The Boulder City Council this week is scheduled to begin debating the city manager’s proposed 2027 budget, which reflects an ongoing effort to address rising costs and revenue growth that has failed to keep pace.
The proposed $552 million budget marks an increase from last year, largely due to new capital investments. It also comes with notable staffing cuts to help close a $6.3 million gap in the General Fund, the city’s largest fund and a key source of money for a wide range of services.
The proposal would cut about 24 full-time-equivalent positions, including 13 filled positions that would result in layoffs. The staffing cuts would save about $3 million, according to a city official.
It is the second year in a row the city manager has proposed cutting staffing levels, though last year only three of the eliminated positions were filled.
“Decisions that impact people are never easy,” City Manager Nuria Rivera-Vandermyde said in a news release. “At the same time, during challenging times, we must ensure that our constrained resources are going to the services our community counts on most.”
The filled positions slated to be cut include three in innovation and technology. The city also plans to eliminate its photo enforcement van program and instead rely on traffic patrols and automated red-light and speed-on-green cameras. Ending the program would eliminate seven filled civilian positions in the Boulder Police Department. The city plans to hire officers for other roles.
The cuts follow several years of slow revenue growth. Sales tax revenue, the city’s largest single source of money, has come in below projections. The city has also lowered its property tax revenue projections because of state legislation that reduced assessment rates.
For the first time since the start of the Covid-19 pandemic, the city manager last year recommended cuts to General Fund spending to help close a $7.5 million shortfall in the 2026 budget. To address the current gap, she has asked all departments to identify ongoing 4% reductions, with an emphasis on permanent cuts.
The city manager is also proposing to shift costs out of the General Fund and into other funds, some of which voters approved for specific purposes. For example, the proposed budget would use open space money to pay for a larger share of Boulder Fire-Rescue’s Wildland Unit and revenue from the Sugar-Sweetened Beverage Distribution Tax to pay for more parks and recreation services.
Residents may also see service reductions. The budget would cut hours at Scott Carpenter Pool and indoor pools in the city’s recreation centers. City officials have already said they lack the money to operate Spruce Pool beyond 2027.
The budget still includes several new investments, among them nearly $20 million toward the development of 155 units of affordable housing at the Alpine-Balsam site, the city’s largest affordable housing development, and an additional $300,000 to reduce wildfire risk for homes and other properties. The city is also planning to increase pay for city employees, including 5% raises for the police and fire unions and 4% for other city staff. Some seasonal workers will receive additional pay under the city’s minimum wage.
The plan also relies on new or increased revenue. The city expects to collect an estimated $3 million in 2027 through a Transportation Maintenance Fee, charged to homes and commercial buildings, along with revenue from increased utility rates for water, wastewater and stormwater services. The city also plans to raise its recreational marijuana retail tax from 3.5% to 5.5%, an administrative change that officials said does not require voter approval.
The proposal comes as Boulder’s budget is front and center in this fall’s city election. Voters will consider a ballot measure intended to help cover major capital costs, while candidates for mayor and city council debate the city’s spending priorities and how to respond to slower revenue growth.
The Boulder City Council will hold a first reading on Oct. 1, followed by a final public hearing and vote Oct. 15.
Correction, September 10, 2026 3:11 pm: A previous version of this story incorrectly said the proposed budget would eliminate seven filled police officer positions. The proposal would instead eliminate seven filled civilian positions within the Boulder Police Department.
This is an interesting story. With the Sundance Festival coming to Boulder in 2027, it is certain that tax revenue will increase dramatically over the year. I’m very concerned when people are laid off their jobs when a budget increases. That signals that operating expenses are increasing. Boulder is a wealthy city. It should find ways to keep people employed.
In theory, I agree with your stance, Melodie. However, since the city manager has increased staff so substantially in the 5 years she’s been in Boulder and at the helm, we find ourselves in the position of staff and management bloat. Then the city hires a fleet of expensive consultants on top of that, basically taking work away from the people hired. If hiring hadn’t been so extreme over the last 5 years and the projects didn’t run so many (hundreds of) millions of dollars over their initial estimates, I would agree. But in the current situation, I don’t feel it’s fair for the city to punish residents by cutting pool hours or eliminating the Spruce Pool altogether because of their mismanagement. I think instead there should be further reductions in staff and elimination of consultants in all but the most demanding situations. The city should figure out how to balance their budget without punishing residents.
Are “marijuana” retail taxes not subject to TABOR?
Also, please correct me if I’m wrong, but I think an increase of 3.5% to 5.5% will result in a total of 9.36% since the local sales tax and marijuana retail taxes are stacked (3.86 + 5.5).
With cannabis already being overtaxed and the industry in apparent decline, I wonder how much additional revenue this will generate for the city.