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Pueblo to roll out voluntary separation program as part of cost-saving mix

Pueblo City Council · February 28, 2026
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Summary

City HR presented a voluntary separation plan offering tenure-based payouts (roughly $1,000 per year of service, up to a cited maximum) to accelerate attrition and freeze positions; mayor has authority to enter agreements and staff detailed an application and review timeline with mayor/HR/finance/departmental review.

City HR staff described a voluntary separation program the mayor plans to use to reduce long-term payroll costs and accelerate attrition without an across-the-board reduction in force.

What was proposed: Bella Trujillo, assistant HR director, said the city would offer a cash incentive tied to years of service (presented as approximately $1,000 per year of service) to encourage eligible employees to separate voluntarily. The citys approach would evaluate applications case by case and not automatically backfill positions; public-safety positions would generally be excluded because of increased overtime costs.

Timeline and process: staff outlined a compressed timeline: roll-out to employees around March 9, letters of intent by March 27, mayoral and department review March 30April 2, agreements returned by April 24 with a seven-day revocation period, and a target last day of employment of May 31. Trujillo said the mayor has the delegated authority to enter separation agreements and that each application will be judged on operational feasibility and net savings.

Council questions and safeguards: councilors pressed for clarity on whether the council would approve individual payout schedules (the administration said salaries are already approved in the adopted budget and that staff would bring back updates), whether mass departures could create operational risks, and whether the program would produce net savings after payout. Staff said applications would be reviewed by HR, finance, mayor and the affected department and that acceptance was discretionary.

Why it matters: The program is intended to reduce personnel costs without forced layoffs; if significant numbers accept the offer it could reduce 2027 personnel spending, but councilors warned of unintended consequences (loss of institutional knowledge or short-term overtime costs). Staff committed to update council as applications are received and to present frozen-position resolutions where appropriate.