Colorado’s most populous city, Denver, has been ranked as one of the “worst-run” cities in the United States, according to a recent study by WalletHub. Out of 148 of the nation’s most populated cities, Denver placed 141st in WalletHub’s 2024 “Best- & Worst-Run Cities in America” rankings, positioning it in the bottom 10. San Francisco ranked last in the study.
Reasons for Denver’s Low Ranking
The study suggests that Denver’s burgeoning budget could be a contributing factor to its poor ranking. WalletHub’s methodology involved 36 relevant metrics and budget per capita to determine the rankings.
“We constructed a ‘Quality of Services’ score made up of 36 metrics grouped into six service categories, which we then measured against the city’s per-capita budget,” WalletHub officials explained.
The six service categories assessed in-depth were:
- Financial stability
- Infrastructure and pollution
- Education
- Health
- Safety
- Economy
Denver’s Specific Rankings
Denver’s performance across these categories was varied:
- Financial Stability: 50th
- Infrastructure and Pollution: 64th
- Education: 104th
- Safety: 132nd
- Health: 39th
- Economy: 80th
WalletHub then calculated a “quality of city services” score based on weighted averages across all metrics, in which Denver ranked 79th. Financial experts divided this score by the “total budget per capita” to arrive at a “score per dollar spent,” leading to Denver’s overall ranking at 141st.
Budget Challenges
Denver’s $1.74 billion 2024 budget, compared to its roughly 715,000 population, was a significant factor, ranking the city 143rd in budget-per-capita. Additionally, Denver ranked 147th in long-term debt outstanding per capita and 142nd in air pollution.
“Local leaders must balance the public’s diverse interests with the city’s limited resources,” WalletHub officials noted. “Leaders must carefully consider which services are most essential, which agencies’ budgets to cut or boost, and how much to charge in local taxes, among other decisions.”
Current Administration’s Efforts
Mayor Mike Johnston has implemented budget cuts, averaging 2.5% across all departments, due to the unprecedented influx of illegal immigrants. Denver’s immigration spending could reach $90 million by year-end, according to the administration. Recently, Johnston announced the city is on track to spend $155 million on homelessness between July 2023 and December 2024—$65 million more than previously estimated.
Comparative Rankings
While Denver struggled, other Colorado cities fared better in the rankings. Aurora ranked 69th and Colorado Springs ranked 46th overall in best-run cities. WalletHub named Nampa, Idaho, as the best-run city in the nation.
WalletHub is a website and app offering various financial services and products to help people improve their finances. For more details, you can visit WalletHub’s official site.
