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Denver City Council advances mayor's Affordable Denver sales tax proposal

Council members vote 8-5 to advance the proposal. It must pass one more vote before it can be placed on November's ballot.
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DENVER — Denver voters are one step away from seeing a proposal on November’s ballot asking them to increase the city’s sales tax for affordable housing.

Denver City Council members worked late into the night Monday going over Mayor Mike Johnston’s Affordable Denver plan.

The mayor wants to send voters a ballot measure asking them to increase the city’s sales tax by 0.5%.

“We believe it’s possible to build a Denver where everyone who works in this city can afford to live in this city,” Johnston said.

If voters approve the increase, Johnston says it would bring in $100 million annually to help the city create or preserve up to 44,000 affordable housing units.

On Tuesday, Denver7 spoke with a group of clergy leaders from the Interfaith Alliance of Colorado who support the plan.

"When people struggle, they tend to reach out to faith communities for support,” said Shara Smith, the CEO of Interfaith Alliance of Colorado. “And so, in that way, faith communities, our pastors, our clergy in general, are on the front lines in knowing what the challenges are and what the struggles are.”

Clergy leaders say they have seen an increase in people seeking their help with housing, which has put a strain on their resources.

"We don't have the volunteers we used to have after COVID,” said Rev. Dr. Thomas Mayes with Living Water Christian Center and the Circle of Elders at the Interfaith Alliance of Colorado. “We don't have the finances we had before COVID, but we're still trying to do the best we can to be there for them and be a resource."

Rev. Leta Behrens, with Our Savior’s Lutheran Church and a member of the Circle of Elders at the Interfaith Alliance of Colorado, said the Affordable Denver proposal will impact the city.

"I serve and work with communities in north Colorado, so not directly in Denver. However, we have had a significant increase of people coming from Denver unable to find a place to live,” Behrens said. “And so, this Affordable Denver plan, I think is a great step towards embracing that there are other ways that we can start supporting our community.”

However, some city council members say that a new tax is the last thing Denver residents need.

“How many more fees and taxes are we going to put on the people here before we're finally affordable?" asked Denver City Council Member Kevin Flynn.

Some council members are deeply concerned with how quickly the plan was developed.

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Affordable Denver plan

Council members considered several amendments to the plan Monday night. Amendments are usually ironed out before bills reach the full council.

"We're fast-tracking this at breakneck speed,” said Council Member Stacie Gilmore. “That's not good governance.”

Some council members say a tax that could raise one billion dollars over a decade should be considered more carefully, especially since the plan doesn’t include a provision setting a date for the tax to expire.

“Let that amount of money sink in for a minute, because that's more money than my mind can even wrap around,” said Council Member Amanda Sawyer.

Despite those concerns, the council advanced the proposal by a vote of 8 to 5.

Denver City Council advances mayor's Affordable Denver sales tax proposal

Council members Gonzales-Gutierrez, Hinds, Kashmann, Lewis, Parady, Romero Campbell, Sandoval and Watson voted in favor of the proposal.

Council members Alvidrez, Flynn, Gilmore, Sawyer and Torres voted against the proposal.

It’s the first of two votes they must take before the proposal can be sent to voters.

Johnston issued a statement thanking council members for advancing the plan.

“The opportunity for affordable housing for all Denverites is one step closer to the November ballot,” Johnston said. “Housing costs are a significant concern for the vast majority of our residents, and the teachers, nurses, seniors, and servers who make our city run are struggling to keep up. The creation of this fund is a critical step toward ensuring Denver is a city for everyone, not just the rich, and we are grateful for Council’s partnership in this mission.”

The council is expected to take a final vote this Monday, though some changes could be added that could potentially delay a vote.

The last meeting council members can refer measures to November’s ballot is August 26.

If the proposal is sent to voters, it would be the second measure on the ballot asking them to increase the city’s sales tax rate.

The other ballot measure asks voters to increase the sales tax rate by 0.34% to benefit Denver Health.


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