Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: August 6, 2026 Agenda Title

1. Second reading and consideration of a motion to adopt Ordinance 8758 submitting to the electors of the city of Boulder at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question of authorizing the issuance of general obligation bonds for the purpose of financing community recreation, safety infrastructure, and other capital projects; specifying the form of the ballot and other election procedures; and setting forth related details; 2. Second reading and consideration of a motion to adopt Ordinance 8759 submitting to the electors of the city of Boulder at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question of raising taxes in the city of Boulder by the adoption of a Vacancy Excise Tax imposed on homes that are occupied for 183 days or less per year, with such amount to increase annually in accordance with the Denver-Aurora-Lakewood Consumer Price Index to support general city services; specifying the form of the ballot and other election procedures; and setting forth related details; 3. Second reading and consideration of a motion to adopt Ordinance 8761 submitting to the electors of the city of Boulder at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question of amending the Boulder Home Rule Charter to add a new Section 73, “Collective Bargaining for Firefighters,” creating a charter guaranteed right for full-time fire department employees to bargain collectively; specifying the form of the ballot and other election procedures; and setting forth related details; 4. Second reading and consideration of a motion to adopt Ordinance 8762 submitting to the electors of the city of Boulder at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question of authorizing an amendment of the Boulder Home Rule Charter to modify the calculation of the city’s debt limitation, as set forth in the ballot; specifying the form of the ballot and other election procedures; and setting forth related details; 5. Second reading and consideration of a motion to adopt Ordinance 8763 (1) determining the necessity of establishing the Boulder Downtown Development Authority, and (2) submitting to the qualified electors of the proposed Boulder Downtown Development Authority at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question concerning the formation of the Boulder Downtown Development Authority and a ballot issue to waive applicable revenue and spending limits in the city of Boulder, Colorado, declaring the necessity for an election on November 3, 2026, concerning the formation of such authority pursuant to Colo. Const. Art. X, Sec. 20 and statutory revenue

limitations for such authority, allowing the city to pledge tax increment funds on behalf of the Boulder Downtown Development Authority, determining organizational aspects of the Boulder Downtown Development Authority board; specifying the form of the ballot and other election procedures; and setting forth related details

Staff Contact        

Chris Meschuk, Deputy City Manager Mark Woulf, Assistant City Manager Charlotte Huskey, Budget Officer, Finance Scott Carpenter, Principal Budget Analyst, Finance Krista Morrison, Chief Financial Officer, Finance Kirsten Westerland, Assistant City Attorney III, City Attorney’s Office Sarah Geiger, Senior Counsel, City Attorney’s Office Janet Michels, Senior Counsel, City Attorney’s Office

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motions: Motion to adopt Ordinance 8758 submitting to the electors of the city of Boulder at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question of authorizing the issuance of general obligation bonds for the purpose of financing community recreation, safety infrastructure, and other capital projects;

specifying the form of the ballot and other election procedures; and setting forth related details; and Motion to adopt Ordinance 8759 submitting to the electors of the city of Boulder at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question of raising taxes in the city of Boulder by the adoption of a Vacancy Excise Tax imposed on homes that are occupied for 183 days or less per year, with such amount to increase annually in accordance with the Denver-Aurora-Lakewood Consumer Price Index to support general city services; specifying the form of the ballot and other election procedures; and setting forth related details; and Motion to adopt Ordinance 8761 submitting to the electors of the city of Boulder at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question of amending the Boulder Home Rule Charter to add a new Section 73, “Collective Bargaining for Firefighters,” creating a charter guaranteed right for full-time fire department employees to bargain collectively; specifying the form of the ballot and other election procedures; and setting forth related details; and Motion to adopt Ordinance 8762 submitting to the electors of the city of Boulder at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question of authorizing an amendment of the Boulder Home Rule Charter to modify the calculation of the city’s debt limitation, as set forth in the ballot; specifying the form of the ballot and other election procedures; and setting forth related details; and Motion to adopt Ordinance 8763 (1) determining the necessity of establishing the Boulder Downtown Development Authority, and (2) submitting to the qualified electors of the proposed Boulder Downtown Development Authority at the Regular Municipal Coordinated Election to be held on Tuesday November 3, 2026, the question concerning the formation of the Boulder Downtown Development Authority and a ballot issue to waive applicable revenue and spending limits in the city of Boulder, Colorado, declaring the necessity for an election on November 3, 2026, concerning the formation of such authority pursuant to Colo. Const. Art. X, Sec. 20 and statutory revenue limitations for such authority, allowing the city to pledge tax increment funds on behalf of the Boulder Downtown Development Authority, determining organizational aspects of the Boulder Downtown Development Authority board; specifying the form of the ballot and other election procedures; and setting forth related details

Executive Summary The purpose of this item is for city council to consider adopting ordinances related to five potential ballot measures for the November 2026 election. These ordinances were presented for first reading on July 23, 2026. 1. Recreation & Safety Bond ($400M General Obligation Bond) (Ord. 8758) 2. Residential Vacancy Excise Tax (Ord. 8759) 3. Firefighter Collective Bargaining Charter Amendment (Ord. 8761) 4. City Debt Limitation Charter Amendment (Ord. 8762) 5. Downtown Development Authority (Ord. 8763) Recreation & Safety Bond (Attachment A - Ord. 8758) This bond measure was identified as a part of the city’s Long-Term Financial Strategy work and would address critical city facilities investment without implementing reductions on existing city service levels or making significant adjustments to other planned capital projects. The Recreation and Safety Bond ($400M) would enable the city to address near-term city investments in most of the identified 15 city priority buildings, such as replacement of the South Boulder Recreation Center, renovation of the North Boulder Recreation Center, including relocating the Age Well West Center, a new public safety building, and renovation of other city facilities including fire stations, the Penfield Tate II Municipal Building, and the Municipal Services Center. This bond would be paid through increases to property taxes. Residential Vacancy Excise Tax (Attachment B – Ord. 8759) The Residential Vacancy Excise Tax Measure would add an excise tax for homes that are occupied for 183 days or less per year. This tax measure would raise taxes to support general city purposes and would begin to be imposed on January 1, 2028 at $4,000 per unit, with an annual adjustment for CPI up to a maximum of $7,000 per unit. If approved by voters, an effectuating ordinance would be drafted to craft the program details, including its administration, enforcement, and legally permissible exceptions to the tax. City Charter – Firefighter Collective Bargaining (Attachment C – Ord. 8761) This measure would place a ballot measure before the voters to amend the City Charter to provide for the right for fulltime firefighters to bargain collectively. In addition to the right to collectively bargain, the measure: • •

sets forth a process for Boulder Fire and Rescue employees to choose their exclusive union representative; preserves and enumerates a list of management rights, calling out certain items subject to either permissive or mandatory bargaining;

• •

• •

defines the “terms and conditions of employment”; incorporates an impasse procedure similar to the one in place at present in ordinance which, following a party declaring impasse, sets forth a procedure for holding an advisory fact-finding and if either party rejects the fact-finder's recommendation, alternative positions are decided by a vote of the people at a special election; requires the parties to meet and confer about subjects that are not within the scope of mandatory bargaining; and prohibits strikes or work stoppages under any circumstances to protect public safety.

City Debt Limitation Charter Amendment (Attachment D - Ord. 8762) This measure would amend Charter Sec. 97 so that debt limitation could be no more than the “actual value” (rather than the “assessed value” as currently written) of the taxable property within the city. This amendment would bring the city’s charter in line with all other Boulder County communities and state statute. Downtown Development Authority (Attachment E – Ord. 8763) This ordinance would place three related ballot measures before qualified electors within the proposed Boulder Downtown Development Authority (DDA) boundaries. The three measures collectively: a. Authorize the formation of the DDA to support economic development initiatives as outlined in the Plan of Development; b. Without increasing the local tax rate or imposing a new tax, authorize the DDA, or the city on its behalf, to collect, retain, and spend revenues beginning in 2027 without TABOR revenue limits; allow the city to pledge tax increment on behalf of the DDA; and c. Authorize a property tax mill levy of up to 3.674 mills within the proposed DDA boundaries, generating approximately $2M in 2027 and annually thereafter and require that the mill levy only be imposed after the Central Area General Improvement District (CAGID) and University Hill General Improvement District (UHGID) districts reduce their mill levies to 0.00 or subsequent to their dissolution.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved these ordinances will be adopted and submitted to the voters on Nov. 3, 2026.

Define and adopt a modified motion

Council would need to define any modifications or amendments to the draft motion language. This will likely require staff to bring back an amended version for third reading August 20, 2026.

Deny the motion or take no action

If the motion is denied no action will be taken and the ballot item(s) will not be placed on the Nov. 3, 2026 ballot.

Refer back to staff

If council refers this item back to staff, staff will work to rectify the issues and bring the item(s) back on August 20, 2026; otherwise, there will not be time to certify this item to the county in order for it to be placed on the November 3, 2026, ballot.

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area Responsibly Governed. These efforts of the Long-Term Financial Strategy help inform ballot measure options that can help to directly or indirectly support all seven SER goal areas by increasing revenues and/or increasing revenue flexibility. Citywide Strategic Plan Tax Ballot Measures Strategy 12: Implement organizational and financial best practices to continuously improve asset management, customer experience, and project and program performance. The ballot measure options and community engagement can also help to directly or indirectly support all the other citywide strategic priorities as the guiding principles of the LTFS aim to increase funding flexibility, reliability, and sufficiency, allowing the city to fully fund its strategic priorities, community priorities, core services, and the city’s existing assets. City Charter Ballot Measure – Firefighter Collective Bargaining

In mid-April of this year, the city was approached by representatives of the International Association of Firefighters, Local #900 (IAFF), the Union representing the Boulder Fire Rescue firefighters, with a petition to incorporate into the City Charter a guaranteed right to collectively bargain with the city concerning all terms and conditions of employment, broadly defined to include matters related to safety, working conditions, benefits, compensation, promotion, hours, employee facilities, leave, grievance procedures, procedures for the appeal of discipline, “and all other terms and conditions of employment consistent with state and federal law.” The initial petition included an impasse procedure, which subjected a broad array of topics to impasse, such as decisions to subcontract or outsource work, relocate or transfer operations, or to consolidate facilities. The initial petition also did not contain a list of management rights, which are topics reserved to city management. After a thorough and collaborative process, the city and the IAFF worked together to develop a charter amendment incorporating a right to collectively bargain for firefighters into the Charter. Proposed Ordinance 8763 honors the IAFF’s goals while preserving the city’s management rights. Following council’s decision to pass the ordinance on first reading indicating a desire to advance this proposed amendment to the ballot, the Union withdrew their petition. Downtown Development Authority Ballot Measures The DDA formation effort directly advances the Citywide Strategic Plan’s Economically Vital priority, particularly Strategy 14: Enhance collaborative efforts to support an inclusive, healthy, sustainable, and resilient local economy. By creating a dedicated funding and coordination mechanism for strategic reinvestment, the DDA would support commercial district vitality, business retention and attraction, and long-term economic resilience in Downtown Boulder and University Hill. Wildfire Resilience on Open Space Wildfire resilience is a key part of Strategy 2: Advance efforts to enhance regional disaster prevention, preparedness, and response that leverage existing partnerships and prioritize city investments. and Strategy 9: Increase community and ecosystem resilience to the current and future impacts of climate change.

Alignment with Additional City Plans Tax Ballot Measures

The tax ballot measure proposals are part of the city’s Long-Term Financial Strategy, which builds upon prior policy guidance from the Blue-Ribbon Commission (2008 and 2010 reports), the 2019 Budgeting for Community Resilience Report, and more recent lessons learned from the pandemic. Downtown Development Authority Ballot Measures The DDA formation effort is also consistent with the goals and implementation strategies identified in the following adopted plans and studies: • Sustainability, Equity, and Resilience Framework • Boulder Citywide Strategic Plan (2024-2026) • Boulder Valley Comprehensive Plan (including the 2026 update) • Boulder Improvement District Analysis (2025) • Downtown Boulder Vision Plan (2023) • City of Boulder Transportation Master Plan (2019) • City of Boulder Racial Equity Plan (2021) • Boulder Parks & Recreation Master Plan (2022) • Civic Area Master Plan (2015) • Civic Area Phase II (2026) • Downtown Urban Design Guidelines (updated 2016) • Downtown Boulder Retail/Vibrancy Study (2018) • Core Arterial Network • University Hill Alley Enhancement Plan (2018) • ULI TAP Final Report (2023)

City Council History Tax Ballot Measures Staff first presented to City Council on the Long-Term Financial Strategy during the April 3, 2025 City Council Meeting, where staff shared the process overview and update on the Long-Term Financial Strategy. At this meeting, staff received feedback from City Council on the Multi-Year Ballot Measure Strategy to consider exploring two tax ballot measures for 2025 and the approach for 2026 ballot measures. In 2026, staff focused on multi-year ballot measure discussions as part of the LongTerm Financial Strategy with City Council at several council meetings, including: March 12, 2026: Staff presentation on a spectrum of potential tax ballot measures in alignment with the Long-Term Financial Strategy for City Council consideration for 2026 to advance the city’s fiscal sustainability and financial health, increase equity, and ensure resilience.

April 9, 2026: Staff presentation on the state of city buildings and facilities across the city’s portfolio of over 75 buildings and overview of the draft Facilities Investment Strategy with a focus on the priority buildings category. Staff presented in the priority buildings category 15 buildings of most concern because they are failing and they are vital to our community to support emergency response, community safety and provide core community services. The city’s three recreation centers fall into this category, in addition to the Public Safety Building, Fire Stations, West Age Well, and several core maintenance buildings. May 14, 2026: Staff presentation and City Council discussion on a narrowed listing of tax ballot measure options, which would inform tax ballot measure polling. June 25, 2026: Staff presentation on statistically valid polling survey results on five potential ballot measures. Of these measures, Council selected to proceed with consideration of the following tax ballot measures: 1) Residential Vacancy Excise Tax 2) $400M General Obligation Bond Mill Levy (and, in coordination therewith, a Charter Amendment so that debt limitation could be no more than the “actual value” (rather than the “assessed value” as currently written) of the taxable property within the city). City Charter Ballot Measure – Firefighter Collective Bargaining None. Downtown Development Authority Ballot Measures City Council has been engaged in discussions regarding the potential use of a DDA as a strategic tool since 2024, aligned with council’s priorities related to economic development, strengthening commercial areas, enhancing connections, and supporting quality of life throughout the community. In 2024 and 2025, staff analyzed the different economic development tools and the appropriateness of each to help achieve these priorities. April 24, 2025. At a City Council Study Session, a DDA was identified as the primary tool to address downtown revitalization in both the city’s Economic Development Strategy and council supported the staff recommendation to further explore a DDA at that time. Since then, staff has worked with a planning group and key downtown city boards to evaluate whether a DDA could provide a mechanism to support reinvestment, economic vitality, and implementation of community priorities in Downtown Boulder and University Hill.

City Council received several updates on the DDA formation analysis during 2026. Staff presented information on the potential purpose, funding, governance, and implementation of a DDA, including its relationship to tax increment financing (TIF) and the city’s existing General Improvement Districts (GIDs). March 12, 2026: Staff presented an update on the DDA formation analysis and initial recommendations. The presentation included the purpose of a DDA, the relationship between a DDA and TIF, preliminary Plan of Development themes, potential funding strategies, governance options, and implications for existing GIDs. Council provided general direction to continue refining these concepts. May 28, 2026: Staff presented a comprehensive update, including a first draft Plan of Development, refined DDA boundaries, two primary funding scenarios, and a recommended funding and governance structure. The recommended approach included property-tax TIF, sales-tax TIF, a voter-approved mill levy intended to replace existing GID mill levies, and a phased transition of GID parking operations, revenues, and assets, as permitted by law and for the benefit of the city. Council provided general support for advancing DDA formation and preparing ballot measures for the November 2026 election. Wildfire Resilience on Open Space Council gave direction on May 14, 2026 to explore a possible amendment to Charter Sec. 176 “Open Space Purposes-Open Space Land” to explicitly state that wildfire mitigation is a permitted use for open space land. Council gave further direction at a special meeting on July 30th, 2026, during which it considered whether to advance a Charter amendment or direct staff to bring forth an ordinance expressing the same goals.

Analysis Recreation and Safety Bond Measure Staff provided background on the current financial constraints the city faces, with a comprehensive overview of the city facilities’ backlog presented at the April 9, 2026 Council Study Session, as well as at the May 15, 2026 council meeting on the Financial Forecast and Potential Tax Ballot Measures. The city is currently facing a $400M unfunded infrastructure and major maintenance backlog for city facilities. The city cannot solve this backlog with existing funding alone. The Recreation and Safety Bond ($400M) would significantly address critical city facilities investment without implementing reductions on existing city service levels or making significant adjustments to other planned capital projects.

The Recreation and Safety Bond ($400M) would enable the city to address near-term city investments in most of the identified 15 city priority buildings. The bond contemplates construction, renovation, or replacement of community recreation, safety infrastructure, and other capital projects, such as: • • •

• • • • •

South Boulder Recreation Center - 1360 Gillaspie Dr. at an estimated cost of $65,000,000 North Boulder Recreation Center - 3170 Broadway at an estimated cost of $72,000,000 Relocation of West Age Well Center – currently at 909 Arapahoe Ave. The cost of relocation is included in the North Boulder Recreation Center cost as an addition to that building. Fire Station 1 - 2441 13th St. at an estimated cost of $5,000,000 Fire Station 5 - 4365 19th St at an estimated cost of $2,000,000 Public Safety Center and 911 Dispatch – currently at 1805 33rd St. at an estimated cost of $170,000,000 Municipal Services Center – 5050 Pearl St. at an estimated cost of $100,000,000 Penfield Tate II Municipal Building – 1777 Broadway at an estimated cost of $30,000,000

The sum of these projects adds up to over $400 million because sale of buildings is factored into the total cost of the projects. Further description of the projects and why they are being proposed can be found in Attachment I. This would require a second ballot measure to amend the charter so that debt limitation could be no more than the “actual value” (rather than the “assessed value” as currently written) of the taxable property within the city. See the next section for more information. This bond measure would address the largest challenge facing the city for capital needs, which cannot be solved with existing revenues. The bond includes multiple buildings addressing a broad range of city services. Polling indicates Boulder voters agree that delaying necessary facility and infrastructure maintenance only increases future cost. Ensuring ongoing operating costs are funded is essential for any increased level of service provided through enhanced facilities, so if the bond proceeds and passes, funding the corresponding operating costs will be an important future conversation.

City Debt Limitation Charter Amendment

Section 97 of the Charter, titled Limitation of City Indebtedness, currently limits the City to not have debt that exceeds three percent of the assessed value of the taxable property within the city. Assessed value as of 2025 for Boulder is $5.0 billion. Based on the most recent assessed value, the city is limited to $150.7 million in general obligation debt. The proposed change will limit the city indebtedness to actual value of the taxable property within the city. Actual value as of 2025 for Boulder is $51.7 billion. Actual value as a basis for debt limitations is consistent with other cities in the region. This will provide the city with flexibility to issue debt as a funding mechanism. Below is a summary of debt limitations for communities in Boulder County:

City

Limit

Boulder

3% of assessed value

Louisville

3% of actual value

Lafayette

State Constitution/3% of actual value

Erie

3% of actual value

Superior

State Constitution/3% of actual value

Longmont

3% of actual value

State Law for Statutory Cities

3% of actual value

Vacancy Excise Tax Measure At the June 25, 2026 City Council meeting, City Council indicated interest in moving forward with drafting tax ballot language for a Vacancy Excise Tax Measure. The Vacancy Excise Tax would be imposed on homes that are occupied 183 days or less per year and would begin January 1, 2028. Polling results indicate a likely chance of this measure passing at the ballot with 64% of survey participants responding they would vote yes in support of this measure. Legal considerations were provided to council on May 2, 2025 and June 22, 2026. If approved by voters, an effectuating ordinance would be drafted to craft the program details, including its administration, enforcement, and legally permissible exceptions to the tax.

City Charter Ballot Measure – Firefighter Collective Bargaining The City currently has three unions, and three separate collective bargaining agreements with each union. However, neither the Boulder Revised Code nor the Charter contain provisions governing the collective bargaining process. In mid-April of this year, the city was approached by representatives of the International Association of Firefighters, Local #900 (IAFF), the Union representing the Boulder Fire Rescue firefighters, with a petition to incorporate into the city Charter a guaranteed right to collectively bargain with the city concerning all terms and conditions of employment, broadly defined to include matters related to safety, working conditions, benefits, compensation, promotion, hours, employee facilities, leave, grievance procedures, procedures for the appeal of discipline, “and all other terms and conditions of employment consistent with state and federal law.” The initial petition included an impasse procedure, which subjected a broad array of topics to impasse, such as decisions to subcontract or outsource work, relocate or transfer operations, or to consolidate facilities. The initial petition also did not contain a list of management rights, which are topics reserved to city management. After a thorough and collaborative process, the city and the IAFF worked together to develop a charter amendment incorporating a right to collectively bargain for firefighters into the Charter. Proposed Ordinance 8763 honors the IAFF’s goals while preserving the city’s management rights. The Union expressed a desire to withdraw their petition on July 23, 2026, immediately following First Reading of Ordinance 8761, and officially withdrew their petition on July 24, 2026. This measure would place a ballot measure before the voters to amend the City Charter to provide for the right for fulltime firefighters to bargain collectively. In addition to the right to collectively bargain, the measure: • • • •

•

sets forth a process for Boulder Fire and Rescue employees to choose their exclusive union representative; preserves and enumerates a list of management rights, calling out certain items subject to either permissive or mandatory bargaining; defines the “terms and conditions of employment”; incorporates an impasse procedure similar to the one in place at present in ordinance which, following a party declaring impasse, sets forth a procedure for holding an advisory fact-finding and if either party rejects the fact-finder's recommendation, alternative positions are decided by a vote of the people at a special election; requires the parties to meet and confer about subjects that are not within the scope of mandatory bargaining; and

•

prohibits strikes or work stoppages under any circumstances to protect public safety.

Downtown Development Authority Ballot Measures The proposed DDA is intended to address documented economic challenges affecting Boulder’s central business area and provide a coordinated mechanism for long-term district reinvestment. Over the past six years, Downtown Boulder and University Hill have experienced measurable economic erosion, as outlined in the Downtown and University Hill Analysis (Attachment H). These trends have impacts beyond the geographic area of these districts, affecting the city’s General Fund and other taxing entities that rely on sustained economic activity and property value growth. Without strategic reinvestment, continued declines could further constrain resources available for community services and public investments. The city’s existing GIDs have provided important services and improvements within their respective areas; however, they do not provide the full range of governance, financing, and implementation tools available through a DDA. A DDA would establish a broader framework to support coordinated economic development, redevelopment, district improvements, small business support, public space investments, infrastructure enhancements, and efforts to prevent further deterioration of existing commercial areas. Proposed Ordinance 8763 includes three related questions: (1) formation of the DDA; (2) TABOR authorization for the DDA to collect, retain, and expend revenues, including TIF revenues, as well as authority for the city to pledge TIF; and (3) authorization of a property-tax mill levy of up to 3.674 mills. The proposed mill levy would provide an estimated $1.82 million annually in initial operating revenue and could only be imposed following dissolution or dormancy of CAGID and UHGID. The intent of the mill levy is to replace the existing GID mill levies, resulting in no new net property tax burden for CAGID property owners, a modest increase for UHGID property owners, and a new mill levy for property owners outside these districts. TIF would provide a long-term reinvestment mechanism by capturing only new tax revenues generated above the DDA’s established base value. Existing taxing entities would continue to receive revenues generated from the existing base value and its natural appreciation. Based on current projections, DDA TIF revenues could grow from approximately $296,000 in the first year to more than $9.6 million annually by year 30, providing a funding source for future projects and investments that support economic vitality and redevelopment. The proposed City of Boulder Letter of Intent (LOI) (Attachment F) outlines the intended framework for a future intergovernmental agreement between the city and the DDA. The LOI is intended to establish expectations regarding the transition and ongoing

relationship between the city and DDA, including city administrative support during the initial transition period, proposed TIF revenue-sharing arrangements, transition of parking and GID assets, annual reporting requirements, City Council review of budgets and bond issuances, and a required five-year financial and performance review process. The proposed DDA would be established only if approved by a majority of qualified electors within the proposed boundaries at the November 2026 election. If approved, the DDA would be governed by up to an eleven-member board appointed by the mayor and confirmed by City Council. The proposed board structure includes one City Council representative, with the remaining members consisting of residents, property owners, and business lessees within the DDA boundaries. Additional supporting analysis is provided in the accompanying attachments to inform Council's consideration of the proposed ballot measures. These materials include the draft Plan of Development outlining the DDA's proposed investment priorities and implementation framework (Attachment G). Attachment H compiles updated tax increment financing (TIF) revenue projections and fiscal impacts to participating taxing entities, budget analysis, including opportunities for the DDA to assume financial responsibility for programs and capital investments currently supported in whole or in part by the City's General Fund, and peer community case studies illustrating how comparable downtown development authorities have been structured and utilized to support long-term economic vitality and district reinvestment.

Equity Analysis Tax Ballot Measures The ballot measures are part of the city’s LTFS, one of the guiding principles of the LTFS is equity. The LTFS aims to advance equity by creating revenue structures and financial policies that reduce tax and fee burdens on historically disinvested groups.

City Charter Ballot Measure – Firefighter Collective Bargaining As this measure is a partnered response with representatives of unionized firefighters, it is shaped to meet the rights and needs of the city and the unionized employees. This represents a right to employees and an activity, collective bargaining, which currently exists within our organization. Downtown Development Authority Ballot Measures

The DDA formation process has incorporated equity considerations into both process and decision-making, including use of the city’s Racial Equity Instrument (REI) and engagement with Community Connectors in Residence (CC-in-R). A Downtown Community Connector has participated directly in the Planning Group, helping ensure that community perspectives, particularly from historically underrepresented groups, are reflected throughout the process. The draft Plan of Development includes strategies with equity implications, including: creating welcoming public spaces for all users; supporting local and independent businesses; providing multilingual outreach, application support, and business navigation assistance; directing storefront improvement grants and tenant improvement support toward small and older commercial spaces that face barriers to reinvestment; and establishing board and committee practices that expand participation across languages, cultures, ages, and abilities.

Fiscal Note – Recreation & Safety Bond Estimated Fiscal Impact Narrative The recreation and safety bond ($400M) would enable the city to address near-term city investments in most of the identified 15 city priority buildings. The $400M of debt is not anticipated to be issued all at one time. Issuance of debt will occur as projects are ready and supported by a mill levy increase to support the debt repayment. The mill levy increase would step up as debt is issued to support the debt will expire at the end of the debt repayment term for the financed facility improvements, meaning property in the city will not see a tax increase all in one year, and is estimated around 2028-2030. Mill Levy Increase 6.352 mills

Residential (Based on $1.0 million property value)

Commercial (Based on $1.0 million property value)

$401.70 (annual)

$1,588.00 (annual)

$33.48 (monthly)

$132.33 (monthly)

Estimated Annual Revenue $30.9 million

Maximum Capacity for Debt (20 yr term) $400.0 million

Fiscal Note – City Debt Limitation Charter Change Estimated Fiscal Impact Narrative The change to the city’s debt limitation would have no fiscal impact, but would allow the city to issue general obligation bonds above the current charter limitation of three percent of the assessed value of the taxable property within the city. Assessed value as of 2025 for Boulder is $5.0 billion. Based on the most recent assessed value, the city is limited to $150.7 million in general obligation debt.

Three-Year Estimated Fiscal Impact

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$0

$0

$0

Total Estimated Expenses

$0

$0

$0

Net Estimated Impact

$0

$0

$0

Fiscal Note – Residential Vacancy Excise Tax Estimated Fiscal Impact Narrative Revenue is based on staff’s estimate of 500-1000 vacant units in the city, however other reports reference a larger estimated vacant units. Expenditures are only an estimate as the city refines the plans to administer the residential vacancy excise tax, the table below is based on 1,000 vacant units taxed at $4,000 a year.

Three-Year Estimated Fiscal Impact

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$0

$0

$4,000,000

Total Estimated Expenses

$0

$0

$300,000

Net Estimated Impact

$0

$0

$3,700,000

Fiscal Note – Firefighter Collective Bargaining Charter Change Estimated Fiscal Impact Narrative There is no direct fiscal impact of this charter change. Three-Year Estimated Fiscal Impact

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$0

$0

$0

Total Estimated Expenses

$0

$0

$0

Net Estimated Impact

$0

$0

$0

Fiscal Note – Downtown Development Authority Estimated Fiscal Impact Narrative Note on revenue attribution: Revenues shown below are DDA revenues, not City of Boulder revenues. If the DDA is formed and its ballot measures approved by qualified electors, it would operate as a separate legal entity with its own revenue streams — a 3.674 mill levy and tax increment financing — budgeted and expended by the DDA board consistent with the Plan of Development and the intergovernmental agreement with the City. Estimated impact to the city: The impact reflects sales tax increment revenue that would be directed to the DDA rather than retained across all city sales tax funds. Since the DDA would hypothetically not begin operating until FY 2027, that is when the impacts would occur. Under a conservative growth scenario, this is estimated at $297,702 in FY 2027 and $598,381 and FY 2028 across the forecast period, or approximately $896,083 total. Offsetting considerations: These figures represent gross forgone revenue and should not be read as an equivalent reduction in service capacity. The DDA is anticipated to fund programs and services within the district that have historically been supported by the General Fund and other city sources, including public space maintenance and operations, placemaking and public realm improvements, events and activation, access and mobility, and safety and hospitality. To the extent the DDA assumes responsibility for these activities, the corresponding city obligation is reduced or eliminated, offsetting some portion of the impact shown above. Staff has not yet quantified this offset; it will depend on the DDA's adopted Plan of Development and annual budget. Forecast period: The three-year window shown falls entirely within the initial period in which no increment is shared back to the City. Beginning in year six, the revenuesharing structure directs a portion of increment back to city funds, which reduces the annual impact in later years relative to the trajectory shown here.

Three-Year Estimated Fiscal Impact

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue (DDA revenue — see note above)

n/a

$7,082,591

$7,518,968

Total Estimated Expenses (to City)

n/a

$297,702

$598,381

Net Estimated Impact (to City)

n/a

($297,702)

($598,381)

Climate, Resilience, and Sustainability Considerations Tax Ballot Measures The ballot measures and community engagement work is part of the city’s LTFS, one of the guiding principles of the LTFS is equity. The LTFS aims to advance equity by creating revenue structures and financial policies that reduce tax and fee burdens on historically disinvested groups. Downtown Development Authority Ballot Measures Passage of Proposed Ordinance 8763 and placement of the DDA formation questions on the ballot is primarily a governance and election action; it does not directly approve specific capital projects or create immediate physical impacts. However, if voters approve the DDA, the Authority could enable future investments consistent with Boulder’s climate, resilience, and sustainability goals.

Community Engagement Tax Ballot Measures Probolsky Research performed a multi-modal (online and phone) statistically valid polling survey of likely Boulder voters in June 2026, and a presentation on survey results was provided to City Council at the June 25, 2026 council meeting. In addition, staff conducted Fund Our Future community conversations on city service level trade-offs from March 31 to April 19, 2026, holding eight engagement sessions

and an online service level trade-off exercise that was open for public participation. Staff focused on two key areas within these community conversations, including 1) educating on the city budget and current financial constraints, and 2) performing a prioritization trade-offs exercise to understand community priorities of city service levels. City Charter Ballot Measure – Firefighter Collective Bargaining The IAFF petitioners were circulating a petition in the community to gather the required signatures to allow the union’s proposed charter amendment on the ballot. In the meantime, the city has been engaged in negotiations with IAFF representatives to develop a mutually agreeable charter amendment to incorporate collective bargaining for firefighters in a way that grants firefighters rights to negotiate a broad range of workplace conditions but also preserves improvement management rights to allow for efficient city operations. Downtown Development Authority Ballot Measures This work has included ongoing engagement with Planning and Technical Working Groups, targeted stakeholder outreach, public information sessions, and coordination with Community Connectors in Residence (CC-in-R), the Downtown Boulder Partnership, the Boulder Chamber, and other community partners. Feedback received through this process has informed refinement of district boundaries, governance concepts, funding strategies, and the draft Plan of Development. In addition, both the Downtown Management Commission and the University Hill Commercial Area Management Commission have adopted formal motions recommending that City Council refer the Proposed Ordinance 8763 to the eligible electors within the proposed district.

Workplan Considerations The staff time needed to complete the work for ballot items is included within departmental work plans.

Next Steps for City Council If needed, there is a continued second/third reading schedule for August 20, 2026. The last date that council may approve ballot measures is August 27, 2026. Ballot measures must be certified to Boulder County no later than September 4, 2026.

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Attachments A - Proposed Ordinance 8758 B - Proposed Ordinance 8759 C - Proposed Ordinance 8761 D - Proposed Ordinance 8762 E - Proposed Ordinance 8763 F - Draft City/DDA Letter of Intent G – Draft Plan of Development H – Additional DDA Information I – Project Proposal Descriptions for Recreation and Safety Bond