Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: October 23, 2025 Agenda Title Consideration of the following items relating to the 2026 Budget: 1. Second reading and consideration of a motion to adopt Ordinance 8722 adopting a budget for the City of Boulder, Colorado, for fiscal year 2026; and setting forth related details; 2. Second reading and consideration of a motion to adopt Ordinance 8723 establishing the City of Boulder property tax mill levies for 2025; providing that said levy be certified to the Boulder County Assessor; and setting forth related details; 3. Second reading and consideration of a motion to adopt Ordinance 8724 appropriating money to defray expenses and liabilities of the City of Boulder, Colorado, for the 2026 fiscal year of the City of Boulder; and setting forth related details; and 4. Second reading and consideration of a motion to adopt Ordinance 8727 amending Sections 3-8-3, “Tax Imposed on Nonresidential and Residential Development,” 3-20-2, “Imposition and Rate of Rental License Excise Tax,” 7-6-2, “Parking Penalties,” and Chapter 4-20, “Fees,” B.R.C. 1981, changing certain fees and taxes; and setting forth related details

Staff Contact • •

Charlotte Huskey, Budget Officer, Finance Department Krista Morrison, Chief Financial Officer, Finance Department

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Consideration of the following items relating to the 2026 Budget: 1. Motion to adopt Ordinance 8722 establishing a budget for the City of Boulder, Colorado, for fiscal year 2026; and setting forth related details; 2. Motion to adopt Ordinance 8723 establishing the City of Boulder property tax mill levies for 2025; providing that said levy be certified to the Boulder County Assessor; and setting forth related details; 3. Motion to adopt Ordinance 8724 appropriating money to defray expenses and liabilities of the City of Boulder, Colorado, for the 2026 fiscal year of the City of Boulder; and setting forth related details; and 4. Motion to adopt Ordinance 8727 amending Sections 3-8-3, “Tax Imposed on Nonresidential and Residential Development,” 3-20-2, “Imposition and Rate of Rental License Excise Tax,” 7-6-2, “Parking Penalties,” and Chapter 4-20, “Fees,” B.R.C. 1981, changing certain fees and taxes; and setting forth related details.

Executive Summary This agenda item provides information for City Council consideration, regarding the second reading of the adoption of the 2026 Budget and other related ordinances to appropriate city funds as presented in the 2026 Recommended Budget. The City Manager released the 2026 Recommended Budget on August 29, 2025, with a following City Council Study Session on September 11, 2025, in accordance with City Charter Section 93. The 2026 Recommended Budget and related ordinances appeared before City Council for consideration and passed first reading on October 9, 2025. The total 2026 Recommended Budget is $521.0 million across all funds, including an Operating Budget of $407.7 million and Capital Budget of $113.3 million. The 2026 Recommended Operating Budget represents a 2.1% increase over the 2025 Approved Operating Budget. The 2026-2031 Capital Improvement Program (CIP) includes $789.5 million across the six-year capital planning horizon supporting 173 capital projects. As shared during the September 11 Council Study Session, the 2026 Recommended Budget was developed against a projected $7.5 million ongoing shortfall in the General Fund, with other funds impacted from heightened economic uncertainty and flattening of major revenues due to slowing growth, federal uncertainty, and state legislative impacts. Key to the development of the 2026 Budget was bringing forward a balanced budget

that supported priority services, programs and goals consistent with community values, leveraged flexibility of resources across all funds, and positioned the city for improved long-term financial sustainability. To achieve this, the 2026 General Fund Budget accounts for a 7.8% decrease compared to 2025. Balancing against a $7.5 million shortfall required strategic reductions, realignments, and few enhancements to ensure fiscal sustainability. The 2026 Budget brought forward for City Council consideration is balanced and represents a thoughtful approach in prioritizing community investments, such as new solutions to our homelessness challenges, ensuring that wildfire resilience and prevention efforts are adequately resources, evolving our approach to emergency behavioral health response and supporting the arts, while maintaining investments that uplift our core city services and advance the Citywide Strategic Plan.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motions are approved, this agenda item will establish a budget for the City of Boulder for the 2026 fiscal year.

Define and adopt a modified motion

Council would need to define any modifications or amendments to the draft motion language and be perfected before a vote to pass these items on third reading.

Deny the motion or take no action

If council does not approve the city’s budget, spending authority will expire, and essential government functions will be jeopardized.

Refer back to staff

If council refers these items back to staff, council will need to define modifications or amendments so that staff is prepared to present modified and amended budget items on a third reading.

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area The city’s budget aligns directly to the seven goals within Sustainability, Equity, and Resilience (SER) Framework, as shown in the chart to the right. This alignment of budget and city resources to the SER Framework reflects the city’s efforts of Budgeting for Resilience & Equity, which has shifted the city’s budget from traditional, incrementbased budgeting to the more strategic budgeting approach of outcomes-based budgeting – focusing on the intended outcomes of city dollars, utilizing performance and operational data to drive budget decisions, and historical trends and forecasting analyses to support enhanced financial planning. Citywide Strategic Plan As shared in the September 11, 2025, Council Study Session memo, the Citywide Strategic Plan was a key decision-making pillar used to develop the 2026 Recommended Budget. The 2026 Recommended Budget advances the Citywide Strategic Plan, including examples of investments represented below: •

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A total of $1.56 million in Climate Tax funding will advance wildfire resilience efforts and build upon Citywide Strategic Plan goals (Strategy 2, Priority Actions A and C), including implementation of the Community Wildfire Protection Plan ($340,000), the new Community Wildfire Resilience Assistance Program ($450,000), and support the realignment of a Community Risk Reduction Specialist ($123,000) with the goal of reduced risk of wildfire to vulnerable homes and increased community preparedness through wildfire education and resilience grants. Implementation of “Speed on Green” camera program ($334,300), which supports the Citywide Strategic Plan’s priority to achieve our community’s Vision Zero commitment (Strategy 1, Priority Action 3). Funding for this program is directly offset by an anticipated increase in photo enforcement revenues. A one-time realignment of $131,000 to extend and increase a fixed-term position through 2026 to continue to support the Community Connectors-in-Residence Program and the Citywide Strategic Plan Strategy 8 of providing appropriate resources for the program and supporting equitable engagement efforts. To continue this program, the department will discontinue the Neighborhood Grants Program and produce one print edition newsletter a year, instead of two. Increase of $85,000 for a new risk management system supporting heightened data transparency of city liability and workers compensation in alignment with the Citywide Strategic Plan (Strategy 3, Priority Action A), with the ultimate goal of

preventing and mitigating potential losses. The 2026 Budget includes $50,000 in ongoing funding and $35,000 in one-time implementation funding that is supported through available funds within the Workers Compensation Fund. Staff Notes Not Applicable

Alignment with Additional City Plans Boulder Valley Comprehensive Plan: The Boulder Valley Comprehensive Plan (BVCP) serves as a framework for annual and long-term capital infrastructure planning for the city. Each year, Planning & Development Services staff review and submit the six-year Capital Improvement Program (CIP) against the BVCP to ensure alignment and support for the city’s long- range development and infrastructure plans. Additional Alignment with Department Plans: • • • • • •

Boulder-Fire Rescue Department Plan Reimagine Policing Plan Facilities Department Plan Parks & Recreation Department Plan Open Space & Mountain Parks Department Plan Utilities (Water, Wastewater and Stormwater & Flood) Department plans

City Council History Per annual practice, staff presented the annual Financial Forecast to City Council on May 8 of this year, which provided revenue projections and the annual budget direction that informed the 2026 budget. City Council received the City Manager’s 2026 Recommended Budget on August 29, 2025, with the Council Study Session held on September 11, 2025. Staff did not receive council budget amendments with fiscal impact. The 2026 Recommended Budget First Reading occurred on October 9, 2025, with attendance of seven Council members present. Council received comments during public hearing from several community members. Council voted unanimously 7-0 to pass the first reading of the 2026 Recommended Budget.

Analysis As shared in 2026 Recommended Budget Study Session memo, and presented to City Council on September 11, 2025, the City of Boulder developed the 2026 Recommended Budget in alignment with the Sustainability, Equity, and Resilience Framework and utilizing the foundational budgeting and financial planning frameworks of Budgeting for Resilience and Equity and the Long-Term Financial Strategy. The 2026 Recommended

Budget balances a $7.5 million projected shortfall in the General Fund, which was driven primarily by flattening and declining of major revenue sources against original forecasts. The city’s budgeting framework and financial foundation increased the city’s ability to perform strategic budget decisions that advanced both community and citywide priorities. A detailed overview by SER goal area was included in the 2026 Recommended Budget Study Session memo, presented at the September 11 Council Study Session, and is also available through the 2026 Recommended Budget book and captured in detail in the 2026 Budget in Brief and 2026 Budget Highlights pages. The October 9 2026 Recommended Budget memo incorporated recommendations and motion language summaries from various board & commissions.

Equity Analysis The city develops the annual budget using the SER Framework, leading with budget decision-making as aligned to the sustainability, equity, and resilience goal areas and objectives. Equity considerations are embedded throughout the annual budget development process, including the city’s efforts to shift from a traditional incrementbased budgeting approach to outcome-based budgeting, focusing more on the outcomes of our investments, utilizing performance and operational data to drive budget decisions, as well as focusing on community budget engagement input, flexibility of funds across all of the budgeted funds the organization, and historical trend and forecasting analyses to inform budget decisions.

Fiscal Note The 2026 Recommended Budget presented for City Council consideration proposes a total budget of $521.0 million, including a $407.7 million Operating Budget and $113.3 million Capital Budget. Within the 2026 Recommended Budget online budget book, the Budget and Brief and Budget Highlights provide a comprehensive summary of the significant fiscal changes included within the budget, including fiscal spending plans across all funds, departments, and programs areas in the city’s budget. In addition, the attached ordinances, including Proposed 2026 Budget Adoption Ordinance 8722, Proposed Property Tax Mill Levy 8723, and Proposed 2026 Appropriation Ordinance 8724, represent the spending level appropriation and property tax mill levy proposed to City Council as part of the 2026 Budget.

Climate, Resilience, and Sustainability Considerations As mentioned above, the city develops the annual budget through the lens of the overarching SER Framework, which serves as the foundation to budget decisionmaking and resource allocation. The 2026 Recommended Budget continues to align and uplift investments supporting resilience and sustainability, including in areas such as wildfire resilience, flood mitigation, and city facility renovations and infrastructure

projects that will result in reduced building energy consumption and built with sustainably sourced materials.

Community Engagement As shared in the City Council Study Session and 2026 Budget First Reading memos, the 2026 Recommended Budget incorporated existing community feedback and input received during the 2024 and 2025 budget development cycles. During that time, staff performed community budget engagement sessions with community members, including the Community Connectors-in-Residence (CC-in-R), as well as a citywide questionnaire, who provided valuable feedback on priorities of SER Framework objectives and goal areas. As part of the 2026 budget development, the city’s Executive Budget Team, which is the internal decision-making body comprising the City Manager’s Office and department directors, utilized this community input to help inform budget decisions for the 2026 fiscal year.

Workplan Considerations The annual budget development process represents a key pillar of the annual workplan for the city’s Budget Office, which focuses on forecasting, budgetary and fiscal planning with departments across the organization in alignment with the city’s SER Framework.

Next Steps for City Council If approved, the City Manager’s 2026 Recommended Budget will be adopted and appropriated beginning January 1, 2026. No further council action will be required on this item. If council requests any changes, the 2026 Budget will be brought forth for a third reading at a later date.

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Attachments A - Proposed Ordinance 8722 B - Proposed Ordinance 8723 C - Proposed Ordinance 8724 D - Proposed Ordinance 8727