Boulder staff present balanced 2026 budget to close $7.5 million general fund gap; council debates fees, cuts and capital plan

City of Boulder staff presented a balanced recommended budget for fiscal 2026 during a council study session, telling the City Council the package closes an identified $7,500,000 shortfall in the general fund through a mix of department reductions, program realignments and proposed revenue measures. Staff also described a six‑year capital improvement program that includes new appropriations for 2026 and multiyear projects such as the Western City Campus and replacement of Fire Station 2.

Why it matters: Boulder officials said the budget aims to protect core services and staff while aligning resources with the city’s Sustainability, Equity and Resilience framework. Council members probed proposed fee increases, potential service impacts from staff reductions and the city’s reliance on restricted revenue streams and ballot measures for longer‑term stability.

Staff presentation and financial context City Manager Nuria Rivera VanderMeij and Chief Financial Officer Krista Morrison framed the 2026 package as a difficult but balanced set of choices. Morrison said, “The budget before you as proposed is balanced.” Budget Officer Charlotte Husky said staff identified a $7,500,000 general fund shortfall during 2026 development and that the recommended total citywide revenues for 2026 are projected at $507,200,000 (a modest 3% year‑over‑year increase).

Staff explained the shortfall reflects flattening sales and use tax receipts, changes from recent state legislation affecting property and marijuana shared revenues, and reduced intergovernmental grant timing. Sales and use tax comprises roughly 35% of city revenues while property tax is about 12%, staff said; sales tax forecasts show near‑term flattening with a modest uptick beginning in 2027.

How the shortfall was addressed Staff described a multifaceted approach: departments across the organization were asked to develop potential 5% reduction strategies so leadership could consider tradeoffs. The recommended budget uses reductions, realignments…