The Boulder city government has put an immediate freeze on hiring for vacant, nonessential jobs for the remainder of the year amid concerns about an $8-10 million budget shortfall.

The decision, one of several the city has proposed to make up the spending gap, comes as the city’s tax and fee revenue has fallen below its projected amount, according to a news release from the City of Boulder.

“We do not take this step lightly, but we, like many other local governments, are facing challenging conditions,” Nuria Rivera-Vandermyde, Boulder city manager, said in the release. “We have a responsibility to ensure we can fulfill our obligations to serve our community within a balanced budget.”

The city will make exceptions to the freeze for critical roles, such as public safety and water quality positions, and will honor any offers that have already been made, the release says. 

The city’s primary source of income is from sales and use tax, and property taxes, but sources also include other fees, such as taxes on marijuana and electronic smoking devices, according to the release. 

The city’s General Fund, which covers many programs, including public safety, roads, parks, recreation centers, social service initiatives and community engagement, is under the most stress due to the shortfall, the release says.

In addition to the hiring freeze, the city has asked every department to seek opportunities to underspend their allocated budgets for the remainder of 2025, including the information that budget increases are unlikely in 2026, according to the release.

The measures will prevent mass layoffs, wage cuts or the city dipping into its emergency reserves, the city says. Additionally, officials are understanding that, amidst nationwide changes in consumer behavior, the city may need to have a difficult conversation about how to balance priorities and community services in a more difficult economic environment, according to the release.

“We’re not alone,” Rivera-Vandermyde said in the release. “Frankly, some of our peers are facing bigger gaps, but we’ve done some important foundational and strategic work that will help us weather this storm. I’m proud of the progress we’ve made.”