§ 20-26. Constitutional revenue limitations.

(a)

Purpose. The purpose of this section is to provide for the implementation of the ballot measures approved by voters at the special municipal elections conducted on November 7, 2000 and November 6, 2012, in which the voters authorized the City and County of Denver to collect, retain and spend all city revenues in excess of the limitations set forth in Section 20(7)(b) and (c) of Article X, of the Colorado Constitution.

(b)

Definitions. As used in this section, the following terms have the meanings herein set forth:

(1)

Affected funds means the general fund, the human service fund, the police pension fund, and the fire pension fund, for which a millage rate has been itemized in the annual certification of city and county property taxes, offset by temporary property tax credits or rate reductions between tax years 1996 and 2011 in order to comply with the constitutional property tax revenue limitation.

(2)

City property tax revenue limitation means the amount of property tax revenue levied for the affected funds in the preceding year plus six (6) percent, plus an additional percentage equal to "local growth" as defined by Section 20(2)(g) of Article X of the Colorado Constitution, but excluding revenue derived from any of the following:

a.

Increased property tax revenue caused by the retirement or expiration of any tax increment financing obligations incurred by the Denver Urban Renewal Authority or any downtown development authority within the city; or

b.

Any revenue derived from any abatement or refund levy as authorized by law.

(3)

Constitutional property tax revenue limitation means the limit on annual increases in city property tax revenue as set forth in Section 20(7)(c) of Article X of the Colorado Constitution.

(4)

Constitutional spending limitation means the limitation on annual increases in total city revenue and fiscal year spending as set forth in Section 20(7)(b) of Article X of the Colorado Constitution.

(5)

Credited mills means 6.222 mills, representing the combined total of the temporary property tax credits or rate reductions for the affected funds as of tax year 2011 for taxes collected in 2012, certified in accordance with C.S. 1956, § 39-1-111.5, in order to comply with the constitutional property tax revenue limitation.

(6)

Maximum lawful property tax rate means 22.830 mills, representing the combined total millage rate for the affected funds as of tax year 1996 for taxes collected in 1997.

(7)

Restored property tax revenue means the amount of additional property tax revenue the city is allowed to collect and expend in the affected funds as allowed in subsection (d) of this section, in excess of the amount of property tax revenue the city is otherwise allowed to collect and expend in the affected funds under the constitutional property tax revenue limitation.

(c)

Authority to exceed constitutional spending limitation. By virtue of the voter approval granted on November 7, 2000, and November 6, 2012, the city is authorized to collect, retain and spend revenues from any source in excess of the constitutional spending limitation, with any revenue in excess of the constitutional limitation being treated as a "voter-approved revenue change" within the meaning of Section 20(7)(d) of Article X of the Colorado Constitution.

(d)

Authority to exceed constitutional property tax revenue limitation. By virtue of the voter approval granted on November 6, 2012, the city is authorized to collect, retain and spend revenue derived from ad valorem property taxes in excess of the constitutional property tax revenue limitations, with any revenue in excess of the constitutional limitation being treated as a voter-approved revenue change within the meaning of section 20(7)(d) of the Colorado Constitution, subject to the following requirements and limitations:

(1)

For 2012 property taxes to be collected in 2013, the city shall reduce the credited mills by four (4) mills and shall be permitted to retain and spend the additional revenue derived therefrom in excess of the total amount of revenue the city is allowed to collect and spend under the constitutional property tax revenue limitation.

(2)

For 2013 property taxes to be collected in 2014 and for each subsequent year, the city may increase property tax revenue on an annual basis in an amount not to exceed the city property tax revenue limitation, and may reduce or otherwise adjust the credited mills to the extent necessary to comply with the city property tax revenue limitation until such time as the credited mills are entirely eliminated.

(3)

When the credited mills have been entirely eliminated and the maximum lawful property tax rate has been fully restored, the city property tax revenue limitation shall no longer apply, and the city may then levy the maximum lawful property tax rate upon the assessed valuation of all taxable property in the city on a year to year basis.

(4)

In no event shall the city increase the maximum lawful property tax rate without prior voter approval, as required by Section 20(4)(a) of Article X of the Colorado Constitution.

(e)

Use of restored property tax revenues. Restored property tax revenues shall be expended exclusively for the following purposes, with the allocation of revenue between and among these purposes to be determined on a year to year basis as a part of the annual budget and appropriation process: public safety, services for children, street maintenance, parks and recreation, libraries, and other essential city services; payments to low-income residents who are older adults, individuals with disabilities, or homeowners with dependent children as provided in section 53-495; and business incentive programs to retain and attract businesses to Denver.

(f)

Reporting requirements. Notwithstanding the voter-approved authorization to exceed the constitutional spending limitation and the constitutional property tax revenue limitation, the manager of finance shall continue to annually calculate and report to the mayor, the auditor and the city council the following information:

(1)

Any amount by which the city's total fiscal year revenue and spending exceeds the constitutional spending limit after 2012.

(2)

The total amount of restored property tax revenue received by the city on a year to year basis.

(3)

An accounting demonstrating that the restored property tax revenue has been dedicated to and expended exclusively for the purposes set forth in subsection (e) of this section.

(Ord. No. 1028-00, § 2, 12-26-00; Ord. No. 607-05, § 2, 8-9-05, elec. 11-1-05; Ord. No. 426-12, § 1, 8-20-12, elec. 11-6-12; Ord. No. 1507-18, § 11, 1-7-19)