Pueblo mayor warns of 2027 budget shortfall; council opts to hire seasonal parks staff for 2026

Mayor Heather Graham and city finance staff told the Pueblo City Councilwork-session retreat that the citys revenue picture has softened and could leave the general fund with only about $1.2 million available for future appropriations in 2027 if current trends hold.

The mayor and finance director Denny Nunn said a one-time audited payment in 2024 made the 2025 comparisons look better than underlying tax collections, and staff showed a scenario in which the city would draw further on reserves if sales-tax receipts do not recover. "If everything stays the way that it has been in 2026 ... you're gonna see that we have a $1,200,000 future appropriation level for 2027 budget," Mayor Heather Graham said.

Why it matters: wages and benefits are Pueblos biggest cost driver; staff told the retreat that personnel accounted for the bulk of spending and that recent pay, insurance and step increases added roughly $5 million in 2026 budget pressure. Councilors and the mayor discussed options that include wage freezes, hiring freezes and program reductions.

What staff proposed and council debated: the administration described a combination of measures to reduce the 2027 gap: continued freezes or abolishment of selected positions, asking unions to accept 0% wage increases next year, and a review of temporary and seasonal hires that together could reduce operating costs. Parks and recreation were front and center because the department hires the largest seasonal workforce (pools, rides, youth sports) and staff said those programs accounted for a material share of part-time wages.

Councilors pressed for options short of closing parks or removing all programs. "You can pick and choose," the mayor said when asked whether pools could be consolidated. Some councilors warned that cutting too many quality-of-life services could push residents to spend outside the city and worsen revenues. Others urged that collective bargaining constraints would limit how quickly full-time and part-time staffing mixes could be changed.

Council direction: after lengthy discussion, the chair polled councilors on whether to hire seasonal/part-time parks staff for the immediate season. A number of councilors said they did not want to cut parks programs in 2026; the chair recorded the prevailing direction to proceed with seasonal hires while asking council to identify longer-term reductions for the 2027 budget process. Mayor Graham cautioned that hiring now could increase the cost of later layoffs and unemployment if the city must undo hires to balance the 2027 budget.

What happens next: staff said they will continue budget committee work, provide more granular revenue and program-by-program impact analyses, and convene follow-ups in the weeks before March 13, the start of the parks hiring window, to refine council direction and present options.