Fort Morgan freezes hiring, pauses projects as Cargill shutdown hits budget
City Manager Brent Nation told council the 75-day Cargill shutdown could leave Fort Morgan about $15 million short, prompting a hiring freeze and a pause on unstarted capital projects.
Fort Morgan is freezing hiring and pausing unstarted capital projects after City Manager Brent Nation told council Tuesday that the Cargill shutdown has stretched to 75 days without production and could leave a roughly $15 million gap in the city’s nearly $100 million budget.
Nation said the impact is already showing up in 2026 utility sales and is expected to spread to sales tax and other indirect revenue, according to the city’s July 7 council meeting summary. He warned that layoffs or other reductions in force may be necessary if the plant does not reopen soon.
The city has not publicly released a fund-by-fund estimate of the shortfall, and the July 7 summary does not identify which departments are most exposed. Staff said council is expected to adopt a revised budget calendar at its next meeting so department presentations and reduction plans can begin in August.
The shutdown began May 20, when workers arrived for shifts and found the plant closed, according to Fort Morgan Times reporting. That report said about 1,500 people gathered in Fort Morgan that day and that Teamsters Local 455 said more than 1,700 members across the region had been locked out. The Times also reported that Cargill had not confirmed whether the closure was a lockout.