During the recent Pueblo City Council Work Session on September 25, 2025, discussions centered around the financial management of the Regional Transportation Authority (RTA) and potential loan forgiveness that could significantly impact the city’s economic landscape.

The meeting highlighted the current funding status of the RTA, which has received $25.7 million of its total $35.7 million allocation from state sales tax. However, the city is now receiving only 3.3% of the state sales tax, a sharp decline from the 27.7% it initially received. This reduction has raised concerns about the sustainability of funding for ongoing projects.

A key focus was on two loans from the city totaling $14.4 million, which were used to support various developments, including the PBR Sports Performance Center and the Da Vinci Museum. The Urban Renewal Authority is proposing to discuss the possibility of forgiving these loans, which currently accrue interest at 3% annually. The total interest paid to date amounts to $1.7 million.

Urban Renewal officials suggested that the Main Street parking garage, which is owned by Urban Renewal but built with tax increment financing, could be transferred to the city as a means to satisfy the debt. This transfer would not only eliminate the loan obligation but also allow the city to retain lease revenues from the garage, which currently generates about $86,000 annually.

The proposal aims to streamline operations and enhance collaboration between Urban Renewal and the city, ultimately supporting downtown redevelopment efforts. The parking garage, now free of debt, could serve as a valuable asset for the city, potentially aiding in future financing options.

As the city considers this proposal, officials are weighing the benefits of loan forgiveness against the operational responsibilities tied to the parking garage. The outcome of these discussions could play a crucial role in shaping Pueblo's economic future and its ability to fund essential projects. The council is expected to continue deliberating on this matter in upcoming sessions, with the goal of fostering a more sustainable financial framework for the community.