The City of Delta in Colorado has launched a voluntary separation program for its employees to tackle ongoing budget shortfalls. Officials announced the initiative on September 22 as part of efforts to balance the 2026 budget amid rising expenses and limited revenue sources.

Background on Delta’s Fiscal Challenges

Delta faces a long standing issue with its finances due to a lack of property taxes and heavy reliance on sales taxes fees and utility transfers. City Manager Elyse Ackerman Casselberry noted that personnel costs make up the largest portion of the budget accounting for about 78 percent or $6.4 million in the general fund for 2025.1 This situation has led to tough decisions including a hiring freeze that has been in place for nearly a year.

The broader economic picture in Colorado adds pressure as the state deals with a billion dollar revenue shortfall prompting a statewide hiring freeze announced by Governor Jared Polis in August 2025.2 Local governments like Delta must navigate these challenges while maintaining essential services for residents. Ackerman Casselberry who has served as city manager since 2020 has focused on building community ties and solving problems during her tenure.3

City leaders have already cut programs replaced equipment more slowly and left vacancies unfilled to stretch resources. These steps aim to keep Delta a vibrant place to live and work despite the constraints.

Details of the Voluntary Separation Program

The program offers full time employees a severance package if they choose to leave including pay for two full periods career counseling and temporary health insurance based on their years of service. Applications must be submitted by October 6 with responses from human resources by October 15.

This move helps reduce personnel expenses which are the biggest line item in the budget. Officials stress that the program supports employees facing tough choices by providing benefits to ease the transition.

The city also allows options to shift from full time to part time roles though it reserves the right to approve or deny based on department needs. Small teams and key positions will get special review to avoid service disruptions.

Severance Benefits Breakdown

To give a clear picture of what employees can expect here is a table outlining the health insurance coverage based on seniority as detailed in the program letter.

This structure rewards longer serving staff while keeping the overall cost manageable for the city.

Potential Impacts on City Operations and Community

Essential services like police fire and public works could see changes if key staff opt out but the city plans careful evaluation to minimize risks. Ackerman Casselberry emphasized that departments with unique needs will prioritize continuity.

In the context of Colorado’s state wide budget woes this local program mirrors broader trends where governments seek voluntary ways to trim staff without forced layoffs.4

Experts note that such initiatives can boost morale by giving employees control over their futures. However success depends on enough participation to meet savings goals without straining remaining teams.

• Key reasons for the program include historical revenue instability from no property tax.
• It aligns with a year long hiring freeze to control growth in payroll.
• The initiative supports the city’s goal of fiscal responsibility while evolving to meet community needs.

Looking Ahead for Delta Employees and Residents

As the deadline approaches on October 6 employees weigh personal reasons against the offered support. The city commits to guiding everyone through the process whether they apply or stay.

This program reflects proactive steps in a challenging economic climate. For those in Delta it highlights the balance between cost cutting and community service. Share your thoughts in the comments below and help spread the word about how local budgets affect daily life.