Study Session Memo

City of Boulder City Council Study Session Summary Meeting Date: June 25, 2026

Agenda Title Consideration of a motion to accept the May 14, 2026 City Council Study Session Summary regarding the Financial Forecast and Potential Ballot Measures

Staff Contact • • • •

Scott Carpenter, Principal Budget Analyst Krista Morrison, Chief Financial Officer Joanna Crean, Director of Facilities & Fleet Chris Meschuk, Deputy City Manager

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to accept the May 14, 2026 City Council Study Session Summary regarding the Financial Forecast and Potential Ballot Measures.

Presentation Summary During the May 14, 2026 City Council Study Session, staff presented the 2026 Financial Forecast and Potential 2026 Ballot Measure options.

Financial Forecast Staff presented the 2026 Financial Forecast with assistance from economists Brian Lewandoski, Richard Wobbekind, and Robert McNown from the University of Colorado Boulder’s Leeds School of Business, Business Research Division. The economists presented the current economic outlook at a national, local, and state level and the city’s sales and use tax forecast. City staff presented the year-end actuals and updated forecast of the city’s major revenue sources sales and use tax and property taxes. Additionally, staff presented the key considerations for development of the 2027 Budget and 2027-2032 Capital Improvement Plan, along with a brief history of steps taken to address shortfalls within the 2025 and 2026 Budgets.

Potential Ballot Measures Staff presented potential ballot measure options that were finalized from the March 12, 2026 City Council Study Session, charter committee items that would be changes to charter language requiring a ballot measure, and potential regional and state ballot measures. The ballot measures items presented for council input are listed below. 1) “Parks and Public Improvements” Mill Levy (1.352 mills) or Expansion Only 2) Second Homes (Residential Vacancy) Excise Tax 3) “Public Realm” Sales Tax (consolidation of existing dedicated funds) 4) $145M, $200M, or $400M Debt Mill Levy Increase for Capital Projects 5) Changes to Charter Section 130 for Boards and Commissions 6) Charges to Charter Section 176 for wildfire resilience on Open Space lands.

Questions for Council and Direction Received Financial Forecast 1. Does council have any questions regarding the 2025 preliminary, unaudited yearend financial results? Council did not have any questions. 2. Does council have any questions regarding the economic outlook and key budget assumptions for the 2027 budget?

Council expressed the need for more detailed information for the community and City Council regarding budget realignments and reductions, particularly those as a result of program outcomes. Council noted concerns that the sales and use tax forecast could potentially be too optimistic. Clarification was requested on the 2027 Budget process and where Councilmembers can weigh in prior to the August 28 release. Council asked when the potential impact of the Sundance Film Festival might be seen within the sales and use tax forecast, staff noted cautious approach in trying not to over-program forecasted revenue.

Ballot Measures 1. Does council agree with staff’s recommendation to explore through further analysis and polling: a. Parks and Public Improvement mill levy expansion and increase to provide flexibility to community needs? Council directed staff to explore this option further for polling. Council directed for staff to consider a different name for the measure. b. Up to $200M debt and associated mill levy increase for unfunded priority facility improvements? Council directed staff to explore this option further for polling and to poll on the $400M option. Concerns were raised on the impact of property tax increases on the community and there was a question on if the city could provide tax rebates. Council supported the measure adjusting the charter language to allow for the $200M and $400M to be possible. The timeline on how the tax increases was discussed, noting that the tax increases and projects would not be all at once and the necessity of communicating that to the community. Council expressed a desire to include specific projects in the polling survey. 2. Does council wish to proceed on further analysis and polling a vacancy excise tax? If yes, does council have direction on the scope? Council directed staff to explore this option further with analysis and polling. Council expressed the desire for a larger flat tax or a larger tiered flat tax based on square footage.

3. Does council agree with the charter committee recommendations on potential 2026 ballot measures? Council agreed with the charter committee recommendation on explicitly recognizing wildfire resilience in Charter Section 176 but did not agree with the Boards and Commissions changes to Charter Section 130. 4. Does council wish to direct staff to research further or prepare any additional ballot measures? Council requested that the General Fund debt authorization ballot measure be included in the polling. Council had concerns that polling would be less successful without clarity on how expenses would be reduced for the operating and the capital budget. A question was raised on the inclusion of a decision on the Airport be included in the polling.

Next Steps for City Council First reading of proposed ballot measures is scheduled for July 23, 2026. Second reading and public hearing on August 6, 2026. If needed there is a continued second/third reading on August 20, 2026. The last regular council meeting date that council may approve ballot measures is August 27, 2026. Ballot measures must be certified to Boulder County by September 4, 2026.

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