Pension shortfall means painful cutbacks for city

But some city departments stand to take a bigger hit – 50 percent of their money from the city’s general revenue fund – and those departments have been presenting their plight to Springfield City Council during a special series of Tuesday luncheons.

Springfield faces a deficit of $5.2 million in next year’s budget due to a lack of funding in the Police and Fire Pension Fund. Missouri state law requires cities with pension plans funded at less than 60 percent to make the actuary’s recommended contribution at least once every five years or have state sales tax revenue withheld.

The budget-cutting process began in February, when City Manager Bob Cumley asked each department head to cut 7 percent from its general revenue funding. Cumley’s office then put together an initial recommendation based on the department suggestions – but not without some modifications.

“Some of the departments absolutely could not (make that cut) without a huge cut in people,” Cumley said. “Our budget is about 77 percent employees, so there’s not a lot in supplies and materials.”

The resulting recommendation includes a 50 percent general fund cut in three city departments – the Springfield-Greene County Park Board, the Springfield-Greene County Health Department and the Public Works’ transportation division – as well as a 50 percent reduction in funding for all outside agencies and nonprofits. Among the organizations is the Mayor’s Commission on Human Rights, Ozarks Greenways and Discovery Center.

Painful cuts

Public Works Director Marc Thornsberry told council April 1 that the $500,000 cut planned for the transportation division would mean cutbacks in road resurfacing projects, which already are hampered by more expensive asphalt and fuel. Diesel fuel prices, he said, have increased 180 percent since 2004, while asphalt prices have nearly doubled in the same period.

That’s on top of an already tight department budget; Thornsberry said the $987,000 transportation receives annually from the general fund has not changed in at least 15 years, while his department has reduced its staff by 57 full-time equivalents since 1997.

While he’s aware of the strain on all departments, Thornsberry worries about the cost of deferring road maintenance.

“I can tell you that continued deferred maintenance of pavements will hit the taxpayers in their pocketbooks,” he told council. “It’s either in wear and tear on vehicles – with the increased potholes – or in additional taxes to pay for major repairs later.”

The situation isn’t much better for the parks department, which stands to lose $934,000 next year – about 9 percent of its total operating budget.

Parks Director Jodie Adams told council March 25 that the reduction would mean eliminating full-time staff by five and part-time and seasonal staff by 60. The department also would cancel the annual Firefall event, and reduce exhibit numbers at Dickerson Park Zoo, and cut back after-school and day-camp programs.

“The money from the general fund is for elements from the original parks department,” Adams said, referring to the department before it added all of Greene County to its coverage area. The rest of the department is funded through a countywide sales tax earmarked for the park system.

Adams said her department has a big impact on a lot of citizens.

“Parks are safe havens, they’re gathering places, and they’re health quality recreation,” she said.

The health department’s situation, according to department head Kevin Gipson, isn’t as dire; while the department stands to lose $447,000 under the proposed budget cuts, he said the department has not been using all of its general revenue funding for the last several years.

“The approach we’re going to take is to try to cut costs the best we can, and watch travel and supplies really closely,” he said, noting that if the situation worsened, programs could be reduced. “It’s hard to decide which programs to cut. Which ones are least important and most important? If they weren’t important, we wouldn’t be doing them.”

The road ahead

While the situation may be grim for many, it could be temporary. The Police and Fire Pension Board has recommended a sales tax increase to fix the pension’s shortfall. Council and city staffs have not decided whether to ask voters to approve such a measure.

Cumley added that the budget cut recommendations on the table are not final. City officials held one public hearing on budget cut ideas, and a second is scheduled for April 14 in council chambers in historic City Hall.

Parks Director Adams said that despite the difficult task, she appreciates that city staff and council are completing the process in the open.

“I really appreciated council having a public hearing and actually listening,” she said. “I appreciate that open dialogue – I think it’s important.”

Council has to approve a budget before the fiscal year begins July 1.

Whatever decision the city makes on meeting the need, Cumley said it won’t be easy or pretty.

“We’re not a fat organization, despite what some people may think,” he said. “We’ve had very few increases in people, supplies or materials in recent years, and we didn’t have a lot of fat to cut out – it would be easier if we did. We’re going to do the best we can.”

Budget Cuts – What to do?

The process of reducing the city’s general fund expenditures by 7 percent, or $5.2 million, began in February, when each department was asked to find 7 percent of its general fund budget that could be cut.

The city manager’s office then took that information and used it to create an initial budget cut recommendation. Public meetings and forums are being held to gather further input before City Council votes on a final budget recommendation before the new fiscal year July 1.

Below are some of the highlights from both the departments’ 7 percent budget exercise and the current recommendations.

Notable Department Recommendations

• Fire – Cut 16 full-time equivalents through attrition and close one station: $972,000

• Law – Cut one open paralegal position and the city attorney position: $170,000

• Municipal court – Cut night court, substitute judges, bank-card usage and part of public defender program: $70,000

• Police – Cut 20 officers: $989,760

• Public Works – Cut 8.4 full-time equivalents: $442,000

Notable City Manager Recommendations

• Cut general fund money to parks, health and transportation departments by 50 percent: $1.88 million

• Reduce employment by 22.4 full-time equivalents, including eight in Public Works and five in Fire: $1.19 million

• Reduce funding to outside agencies (such as the Mayor’s Commission on Human Rights, Ozarks Greenways and Discovery Center) by 50 percent – $439,700

• Reduce outside legal fees – $300,000[[In-content Ad]]