Mayor Hickenlooper's FY 2009
Budget
Balanced Budget Focuses on Continued Efficiencies and Strategic Outcomes
Departmental hearings with Council took place in September and City Council held its public hearing in October.
Mayor John Hickenlooper delivered a balanced FY 2009 budget proposal to Denver City Council that illustrates the administration’s continued efforts to generate operational efficiencies in the City and County of Denver and to align limited additional resources with strategic outcomes that best serve the needs of citizens.
"Our focus has been and will continue to be on using taxpayer dollars as efficiently as possible. We have approached the budget from a multi-year perspective as reflected in our efforts to preserve assets by continuing to fund capital and operating maintenance programs, replace equipment within planned schedules, and maintain adequate reserves in all our major funds," Hickenlooper wrote in a letter to City Council and Denver residents that accompanied the budget draft.
For FY 2009, the administration has proposed a $914 million budget, representing 5.0 percent growth from FY 2008. Major cost drivers in 2009 include increases of 22 percent in fuel costs and 9 percent in utility costs. Reserves are being maintained at 15 percent of expenditures.
Economic uncertainties impacting the national economy have had an effect on Denver’s local economy as well, especially on revenues associated with development, such as construction permits and plan-checking fees, recording fees and investment income. The City anticipates a 2.9 percent increase in General Fund revenues to $896 million in 2009.
Expenditures for existing operations were projected to outpace the growth in revenues in 2009. The necessity of reducing expenses has required some tradeoffs, but each department has maintained the emphasis on the City’s key priorities and identified efficiencies which will have little to no impact on the delivery of service to citizens. Throughout 2009, the administration will continue to identify efficiencies that both produce savings and deliver improved service to the citizens of Denver.
As always, the 2009 budget has been guided by feedback from the community and City Council. Additionally for 2009, City directors and managers focused on 10 outcome areas for the future, which will be institutionalized in an annual report card:
Healthy and successful living for citizens;
Vibrant and dynamic economy;
Availability of quality cultural and recreational opportunities for all;
Efficient, diverse, and accessible transportation system;
Safe communities;
Environmental stewardship;
High-quality customer service;
Motivated, diverse and prepared workforce;
Prudent fiscal stewardship; and
Internal services that help the City achieve it goals.
"The proposed 2009 budget reflects the difficult work of finding new efficiencies in agencies that have undergone substantial reductions in prior years, as well as the challenge of prioritizing our limited additional resources around our most critical priorities," Hickenlooper wrote. "We wish to thank all those involved in the process for their time, thoughtfulness and energy. We also wish to thank our City workforce on whom we rely so heavily for providing such high quality service and for generating creative new ideas for driving efficiency and improving service."
Highlights for 2009 include:
A continued focus on safety as the foundation of our quality-of-life and economic health, including increased funding for the Crime Prevention and Control Commission; extended funding for the gang task force; and an additional 11 public safety cadets in the Department of Safety.
The purchase of two new fire trucks to maintain our replacement schedule and ensure the Fire Department is equipped to provide effective and timely responses.
A continued commitment to making Denver an even better place to live by providing funding to implement components of the Environmental Management System, the Denver Climate Action Plan, and the Greenprint Action Agenda, including funding to improve energy- and water-efficiency in facilities and parks.
Funding to ensure quality cultural and recreational opportunities for everyone through improvements to neighborhood and community parks and for the operation of an additional bookmobile.
A continued dedication to helping people lead healthy and successful lives by implementing homeless housing partnerships through Denver’s Road Home, funding to continue child victim advocacy services and beginning the next phase of the City’s Zoning Code update.
The proposed FY 2009 budget includes $80.4 million for capital projects, including $25 million in new capital maintenance mill levy funding approved by the voters in 2007. In addition to these annual funds, more than $100 million in one-time bond funded projects will be implemented in 2009, also approved by voters in 2007.
"Our proposed 2009 budget illustrates the management discipline this administration continues to deliver through the budget process," said Claude Pumilia, chief financial officer for the City and County of Denver. "The emphasis on fiscal discipline was reaffirmed by Standard and Poor’s upgrade of the City’s bond rating to AAA."
The Mayor and City Council will hold departmental budget briefings beginning in late September. Based on input during this review period, the Mayor will submit a recommended budget by Oct. 20 to be followed by a public hearing Oct. 27 and additional City Council input. City Council will adopt a budget by Nov. 10 and must enact an ordinance making FY 2009 appropriations by Nov. 24, 2008.