Denver Mayor Mike Johnston announced Thursday that the city’s proposed 2027 budget is set to return to modest fiscal growth after two years of flat or declining budgets. The plan adds a 1% increase to general‑fund spending and avoids any layoffs or furloughs, signaling a bounce‑back from the fiscal crunch that forced the closure of hundreds of open positions and the layoff of 171 employees in 2025.
Key budget highlights
The budget proposes a 2% merit raise for eligible city employees, costing roughly $10.4 million. It also earmarks funds for infrastructure projects, including repairs to seven road bridges, and integrates the city’s 311 and 911 services so operators can route callers more efficiently regardless of the request.
General‑fund revenue is projected to grow 1.1% in 2027 – the strongest increase since 2023, a year that saw a mix of flat growth and decline. The city expects the rise to be driven by stronger economic activity, particularly higher sales‑tax collections in the revitalized 16th Street pedestrian zone and broader downtown improvements.
Financial outlook and reserves
Total general‑fund spending is expected to reach $1.68 billion. While the budget modestly raises the city’s reserve ratio from 11.4% to 12% of general‑fund expenditures, it remains below the 15% reserve requirement set by state law.
Beyond the general fund, the overall budget totals $6.08 billion, covering capital funds, enterprise funds such as the airport, debt service, and other obligations. The city also anticipates an additional $5.3 million in revenue from increased traffic citations and expanded parking‑meter hours.
Mayor’s perspective
“We knew we had to right‑size the budget,” Johnston said at the news conference. “We wanted to make sure we could balance our budget without passing those costs on to Denver residents.” He credited city staff and leaders for navigating “real headwinds” and emphasized that the modest growth reflects progress despite a challenging year and a half.
Johnston, who has just launched his reelection campaign, argued that the improved numbers are a direct result of his administration’s work on homelessness, public safety, and other core issues. He noted that other municipalities across Colorado and the nation are also seeing sales‑tax gains as local economies recover.
Next steps
The budget proposal will be presented to the Denver City Council during the week of September 21 for public hearings. After council input, the administration plans to release a final budget in November.
City officials remain optimistic that continued economic activity and prudent fiscal management will sustain the modest upward trend and set the stage for further stability in the years ahead.
Original reporting: Denverite — read the source article.
