Rising budgets were front and center for two separate discussions at the May 2 City Council meeting.
City Manager Greg Burris said the proposed $297 million fiscal 2012 budget is now posted to
www.springfield.mo.gov, and he discussed uses for an additional $1.5 million coming to the city in unexpected fiscal 2011 revenue.
The $297 million proposed budget is 4.8 percent higher than the $283 million fiscal 2011 budget. The general fund proposal is up 4.9 percent to $70.3 million in 2011.
Burris said the proposed fiscal 2012 budget, beginning July 1, would allow for merit pay increases for key personnel, and the city’s hiring freeze would be relaxed. The budget plans for $900,000 in merit pay increases, and it sets aside $327,000 for $1,000 increases for employees at the last step of their pay grade.
“We’re not out of the woods, yet. We can’t afford across-the-board raises,” Burris said.
According to the budget summary, 78 positions remain vacant in the city. Burris said some of those would be filled, while others would never be.
The proposed budget also would reinstate the city’s wellness program – which was eliminated in the fiscal 2010 budget – at a cost of $50,000.
The general fund comprises 24 percent of the city’s proposed budget, while special revenue, which includes Springfield’s art museum and convention and visitors bureau, comprises 33 percent; enterprise funds, 22 percent; debt service, 7 percent; grants, 6 percent; capital projects, 5 percent; and internal service, 3 percent.
For the current budget, Burris said the city is now forecasting an extra $500,000 in sales tax revenue by the end of June, and it expects an additional $1 million from City Utilities in “payment in lieu of taxes.”
“We didn’t budget enough for electric PILOTS,” Burris said, adding that revenue from increases implemented with the start of the Southwest 2 power plant brought in more money than expected.
Burris told council the fiscal 2011 budget was conservative when it was finalized in March 2010.
Burris said the proposed fiscal 2012 budget would be explored at four upcoming council workshop sessions, which would take place during May 10 and 17 luncheons and May 12 and 19 evening sessions. Springfield City Council can be e-mailed at
citycouncil@springfieldmo.gov.
The 2011 budget revision received a first reading and should be voted on May 16. It calls for this fiscal year’s budget to be amended to add a handful of one-time expenditures, including 13 Police/Fire vehicles, information systems software and design plans for a consolidated information systems office, in-car cameras for police vehicles and stream nozzles for the Fire Department.
“The technology we’re using is from the 1970s,” said Assistant Fire Chief David Pennington, noting there are more than 90 nozzles in the fleet, most of which are inefficient and hard to repair. “Ultimately, the new nozzles would be safer for our guys to use.”
He said the department is considering more fuel-efficient options with its vehicle purchases.
Prevailing wage concerns
Councilman Doug Burlison and Councilwoman Cindy Rushefsky each pulled an item from the consent agenda with questions about bids on Public Works projects that may cause violations of state and federal prevailing wage laws.
The council members pointed to wide margins on project bids on two jobs: restoration of the Commercial Club building, 299 E. Commercial St., that suffered storm damage, and sidewalk and median improvements on Battlefield and Portland streets. State and federal laws set minimum wage rates for workers of public projects. For instance, hourly rates in Greene County range from $14.27 for operating engineers to $39.61 for elevator constructors. The complete list is available at
www.labor.mo.gov.
For Commercial Club’s water damage repairs, Burlison said a bid spread of roughly $80,000 could be a “red flag” to the attorney general of a prevailing wage violation.
“Seeing bids as low as $104,000 and as high as $192,000 is pretty unusual,” Interim Public Works Director Phil Broyles said.
Broyles said the low bid of Rio Contracting LLC was near the original repair estimate of $125,000, and he thought it was valid but believed it was good to keep an eye on such disparities. He said city officials occasionally question the contractor on a bid that seems unusually low and, in tough economic times, it was good practice to be skeptical about low bids.
The median and sidewalk project received bids of $189,000 by Hunter Chase & Associates and $177,000 by Kerans Construction – both below the engineer’s estimate of $211,000.
Broyles said both companies were reputable in his experience and, though it was hard for him to admit, engineer estimates were fallible.[[In-content Ad]]
