City presents 2026 proposed budget; staff cite $11.9M projected fund balance decrease and staffing changes
Loading...
Summary
Finance staff presented the proposed 2026 City of Pueblo budget on Oct. 20, outlining an $11.9 million projected decrease in general fund balance, wage and health‑insurance increases, personnel abolishments and capital priorities. The budget will be heard at a public hearing Oct. 27 and returned for readings in November.
Heather Graham Mayer (presentation materials provided to council) led a work session on the proposed 2026 budget on Oct. 20, telling council the city’s projected fund‑balance decrease is $11.9 million under the draft now before the council.
The nut graf: staff said the budget reflects a mix of one‑time and recurring pressures — a 3.25% pay increase for appointed management and general service employees, a 5.8% increase in health insurance (about $1.4 million), and other negotiated wage steps that lifted personnel costs by roughly $5 million relative to the 2025 proposed budget.
Mayer walked council through revenue assumptions: staff are projecting a 1% decrease in municipal sales‑tax receipts for 2026 and reported county property tax valuation increases of roughly $21 million. She listed capital priorities including $3.2 million in general fund capital improvements, $4 million in road resurfacing (combining highway user funds and rolled project balances) and enterprise fund investments for wastewater and stormwater.
On personnel, the proposed budget contains no net new positions for 2026; staff identified seven abolished positions across departments that reduce payroll by an estimated $214,000. The presentation noted the city currently reports about 106 vacancies (including roughly 40 police vacancies), which historically contributes to lower actual personnel spending than budgeted.
Councilors asked about contract and non‑profit funding, PEDCO half‑cent sales tax uses, CSAC grant funding for nonprofits, and the practice of moving some line items from “other contributions” into contractual accounts. Mayer said certain personnel costs in the mayor’s office are grant‑funded and that an accountant position charged to the half‑cent PEDCO account is intended to reconcile PEDCO revenue streams and contracts.
On capital, staff highlighted that two large interest‑funded projects (payment for the annex/PBR building and PMJC HVAC) would be covered from half‑cent sales‑tax interest rather than the general fund. Staff also confirmed an estimate of about $3.5 million from the state highway‑user trust for streets in 2026 and described repairs planned for ponding and drainage in several neighborhoods.
Ending: Mayer said the Oct. 27 meeting will host a formal public hearing on the 2026 proposed budget; first and second readings are scheduled for Nov. 10 and Nov. 24, respectively. Council may request additional work sessions or amendments before second reading.
