According to documents uncovered by Fox 31 reporter Leland Vittert, Denver Mayor John Hickenlooper is seeking millions in new debt to build a homeless shelter, but voters won't have a say in the matter.
FaatzFox 31 TV
JonesFox 31 TV
The City and County of Denver is using a controversial funding mechanism called "certificates of participation" to borrow $20 million for the construction of a new homeless shelter, a part of the mayor's "Denver's Road Home" plan. Under Colorado's Constitution, any new public debt - usually in the form of public obligation bonds - requires voter approval. Even though COPs are ultimately backed by the government's tax authority just as bonds are, they do not require a vote under a 2004 Court of Appeals ruling.
Issuing COPs and not bonds is a distinction without a difference, according to Denver City Councilwoman Jeanne Faatz, who believes the debt should be put to a vote. "Any time somebody tells me I owe 1.6 million dollars for 20 years, I consider that debt," she told Fox 31.
Hickenlooper says the city will repay holders of the debt certificates through savings realized through reduced calls to police and Denver Cares, the city's "drunk-tank." The mayor envisions fewer chronically homeless people on the streets consuming expensive emergency services.
Face The State managing editor Brad Jones, interviewed for the news package, said the city council is far too optimistic in its cost-savings estimates, and that voters should determine the plan's efficacy. "At the very least, this should go to the ballot."
In the meantime, the city has not changed funding levels for acute-level services provided to the homeless. "I haven't seen a reduction in the appropriation for Denver Cares," Faatz said.
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