Council reviews ballot language for pension fund sales tax

Springfield City Council on Tuesday reviewed the ballot language for a proposed 1-cent sales tax that would generate revenue for the underfunded Police and Fire Pension System.

Council is scheduled to have first reading and a public hearing on the ballot language at its Nov. 10 meeting and give a final vote on Nov. 24. The ballot language must be filed with Greene County by Nov. 25 in order to be on the Feb. 3 ballot.

City Manager Greg Burris proposed the tax two weeks ago as part of his overall solution to the pension shortfall; the fund is currently underfunded by $167 million. Burris' plan calls for:

• A 1-cent sales tax, expected to generate $40 million annually, for five years or until the system is fully funded;

• A 1 percent increase in the city's annual contribution rate while the tax is in effect, for an additional $240,000 a year;

• Up to $10 million pledged by the city from settlements reached with telecommunication companies that owe back taxes to the city; and

• An increase in Police and Fire employee contributions for those hired after July 2006.

At its Tuesday luncheon, council members reviewed the sales tax ballot language and agreed to submit any proposed changes to the city's legal department this week. Councilman Doug Burlison suggested that voters might not be inclined to approve the tax if the ballot language doesn't explain the other avenues the city is exploring to fully fund the pension system.

"I understand that simplicity (in the language) is attractive, too, at the same time," he added. "If we can do something between now and February, outside of this ballot proposal, to prove how serious we are about this, I would be happy with that."

Burris said the city would launch a major effort to market the tax proposal to voters in the coming months, and the public could expect frequent updates on the pension fund's status if the tax passes.[[In-content Ad]]