The Denver City Council unanimously advanced a proposed ordinance on Tuesday that aims to codify quarterly general fund reporting to the council from the city’s Department of Finance.

The council currently does not receive regular budget updates, relying instead on “ad hoc” information from the administration rather than standardized data.

“What we are trying to solve with this ordinance is about transparency and good governance,” City Council President Amanda Sandoval said. “(The) council is responsible for approving the budget, and we should have regular, standardized insight into how it’s performing throughout the year. This (the ordinance) isn’t about mistrust. It’s about building a shared understanding of our financial health.”

The proposed measure, put forth by Sandoval and District 5 Councilmember Amanda Sawyer, would require the quarterly reports to be added to the City Council agenda and read into the public record.

“It requires quarterly reporting from agencies on all on-call contracts, use and spending, and ensures reports are clear, readable and accessible to both (the council) and the public,” Sandoval said. “And (it) allows (the) council to track trends over time and reduce surprises, and creates a structured way for (the) council to flag issues early.”

The proposed ordinance, according to Sandoval, aligns Denver with best practices used in other major metro areas such as Kansas City and Dallas. 

“This is really just a good governance tool that we believe will give us trending,” Sandoval said. “We can see a trend over our general fund over time to understand how we are spending the money, since we’re the body that approves it.”

“I just think this is so needed,” District 9 Councilmember Darrell Watson told the committee. “It is an application, a change, within (the) ordinance that’s not exploding an entire process, but it’s targeting where we see the gaps.” 

District 6 Councilmember Paul Kashmann said he is “amazed” it has taken so long for such a measure to come to the table.

“I think it’s important, and just increases our ability to be the shepherds that we’re supposed to be of public dollars,” Kashmann said, thanking Sandoval and Sawyer for the initiative. “I had, for quite some time, thought it would be great if the City Council had a member of the Department of Finance assigned to the council the way we have members of the city attorney’s office. This is not that, but it’s a long way in that direction.”

Denver’s recent struggles with a $250 million budget deficit and layoffs have placed the city’s finances in an additional spotlight, with more focus on the process and transparency.

The proposed ordinance is expected to come before the full council on Feb. 23 for a first reading, and March 2 for a second reading and final vote.

This isn’t the first proposed change to the city’s budget and finance workflow. 

Members of the council’s Budget and Policy Committee proposed that the city consider moving to a two-year budget cycle, with the option to revert to a one-year cycle during “economic uncertainty.”

The proposed measure, according to sponsors, would simplify the budget process timeline, increase transparency and financial reporting, free up financial staff, and require community feedback.

Adopting a biennial budget process would mean that the city would plan, present and approve a 24-month budget, rather than a 12-month budget, but would still be able to make necessary adjustments to the second year as needed.