Denver May Be Subsidizing Suburban Fire Service Amid Budget Crisis

City faces deep budget cuts and layoffs as long-term fire service contracts prove costly

Mar. 18, 2026 at 12:12am

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A CBS Colorado investigation has found that Denver may now be subsidizing fire protection for neighboring cities Englewood and Glendale, despite deals that were supposed to save money. The long-term contracts, which lock in annual payment increases of just 3%, are no longer keeping up with rising labor costs, equipment prices, inflation and other unforeseen expenses, potentially leaving Denver taxpayers to make up the difference.

Why it matters

The issue highlights the challenges cities face when entering into long-term agreements, especially as costs rise faster than anticipated. Denver is facing a $200 million budget shortfall this year and has already laid off 170 workers, so subsidizing fire service for other municipalities is a financial burden the city can ill afford.

The details

The contracts with Englewood and Glendale, which run for 20 years, were intended to save Denver money by having the city provide fire service to those suburbs. However, rising labor costs, equipment prices, inflation and other unforeseen expenses have outpaced the 3% annual payment increases, potentially costing Denver taxpayers hundreds of thousands or even millions of dollars per year. Denver Fire Chief Desmond Fulton acknowledged the deals are no longer in the best interest of the city, and experts say the flaw is built into the agreements' reliance on a "pretty heroic assumption" that costs would rise just 3% annually.

  • The contract with Englewood runs from 2015 to 2035.
  • The contract with Glendale runs from 2018 to 2038.

The players

Desmond Fulton

Denver Fire Chief who acknowledged the fire service contracts are no longer in the best interest of the city.

Earl Peterson

Former leader of the Denver Civil Service Commission who said the city should renegotiate the existing deals, as "we've got a problem" that needs to be fixed.

Mac Clouse

Finance professor at the University of Denver's Daniels College of Business who said the deals rely on a "pretty heroic assumption" that costs would rise just 3% annually.

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What they’re saying

“As of today, financially it's not in the best interest of the city. And moving forward, it's only going to get more expensive.”

— Desmond Fulton, Denver Fire Chief (CBS Colorado)

“We have financial issues in Denver and can ill afford to be subsidizing other municipalities.”

— Earl Peterson, Former leader of the Denver Civil Service Commission (CBS Colorado)

“It's probably been a loser deal. The costs you knew about have gone up more than that -- and then there are costs you didn't anticipate.”

— Mac Clouse, Finance professor, University of Denver (CBS Colorado)

What’s next

Denver Fire Chief Desmond Fulton said he has not discussed renegotiating the existing long-term contracts with Mayor Mike Johnston, but suggested the deals won't age well for the city.

The takeaway

This case highlights the risks cities face when entering into long-term agreements, especially as costs rise faster than anticipated. Denver's situation underscores the need for more flexibility and review periods in such contracts to ensure they remain financially viable for all parties involved.