Critics Say City Resources Misused in Denver’s $1 Billion Bond Campaign

By Deborah Smith | Colorado Politics

A group that is seeking to push back on government debt argued that big dollars are rolling in from funders supporting Mayor Mike Johnston’s $1 billion debt package and alleged some of those contributions may be legally prohibited.

The group said the contributors included entities that receive taxpayer funding, questioning whether public money is going to the campaign that seeks to persuade voters to support the borrowing package.

Denver Mayor Mike Johnston is asking residents to let the city take on nearly $1 billion in new debt as part of his “Vibrant Denver” bond initiative on the Nov. 4 ballot.

City officials have framed the bond as a “much-needed” investment in the city’s future, aimed at repairing and improving infrastructure and community spaces, including roads, bridges, parks, playgrounds, recreation centers and libraries.

On Thursday, Jason Bailey, filed an ethics complaint with both the Colorado Secretary of State and the Denver Elections Division, asserting the Vibrant Denver Bond Campaign, which supports passage of all five ballot measures tied to the bond, is “receiving public tax money while advocating for a YES vote.” 

Specifically, Bailey cited contributions made from some of the city’s most prominent arts and cultural organizations that use public tax money from the Scientific and Cultural Facilities District (SFCD). 

This Denver-area tax district funds local arts and science organizations through a 0.1% sales and use tax.

“When that money’s coming into an organization, you can divide that up any way you want,” Bailey told the Denver Gazette on Monday. “You can say, ‘Hey, bucket A is tax money from SCFD, and bucket B is ticket sales, and bucket C is donor receipts.”

However, Bailey said, when the money is coming in, that’s one thing, “but when it’s going out, that’s a different story.”

“You can’t make an external gift and then say, ‘Well, this is how we’re going to classify the external gift.’” He said. “I just don’t buy that at all when it’s going out. It has to be proportionally divided according to the income coming in.”

According to SearchLight, the city’s online campaign finance dashboard, the top donors supporting the Vibrant Denver Bond package included the following:

• Philanthropist and Mizel Museum founder Larry Mizel: $65,000
• Visit Denver: $50,000
• Colorado Museum of Natural History: $50,000
• Heart of Denver: $50,000
• Denver Zoological Foundation: $50,000
• Denver Center for the Performing Arts: $50,000
• Denver Botanic Gardens: $50,000
• Denver Art Museum: $40,000

The Colorado Museum of Natural History, the Denver Zoological Foundation, the Denver Center for the Performing Arts, the Denver Botanic Gardens and the Denver Art Museum are each listed on the SCFD website as Tier I organizations, which receive 64% of the SCFD funds.

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