming community events and a farewell tribute to Council President Jamie Torres, who was presiding for the last time.

Announcements

• Councilwoman Diana Romero Campbell announced a Southeast Denver conversation on affordable housing on July 25 at 6 p.m. at Eisenhower Park.
• Council President Pro Tem Amanda Sandoval promoted a free yoga in the park series at Highland Park on Thursday and the Guadalupe Summer Bazaar at Guadalupe Church on Saturday and Sunday.
• Councilman Darrell Watson invited residents to the 38th annual Colorado Black Arts Festival in City Park from July 12–14, and noted art displays at his district office.
• Council President Jamie Torres described a recent trash cleanup along Weir Gulch in Barnum Park, thanking Parks and Recreation staff and community partners for their rapid response.

Discussion Items

• Mayor Mike Johnston presented the Affordable Denver Fund, stating the city faces a shortage of 44,000 affordable units over the next 10–15 years. He proposed a 0.5% sales tax to generate funding to add those units over 10 years, serving a continuum of incomes from 0–30% AMI up to 80–120% AMI and beyond.
• The Mayor noted that 35% of sales tax in Denver is paid by non-residents and that the average impact on a Denver family would be approximately $2 per week, excluding core items like food and fuel.
• Councilwoman Amanda Sawyer asked for detailed information on fund administration, oversight, and ballot language, requesting at least 72 hours' notice before the committee review. The Mayor committed to providing ordinance language within 10–14 days.
• Council President Pro Tem Sandoval raised concerns about oversight, longevity, and sunset provisions, urging clear metrics and annual reporting. The Mayor and Councilwoman Torres noted existing advisory boards and dashboards that could be leveraged.
• Councilman Chris Hines questioned who would pay and who would benefit from the tax. The Mayor clarified that renters at lower AMI levels would see substantial savings (e.g., a teacher paying $2,500 per month rent could pay $1,500 in a deed-restricted unit).
• Councilman Paul Cashman expressed support for the proposal's scale but raised concerns about the regressiveness of sales taxes, advocating for more federal support for vulnerable populations.
• Councilwoman Laura Alvitres voiced concerns about concentrating poverty, noting past failures of large subsidized housing projects. She also questioned whether other state funds (Prop 123, ADU programs) were being fully utilized. The Mayor emphasized deed-restricted units, acquisition of existing units, and a strategy to distribute units across all 11 council districts.
• Councilwoman Amanda Sawyer asked about the property tax rebate program for seniors, suggesting it be expanded to support fixed-income residents without disqualifying them from federal benefits.

Key Outcomes

• No votes were taken during the discussion; the meeting was informational.
• The Mayor agreed to deliver draft ordinance language within 10–14 days, in advance of a committee review scheduled for July 17.
• Council members will receive documents at least 72 hours before the committee meeting to allow sufficient review.
• The Mayor committed to incorporating feedback on oversight, sunset provisions, and specific population targeting into the proposal.

Tribute to Council President Torres

• At the conclusion of the meeting, Mayor Johnston led a standing ovation for Council President Jamie Torres, honoring her two years of leadership. He praised her ability to bring diverse stakeholders together and her dedication to civic problem-solving. Torres expressed gratitude, saying she had served in city government for 23 years and reflected on the rewarding challenges she had faced.