Denver Mayor Mike Johnston on Thursday unveiled a tight budget proposal for the 2025 fiscal year.
At $1.76 billion, it’s only slighter bigger than last year’s budget of $1.74 billion. It’s also the smallest increase in over a decade, according to the mayor.
“Like every American city, Denver faces headwinds from an uncertain national economic environment and the end of one-time federal ARPA (American Rescue Plan Act) funds,” Johnston said.
Denver’s chief financial officer, Nicole Doheny, said consumer spending has slowed, which impacts sales tax revenue the city relies on.
“We had a lot of growth and recovery coming out of the pandemic where consumer spending increased, but that growth has really started to moderate,” said Doheny. “A lot of other cities in the U.S. are experiencing very similar things that we are and really seeing the impacts of these macroeconomic trends.”
Johnston said the tighter budget means the city will have to prioritize its spending.
“We therefore must adapt and be prepared for any future scenario,” Johnston said. “That is why this budget balances investments for long-term growth with a focus on efficiency and smart stewardship of our fiscal health.”