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Record of Proceedings

Denver City Council Property Tax Briefing on August 14, 2024

Mayor-Council Meeting — Wednesday, August 14, 2024
BodyDenver, Colorado
SessionMayor-Council Meeting
DateWednesday, August 14, 2024
StatusFILED
Video Record
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Transcript — Verbatim
0:15

Welcome to this meeting's brief the mayor and a council.

0:19

At this weekly session, city agencies brief the mayor and council members on various proposals and projects across the city.

0:27

This meeting of the mayor and city council members begins now.

3:38

Thank you so much.

3:46

All order is restored in the universe because people are apparently back in their normal seats because we can start with the distinguished gentleman from introductions.

4:15

Try it four nights a week.

4:16

Trust me.

4:17

Five nights a week.

4:18

Maybe seven nights a week.

4:19

Anyway, hi everyone.

4:20

Set Anna Gonzalez Good Yet as one of your council members at large.

4:28

Good morning, Darrell Watson.

4:29

Fine, District Nine.

4:36

Or just be the counterweight, I suppose.

4:40

Chris Hines, Denver's Perfect Ten.

4:42

Good morning, Amanda County on North West Denver District One.

4:45

Well, good morning.

4:46

Great to see you all.

4:47

Thank you so much for being here.

4:48

Bright and early.

4:48

Certainly feels bright and early after late night.

4:51

Um want to start with any announcements we have, and then we are gonna jump in and talk.

4:56

Taxes statewide and the framework and the impact on Denver.

5:00

But are there any announcements that members have for the good of the order or the listening audience at home?

5:03

Councilman Watson.

5:04

Well, hey, for the good of the order, sir, and on behalf of both of us, the Cornhole Classic is next Friday, August 23rd, uh 21st of Blake.

5:16

It starts at uh 3 p.m.

5:19

Um at um across from course field.

5:22

And the good mayor and I are going to be challenging each other at a game of cornhole.

5:26

We're raising funds for nonprofits.

5:28

It's gonna be a great day and night for family and friends.

5:31

I've been practicing, sir.

5:33

I hope you've been practicing as well.

5:34

So I'm looking forward to it.

5:36

I have not, but I need to be.

5:37

I look forward to that.

5:38

Thank you.

5:39

Any other announcements?

5:40

I'll go.

5:41

Please.

5:42

Um, I have a movie in the park this Friday.

5:44

And for people who are in their mid-40s, maybe a little bit earlier.

5:49

We're gonna watch the Goonies.

5:51

I've been wanting to watch the Goonies forever.

5:54

So I won.

5:55

Thank you, Gina, for letting me win that bet.

5:58

That's awesome.

5:59

Down here, down here, this is our time.

6:02

This is our time before they die.

6:08

All right.

6:09

Ready.

6:09

Wow, that's fantastic.

6:10

Any other announcements?

6:11

Councilman Cashman.

6:12

Yeah, it is kind of a personal privilege moment.

6:14

Um I was out last week, uh, went with my son and my grandkids through Colorado, Wyoming, Idaho, and Montana.

6:24

And uh just stunned at what a gorgeous uh part of the world this is.

6:31

But for any number of reasons, I'm extremely glad to be back in Denver.

6:38

There's some folks out there that see the world a whole lot differently than some of the rest of us do.

6:45

And uh I'm I'm glad to be in a place where uh open discussion is a whole lot easier.

Discussion Breakdown — Share of Meeting
Revenue/Taxation█████████████████████████████████████████████56%
Public Engagement█████████████16%
Announcements████████10%
Procedural██████8%
Land Use Zoning██████7%
Pending Litigation██3%
Summary of Proceedings

Denver City Council Property Tax Briefing - August 14, 2024

The Mayor and Denver City Council convened on August 14, 2024, at 15:30 UTC for a weekly briefing focused on statewide property tax proposals and their potential impacts on Denver. Adam Berg, Director of Federal and State Affairs, led the presentation, covering the current state framework, two ballot measures (Amendment 50 and Proposition 108), and the possibility of a special legislative session. The discussion aimed to inform council members ahead of upcoming decisions, with Denver facing a potential cumulative revenue loss of over $100 million if both measures pass.

Announcements

  • Councilman Watson announced the Cornhole Classic on Friday, August 23rd, at 21st of Blake, starting at 3 p.m., raising funds for nonprofits and featuring a challenge between himself and the Mayor.
  • Councilman Hines announced public openings for the 5280 Trail Acoma segment (between 11-1 and 4-6 today) at 12th and Acoma.
  • Councilman Cashman shared gratitude for returning from a trip to Colorado, Wyoming, Idaho, and Montana.
  • Councilman Gonzalez-Gutierrez celebrated his 20th wedding anniversary (24 years together).

Discussion Items

  • Current State Framework (Senate Bill 233): Enacted in 2023, SB 233 provides a permanent 10% exemption on the first $700,000 of a home's value (floating with inflation), lowers the residential assessment rate for non-K-12 revenue to 6.95%, and maintains the K-12 rate at 7.15%. This bill is contingent on both ballot measures failing or being withdrawn.
  • Ballot Measures:
    • Amendment 50: Caps future property tax increases at 4% year-over-year; already on the ballot.
    • Proposition 108: Would cap assessment rates at 5.7% for residential and 24% for commercial; signatures submitted, verification pending, but likely on ballot.
    • Both measures have impacted funds: affected funds (e.g., general fund under 2A) could still increase, while unaffected funds (e.g., library, sidewalks) would be frozen.
  • Special Session Proposal: The latest framework discussed by the 19-member Property Tax Commission and stakeholders suggests reducing the residential assessment rate to 6.25% for local governments (from 6.95%) and commercial to 25% (from 29%) by 2027, with revenue growth caps of 5.25% for local governments and 6% for school districts. This proposal would lower property taxes by $255 million in 2025 and $295 million in 2026 compared to SB 233.
  • Denver Impact: If both measures pass, Denver city services face an estimated $40 million in cuts (non-K-12), while DPS would lose an additional $60-70 million, totaling over $100 million.
  • Stakeholder Positions:
    • Governor Polis appears amenable to a special session but has not confirmed support.
    • Colorado Education Association and Special District Association expressed caution, citing mistrust of handshake agreements.
    • Colorado Counties tentatively supports the conversations but has not endorsed the deal.
    • Councilman Kashmann questioned the ratio of tax savings to city revenue loss, requesting a breakdown of savings per household; the city committed to provide detailed charts.
    • Councilman Gonzalez-Gutierrez requested a briefing on future land use proposals at the state level, suggesting coordination with the Intergovernmental Relations (IGR) committee.

Key Outcomes

  • No formal votes were taken; the session was informational.
  • The council will receive follow-up materials including a detailed breakdown of revenue impacts per option (SB 233, Amendment 50, Proposition 108) and per-household savings.
  • Councilman Gonzalez-Gutierrez's request for a future briefing on state land use issues was acknowledged; coordination with the IGR committee and Councilwoman Sawyer will be pursued.
  • Adam Berg estimated an 80-90% likelihood that the governor calls a special session by August 26th, with a pre-negotiated deal.

Public Comments & Testimony

  • No public comments were made during this session.

Meeting Transcript

Welcome to this meeting's brief the mayor and a council. At this weekly session, city agencies brief the mayor and council members on various proposals and projects across the city. This meeting of the mayor and city council members begins now. Thank you so much. All order is restored in the universe because people are apparently back in their normal seats because we can start with the distinguished gentleman from introductions. Try it four nights a week. Trust me. Five nights a week. Maybe seven nights a week. Anyway, hi everyone. Set Anna Gonzalez Good Yet as one of your council members at large. Good morning, Darrell Watson. Fine, District Nine. Or just be the counterweight, I suppose. Chris Hines, Denver's Perfect Ten. Good morning, Amanda County on North West Denver District One. Well, good morning. Great to see you all. Thank you so much for being here. Bright and early. Certainly feels bright and early after late night. Um want to start with any announcements we have, and then we are gonna jump in and talk. Taxes statewide and the framework and the impact on Denver. But are there any announcements that members have for the good of the order or the listening audience at home? Councilman Watson. Well, hey, for the good of the order, sir, and on behalf of both of us, the Cornhole Classic is next Friday, August 23rd, uh 21st of Blake. It starts at uh 3 p.m. Um at um across from course field. And the good mayor and I are going to be challenging each other at a game of cornhole. We're raising funds for nonprofits. It's gonna be a great day and night for family and friends. I've been practicing, sir. I hope you've been practicing as well. So I'm looking forward to it. I have not, but I need to be. I look forward to that. Thank you. Any other announcements? I'll go. Please. Um, I have a movie in the park this Friday. And for people who are in their mid-40s, maybe a little bit earlier. We're gonna watch the Goonies. I've been wanting to watch the Goonies forever. So I won. Thank you, Gina, for letting me win that bet. That's awesome. Down here, down here, this is our time. This is our time before they die. All right.

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