Agenda Memo · Boulder Politics

Regular Meeting, November 20, 2025 · item 4D: Introduction, first reading, and consideration of a motion to order published by title only Ordinance 8733 appropriating money to defray exp… · 10 pages

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City of Boulder City Council Agenda Item Meeting Date: November 20, 2025

Agenda Title Introduction, first reading, and consideration of a motion to order published by title only Ordinance 8733 appropriating money to defray expenses and liabilities of the City of Boulder for the 2025 fiscal year; and setting forth related details

Staff Contact •

Charlotte Huskey, Budget Officer, Finance Department

• •

Krista Morrison, Chief Financial Officer, Finance Department Stacy Polyakova, Budget Analyst, Finance Department

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Consideration of a motion to introduce and order published by title only Ordinance 8733 appropriating money to defray expenses and liabilities of the City of Boulder for the 2025 fiscal year; and setting forth related details.

Executive Summary Each year at least two supplemental appropriation ordinances known as adjustmentsto-base (ATB), or budget supplementals, are presented to City Council for review and approval. City Council receives the First Budget Supplemental, or ATB1, in May and

June and the Second and Final Budget Supplemental, or ATB2, in November and December. Mid-year adjustments to the original budget are necessary for governmental operations as Colorado law requires an annual budget appropriation by December 15th of each year, however, government business continues year-round. Given that mid-year adjustments are performed outside of the annual budget cycle, staff perform careful review prior to advancing recommended adjustments. There are common instances when adjustments are required, such as appropriating new grant funds received midyear. In special circumstances, unplanned investments may be necessary due to emergencies, voter-approved changes, and emerging community needs. These special circumstances are generally presented as one-time investments within the amendments to the original budget. In the 2025 ATB2, staff recommend a total of $16M in adjustments, including $6.3M from fund balance, $2.5M from grants received mid-year and those not yet appropriated, and $7.2M from additional unbudgeted revenue, including revenue from donations, interlocal agreements, or additional anticipated revenue above forecast that was not captured in the original budget. Staff recommend the below appropriation increases to respond to unanticipated needs and citywide priorities where it is projected that existing appropriation is not sufficient, including unbudgeted city building maintenance issues and advancing key city projects. Proposed Ordinance 8733 is provided in Attachment A and an itemized list of appropriations by fund and department is included in Attachment B.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved, staff will bring the second reading of the ordinance for consideration on Dec. 4.

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 with changes to the recommended supplemental appropriations.

Deny the motion or take no action

If this motion is denied, the city will be unable to provide certain services.

Refer back to staff

If council refers this item back to staff, the ATB process will be pushed back to late December.

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 utilizes the Sustainability, Equity, and Resilience (SER) Framework to support Budgeting for Resilience and Equity, which focuses on resource allocation and decisionmaking using performance outcomes and measures, flexibility of funds, historical trends, and a citywide approach in alignment to citywide SER framework as well as the Citywide Strategic Plan. Alignment of the budget, as well as city programs and services, to the SER Framework enables greater transparency and accountability of how the city allocates its resources across goal areas and intended outcomes. Citywide Strategic Plan As mentioned above, the Citywide Strategic Plan serves as a key pillar to budget decision-making and resource allocation. Staff Notes No additional staff notes.

Alignment with Additional City Plans The city’s departments worked individually to propose these additional appropriations in alignment with the department’s individual projects and work plans.

City Council History Per standard practice, City Council reviews planned ATBs twice a year. Staff presented the first ATB and received City Council approval on June 5, 2025, and has since brought forward the 2026 Recommended Budget on August 29, which received Council approval and adoption on October 23, 2025.

Analysis There are three types of supplemental appropriations: Supplemental appropriations from fund balance are the most common and are only for one-time expenses as fund balance is a one-time source of funds. Fund balance arises when revenue exceeds budget or expenditures are under budget. Interfund transfers, including the expense appropriation between funds, are included in this category, when applicable. Supplemental appropriations from additional revenues include unanticipated funds received for city programs and services, including donations, reimbursements for

services, fundraisers, or cooperative agreements between municipalities as well as additional revenues above forecasted amounts based on revised revenue projections. Supplemental appropriations from grant revenues are required throughout the year since either the grant was not anticipated and was therefore not included in the original budget. In 2024, City Council approved an amended budget appropriations ordinance to allow for multi-year carryover of grant funds until the grant has been fully expended or the grant period ends. This has allowed for greater flexibility and continuity for grant expenses and reimbursements. Table 1: Type of Supplemental Requests – All Funds Source of Funds Additional Revenue Grant Revenue Fund Balance Total

Amount $7,258,233 $2,557,326 $ 6,227,097 $16,042,656

Supplementals can also be categorized according to fund and source. Table 2 provides a summary of all supplementals in this 2nd ATB totaling $16,042,656 across funds. Table 2: 2nd ATB Supplemental Appropriations by Fund and Source Fund

Additional Revenue

Grant Revenue

Fund Balance

Total

General Fund

$2,102,654

-$348,393

$1,754,261

Governmental Capital Fund

$2,268,787

-$315,000

$1,953,787

Capital Development Fund

$695,443

Planning and Development Svc Fund

$1,000

Affordable Housing Fund

$1,412,000

.25 Cent Sales Tax Fund

$324,300

$50,000

$374,300

Recreation Activity Fund

$9,447

$50,000

$59,447

Climate Tax Fund

$35,600

$79,169

$114,769

Open Space Fund

$100,000

$201,619

$2,883,011

$3,184,630

Transportation Fund

$400,000

$253,250

$431,532

$1,084,782

Permanent Parks & Recreation Fund

$80,215

2011 Capital Improvement Bond Fund Water Utility Fund

$565,975

$388,574

$952,250

$50,000

$1,390,824

Telecommunications Fund

$397,248

Property & Casualty Self Ins Fund

$20,000

Workers Compensation Ins Fund

$153,000

$1,500,000

$1,653,000

Compensated Absences Fund

$150,000

Fleet Fund

$465,000

Enterprise Technology Fund

$193,008

Equipment Replacement Fund

$176,000

Facility Renovation & Replace Fund

$180,000

$136,968

$316,968

$7,258,233

$2,557,326

$6,227,097

$16,042,656

Total

2025 Second Adjustment-to-Base Highlights: Capital Infrastructure and Maintenance Investments Facilities & Fleet – Facilities & Fleet are utilizing funding from the Governmental Capital Fund to support capital projects, including appropriation from the sale of the Dairy Arts Center ($1.5M) for capital investments, including Sundance expenses, as well as appropriating the reimbursements from Boulder Regional Telephone Service Authority (BRETSA) as part of the radio infrastructure project. Open Space & Mountain Parks – There is an appropriation request for mineral rights acquisition ($2.6M), which has also been recommended by the Open Space Board of Trustees, for approximately 5840 net mineral acres of mineral interests from Teton, LLC located beneath properties owned by the City of Boulder (approximately 3,000 acres), Boulder County (approximately 800 acres) and other parties in southern Boulder County (approximately 2,040 acres), including the Marshall area, for open space purposes. This request uses funding from the Open Space Fund's acquisition reserve, which set aside $4.3M for acquisitions in 2025 in the Open Space Fund. Transportation & Mobility – As part of ATB2, additional appropriation is requested from fund balance from the Governmental Capital Fund to support additional expenses above budget incurred with the streetlight acquisition project ($375,000), additional funding from RTD Partner Funding for Downtown Boulder Station ($200,000), and University of Colorado Partner Funding for 30th Street Corridor Improvements ($200,000). There is also a request for appropriation from Federal Highway Administration funding (Colorado Department of Transportation) to support construction of 28th Street Business Access Transit Lanes ($75,000), and a request of appropriation for an increase to the operations of the HOP Bus as contractually obligated ($258,000). Utilities – Requests for appropriation from additional revenues, including appropriating the Utility Community Broadband Reimbursement for Utility locator positions and equipment purchases ($388,574) and appropriation from grant funding to support the

Turf Replacement program ($52,250). Appropriations from the use of fund balance to support the funding needed for the Cost-of-Service Analysis project costs ($50,000). Public Safety Reimbursements Fire-Rescue – Appropriation requested for additional revenue related to 2025 Wildland Deployment Reimbursement ($1.1M), and noncompliance fees of the contracted emergency ambulance service provider ($400,000). Police – Additional appropriation of revenues received mid-year for reimbursable overtime in excess of what was budgeted ($300,000) for 2025. These revenues are received for overtime associated with special events and security at businesses. Other Citywide Highlights Close-out of Funds – ATB2 accounts for the processing of two fund closures, including the 2011 Capital Improvement Bond Fund and the Telecommunications Fund. The transfers out of remaining fund balance from the 2011 Capital Improvement Bond Fund to the Governmental Capital Fund and the Enterprise Technology Fund will support capital and technology expenses. Additionally, the transfer of funds from the Telecommunications Fund to the General Fund will support the appropriate alignment to where the associated expenses for telecommunications programming is budgeted. Interest Earnings Transfer – ATB2 includes transferring a portion of interest earnings from the Fleet Fund, Equipment Replacement Fund, Facility Renovation and Replacement Fund, Workers Compensation Fund, Property and Casualty Fund, and Enterprise Technology Fund to the General Fund to support balancing of the 2025 budget ($1.2M). Cost Allocation Subsidy Reduction – In the 2025 Approved Budget, the Climate Tax Fund, Open Space Fund, Transportation Fund, and the .25 Sales Tax Fund received one-time General Fund cost allocation subsidies to smooth the year-over-year increase in cost allocation, which accounts for city administrative services such as City Attorney’s Office, Finance, and Human Resources, and is distributed across all city operating funds. To assist with balancing the General Fund in 2025, ATB2 reduces these subsidies by $490,000 across the four funds, resulting in a $75,000 increase in the cost allocation transfer from the Climate Tax Fund, a $250,000 increase to cost allocation transfer from the Open Space Fund, a $115,000 increase to cost allocation transfer from the Transportation Fund, and a $50,000 increase in cost-allocation transfer from the .25 Sales Tax Fund. Staff coordinated early this year with all departments to ensure minimal impacts of this cost allocation subsidy reduction to the respective funds.

Highlights of Mid-Year Grant Funding History Colorado Non-competitive Grant – One-time grant of $214,605 received by the City Manager’s Office to fund the completion of an ethnographic education report detailing tribal history in Boulder County. Turf Replacement Grant Program - Colorado Department of Natural Resources – Onetime grant of $30,000 received by Climate Initiatives to support the transformation of certain school grounds into a climate-resilient landscape. Emergency Services Sales Tax Grant Program - Boulder County – One-time grant of $68,991 received by Fire-Rescue to support the purchase of equipment to respond to structural collapse incidents and other technical rescues. Affordable and Attainable Housing Tax - Boulder County passed through City of Lafayette – $750,000 in one-time funding received by Housing and Human Services to support the purchase of permanently affordable housing in the city of Lafayette as part of the Regional Affordable Housing Program. Hynd Trust for the Blind – One-time grant of $20,000 received by Housing and Human Services to support the provision of optical assistance for older adults. Strategic Fuels Mitigation Grant - Boulder County – One-time grant of $201,619 received by Open Space and Mountain Parks to support the Wonderland Lake CrossBoundary Risk Reduction project that builds on and unifies recent pilot projects such as strategic grazing and perimeter mowing, the Detailed Home Assessments and Home Ignition Zone programs and certain new fuels treatments. Colorado Respite Coalition Grant - Easter Seals Colorado – Recurring grant of $15,000 received by Parks and Recreation to support the provisions of respite services for caregivers of people with disabilities. Beat Auto Theft Through Law Enforcement (BATTLE) Grant - Colorado Department of Public Safety – Recurring grant of $40,100 received by the Police Department to support overtime related to identification and arrest of auto theft suspects, and recovery of stolen vehicles. Community Accelerated Mobility Project (CAMP) funding - Colorado Energy Office – One-time grant of $74,250 received by Transportation and Mobility to support the creation of a technical readiness plan that expands transportation options, including an electric mobility (“e-mobility”) component(s), for residents of affordable housing communities in Boulder, Colorado. Federal Highway Administration Surface Transportation Block Grant - Colorado Department of Transportation – Recurring grant of $104,000 received by Transportation

and Mobility to support the procurement of upgraded signal equipment, communications, traffic cameras and detection software for 37 intersections as well as deployment of automated traffic signal performance measure. Colorado Strategic Wildfire Action Program funding - Colorado Department of Natural Resources – One-time grant of $900,000 received by Utilities to support the reduction of fuels and the protection of drinking water and electrical infrastructure from wildfire and post-wildfire erosion and damage, specifically a large water delivery pipeline, valve house, 115+ year old hydroelectric generation facility, and two major powerlines serving Magnolia and Eldora.

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 increment based 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. These considerations and analyses are applied to the annual ATBs as well, and departments work with stakeholders and the community to request supplemental appropriations either from existing fund balance to fund key priorities, or through the obtainment of additional revenues such as donations and grants.

Fiscal Note Estimated Fiscal Impact Narrative The below fiscal note indicates the change to the 2025 budget as a sum across all funds. Current Year Estimated Fiscal Impact In the 2025 ATB2, staff recommend a total of $16M in adjustments, including $6.2M from fund balance, $2.6M from grants received mid-year and those not yet appropriated, and $7.3M from additional unbudgeted revenue, including revenue from donations, interlocal agreements, or additional anticipated revenue above forecast that was not captured in the original budget.

Fund(s): General Fund, Governmental Capital Fund, Capital Development Fund, Planning and Development Services Fund, Affordable Housing Fund, .25 Cent Sales Tax Fund, Recreation Activity Fund, Climate Tax Fund, Open Space Fund, Transportation Fund, Permanent Parks and Recreation Fund, 2011 Capital Improvement Bond Fund, Water Utility Fund, Telecommunications Fund, Property and Casualty Self Insurance Fund, Workers Compensation Insurance Fund, Fleet Fund, Enterprise Technology Fund, Equipment Replacement Fund, Facility Renovation and Replace Fund, Compensated Absences Fund Department(s): City Manager’s Office, Climate Initiatives, Facilities and Fleet, Finance, Fire-Rescue, Housing and Human Services, Innovation and Technology, Open Space and Mountain Parks, Parks and Recreation, Planning and Development Services, Police, Transportation and Mobility, Utilities

FY 2025 Budget

FY 2025 Estimated Impact

FY 2025 Net Change

Beginning Fund Balance

$387.7M

Not Applicable

$387.7M

Total Forecasted Revenue

$573.1M

$9.8M

$582.9M

Total Estimated Expenses

$779.7M

$16.0M

$795.7M

Ending Fund Balance(s) After Reserves

$80.6M

Not applicable

$74.4M

Item

Climate, Resilience, and Sustainability Considerations The city develops the annual budget through the lens of the overarching SER Framework, which serves as the foundation for resource allocation. The ATB changes align with this process and uses guidance from the SER Framework for climate, resilience, and sustainability considerations.

Community Engagement In addition to departments working with stakeholders to make budgetary decisions, the ATB process consists of a Public Hearing on December 4, 2025, where community members have the opportunity to speak to items on the proposed ordinance.

Workplan Considerations The annual ATB process represents a standard workplan item 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 Second reading and public hearing scheduled for December 4 will be presented as an emergency measure due to the requirement for appropriations to fall within this fiscal year (by December 31). The emergency ordinance will enable the appropriation to align with this requirement by year-end, and to support balancing the 2025 budget through year-end.

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Attachments A - Proposed Ordinance 8733 B - List of supplemental appropriations