Resigning city manager to receive $415,000 severance package

Springfield City Manager Jason Gage is stepping down from his role, and City Council has approved a severance package equivalent to a year’s compensation, plus benefits and accrued executive and vacation leave.

The package is valued at $415,605.

The city issued a news release Oct. 11 stating that Gage had tendered his resignation, effective Jan. 11, 2025.

In a news conference the day the resignation was announced, Mayor Ken McClure described Gage’s resignation as a “mutual agreement with City Council.” When asked what prompted the separation agreement, McClure declined to answer.

Gage was hired as Springfield city manager in 2018 to begin Aug. 1 with a base salary of $220,000. His most recent contract, approved in 2023, was $268,000, a figure that included a $21,000 raise approved by City Council.

Gage’s original contract specified that upon termination of the employment agreement without cause, he would be eligible for six months’ pay to be made in installments, which would total $134,000 at his current level of compensation. However, in a closed-session meeting, City Council set severance pay at a one-time lump sum payment of $316,313. The amount represents $267,654 base compensation, $5,160 auto allowance, $13,674 to continue health insurance coverage, $1,000 life insurance reimbursement and $28,824 vacation and executive leave payout, according to the severance agreement.

The severance agreement additionally points to $30,500 to be contributed to Gage’s 457(b) retirement plan and $68,792 of earned sick leave pay to be paid to a retirement Health Savings Account or by lump sum. This brings the amount to be paid to Gage via the separation agreement to $415,605.

In the press conference, McClure was asked why the severance amount exceeds Gage’s contract terms.

“We were trying to first, treat a high-level employee that served the community well very fairly,” he said. “Second, that sends a good message, I think, to anyone that might be interested in serving this city that we will treat you fairly. And thirdly, he was gracious to say I’ll be willing to help out for another year in whatever role that you think is best for me.”

SBJ reached out to council members for further perspective on the size of the severance package. Derek Lee responded readily.

“Generally, when we had our meeting about this, Ken McClure said that it was pretty standard when people have done a good job to give the 12 months. There’s not really a whole lot more to it than that,” Lee said.

Abe McGull declined to comment, saying the issue is best addressed by the mayor.

Attempts to reach other council members by press time were unsuccessful.

Shifting priorities
In his resignation letter, a copy of which was provided by the city, Gage cited shifting priorities as the reason for his resignation.

In the letter, Gage pointed to the April 2025 election that would elect a new mayor and possibly new council members.

“Serving alongside Mayor McClure and the City Council has been truly rewarding. However, with a new council may come shifted community priorities,” Gage said in the letter. “Recognizing when it is time to embrace new challenges is often as crucial as celebrating past accomplishments, and I believe that time is now.

“Stepping away at this moment is a difficult choice but the right one.”

In an interview with SBJ, Gage said his decision is unrelated to specific candidates who are running next year but noted that the election could be a “potential watershed moment” for Springfield.

Gage said he does not have another job lined up after he exits his role at the municipality. Retirement is not currently on the table, said Gage, 55.

“I’m starting to look at what those possibilities might be,” Gage said, noting he’s also unsure if he’ll remain in Springfield.

Separation agreement
In addition to its compensation terms, the separation agreement is extended in exchange for Gage waiving any rights to file litigation against the city and for cooperating through Jan. 11, 2026. Gage also agrees to reasonably be available to answer questions related to city matters while he was city manager, among other provisions.

Council voted 8-1 during closed session on Oct. 8 to approve the separation agreement, according to city officials. Councilmember Craig Hosmer voted in opposition.

Questioned about his dissenting vote, Hosmer said in an interview with SBJ that for him, it came down to the contract the city had with Gage. In 2018, he said, the city agreed to six months’ severance upon separation.

“That’s been the agreement the whole time,” he said. “I don’t think we should go more than what the contract called for.”

SBJ obtained a copy of Gage’s original contract. It states, “If the city terminates this agreement without cause, then conditioned on employee executing a full release of any claims relating to employee’s employment, including the termination of that employment, the city shall pay employee for six months after the effective date of notice of termination an amount equal to employee’s base compensation in effect at the date of the notice of termination.”

The contract also offers six months of any benefits the employee was receiving at the time of the notice. Compensation is contingent upon the employee offering 60 days’ notice.

Hosmer has criticized Gage in the past. In SBJ’s July article about Gage’s decision to withdraw his application for a city manager position in Manhattan, Kansas, Hosmer tied Gage to slow movement by the city in many areas.

“I think there’s been some dissatisfaction on the pace of movement on chronic issues,” he said, citing homelessness, poverty, housing and crime.

McClure is term-limited and will end his fourth two-year term as mayor in 2025. So far, two business leaders have declared an intention to run for the post: Jeff Schrag and Mary Collette.

Asked for his opinion about Gage’s severance package, Collette described herself as conservative when expending public dollars.

“I believe we should honor our contracts,” she said. “If there are extenuating circumstances, I would be interested to hear how they justified exceeding our contracted amount.”

Schrag said a lot of things go into the separation process, and many of those – like direction from council or evaluations – occur in closed sessions.

“While the payout may seem high, I just don’t know enough to judge it personally,” Schrag said. “I trust that the current council did what is best for the taxpayers.”

In his Oct. 11 interview, Hosmer said he wished Gage well.

“Hopefully, this will be good for both sides,” he said.

Gage agreed in the separation agreement to provide consulting services for the city for a year following his resignation at no additional cost beyond his severance pay, McClure said.

Contributions and critiques
At the news conference, McClure praised Gage as an outstanding leader whose contributions have made Springfield a better place.

“I’ve found him to be a consummate professional, unswayed by political winds, always trying to maintain his moral compass and high ethics,” McClure said. “He tries to balance everyone’s issues, and that’s not always easy, especially as we deal with some issues and matters which don’t seem to have any common ground.”

McClure said that he and council had not yet had an opportunity to meet and discuss next steps on filling Gage’s position.

McClure declined to comment when questioned about criticisms that have been levied against Gage, including Hosmer’s criticism in a previous SBJ article that Gage was not always forthcoming with information.

Additionally, business consultant Don Harkey addressed City Council in February with concerns about a city climate that does not support growth and where communication is often stymied.

McClure said he would not comment on the specific criticisms.

“You can’t sit in that role for any length of time without having somebody disagree about positions,” McClure said. “It’s a lightning rod. The key is to determine what is a valid point and a valid criticism and what is not.”

Gage, too, declined to comment on specific criticisms, but he said “strong collaboration” would be needed as the city moves forward.

McClure praised Gage’s high level of understanding of municipal matters.

“I have found no one that has a broader or more thorough understanding or grasp of municipal law or policies than Jason does,” McClure said.

He cited as an example Gage’s recommendation to extend the terms of two city taxes, the eighth-cent transportation tax and the quarter-cent capital improvement tax. At Gage’s suggestion, following research into voting trends throughout the region, the terms of the taxes were extended to each have a 20-year sunset, and both still received broad voter support.

“That was a game-changer,” McClure said. “We’re able to I think get better funding arrangements for necessary transportation and capital improvements because of it.”

Hosmer said as Springfield looks ahead to hire its next city manager, he hopes to see someone who has a vision for the city’s chronic issues to solve those problems while also making the city more attractive for economic development.

“We have to deal with things much more creatively,” he said.

More to tackle
In the release, Gage called his tenure as city manager “an honor and a privilege.”

“I’m proud to have served alongside city employees who are not only highly qualified but also uphold the highest ethical standards. They are relentlessly committed to delivering essential services daily,” Gage said in the release.

Gage was among four finalists for the city manager position he was seeking in Manhattan, Kansas, but he withdrew from consideration before a selection was made.

“After weighing all factors, leaving Springfield just didn’t feel right,” Gage told SBJ in July.

The release from the city cites several Springfield accomplishments during Gage’s tenure, including the additions of Costco and Buc-ee’s; securing more than $43 million in direct appropriations from the Missouri General Assembly over the past three years; implementing the Forward SGF comprehensive plan; the acquisition of Hammons Field and securing the Springfield Cardinals through a 15-year agreement; and projects such as the Grant Avenue Parkway and Renew Jordan Creek.

Gage, with 25-plus years of experience, has been city manager of Springfield since 2018. He manages a $507 million budget and oversees a staff of more than 2,100. Previously, he was city manager of Salina, Kansas, from 2005-18 and of Stillwater, Oklahoma, from 2003-05.

As his tenure comes to an end early next year, Gage said there’s plenty left to tackle.

“I’d like to make as much progress as I can,” he said.