Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: August 20, 2026

Agenda Title Third 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

Staff Contact • • • •

Chris Meschuk, Deputy City Manager Krista Morrison, Chief Financial Officer Charlotte Huskey, Budget Officer Kirsten Westerland, Assistant City Attorney III, City Attorney’s Office

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: 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

Executive Summary The purpose of this item is for city council to consider adopting Ordinance 8758 related to a potential Recreation & Safety Bond ballot measure for the November 2026 election. The ordinance was presented for first reading on July 23, 2026, and second reading on August 6, 2026. The Recreation & Safety Bond (Attachment A – Ord. 8758) 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. When the bond is paid off, the mill levy increase ends. On August 6, 2026, City Council made one amendment to the language related to the investment in South Boulder Recreation Center should the bond measure pass: • •

Original Language: “The South Boulder Recreation Center, including aquatic amenities;” Revised Language: “The South Boulder Recreation Center, including a lap pool;”

Council Action Options Option

Outcome

Approve motion language as drafted

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

Define and adopt a modified motion

Council would need to pass the amended ordinance 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.

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 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 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.

Alignment with Additional City Plans The tax ballot measure proposal is 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.

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 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 3% of the “actual value” (rather than the “assessed value” as currently written) of the taxable property within the city).

Analysis 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, such as replacement of the South Boulder Recreation Center, renovation of the North Boulder Recreation Center, and construction of a new public safety building. This would require a second ballot measure to amend the charter so that debt limitation could be no more than 3% of the “actual value” (rather than the “assessed value” as currently written) of the taxable property within the city. This bond measure would address the largest challenge facing the city for capital needs, which cannot be solved with existing revenues. 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.

Equity Analysis 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.

Fiscal Note 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 debt repayment is paid for through a mill levy increase. The mill levy increase would step up as debt is issued and 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. The mill levy increase is estimated to begin around 2028-2030 and will depend on the timing of bond issuance.

Climate, Resilience, and Sustainability Considerations The ballot measure 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.

Community Engagement 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.

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

Next Steps for City Council None.

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Attachments A - Proposed Ordinance 8758