The Denver City Council is considering moving the city to a two-year budget cycle, with the option to revert to a one-year cycle during “economic uncertainty.”

The proposed measure, put forth during Monday’s Budget and Policy Committee meeting, aims to simplify the budget process timeline, increase transparency and financial reporting, free up financial staff, and require community feedback, according to council sponsors Amanda Sawyer, Shontel Lewis and Stacie Gilmore.

Adopting a biennial budget process would mean that the city would plan, present and approve a 24-month budget, rather than a 12-month budget, but would still be able to make necessary adjustments to the second year as needed.

In accordance with Colorado law, the council would still be required to pass a balanced budget each year.

The difference would be that during the “off” year, the council would pass the same budget with any approved changes.

“I’m very, very skeptical,” said Councilmember Kevin Flynn of the proposed biennial budget idea. “A large number of jurisdictions, states and local governments that had biennial budgeting have moved away and gone back to annual, versus the few that have gone from annual to two-year.”

He added: “I’m just concerned that it can be very chaotic and make it more complicated and more midterm, mid-budget votes, reappropriations, rescissions and things like that.”

Experts suggest that biennial budgets present challenges, particularly with forecasting.

City Budget Director Justin Sykes said there are both pros and cons to the proposal.

“We are trying to evaluate what it is that’s being proposed,” Sykes said, adding that the department preferred to wait until the language was drafted and had time to sit down with other agencies.

“I do think it would be harder to project over two years,” he added. “It may save some effort in that second small budget year, but I don’t know that the Department of Finance at this point has a strong opinion. I think we’re still evaluating, along with all of you.”

Fort Collins adopted a two-year budget process in 2005, seeking to emphasize community engagement and transparency. 

Sponsors note that public outreach meetings on the matter would begin next year in February, with the council process and public hearing in June and July.

If approved by the City Council, the measure would go to voters on the November ballot.