Denver plans to spend the last $11.7 million of this year's reserve, including $2.3 million for next year's rent aid

Denver's finance department is asking the City Council to spend the last $11.7 million left in this year's General Fund contingency, according to slides for the Finance and Business Committee's meeting Tuesday, Nov. 10. The bill is 26-1710.

Why it matters: contingency is the cushion the charter requires for surprises, 2% of estimated General Fund spending, about $33.5 million this year. Spending it takes a Council-approved ordinance. If this bill passes, the slides show nothing left for the rest of 2026.

Where the $11.7 million would go

From the slides:

• Sheriff, $5.0 million, for union contract raises finalized after the 2026 budget was adopted.
• Affordable Housing Fund, $2.275 million, labeled "2027 TRUA," the rent and utility aid program.
• City Attorney's Office, $1.5 million, for outside lawyers.
• Liability Claims Fund, $1.0 million, for settlements and claims.
• Risk Fund, $1.0 million, to replace totaled vehicles, mainly police cars.
• Public Defender, $0.3 million, for conflict counsel and job audits.
• General Services, $0.3 million, for utilities, security, janitorial and RV disposal costs.
• Public Health and Environment, $0.3 million, for Medical Examiner staffing.

The bill also moves money outside the General Fund, including $5.9 million in police overtime and separation payouts and $1.0 million in fire overtime, both at the airport, billed internally. Arts and Venues is separately seeking $7.67 million because of strong event activity.

What our records add

Lawsuits already took most of the cushion. The Council approved two earlier withdrawals this year, both to the Liability Claims Fund: $3.0 million in June (26-0758) and $18.8 million in August (26-1107). With Tuesday's $1.0 million, claims would account for $22.8 million of the $33.5 million.

How rent aid gets to $8.5 million. Mayor Mike Johnston's October budget letter put TRUA at $4.5 million for 2027. The Council's amendment on Nov. 2 added $1,724,038 (26-1673). The $2.275 million in this bill is labeled for 2027 TRUA. Together those come to about $8.5 million, the total in the mayor's Nov. 6 letter. That means part of next year's rent aid is coming out of this year's reserve, moved into a fund that carries over. Our compromise story explains how the amendment shrank from $5.5 million.

Next year starts thin, too. The Denver Gazette reported that the amended 2027 budget sets contingency at 2.01% of General Fund spending, about $33.8 million, just above the 2% minimum (Gazette).

The slides include a chart of contingency use since 2018. They don't say how often the city has used all of it.

What's next

According to the slides:

Nov. 10: Finance and Business Committee.

Nov. 17: Mayor-Council.

Nov. 23: First reading at City Council.

Nov. 30: Final vote.

Dec. 4: Money appropriated in the city's Workday system.