Mayor Johnston's sales tax plan faces consequential vote
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The clash between some Denver City Council members and Mayor Mike Johnston could culminate Monday when the council decides whether to send the mayor's tax plan to voters.
Why it matters: Johnston is counting on council approval for a ballot question to increase the local sales tax to raise $100 million annually for building and maintaining affordable housing over the next 10 years.
Threat level: The mayor touts his plan as crucial for ensuring people across income levels can afford to live in Denver.
- About 44,000 units are needed to meet local affordable housing needs, according to the Denver Regional Council of Governments.
Catch up quick: The council tentatively approved the plan last Monday by an 8-5 vote after its introduction.
- During that meeting, members introduced 12 changes to the measure; eight tweaks were approved, two were rejected and two were withdrawn.
- Approved changes included giving the council more oversight on how money raised is spent, requiring housing to supersede state and federal accessibility requirements, and clarifying that preserving existing housing is a priority, not just building new units.
- Amendments to ensure the sales tax expires after 10 years and changing income qualifications were both rejected.
The intrigue: Perhaps the most pressing issue hinges on determining what income levels should benefit from the money generated, since the initial proposal didn't provide clear details.
- The sales tax can be used for renters at or below 100% of the area median income, per the Denver Post, which is currently $91,280 for a single person, and 120% or below for people seeking homebuyer assistance programs.
- Some council members including Shontel Lewis, who sponsored the measure, would like to see these levels reduced to help people earning lower incomes.
What they're saying: Councilmember Stacie Gilmore, who voted no on the plan, in a statement last week criticized the mayor's governing approach, saying he has a "spend first, ask questions later mindset."
- Her comments crystallize a major reason why some of her colleagues oppose Johnston's plan, saying it was rushed and lacked critical details.
- Jordan Fuja, a spokesperson for Johnston, in a statement to Axios Denver says the administration is "optimistic" about the measure heading to the November ballot.
What we're watching: The council could postpone a final decision until the Aug. 26 meeting — the deadline to send measures to the November ballot.
- It's likely that members may propose additional changes to the measure on Monday, council spokesperson Robert Austin said in a statement.
Monday's Denver City Council meeting starts at 3:30pm and will be streamed online on Channel 8.
- The meeting could spill over into its 5:30pm session.