Boulder Council reviews 2026 recommended budget to close $7.5 million general‑fund gap

City of Boulder staff presented a balanced 2026 recommended budget at a council study session, laying out a package of program reductions, service realignments, proposed new fees and capital investments intended to close an identified $7,500,000 shortfall in the general fund. The presentation outlined $507.2 million in total projected revenues for 2026 and a six‑year capital improvement program that staff estimate will total roughly $789.5 million. Council did not take formal action tonight; staff said the budget ordinance and related special‑district resolutions will come to first reading and public hearing Oct. 9 and to second reading and adoption Oct. 23.

The recommended budget responds to “flattening” revenues — notably a small decline in sales and use tax and slower reassessment growth in property tax — and to state legislative changes staff said reduced some revenue streams. “The budget before you, as proposed, is balanced,” Krista Morrison, chief financial officer, told council. Charlotte Husky, the city’s budget officer, summarized staff’s forecast and direction: staff identified a $7,500,000 general‑fund shortfall during 2026 development and asked all 18 departments to propose 5% reduction strategies and program realignments so decision‑makers could consider options across the organization.

Why it matters: General fund shortfalls can force cuts to core services or require new revenue sources. The staff package mixes ongoing and one‑time reductions with a small number of enhancements and relies on a combination of restricted and discretionary funds, proposed new fees and potential ballot measures to maintain services and capital programs.

Staff highlighted the major revenue and policy elements driving the plan. Sales and use tax, which staff said comprises 35% of city revenues, is…