Cities like Denver have a variety of methods to pay for the infrastructure, services and programs needed to serve you and run the city. Day-to-day operations, salaries for city employees (like police and parks crews) and routine maintenance of city buildings are all funded through our annual budget. The budget is made up of sales tax, property tax and the fees and fines paid throughout the year.
However, the city has an additional special tool called a general obligation bond (GO Bond) that we use every seven to ten years or so to fund major repairs, renovations or new infrastructure or buildings. Denver is beginning the planning process for a new GO Bond in 2017.
GO Bonds must be approved by the voters. With your permission, the City sells bonds to investors. We use the funds they provide to pay for the maintenance or construction of physical infrastructure, and then we pay the investors back over time with property tax dedicated to the bond payback. Because the City is pledging to pay back the bondholders with our “full faith and credit,” there is very low risk to the bond holders, and they don’t pay state or federal tax on the interest they earn. Because of the low risk and tax exemption, investors charge the city a lower interest rate, saving taxpayers money while delivering an improved city.
The last General Obligation bond, known as the Better Denver Bond Program, was in 2007. It delivered three new branch libraries, one new fire station, two new recreation centers, a new police crime lab and improved more than 90 other city and cultural buildings.
It couldn’t be a more important time for a new bond. Denver has a significant backlog of aging buildings that are outdated or in disrepair, including several police stations. And our economic success and growth require better transportation systems and improved community assets to meet increased demand.
The foundation for identifying projects to receive funding from the 2017 GO Bond will be Elevate 2020, the city’s 2015-2020 Six Year Capital Improvement Plan. The plan identifies Denver’s major city asset rehabilitation needs and some new investment opportunities. But, we will also be taking citywide input on projects and priorities important to you. Public meetings began in mid-November and continue into December. A Capitol Hill meeting took place prior to press time, but remaining meetings are:
- Thursday, Dec. 1, 6-7:30p.m.: Lincoln High School, 2285 S. Federal Blvd.
- Tuesday, Dec. 6, 6-7:30p.m.: Bruce Randolph School, 3955 Steele St.
- Thursday, Dec. 8, 6-7:30p.m.: South High School, 1700 E. Louisiana Ave.
Your ideas and projects for the Six Year Plan will be evaluated by stakeholder task forces in early 2017 with the goal of finalizing a package of improvements to submit to the City Council by the summer. Voters decide on the package on the November 2017 ballot. Then, Denver’s next generation of civic infrastructure will be in your hands.
As Chair of Denver City Council’s Finance and Governance Committee, I’ll be closely monitoring the process and advocating for as much citizen participation in budgeting bond dollars as possible. To find other public meetings, or to stay updated on the process, go to denvergov.org and enter “GO Bond” in the search box. You can also send me your ideas at kniechatlarge@denvergov.org or call me at 720-337-7712.
