Denver Mayor John Hickenlooper released a proposed budget Friday that would expand city government by 7.5 percent.
Hickenlooper’s budget calls for the city to spend $837.6 million in 2007, up from the $775 million in 2006.
The budget assumes moderate growth in the economy with an 3.9 percent increase in sales tax revenue.
The mayor’s office expects total general fund revenues to go up 5.3 percent from 2006 for a total of about $831 million.
While the projections come as good fiscal news for city revenues, there are significant cost increased forecast, including $3.6 million for utility costs, $3 million in fuel costs and $5.5 million to restore the vehicle fleet replacement program.
“This budget reflects our ongoing effort to transform local government and create a city that is sustainable in all senses of the word,” Hickenlooper wrote in the summary. “After emerging from one of the worst recessions in local history, the Denver and State of Colorado economies have outperformed the national economy in the first half of 2006.”
