University Hill commission backs 2026 budget recommendation while urging future reinstatement of general-fund transfers

The University Hill Commercial Area Management Commission on Sept. 2 recommended that City Council, serving as the board of directors for the University Hill General Improvement District (UJID), adopt the City Manager’s 2026 recommended budget and asked Council to consider reinstating general-fund transfers to preserve the district’s fiscal resiliency.

Commissioners heard a presentation from Chris Scott, budget analyst for the City Manager’s Office (Community Vitality), who said the Community Vitality recommended budget for 2026 totals just under $24,700,000 and explained that the recommended package includes no general-fund transfer to the UJID for 2026. Scott also outlined the capital improvement plan (CIP) highlights, including a recommended $4.6 million for Spruce Garage restoration, work to start at the St. Julien garage, a Pearl Street Mall refresh and a $300,000 project for improved electronic signage in Boulder Junction garages.

The commission’s recommendation joined staff concerns about the UJID fund’s long-term outlook. Commissioners flagged that projected five-year forecasts show reserves declining materially if transfers are not restored and if capital spending continues at recent levels. Commissioners noted the district has relied on periodic transfers in prior years (one commissioner cited a $450,000 transfer in 2018), and warned the recommended budget would exhaust reserves over the medium term unless other revenue or transfer sources are identified.

Commission discussion covered: the technical difference between the City Manager’s recommended budget and an adopted budget; that 2025 revised figures include carryover encumbrances; and that the City Manager’s recommendation removes many general-fund transfers across multiple special funds as part of closing a citywide budget gap. Staff said the City Manager’s approach to transfers is a citywide policy decision and that the 2027 budget timeline means any changes tied to the proposed Downtown Development Authority (DDA) vote in November 2026 would not affect the 2027 proposal.

After discussion the commission approved a combined motion: to recommend that City Council adopt the City Manager’s 2026 recommended budget for the University Hill General Improvement District fund and to urge City Council to consider reinstating general-fund transfers to UJID in future years as the only way to maintain the district’s fiscal resiliency. The motion passed on an affirmative voice vote.

The commission asked staff to resend slides with corrected numbers noted during the meeting and to provide additional detail on five-year projections so the commission can continue to monitor UJID fund health ahead of City Council review.

The commission’s formal recommendation will be transmitted to City Council, which is the governing body with final adoption authority for the UJID budget.