Denver bill would add temporary 10% set-aside for alternatives-to-jail facility
The measure would use Caring for Denver tax revenue to develop a facility for people with mental-health or substance-use needs, in addition to a recurring city allocation that existing law already requires.
Denver Council Bill 26-1362 would set aside an additional 10% of annual Caring for Denver tax revenue for the first two years after the ordinance takes effect, to develop a facility for people with mental-health or substance-use needs. It would also direct at least 10% annually to city programs, including alternatives to jail, co-responder and other alternative-response programs, and first-responder training.
The additional share could bring the bill’s specified city allocations to as much as 20% of annual revenue during those first two years. The recurring 10% is not entirely new: existing law already directs 10% of Caring for Denver funding to the city for specified purposes, including alternatives-to-jail facilities and first-responder training. The temporary allocation could pay for planning, design, real-estate purchase, renovation or construction.
A city memo’s projected 2027 revenue estimate offers one way to gauge the potential scale. The memo estimated that a 1% administrative fee would generate about $516,000 a year, implying a revenue base of roughly $51.6 million. At that level, each 10% share would equal about $5.16 million annually, and the two shares together about $10.32 million in each of the first two years. These are calculations based on projected revenue, not actual collections or guaranteed future amounts.
The city has used Caring for Denver funding for existing programs, including a one-year, $2.46 million grant to the Denver Police Department’s Co-Responder Program, under a city grant agreement.
The bill would lower the Caring for Denver Foundation’s administrative-spending cap from 7% to 5% of annual tax revenue and separately cap city administrative expenses paid from the fund at 1%. It would also require public access to the foundation’s records and meetings and a strategic plan at least every three years, including public input, goals, measurable objectives, timelines and performance measures.
As of Sept. 23, the official Legistar record listed the bill as “Approval Review”; the filed bill does not show final City Council passage or mayoral approval.