Denver officials say a good construction market and savvy project management has generated $20 million in savings on the 2007 bond program — money they hope to plow into more projects.
The City Council on Monday will vote on approving plans to use the savings to start at least six projects and help finish a handful of others that need additional funding.
“Our No. 1 priority is to complete these projects,” said council president Chris Nevitt. “The second is to do the obvious improvements and additions that make sense.”
That is a change of course from July, when then-Mayor John Hickenlooper said taxpayers would save nearly $20 million. “For the first time, the city is using financing techniques utilized widely in the private sector, to lower costs,” he said then. “This, and lower interest rates, will save taxpayers an additional $19 million on debt service.”
“If you don’t do this, some of these projects stop,” Denver’s chief financial officer Ed Scholz said Tuesday.
Under the plan to be presented to the council, about $7.5 million of the $20 million would go to complete existing projects; $6 million would be for new projects or to leverage other funds; $3.5 million would be reserved to construct the central Denver recreation center; and $3 million would be for contingency funds.
In 2007, Denver voters approved the $500 million Better Denver Bond Program to fund more than 280 construction projects around the city, including improvements to roads, libraries, parks, recreation centers and cultural facilities.
The savings has come from lower construction costs and sound project management, officials say.
For example, the Central Park Boulevard interchange at Interstate 70 is $8.4 million in the black; a police traffic-operations and firing-range project is $850,000 under its $13.5 million budget; and an east-side human-services facility is $1.3 million below its $19.5 million budget.
Some programs, however, need more money.
A project in Ruby Hill Park needs an additional $1.2 million after crews came across asbestos while installing a new irrigation system.
The Blake Street Bridge project over 38th Street needs about $2 million, and a handful of arterials and street improvements need about $4.5 million more.
New projects being suggested include completing $1.15 million in deferred maintenance on Human Services buildings; $1.1 million in safety upgrades to Denver Cares and a westside clinic; $600,000 to protect police command vehicles purchased during the Democratic National Convention; and $430,000 for deferred maintenance at fire stations.
“One idea out there is to sit on this (savings),” Nevitt said during a council committee meeting Tuesday. “But I think there is an imperative to get the money on the street as soon as we can. . . . Every cent we can get on the street is a job saved.”
