City Council begins fiscal 2011 budget talks

At its Tuesday lunch meeting, Springfield City Council engaged in the first of a series of discussions to address the city budget for fiscal 2011.

Current budget predictions call for a $2 million decline in comparable revenues between fiscal 2010 and 2011, due largely to continued weak sales tax returns.

Mary Mannix Decker, director of finance for the city, pointed out various aspects of the 244-page budget proposal. While the total $283 million appears to be an increase compared to fiscal 2010’s $257.5 million total budget, the difference comes from $27.3 million expected from the public safety tax approved by voters in November and earmarked for the Police and Fire Pension Fund, she said.

Declining sales tax revenues have already spurred $4.9 million in general fund cuts during fiscal 2010, and the city projects sales tax revenues for fiscal 2010 will drop a total of $3 million in comparison with fiscal 2009.

The proposed general fund budget of $64.4 million for fiscal 2011 works on the assumption that sales tax revenues will be flat in comparison with fiscal 2010, said City Manager Greg Burris.

“We did that from ’09 to ’10 as well. That didn’t work out so well. But there is cause for optimism,” said Mayor Jim O’Neal, noting improvements in national economic indicators, including the Institute for Supply Management index and the U.S. Department of Commerce’s Inventory-Sales Ratio.

Additional budget discussions will be held at upcoming council luncheons, and special sessions will be added at the request of members, said Burris. The first public hearing is scheduled for June 1, Mannix said, with other opportunities for the public to comment before the budget is passed - which must happen before the start of the new fiscal year July 1.

Read more about the city budget proposal in the May 10 issue of Springfield Business Journal.