Pueblo’s Financial Roller Coaster

Understanding the City Budget and The Future

City budgets are not abstract accounting exercises. They determine how well the streets are maintained, how quickly police and fire can respond, whether our parks are staffed, how we support youth programs, and the overall quality of life in Pueblo. For that reason, it is crucial for residents to understand the forces that have shaped Pueblo’s finances over the past decade - especially since the transition to a strong mayor form of government in 2019.

This story is not about blaming any one mayor, council, department, or political faction. It is about recognizing why revenues rose, why they fell, and how national economic conditions, public health decisions, and long-term infrastructure needs interacted with local government responsibilities. Pueblo can move forward only when the public understands the reality behind the numbers, rather than relying on rumors, assumptions, or political talking points.

The Financial Recovery Before 2019

Between 2010 and 2013, Pueblo struggled financially as the long tail of the Great Recession continued to affect local employment and spending. The city experienced multiple years where it spent more than it collected, and reserves declined.

Gradually, as the economy stabilized, Pueblo recovered. By 2015 through 2017, the city recorded several years of multi-million-dollar budget surpluses. These were not extravagant windfalls - they reflected slow economic healing. By 2018, Pueblo was essentially breaking even, ending the year with a modest $284,564 surplus.

When the city adopted the strong mayor system in 2019, Pueblo’s finances were stable but vulnerable, highly dependent on local sales tax revenue, and deeply tied to the success of small, locally-owned businesses.

The COVID Shock and Disrupted Local Revenue

When the pandemic hit in 2020, state and national public health rules required many small businesses to close temporarily. At the same time, large national chains remained open. Because Pueblo’s revenue system depends so heavily on money circulating through local businesses, this uneven shutdown created a sudden and painful break in the city’s economic engine.

The city did not lose revenue because residents stopped spending entirely. Instead, the spending shifted toward corporations whose profits do not circulate back into the community. The pandemic economy weakened the very foundation of Pueblo’s revenue system - not through local mismanagement, but through the structure of the tax base itself.

Understanding this is essential because it means our financial challenges are not the result of “someone messing up.” They are the result of how Pueblo’s local economy is built.

The Temporary Surpluses of 2021–2022

After the initial shutdown period, Pueblo experienced unusually large surpluses - including a $12.7 million surplus in 2022. It was easy for some to point to these figures as proof of strong local leadership, strong growth, or strong local business conditions. But the reality is more complex.

These temporary surpluses were driven largely by federal stimulus checks, expanded unemployment benefits, state and local relief programs, and inflation increasing prices, which automatically increases the amount collected in sales tax. These conditions made the city appear healthier than it actually was.

This was not a local economic boom. It was a temporary inflation-driven and stimulus-driven surge. Once those temporary conditions faded, the underlying reality of the weakened small-business tax base reappeared.

Building Replacement Decisions During This Period

During the same period, the city faced aging and outdated municipal buildings that would have required roughly $15 million to repair and bring into compliance with modern safety and accessibility codes. The decision was made to purchase several large existing buildings instead of repairing multiple deteriorating facilities. This approach is financially logical in the long term.

However, these purchases resulted in increased short-term costs at the exact moment when the city’s temporary revenue bubble was ending. The timing was unfortunate - but not irresponsible. It was a long-term investment colliding with a short-term revenue contraction.

The Return to Normal Revenue and the Current Deficit

As federal stimulus ended and inflation slowed, Pueblo’s revenue levels returned closer to their true local economic base. Meanwhile, many small businesses never reopened, and those losses continue to affect the circulation of money in the community.

This is why Pueblo now faces a 2025 deficit of approximately $6.8 million. It is not the result of one mayor, one council, one party, or one decision. It is the product of:

• A weakened local business revenue base,

• Temporary pandemic-era revenue distortions, and

• Necessary long-term infrastructure replacement costs arriving at the same time.

Finger-pointing does not solve this. Understanding does.

A Path Forward That Depends on an Informed Public

If Pueblo wants a stable financial future, the community must resist the urge to reduce complex economic conditions into slogans or blame campaigns. Doing so prevents meaningful solutions.

The path forward requires:

• Rebuilding and supporting locally-owned businesses,

• Encouraging spending that keeps money circulating inside Pueblo,

• Evaluating city service levels and long-term infrastructure planning realistically, and

• Engaging residents in fact-based budget discussions rather than emotional reactions.

Pueblo has recovered from financial hardship before. It can again. But the future depends on public understanding - not on assigning fault.

A community that understands its finances is a community capable of shaping its own future. The more Pueblo residents engage with the real numbers, the real challenges, and the real opportunities, the stronger this city becomes.