Pueblo Mayor, Heather Graham, has clearly proven to be a disciple of the Donald Trump school of governance. And, like her mentor, she is experiencing the same catastrophic results. The format is to ignore what the electorate approved and expects at the expense of treating city government as your own little playground. Her disregard for ethical standards and sound fiscal management finds Pueblo with at least a $12 million deficit, fast approaching the proverbial fiscal cliff.

In 1981, Pueblo city leaders joined together to establish the Pueblo Economic Development Corporation (PEDCO) in the interest of spurring economic development. Initial operating funds were secured by businesses and individuals who were willing to be dues-paying members. Subsequently, taxpayer dollars along with dues provided PEDCO’s funding.

In 1984, Pueblo’s citizens voted to tax themselves to support economic development by assessing a half-cent sales tax for economic development incentives, funding certain capital projects and equipment purchases for new and expanding businesses.

PEDCO advertised its purpose as “primary-job creation.” It defined “primary job” as a full-time position in private-sector employment by manufacturing, business, commercial or service industries, producing, assembling or distributing products, or providing services primarily or ultimately for sale consumption or use outside Pueblo with the intention of bringing money into Pueblo from outside Pueblo. The definition was recently amended to include the term “Economic Catalyst Project,” which does not and cannot modify the intent of the voter approved initiative 40 years ago. Graham previously requested city council to place a measure on the ballot to provide more flexibility in how the half-cent sales tax could be used. City council soundly rejected the request.

PEDCO has been successful throughout the years in fulfilling its mission subject to the economic circumstances facing all municipalities from time to time such as the COVID pandemic.

Graham does not share the above opinion and often was and is extremely critical of PEDCO. Her disdain for PEDCO led her to terminate the city’s contractual relationship with PEDCO at the end of 2025 after a 40-year partnership.  

PEDCO filed a lawsuit in mid-March alleging the city breached its contract with PEDCO. The matter is presently pending in Pueblo District Court.

A barrage of questions have ensued since Graham’s unceremonious dismantling of the PEDCO-city, relationship including the creation of her own economic development entity called Advance Pueblo, which has not been ratified by city council; the allegation she has transferred funds from the half-cent sales tax to support Advance Pueblo in violation of the resolution’s original intent and prohibition from doing so; taking out a $9.1 million loan to purchase a building for use as municipal offices in lieu of commercial rental space, which could have generated significant income for an already-underwater city budget; using the interest generated by the half-cent tax to pay the $834,000 annual debt service for the building purchase, again allegedly in violation of the intent of the half-cent sales tax language, and proposing the use of $1.8 million from the sales tax fund to provide assistance to a newly started nonprofit museum, including salaries for 25 staff, which may also be a violation. Incidentally, the mayor has curtailed funding for other long-standing nonprofits, including the Pueblo Zoo, which faces closure if a ballot funding initiative for operating expenses fails in November.

A year ago, Graham advocated for a grocery tax at a time when grocery items were at an all-time high although people were and continue to struggle to make ends meet. She seemed surprised when the community revolted against such a preposterous idea, which she subsequently withdrew.

Not to be dissuaded, however, Mayor Graham is now proposing the following taxing measures to be borne by, yes you guessed, the already overtaxed Pueblo citizenry. A 1% total sales tax increase, split evenly into four parts of 0.25% each for roads, parks and recreation, non-departmental groups and fire services and technology. Shouldn’t those items be paid from the general fund for which citizens are already taxed? 

Graham’s concept of avoiding suspect ethical behavior and appearances of impropriety were put to the test regarding her involvement with the Pueblo Urban Renewal Authority (PURA).

Colorado urban renewal law permits the mayor to appoint 10 members of a 13-member urban renewal board, including an elected member of city government. In an unprecedented move, Graham appointed herself to the PURA commission. Though the move appears legal, it miserably fails the smell test because of the numerous potential conflicts it poses and have since occurred.

The most valuable asset of an urban renewal authority is its autonomy and freedom from governmental interference. In a recent PURA board meeting, Graham voted along with five other members of the PURA board in a 6-5 vote to move the PURA offices into city office space at no charge. The move would require the PURA board to be subservient to the city as the city would become its landlord compromising PURA’s autonomy. Although challenged, Graham refused to recuse herself. City council will have the opportunity to review the action and exercise its checks and balances authority at a future city council meeting to address the issue.

Stay tuned.

Note: The comments above are attributable to the author alone and should not be taken as the views of any affiliation he might have with other organizations.

Dennis Maes served 24 years as a 10th Judicial District judge in Pueblo and was chief judge for 17 of those years. He previously served as director of Pueblo County Legal Services, Inc.; as a public defender and as an attorney in private practice.