Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: September 3, 2026

Agenda Title Second reading and consideration of a motion to adopt Ordinance 8773 amending Chapter 4-2, “Beverages License,” allowing for Spiritous Liquor Manufacturer’s Expanded Alcohol Beverage Permits and Sections 3-7-2, ”Imposition and Rate of Tax,” and 4-20-2, “Alcohol and Fermented Malt Beverage License and Application Fees,” B.R.C. 1981, adding the related tax and fee; and setting forth related details

Staff Contact • •

Alisa Darrow, Licensing Manager, Finance Krista Morrison, Chief Financial Officer, Finance

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt Ordinance 8773 amending Chapter 4-2, “Beverages License,” allowing for Spiritous Liquor Manufacturer’s Expanded Alcohol Beverage Permits and Sections 3-7-2, ”Imposition and Rate of Tax,” and 4-20-2, “Alcohol and Fermented Malt Beverage License and Application Fees,” B.R.C. 1981, adding the related tax and fee; and setting forth related details

Executive Summary The purpose of this item is to consider an ordinance that amends Chapter 4-2, “Beverages License,” B.R.C. 1981, to add the Spirituous Liquor Manufacturer’s Expanded Alcohol Beverage Permit, a new permit type established at the state level. This ordinance brings the city into compliance with a new state law. The amendment will authorize the Beverage Licensing Authority to issue the permit within the City of Boulder and establish the associated annual application fee. Adopting this ordinance will align Boulder’s local liquor licensing code with current state law and provide a clear local process for businesses eligible for the new permit. The proposed amendments are administrative in nature and ensure the City’s licensing framework remains consistent with the State of Colorado’s regulatory structure.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved staff will implement a procedure for processing these applications and collecting fees.

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.

Deny the motion or take no action

If this motion is denied, staff will be required to process applications for this license type without local oversight or fees collected.

Refer back to staff

If council refers this item back to staff, we will need to understand additional steps Council would like us to take before bringing it back for consideration.

Alignment with City Plans and City Council History Sustainability, Equity, and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area This ordinance supports the Responsibly Governed pillar by ensuring the City’s local liquor licensing regulations remain aligned with changes to state law. Adding the new Spirituous Liquor Manufacturer’s Expanded Alcohol Beverage Permit to the Boulder

Revised Code provides a clear and transparent local licensing process, promotes regulatory compliance, and allows the City to administer the new permit consistently and efficiently. Aligning local requirements with the state regulatory framework also supports effective coordination between local and state government partners and provides a predictable experience for businesses seeking to operate in Boulder.

Citywide Strategic Plan This ordinance supports the City’s Economically Vital strategic outcome and Strategy 15 by making it easier for businesses to understand and navigate the City’s licensing processes. Adding the new state-authorized permit to the Boulder Revised Code provides a clear local licensing pathway and aligns City requirements with the state regulatory framework.

Staff Notes None.

Alignment with Additional City Plans None.

City Council History First reading on August 20, 2026.

Analysis The proposed ordinance makes a targeted administrative update to the City’s liquor licensing code to recognize the Spirituous Liquor Manufacturer’s Expanded Alcohol Beverage Permit, a new permit type established at the state level. Adding the permit to the Boulder Revised Code will allow the Beverage Licensing Authority to administer the permit locally and provide eligible businesses with a clear and consistent local licensing process. The amendment also helps ensure that Boulder’s local regulatory framework remains aligned with current state liquor laws. Establishing the permit in the City Code provides greater clarity for applicants, supports consistent administration by the Beverage Licensing Authority, and reduces uncertainty for businesses navigating both state and

local licensing requirements. Overall, the ordinance is intended to maintain consistency between the City’s licensing structure and the evolving state regulatory framework while supporting an efficient and predictable licensing process.

Equity Analysis The proposed ordinance is not expected to create a disparate impact based on race, ethnicity, or other historically excluded identities. The ordinance primarily updates the City’s licensing code to recognize a new permit already established at the state level and provides a consistent local process for businesses that are eligible for the permit.

Fiscal Note Estimated Fiscal Impact Narrative Current Year Estimated Fiscal Impact Fund(s): General Fund Department(s): Finance Program(s): Regulatory Licensing

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

Beginning Fund Balance

$43,506,310

$0

$43,506,310

Total Forecasted Revenue

$198,791,103

$2,150

$198,793,253

Total Estimated Expenses

$194,483,450

$0

$194,483,450

Ending Fund Balance(s) After Reserves

$1,871,568

$0

$1,871,568

FTE

801

0

801

Item

Three-Year Estimated Fiscal Impact Implementation of the proposed ordinance is expected to be supported within existing departmental resources throughout the three-year period. Related administrative responsibilities associated with implementation are planned to be absorbed by current staffing capacity and departmental resources, therefore, no additional appropriations or FTEs are anticipated.

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$2,150

$2,150

$2,150

Total Estimated Expenses

$0

$0

$0

Net Estimated Impact

$2,150

$2,150

$2,150

Climate, Resilience, and Sustainability Considerations The proposed ordinance is not expected to have a direct or significant impact on climate, resilience, or environmental sustainability.

Community Engagement None.

Workplan Considerations Workplan considerations are expected to be minimal. The City has a limited number of distilleries that would be eligible for the new permit, and the ordinance primarily updates the City Code to reflect a permit already established at the state level. Implementation should therefore require minimal additional staff resources beyond updating licensing materials, procedures, and application processes as needed.

Next Steps for City Council If approved, Ordinance 8773 will be published and become effective in 30 days. No further action by City Council will be needed.

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Attachments A – Proposed Ordinance 8773