On Oct. 9, the Boulder City Council unanimously approved City Manager Nuria Rivera-Vandermyde’s recommended $521 million budget for 2026. A final vote on the measure is scheduled for Oct. 23.
The spending plan slightly increases the city’s overall operating budget compared with last year but includes cuts across departments and eliminates 19 mostly vacant positions. The reductions aim to close a projected $7.5 million shortfall in the General Fund, the city’s largest source of discretionary money. The gap comes as sales tax revenue — one of Boulder’s largest funding sources — has flattened. Additionally, about $50 million in federal funds remains unallocated, adding uncertainty to the city’s financial outlook.
The 2026 budget also relies on new fees with potentially far-reaching policy impacts. One would apply to owners who demolish single-family homes and replace them with larger ones. The proposed $15-per-square-foot “mansionization” fee, based on the additional square footage beyond 500 square feet, is expected to generate about $400,000 for affordable housing next year. The city council still needs to approve the fee. (See our previous reporting for details.)
Separately, the council voted 6–1 to approve a new transportation maintenance fee for property owners, calculated based on the estimated number of vehicle and non-vehicle trips a property typically generates. The fee is projected to raise about $6.2 million annually to pay for underfunded and unfunded maintenance needs, such as road paving, sidewalk repair and multi-use path upkeep, according to city officials. Councilmember Mark Wallach opposed the measure. He said some businesses were unaware of the new fee and suggested the city should fund transportation maintenance through existing revenues. He proposed exempting affordable housing. City officials said they would report back to the council on the workload and tradeoffs of investigating the impacts of such an exemption.
Update: This story was updated on Oct. 10 with additional information about Councilmember Mark Wallach’s position on the fee.