Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: May 7, 2026

Agenda Title Introduction, first reading, and consideration of a motion to order published by title only Ordinance 8750, Adjustment to Base Budget 1 appropriating money to defray expenses and liabilities of the City of Boulder for the 2026 fiscal year; and setting forth related details

Staff Contact • • • • •

Charlotte Huskey, Budget Officer Scott Carpenter, Principal Budget Analyst Brigette Clack, Senior Budget Analyst Stacy Polyakova, Senior Budget Analyst Krista Morrison, Chief Financial Officer

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 8750, Adjustment to Base Budget 1 appropriating money to defray expenses and liabilities of the City of Boulder for the 2026 fiscal year; and setting forth related details

Executive Summary The purpose of this item is to consider an ordinance to adjust the 2026 budget. Each year at least two supplemental appropriation ordinances known as adjustments-to-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. In the 2026 ATB1, staff recommends a total of $18,585,227 in adjustments, including $13,107,888 from fund balance, $5,348,285 from grants received mid-year and those not yet appropriated, and $129,054 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 8750 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, supplemental appropriations will be made to the 2026 budget supported by a combination of additional revenues, grants, and fund balances.

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 or will need to modify certain services.

Refer back to staff

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

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 Each year, staff presents to City Council for review and approval two supplemental appropriation ordinances: ATB1 in May or June and 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 Dec. 31st of each year and city charter Sec. 95 requires an appropriations ordinance by Dec. 1 of each year; however, government business continues year-round and thus requires some adjustments. Given that mid-year adjustments occur outside of the annual budget cycle, staff conduct careful review prior to advancing recommended adjustments. There are common instances when adjustments are required, such as appropriating new grant

funds received mid-year. In special circumstances, unplanned investments may be necessary due to emergencies, voter-approved changes, or emerging community needs. These special circumstances are generally presented as one-time investments and adjustments to the original budget.

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 if the grant was either not anticipated or finalized 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

Amount

Additional Revenue

129,054

Grant Revenue

5,348,285

Fund Balance

13,107,888

Total

$ 18,585,227

Supplemental appropriations can also be categorized according to fund and source. Table 2 provides a summary of all supplemental appropriations in this ATB totaling $18,585,227 across funds. Table 2: 2nd ATB Supplemental Appropriations by Fund and Source Fund

Additional Revenue

Grant Revenue

Fund Balance

Total

General Fund Planning and Development Svc Fund Affordable Housing Fund .25 Cent Sales Tax Fund Recreation Activity Fund Climate Tax Fund Open Space Fund Transportation Fund Permanent Parks & Recreation Fund Water Utility Fund Fleet Fund Equipment Replacement Fund Airport Fund

$17,000 $0

$97,700 $0

$803,825 $168,690

$918,525 $168,690

$0 $7,504 $0 $15,000 $75,000 $0 $14,550

$1,358,024 $0 $238,766 $168,000 $320,145 $1,500,000 $0

$2,706,833 $100,626 $0 $1,122,566 $40,169 $0 $21,517

$4,064,857 $108,130 $238,766 $1,305,566 $435,314 $1,500,000 $36,067

$0 $0 $0

$0 $1,215,650 $0

$615,000 $0 $7,528,662

$615,000 $1,215,650 $7,528,662

$0

$450,000

$0

$450,000

Total

$129,054

$5,348,285

$13,107,888

$18,585,227

Key highlights of ATB summarized by department: City Manager’s Office: A request for rolling over dedicated funds from previous years for the Flex Rebate program, subject to Ordinance 7554 and Ordinance 7639 ($753,000). Climate Initiatives: Request for appropriation to bring onboard a Civic Spark fellow. This was initially not budgeted for 2026 due to unknown federal funding but with federal funding now available, this request is to fund this again through the Climate Tax Fund for 2026 ($37,000). Facilities and Fleet: Request for funding set aside for radio replacements for Police, Fire-Rescue, Open Space and Mountain Parks, and other radio services replacement. This will advance the anticipated replacement in 2027/2028, and support infrastructure safety for daily operation, communications, and special events. ($7,328,000). Finance: Request to carry forward unspent 2025 fund round dollars for the Wildfire Resilience Assistance Program (WRAP). This program provides grants for homeowners, Homeowner Associations, and property managers of multi-unit dwellings to complete wildfire mitigation work on their properties. Funds are awarded at the time of application approval and paid out upon completion of the work. This causes some grants to be paid out in a different fiscal year to which they were budgeted. This request will add the obligated 2025 fund round dollars that have been paid in 2026 to the 2026

approved budget, ensuring that current 2026 budgeted amounts remain available for 2026 fund round ($114,000). Fire-Rescue: A request for appropriation from Wildfire Resilience savings within the Climate Tax Fund for funding for wildland fire backcountry wheeled litters for patient extraction ($10,000). Housing and Human Services: Request for budget carryover in the Affordable Housing Fund for Rally Flats, 34th Street, and Spine Road Development based on delay of original project development schedule ($4.0M). Additionally, a request to appropriate an anonymous donation to the Family Resource Schools program ($50,000). Utilities: Request for additional funding for project support for two water quality initiatives. Grant funding has already been appropriated and will reimburse up to $900,000 of eligible project expenses, but a budget increase is requested to ensure the capital project is fully funded and able to support completion of the project scope ($500,000).

Select Funding and Grants •

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Tenant Support Services Grant (Department of Local Affairs) o Award provides $79,000 in funding for tenant support services to facilitate individuals’ transition to stable housing. These services are provided in conjunction with housing vouchers also provided by the Department of Local Affairs. Mobile Home Repair and Replacement Grant (Department of Local Affairs) o Award provides $1.3 million in funding to support the City's single-family owner-occupied housing rehabilitation program, which serves households at or below 100% of Area Median Income, and funds one fixed-term position. State Historical Fund Grant for the Cultural Resource Management Plan (History Colorado) o Award provides $149,000 to support the Open Space and Mountain Parks Department in the development of a Cultural Resource Management Plan. Forest Restoration and Wildfire Risk Mitigation Grant (Colorado Department of Natural Resources) o Award provides $135,000 in funding to support the Bison-Kossler forest thinning project for wildfire prevention. Airport Seal Coat Grant (Colorado Department of Transportation)

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o Award provides $450,000 in funding to support airfield pavement maintenance at the Boulder Municipal Airport. Clean Transit Enterprise (CTE) Funds (Colorado Department of Transportation) o Award provides $595,826 in funding to support the purchase of an electric bus in conjunction with FASTER funding. Funding Advancements for Surface Transportation and Economic Recovery Act of 2009 (FASTER) Funds (Colorado Department of Transportation) o Award provides $619,824 in funding to support the purchase of an electric bus in conjunction with CTE funding. Broadway Business Access and Transit Project Grant (Colorado Department of Transportation) o Award provides $1.5M in supplemental funding to support the Broadway BAT Lanes (CO 93) project

Equity Analysis The city develops the annual budget using the SER Framework, leading with budget decision-making as aligned to 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 trends 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 fiscal note below indicates the change to the 2026 budget as a sum across all funds. Current Year Estimated Fiscal Impact In the 2026 ATB1, staff recommend a total of $18,585,227 in adjustments, including $13,107,888 from fund balance, $5,348,285 from grants received mid-year and those not yet appropriated, and $129,054 from additional unbudgeted revenue, including

revenue from donations, interlocal agreements, and additional anticipated revenue above forecast that was not captured in the original budget. Fund(s): .25 Cent Sales Tax Fund, Affordable Housing Fund, Airport Fund, Climate Tax Fund, Equipment Replacement Fund, Fleet Fund, General Fund, Open Space Fund, Permanent Parks and Recreation Fund, Planning and Development Services Fund, Recreation Activity Fund, Transportation Fund, Water Utility Fund Department(s): City Manager’s Office, Climate Initiatives, Facilities and Fleet, Finance, Fire-Rescue, Housing and Human Services, Open Space and Mountain Parks, Parks and Recreation, Planning and Development Services, Police, Transportation and Mobility, Utilities

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

Beginning Fund Balance

$159.5M

N/A

N/A

Total Forecasted Revenue

$438.2M

$5.4M

$443.6M

Total Estimated Expenses

$439.5M

$18.5M

$458.1M

Ending Fund Balance(s) After Reserves

$60.5M

$13.1M

$47.4M

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 May 21, 2026, where the community has the opportunity to speak to items on the proposed ordinance.

Workplan Considerations The annual ATB 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 Second reading and public hearing is scheduled for May 21, 2026.

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Attachments A – Proposed Ordinance 8750 B - List of Appropriations by Fund and Department