Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: October 9, 2025 Agenda Title Consideration of the following items relating to the 2026 Budget: 1. Introduction, first reading, and consideration of a motion to order published by title only, Ordinance 8722 adopting a budget for the City of Boulder, Colorado, for fiscal year 2026; and setting forth related details; 2. Introduction, first reading, and consideration of a motion to order published by title only, 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. Introduction, first reading, and consideration of a motion to order published by title only, 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. Introduction, first reading, and consideration of a motion to order published by title only, 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 motions: 1. Motion to introduce and order published by title only, Ordinance 8722 adopting a budget for the City of Boulder, Colorado, for fiscal year 2026; and setting forth related details; 2. Motion to introduce and order published by title only, 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 introduce and order published by title only, 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 introduce and order published by title only, 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 first 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 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 $798.5 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 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 move forward to second reading on October 23, 2025.

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 first 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 second reading. This will likely cause these items to go to 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 Safe goals within Sustainability, Equity, and 21% 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 Responsibly traditional, increment-based budgeting to Governed 28% 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.

Accessible & Connected 9% Economically Vital Environmentally 2% Sustainable 16% Healthy & Socially Thriving 12%

Livable 12%

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: • 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.

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 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 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 staff will hold 2026 Budget readings and public hearings on October 9 and 23, 2025.

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. Board & Commission Recommendations While most board and commissions do not have formal authority in review or approval of the annual budget, staff uses the opportunity to share budget priorities and receive board & commission feedback on the City Manager’s recommended budget on an annual basis. The below represents the summarized feedback, recommendations, and motion language supported by city boards and commissions, received as of September 23, 2025. Boulder Junction General Improvement District – Parking Commission Boulder Junction General Improvement District – Parking Commission unanimously recommended City Council, serving as the board of directors for the Boulder Junction General Improvement District – Parking, adopt the City Manager’s 2026 Recommended Budget appropriating money to defray expenses and liabilities pertaining to the Boulder Junction General Improvement District – Parking Fund. The board also unanimously recommended City Council to adopt the City Manager’s 2026 Recommended Budget to temporarily reduce the Boulder Junction General Improvement District – Parking from 10 mills to 5 mills. Boulder Junction General Improvement District – Transportation Demand Management Commission Boulder Junction General Improvement District – Transportation Demand Management Commission unanimously recommended City Council, serving as the board of directors for the Boulder Junction General Improvement District – Transportation Demand

Management, adopt the City Manager’s 2026 Recommended Budget appropriating money to defray expenses and liabilities pertaining to the Boulder Junction General Improvement District – Transportation Demand Management Fund. Open Space Board of Trustees Motion 1: Board member M. Estrella moved the Open Space Board of Trustees recommend that Planning Board and City Council approve an appropriation of $5,999,199 in 2026 from the Open Space Fund CIP as outlined in this memorandum and related attachments. Jon Carroll seconded. This motion passed unanimously. Motion 2: Board member M. Estrella moved the Open Space Board of Trustees recommend that City Council approve an appropriation of $36,179,915 in 2026 for the Open Space and Mountain Parks Operating Budget from the Open Space Fund as outlined in this memorandum and related attachments. Jon Carroll seconded. This motion passed unanimously. Motion 3: Board member B. Robinson moved the Open Space Board of Trustees (OSBT) make the following resolution to City Council: Given the fact that Cost Allocation increases from approximately 6% to over 14% of the OSMP Operating Budget over the budget planning horizon, while total sources and uses of funds in the Budget remain relatively level, OSBT further recommends that City Council provide greater transparency and accountability regarding the consistent and programmed Cost Allocation increase. Board member S. Glynn seconded. This motion passed 4-1; Board member M. Estrella dissented. Parks & Recreation Advisory Board The Parks & Recreation Activity Board (PRAB) unanimously approved (7-0) the Parks & Recreation Department 2026 Recommended Budget at the PRAB meeting on September 29, 2025, including the following motions: Motion 1: Motion to recommend the 2026 City Manager’s Recommended Budget for the Parks and Recreation Department of $40,764,360. Motion 2: Motion to approve the 2026 recommended expenditures of $4,221,134 from the Permanent Park and Recreation Fund to City Council for Appropriation. Motion 3: Motion to recommend the 2026 – 2031 Parks and Recreation Department Capital Improvement Program (CIP) of $43,910,000 to Planning Board and City Council for approval and adoption. Planning Board The Planning Board performs an annual review and provides recommendation to City Council on the alignment of the six-year capital improvement program to the Boulder

Valley Comprehensive Plan. The below motions reflect actions taken by the board, pass or fail, during the September 16, 2025 board meeting. Motion 1: Board member L. Kaplan made a motion seconded by Board member M. Roberts that the Planning Board recommends to the City Manager and City Council the Recommended 2026-2031 Capital Improvement Program (CIP), including the list of CIP projects to undergo a Community and Environmental Assessment Process (CEAP). Planning Board voted 6-0. Motion passed. Motion 2: Board member K. Nordback made a motion seconded by Board member J. Boone that Planning Board recommends that a portion of the funds specified in the CIP for park refresh (amounting to approximately $10M over the 5-year horizon) and for the North Boulder Park project be reallocated to Recreation Center emergency maintenance and repairs, given the recent need for $2M in emergency expenditure on the South Boulder Rec Center and the likelihood of additional expenditures on North and South Boulder Rec Centers. Planning Board voted 2-4. Motion failed. Motion 3: Board member C. Hanson Thiem made a motion seconded by Board member M. McIntyre that Planning Board recommend to the City Manager and City Council that the Violet Bridge project be removed from the list of CIP projects to undergo a Community and Environmental Assessment Process (CEAP). Planning Board voted 42. Motion passed. Motion 4: Board member L. Kaplan made a motion seconded by Board member M. Roberts that Planning Board recommend to City Council to pursue unleaded aviation fuel infrastructure or equipment for Boulder Municipal Airport as soon as possible. Planning Board voted 5-1. Motion passed. Motion 5: Board member L. Kaplan made a motion seconded by Board member K. Nordback that Planning Board recommend to City Council to delay any project to repave runway 8G/26G and consider decommissioning this runway to better align with BVCP goals and policies including safe operations at the Boulder Municipal Airport, general protection of public safety, and prioritizing investments in travel safety. Planning Board voted 3-3. Motion failed. Motion 6: Board member L. Kaplan made a motion seconded by Board member M. McIntyre that, for all CIP items associated with BDU that can be delayed without compromising airport safety or public safety, Planning Board recommends that staff delay implementation until the City’s litigation against the FAA has concluded and City Council or Boulder voters have provided direction on the future of the airport site. This recommendation includes continuing to pause on pursuing or accepting FAA or CDOT grants for the airport that come with grant obligations that would require the city of Boulder to operate the airport past 2040. Planning Board voted 5-1. Motion passed.

Transportation Advisory Board Motion that the Transportation Advisory Board recommends approval of the proposed 2026-2031 Transportation Fund and Transportation Development Fund CIP which supports the vision and goals of the Boulder’s Transportation Master Plan and the Sustainability, Equity and Resiliency Framework. Passed 4-0. University Hill Commercial Area Commission The University Hill Commercial Area Commission (UHCAMC) unanimously recommended to City Council, serving as the board of directors for the University Hill General Improvement District, adopt the City Manager’s 2026 Recommended Budget appropriating money to defray expenses and liabilities pertaining to the University Hill General Improvement District (UHGID) fund. The commission also stated, "given that the 2025 UHCAMC priorities include the near-term and long-term fiscal resiliency of the UHGID fund, we urge city council to consider in future years reinstating the General Fund transfer to UHGID as the only way to maintain fiscal resiliency for the district." Water Resources Advisory Board Motion 1: The Water Resources Advisory Board recommends approval of the Albion Dam 2022-2026, Barker Dam Work 2024-2032, WRRF Phosphorus Treatment Improvements 2022-2026, and WRRF HVAC Improvements 2025-2026, in the 2026 to 2031 CIP for the Water and Wastewater Utilities. The board passed this motion unanimously, 4-0, with one board member recused. Motion 2: The Water Resources Advisory Board recommends that City Council approve the 2026 Capital Improvement Program for the remaining projects in the Water, Wastewater, and Stormwater & Flood Management Utilities including proposed rate adjustments to support 2026 revenue increases of 8% in the Water Utility, 6% in the Wastewater Utility, and 5% in the Stormwater & Flood Management Utility. The board passed this motion unanimously, 5-0.

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 memo, 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 Connectorsin-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 decisionmaking 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 October 23, 2025 – Second reading and public hearing of the 2026 City of Boulder budget and mill levy ordinances, General Improvement Districts budget and mill levy resolutions, Boulder Municipal Property Authority budget resolution, and Knollwood Metropolitan District budget and mill levy resolutions.

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Attachments A) Proposed Ordinance 8722 – 2026 Budget Adoption B) Proposed Ordinance 8723 – 2026 Property Tax Mill Levy C) Proposed Ordinance 8724 – 2026 Appropriation D) Proposed Ordinance 8727 – 2026 Fees Ordinance