The Mayor's Mixtape
Mayor Heather Graham's weekly brief of current events related to the City of Pueblo.
The Mayor's Mixtape
The Mayor's Mixtape-Episode 35
Episode 35 of the Mayor's Mixtape, Mayor Heather Graham dissects the City fund balance. If you're an avid listener, this might be a good episode to watch on YouTube because Mayor Graham brought out the white board for a visual explanation. Stay tuned for more information about the dog track project and the newly approved Small Business Window Repair Mini-Grant Program.
Don't forget to join us for trick-or-treating at City Hall for HOWL-O-WEEN from 2-4pm on Friday, October 31!
Okay, welcome to the 35th episode of the Mayor's Mixtape. I am Haley Sue Robinson, Director of Public Affairs.
Heather Graham, Mayor:And City of Pueblo Mayor, Heather Graham.
Haley Sue Robinson:Great. 35 episodes, Mayor. That's a lot.
Heather Graham, Mayor:Yeah.
Haley Sue Robinson:It's exciting.
Heather Graham, Mayor:It is.
Haley Sue Robinson:I'd like to remind you, you can find our podcast on YouTube, Apple, Spotify, BuzzSprout, wherever you get your podcasts, and you can like, share, and subscribe. You're also welcome to email us and ask questions or ask for a topic suggestion. You can email us mayor @pueblo.us. Okay, Mayor, let's get into the city council recap from last night. We had the first budget public hearing. Yeah. And that's different than the first reading. So this was when citizens could come uh talk about the budget once they've had the opportunity to review. I did think it was interesting we had some folks online who didn't realize that they could review the budget. It's available at the library. It's also available in the finance department and the city clerk's office. It's still available.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:Yes, and it's available online. But a lot of folks didn't know that you actually can come read a printed version of the proposed budget. And so that's still available. And then um first reading is gonna be November 10th, and then final reading November 24th.
Heather Graham, Mayor:Mm-hmm.
Haley Sue Robinson:Okay. So um there was a lot of discussion about budget and fund balance. Can you maybe explain to the listener a little bit about the pattern of the fund balance and why we've seen such large fund balances since 2020?
Heather Graham, Mayor:Yeah, we had a couple citizens come and speak about um the fund balance, what it looks like, why it's so large, um, where has the money gone that was in the fund balance, what does that look like? And so uh for those of you that don't know what the fund balance is, it's like the city's savings account, right? So it's the money left after we've budgeted and appropriated uh for a year minus the council and tabor reserve. So the city is required to keep a city council reserve um and a tabor reserve.
Haley Sue Robinson:Okay.
Heather Graham, Mayor:And um you'll find that on um you know and on the B one. So it's pretty much the first first page with all of the numbers is gonna be the city's B one. So it's really the first presentation of the budget all wrapped into one. And so what you're gonna be looking at is the available for future appropriations. So available for future appropriations is everything after um what we have this year as a 12% uh council contingency reserve um along with the Tabor Reserve. Um so you'll see that that fund um right here, Tabor Contingency Reserve and Council Designation Reserve. Um and it's about 15 million for the uh council reserve and about 3.5 million for the the Tabor Reserve. So you're about $19 million that the city has to keep based off of this hundred and thirty million dollar budget. Okay. Um if something happens, right? So
Haley Sue Robinson:This is what some folks were calling.
Heather Graham, Mayor:The rainy day fund.
Haley Sue Robinson:Yeah, exactly.
Heather Graham, Mayor:Yeah, well, I mean not really. Like if it's if it's a need, if if something uh catastrophic happened in the city, um we would have that reserve that's mandated um through our budget process.
Haley Sue Robinson:Okay.
Heather Graham, Mayor:So everything after that is what's available um for future appropriations, what we call the fund balance. So for future appropriations into the next year, um, or if council sees fit to make a transfer out of the reserve um for a special project um or for if something comes up throughout the budget um year, that's where they would take um is from that fund balance, right? So last night we heard a couple citizens come and talk about the fund balance, um, why this why the city's fund balance is so large, why it's been so small, why we transfer funds um in and out um and what that looks like. So what I decided to do was take um numbers from I think 2012, starting off all the way through 2026, really highlighting um what some of the fund balances had been previously um and kind of what you've seen over the last five years because the city has debruced and we've taken in a lot of um money, a lot of sales tax. Um, and so that's you know that's where we see our fund balance grow. So we're gonna go ahead and take a take a peek at the the one shores that we want together. Yeah. Okay, great. Okay, so I went from 2012 to 2016. This is the fund balance for future appropriations. You can find all of this information um under our um budget portal. It will list the different years. Again, you're gonna be going down and looking at the V1, and it's probably gonna be in the right hand corner, last number on the page. So you can see that in 2012, um, the reserve fund balance for future appropriations was $4,800. Um, that's kind of scary, right? Uh $4,800 that can be used for future appropriations. And then we go into 2013 and 2014, and you see two zeros um that are available for future appropriations, and then you get into 2016. And in 2016, they actually had to take $168,334 out of that council tabor contingency because we had no reserves from them to pull for.
Haley Sue Robinson:Okay, Mayor, so can we go back to the 2012 or the the zeros that you just mentioned? Why were there zeros?
Heather Graham, Mayor:There were zeros because the, you know, I believe at the time we had a city manager, 2012, 2013, 2012 to uh 2019's budget, um, the city manager you know presented the budget and said, um, you know, we need to take all of our reserves um in order to to continue to provide quality of life services for the citizens. So they wiped out the reserves, um, leaving only the council contingency and the table reserve zero zero. 2016, they ended up taking $168,000 from council reserves. Um 2017, they're back at $34,000 for fund balance for future appropriations. In 2019, you see that the city had $634,000 uh for future appropriations. So really, if uh COVID wouldn't have happened in 2020, the City of Pueblo would have been on a world of hurt, right? Only having $634,000 uh to dip into for future appropriations. 2020, 2021, you see we're back up at $5 million. And probably what you're gonna see account uh for this large increase, that's gonna be um our police officers' positions continuing to uh roll over. So we budget for the positions, we don't fill the positions, they roll over back into the fund balance. So this is when you had your defund the police movement in 2020. Um COVID was happening, it was a it was a hard time for the city to hire, recruit, retain police officers. So you're gonna see several open positions, so you're gonna see that continuous um transfer back into your fund balance. In 2021, the city uh ran a ballot measure to debruce. Uh the ballot measure was called Revenue for Roads. So um the previous administration knew that the city was gonna be taking in a ton of money after seeing uh middle of 2020 through 2021's forecast of additional federal stimulus money, um, sales tax collections start to skyrocket. So instead of returning those dollars back to the citizens, um, the city debruce was allowed to keep that money. But the administration goes and says, we are going to pave roads with those additional funds. And I believe the ballot language even said something to the fact of anything over, we will pave at least five million dollars um worth of roads out of this debruce fund, right? So that happens in 2021. The voters vote on it. So 22, 23, 24, and into 25, you're really gonna start to see the city um, because of the debrucing that we did, start to take in a ton of money, and you're gonna see that fund balance um jump up to the highest point in 2022, which is $27 million available for future appropriations. So when we say available for future appropriations, this is money that we forecast that we are going to take in. Um infrastructure projects, roads, um, those types of uh expenditures were what that money was spent on from 22 uh to 2024. They paved at least 10 million dollars um in roads every year. You could find that in your capital, um, your capital plan in the back of your budget, and you can see that at least 10 million dollars is allocated in 27 or 2022, 2023, 2024. Um in 2025's budget, I think we did five million dollars um in roads for 2025, and then in this year 2026 proposed, we have $2.5 million. And you can see um what the fund balances in 2026 proposed. And the reason for this is because in all of these years, right, the city is taking in tons of money because there's tons of federal stimulus, so we have a large fund balance. Um, large fund balances are good to be able to do capital improvement projects, um, pave roads, right? But when it comes to uh wages, and not that this is a bad thing, the city now has the ability to pay. So um when we are negotiating with all of our unions and you have these large fund balances, 27 million, 18 million, 20 million, and 20 million, um, the city has the ability to pay these larger wage increases that are the uh comparable to our five cities listed in the charter.
Haley Sue Robinson:So that was something that's uh quite a few citizens brought up, or at least one or two.
Heather Graham, Mayor:Yep, personnel costs.
Haley Sue Robinson:About personnel costs. Talk a little bit more about the ability to pay or why the increase in personnel costs over the last several years.
Heather Graham, Mayor:So um before if you go back and you look at some of these, you know, some of these times up here, um, before we debruced, before we were taking in all this money, you can read the the paragraph where the city manager talks about uh pay increases. And um specifically when I looked last night in one of the years, you know, it's like we're gonna pay the fire uh fire employees $50 more a month. Um and so they're going off by dollar increments instead of percentages. There were times when they uh talked about 25 cents an hour, 10 cents an hour in some of the budgets because at the city, at the time the city had an inability to pay, right? You're dipping into your council reserves, you have $34,000 left in the city's savings account for future appropriations. And all of these times the city does not have an ability to pay. So when we go to arbitration and when we're negotiating with our unions, um, that's what we're negotiating on. We're go negotiating on $10 instead of 10%, right? And all of these years, we're negotiating on high percentage increases because we have the ability to pay with these with these high fund balances.
Haley Sue Robinson:And another question I have is, you know, there are instances where we see folks across the city who will work overtime. So we obviously have the set pay for salary scale, but then when it comes to overtime, like let's say, you know, when we have like Chili Fest or the Colorado State Fair, or even like EVRAZ, when we had the EVRAZ fire, um, we had folks that were working overtime for those instances and like police and fire.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:Or if we were to have like a water main break and it somehow affected stormwater or wastewater, we would pay folks overtime. Does that come out of the salary line item, or does this affect these numbers that we can potentially pull from with fund balance?
Heather Graham, Mayor:They have a no, they have a wage, a temporary wage line, an overtime wage line in each of their departments. Um, where we really see a lot of those overtime wages right now is the police department. Um, I think we're over a million dollars this year in already overtime, so we're taking it out of their salary savings. So those positions that the city has funded, but we have not filled, we have the ability to move that money from those unfund, those unfilled positions and pay that money to salary savings for our overtime budget. So that's all incorporated in your wage line. So when the city goes uh to negotiate with the fire union, with the page union, with the police union, um, we are really focusing on what is our fund balance for future appropriations into the next year. That is what an arbitrator is going to look at. That is what the attorneys uh for the three unions are going to look at. Does the city have the ability to pay that 4%? Do they have the ability to pay that 7%? Um and the city did. The city has had the ability to pay those large salary um increases from at least 2021 until 2025. Now, 2026 is going to be a different story, right? Because we only have $5 million left in our future appropriations for 2027's budget.
Haley Sue Robinson:So then looking forward, uh, this $5 million seems to be a concern for some folks.
Heather Graham, Mayor:It's it's 100% a concern, and I'll tell you why. So just this year alone, City Council approved pay increases for the three unions, which totaled more than this number with their health insurance benefits total package. It was like $6.1 million that they approved in wage increases that we already know is going to be an impact on 2027's budget, right? So just the pay increases alone that they will receive in 2025, we will not have any reserves moving into 2027's budget unless we either have an increase in sales tax or unless something changes within the economy and we are able to bring in more sales tax dollars.
Haley Sue Robinson:Okay. Thanks for the breakdown, Mayor. Uh, I think that's helpful for folks to understand the historical reference, but also looking forward, what does this mean for ability to pay for our unions for wages? Yeah, and then quality of life for citizens. I think these are important conversations to have of what can we expect for the future. Um obviously when we're planning for 2026, we have to look even beyond.
Heather Graham, Mayor:Yeah. And that's, you know, since I got into this role a year ago, um, if you're not increasing your sales tax revenue, if that is a continually decreasing, you already know, hey, you're eight, you're eight point six in the hole, right? Come twenty-six, if nothing happens with sales tax, you're eight point six plus wage increases in the hole. And come twenty-seven, if nothing happens, your twenty-five and twenty-sixes decrease. Um, plus we're gonna be negotiating with the unions again in twenty-seven. So um and in twenty-six. So you really have to um I've been saying this, like this is this is we're we're playing the long game. Okay. Um, I'm not just budgeting for twenty-six. When I look at twenty-six, I'm budgeting for twenty-seven um at the same time, knowing where we can uh cut, um, seeing what makes sense and seeing how much money we're going to be able to move back and forth between that fund balance, knowing how many police officers we have.
Haley Sue Robinson:Sure.
Heather Graham, Mayor:Right? Because a lot of the time those dollars that you have seen roll over year after year um is because that we've had a shortage with our police department.
Haley Sue Robinson:Yeah, it's from salary savings.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:Okay. Anything else we need to know about the budget right now?
Heather Graham, Mayor:I don't think so. Uh the public hearing will be on the
Haley Sue Robinson:Well the first reading will be the 10th.
Heather Graham, Mayor:Yep. And then the
Haley Sue Robinson:And then the public hearing will be the twenty fourth.
Heather Graham, Mayor:Twenty fourth?
Haley Sue Robinson:Twenty fourth.
Heather Graham, Mayor:Well, then that is where her citizens can also come and speak.
Haley Sue Robinson:They have another public hearing opportunity.
Heather Graham, Mayor:And that is where city council um could also make amendments if they if they chose to. I you know, another thing that I that I heard last night, and I just want to make sure that this is clear, is that um the department directors were not asked to, you know, come and present their budgets um like they had done in previous years. Last year um some departments were requested to come. I think we had five or six fire, police parks, public works,
Haley Sue Robinson:IT, I think.
Heather Graham, Mayor:IT stormwater maybe. Um and this year, City Council did not request any directors come before City Council to present. That is why we didn't have any of the um reports. I if you know if it was requested, we would be more than happy uh to come and present line by line. There's 8,000 lines in this. Um that is why we had the previous 26 meetings also to bring city council up to date where you could sit and you could go line by line per department and hear directly from the department head on on what they want or what they what their needs are, where their decreases can be met. Um and so that was a that was a request that did not come from the city council uh for 2026 proposed budget.
Haley Sue Robinson:Okay.
Heather Graham, Mayor:And since I have presented um it as of the 20th, we have not been asked to come and present any additional follow-up at this point. So there's still some time left um in between. So if there's citizens that want to request uh to their city council person for, hey, I want to see the police department's full budget. Can Chief Noeller come and present what that makeup is? Um any of the directors would be happy to come and present their entire budget in front of City Council.
Haley Sue Robinson:And they have those prepared because they have already had meetings with you.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:So it's not like it's new information they have to prepare.
Heather Graham, Mayor:Nope.
Haley Sue Robinson:Okay. I understand.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:Great. Okay. Well, uh lots of decisions still to be made over the course of the next month. So we'll see how this all shakes out with the budget. I know this is a conversation that many municipalities, the state, um, obviously the federal government is speaking about the budget as well. So it's just budget season.
Heather Graham, Mayor:Yeah.
Haley Sue Robinson:Yeah. Okay. Um, you know, we had uh a win last night with the dog track. Um there was a a vote brought back for reconsideration. So it originally passed four to three. Um, then on October 20th, uh council asked to reconsider the vote. Um, but last night it actually was reapproved and it was five to two.
Heather Graham, Mayor:Yeah, that was great.
Haley Sue Robinson:Um we had the developer online and answered some questions. Um I think uh one thing that was interesting that that council talked about was assessing the plan um moving forward was uh was the development plan.
Heather Graham, Mayor:Sure.
Haley Sue Robinson:So can you talk a little bit about that process moving forward?
Heather Graham, Mayor:So when the city uses any kinds of funds to incentivize um or um when we are dealing with our access permits up and down the boulevard,
Haley Sue Robinson:Sure
Heather Graham, Mayor:the city puts together a development agreement, which is between the city and the developer, or like the urban renewal of the city and the developer saying if we are going to incentivize you, you have to fulfill X, Y, and Z before you receive.
Haley Sue Robinson:Okay.
Heather Graham, Mayor:Um so that's what we do typically on any time that there's dollars or land exchanged, we want to see um we want to see the return on investment, you know, what's gonna happen at the end, and we want to be able to take that to city council and to the public and say, hey, we're gonna incentivize these individuals, this demo, um, we're gonna incentivize through land, any any any type of our incentive. Um we're gonna do that, and this is what the developer is gonna give back. So last night was just the the moving of the funds into this project. Um, and now we will be working with the developer to put a development agreement plan together in which city council will have to approve, which is really gonna give milestones the developer has to meet um to make sure that they're using the funds that will become accountable. Sure. Yeah.
Haley Sue Robinson:Okay. And I think I think that was one thing that we heard from council was um just making sure that they felt that the public and they as council still had the uh ability to approve the plan moving forward. That it wasn't just uh, hey, we hope to do this, and then if we don't do it, bummer. Um and and so what I heard was um it helped me understand that this was an appropriation of funds and then the plan will come back for approval.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:Um and so essentially the city is part of the process every step of the way.
Heather Graham, Mayor:Right.
Haley Sue Robinson:There's not a a spot where the developer just gets to go rogue and says, you know what, I said I wanted to do a hotel, but uh we're gonna put up uh another gas station. And you know a lot of people in public are like, we don't want another gas station. And so we we the public then won't be disappointed.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:Great, yeah, cool. Um, but also exciting too because um I think a lot of folks are just ready and happy to see something which used to be uh vibrant and thriving and now has become such an eyesore down and an opportunity for something new to be presented. I think it's really exciting.
Heather Graham, Mayor:Yeah, I'm glad I'm glad that it worked out and it's it's moving along.
Haley Sue Robinson:Cool. So we'll see uh more of that coming forward probably in the next couple weeks or months.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:Great, yeah. Cool. Um another exciting uh pass last night was the small business window repair mini grant fund.
Heather Graham, Mayor:Yeah.
Haley Sue Robinson:Um these funds it was fifty thousand dollars and that is being appropriated from the American Rescue Plan Act um interest. Uh and this this can help up to 50 small businesses um through a reimbursement program. So talk about how this program will work and kind of next steps.
Heather Graham, Mayor:That's really for you know broken broken glass windows, um, etcetera. And so what the business will be able to do is um say you have a broken window, you know, the cost is nine hundred dollars, you will have to because the the grant can go up to a thousand reimbursable grant. Um so you will have to get the window replaced, you will have to file a police report, um, you will have to be current with city sales tax.
Haley Sue Robinson:Sure. Current business license.
Heather Graham, Mayor:Current business license, correct. Um, and then you can actually we're gonna have a form that a checklist of everything that you're gonna need, and then you will be able to come to the mayor's office um and we will reimburse your uh your money that you've spent to repair that window up to a thousand dollars.
Haley Sue Robinson:Great, that's fantastic. And uh, you know, I think uh Chief Noeller and um counselor Martinez talked about uh you know, there is the possibility like you have like a smaller window that's broken and then maybe like a door that's broken. So uh it's up to a thousand. Um so let's say that uh you know I have fifteen hundred dollars worth of damage, I can be reimbursed up to a thousand even if it's two separate instances. Okay. Cool.
Heather Graham, Mayor:Yeah, cool part.
Haley Sue Robinson:That helps with the burden of of cost. I know a a lot of folks are just saying, hey, you know, this is this is difficult for us to navigate and we just need some help.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:Cool. Okay. Um we also have some upcoming events.
Heather Graham, Mayor:Yes.
Haley Sue Robinson:It's uh busy weekly. We have Halloween. Um I know it was really successful over the weekend with the trunk or treat at El Centro. You were also down at the Riverwalk for Fright Night.
Heather Graham, Mayor:Yeah, and gave away 20 bags of candy. And it was
Haley Sue Robinson:It was packed. I saw pictures.
Heather Graham, Mayor:There was a lot of kiddos out there. Really cool costumes.
Haley Sue Robinson:Wall-to-wall people.
Heather Graham, Mayor:Yeah, I mean, you couldn't even walk. So it was a great, great event.
Haley Sue Robinson:Cool. Well, we're gonna have um trick-or-treating here at City Hall, but we also have like a kind of like a touch a truck in the um parking lot, so you can come check out a vector truck or a sweeper, um, a police car. We're gonna have a haunted bus.
Heather Graham, Mayor:Yeah.
Haley Sue Robinson:Um all kinds of really fun things. So find out how kind of City Fleet works and in the different departments, it'll be really fun. Um so that's from two to four on Friday. Um we also still have our discount days with waste connections. So solid waste, trash, yard trimmings, mattresses, box springs, um, all those things you receive a discount as long as you bring your uh city ID or a utility bill that approves that you're a city resident. And um the Southside landfill, they're open Monday through Friday from 7 to 5 and Saturday, 8 until 1. And it's located at 5715 West State Highway 78. So that you can take advantage of that until Saturday this week. Um and then you know, we'll do the podcast next Tuesday, but next Tuesday will be election day.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:Um, uh important day for the city, important day for the county, important for everyone.
Heather Graham, Mayor:Yeah.
Haley Sue Robinson:Um so if you have not turned in your ballot, you should do that. Um or go vote on election day at one of the polling locations. Um so very excited to see how that all turns out. Um anything else? Any other upcoming events that we need to know about?
Heather Graham, Mayor:I don't know. There's so many. I mean, it's we have the EDC C here all week, right? We can talk about that next week.
Haley Sue Robinson:Yeah.
Heather Graham, Mayor:As it concludes. Um we have 300 economic development.
Haley Sue Robinson:Um nonprofits, for profits,
Heather Graham, Mayor:teams here,
Haley Sue Robinson:and I met some folks from other municipalities in the in the state.
Heather Graham, Mayor:Yeah, I went to their opening dinner on uh Sunday night and they, you know, people like, oh my gosh, Pueblo and the Riverwalk and um your weather, everything is so great here. There was some people who had come from Palisade and there was some snow on the way.
Haley Sue Robinson:Oh, sure.
Heather Graham, Mayor:They were like, It's so hot here.
Haley Sue Robinson:Well, and and um, you know, even though it's kind of cooler on Sunday, they did a golf tournament and everyone was super excited. Most people don't realize, you know, from across the state, like I'm I'm a golfer, so I love fall golf is like the best. But I mean you can play golf even January, February here in Pueblo because you get a nice 50-degree day.
Heather Graham, Mayor:Yep.
Haley Sue Robinson:It's yeah, it's pretty awesome. So yeah, like people from Palisade, I mean, even sometimes people from Denver, like I can't believe how great your weather is.
Heather Graham, Mayor:Yeah, it's it's interesting to hear people's perspectives on Pueblo outside of the community. I you know, I'm sitting with groups of people who have no clue who I am, just sitting in.
Haley Sue Robinson:Just a regular person.
Heather Graham, Mayor:Um yeah, and they're you know, they're they're promoting Pueblo, they're like, This place is really cool. Um, you know, oh, and what do you do? And I'm like, Oh, I'm the mayor, like, oh, you know, well, we love your city. So uh
Haley Sue Robinson:That's great to hear.
Heather Graham, Mayor:You know, sometimes we get down on ourselves as community members here, but um it's really nice to hear people talk about how much they love Pueblo and um how they'll be back, and we had the the clerks conference here last week.
Haley Sue Robinson:Oh, yeah.
Heather Graham, Mayor:Same kind of um overall support for our community. And so it's that's nice to hear.
Haley Sue Robinson:I talked to a couple folks from the clerks conference who um either had lived in Pueblo previously or had visited previously and they were just so happy to be back. And so I think for those of us who um are from here it's always a really nice reminder just to hear folks who like the city we live in.
Heather Graham, Mayor:Absolutely
Haley Sue Robinson:Kind of gives you a little fresh perspective of like yeah Pueblo's awesome.
Heather Graham, Mayor:Yep. Yeah. Agreed.
Haley Sue Robinson:Cool. Okay, anything else, Mayor?
Heather Graham, Mayor:That's it.
Haley Sue Robinson:Great. So we will see you next week. You can find us on Apple, YouTube, Spotify, BuzzSprout, wherever you get your podcast. You can also watch us on local channel 17 and share the podcast, like, subscribe, and if you have questions or topic suggestion, you can email us, mayor @pueblo.us, and we'll see you next week.