DENVER (CBS4)– The coronavirus pandemic is taking a toll on the Denver city budget. Denver Mayor Michael Hancock and the city’s financial team presented the grim financial forecast for next year.
The mayor said Denver hasn’t seen a drop in revenues like this since the middle of the Great Depression.
Revenue from the lodging tax is down 66%. Overall the city is facing a $190 million budget shortfall for 2021.
To close the gap, Hancock proposed using $94 million from reserves, freezing new hires and requiring city employees to take 6 to 9 furlough days depending on their salary and position.
The city is trying to avoid cutting jobs.
“This city workforce makes up 70% of our general expenditure,” said Hancock.
City officials believe Denver’s economy will not return to pre-pandemic levels until 2022 at the earliest.