A proposed Denver sales tax rate increase is a step closer to appearing on the November ballot after Mayor Mike Johnston “viewed” the measure on Tuesday.

The tax increase would, if approved, make Denver one of the highest-taxed major cities in the state, surpassing Boulder and Colorado Springs.

The proposal adds 0.34 points to the current sales tax rate of 8.81%, raising it to 9.14% total. With other proposed tax increases also in the pipeline, Denver’s taxpayers could see the rate go up as high as 9.61%.

Denver is currently the 12th highest taxed municipality in the metro region and nearby localities and ranked No. 51 among all municipalities in the state.

As envisioned, the proposed increase will provide up to $70 million to fund Denver Health, a network of healthcare providers throughout the city and which includes clinics in schools and other services. In addition to operating a hospital with a Level 1 trauma center — the highest level of surgical care for trauma patients — the health system also operates Denver’s corps of paramedics and the Rocky Mountain Poison and Drug Safety Center, among others.

Though a drop in the bucket compared to the system’s $1.4 billion budget, City Council members previously said it would inject enough funds to maintain some of Denver Health’s services.

The proposed tax hike comes in the shadow of foreboding economic forecasts from the Department of Finance, which warned that the city may have to make cuts to the 2025 general fund budget, the result of lower-than-expected sales tax revenue and other issues facing Denver.

The city has faced a major fiscal strain in the last several months, notably as a result of its response to the illegal immigration crisis. Mayor Mike Johnston estimated the city could spend up to $90 million on the crisis, necessitating cuts from multiple agencies, including the Department of Public Safety, though officials maintain it would not affect the number of officers on the streets.

The regular mayor-council meeting was cancelled Tuesday and all action items were moved forward on the consent agenda. Because the Mayor was absent, on a trip to Boston for economic development opportunities, according to city officials, the meeting was cancelled but the city council still followed procedure and sent the bills to his office for “viewing.”

Councilmember Kevin Flynn previously expressed worries about the proposed sales tax hike’s burden on taxpayers.

“Our sales tax revenues are already falling short of our projections and that has me concerned for our general fund,” he said at a committee meeting last week. “It might be time to look at putting a ceiling on our sales tax rates.”

Flynn said he recognizes the importance of a safety net hospital and called it a “very needed resource in our community.” But while Denver taxpayers have been generous with approving tax rate increases in the past, this may be a bridge too far for them, Flynn said.

In addition to the council’s vote, the tax hike needs Johnston’s signature before it can be added to the November ballot.

Officials also on Tuesday “viewed” a proposed charter change that would ask Denver voters to establish collective bargaining for certain city employees, including Denver Water and the Denver Public Library System.

Collective bargaining agreements typically regulate pays or raises and other conditions of employment through negotiation.

Such agreements also give certain employees the “qualified right to strike in the event of an impasse in bargaining negotiations.”

The proposal is sponsored by nine of 13 city councilmembers: Sarah Parady, Serena Gonzales-Gutierrez, Chris Hinds, Shontel Lewis, Amanda Sawyer, Stacie Gilmore, Paul Kashmann, Flor Alvidrez and Jamie Torres, the council president.

Staff members at the Denver Public Library system did not comment on specific aspects of the proposal. Staffers said they are working with city agencies, such as human resources and the city attorney. 

“Collective bargaining rights gives Denver employees the opportunity to vote for or against union representation if at least 33% of them want to pursue such a vote,” a city presentation on the matter said. “When the parties come to an agreement, the workers must vote to approve, or ratify, the Collective Bargaining Agreement before it goes into effect.”

While employees will effectively gain the qualified right to strike, the mayor ultimately has the final say of whether an interruption of services will “threaten public health or safety,” city documents said.

Since the proposal seeks to amend the city charter, voters will get the final say on its fate.