Springfield's city manager made his plea to citizens for their support of a new sales tax to stabilize the Police and Fire pension fund, which has been endorsed by at least one of the stakeholder groups.
City Manager Greg Burris presented his case to Springfield City Council and citizens during council's Monday night meeting. Burris told council that the fund is underfunded by $179 million as of Sept. 30, due to a combination of less-than-adequate city contributions, changed actuarial assumptions and lackluster investment returns.
Burris' plan involves a 1-cent sales tax beginning July 1, 2009, that would run for either five years or until the plan reaches 100 percent funding, whichever comes first. The plan also calls for increased contributions to the fund by both the city and police officers and firefighters, as well as a contribution of at least $10 million from an expected telecommunications court settlement regarding back taxes.
Burris said time is of the essence, as each day that passes increases the city's future obligation by more than $33,000.
"It has become obvious that we cannot budget cut ourselves out of this deficit," Burris said. "It's also become obvious that we can't invest our way out of this."
Tony Kelly, president of Firefighters Union Local 152, said his union already has voted to endorse the plan; the Springfield Police Officers Association is expected to vote at its meeting Thursday.
Both groups also praised Burris for his willingness to tackle the issue, a sentiment echoed by Councilwoman Cindy Rushefsky.
"I have been extraordinarily impressed with Mr. Burris' ability to get a handle on this problem, and to do it quickly," she said. "He has asked the right questions, asked them of the right people, and I believe that what he has put together here is a fair, reasonable and accurate picture of the situation right now."
Not all in attendance were ready to support the proposal, however. Citizen Fred Ellison said that while he also appreciated the job Burris was doing, he feels additional safeguards must be stated clearly in the ballot issue to ensure the city contributes its fair share.
"Sticking our heads in the sand has not resolved the issues that have brought us to this point," he said. "But the taxpayers of Springfield should not have to put any more money into the pension plan than is absolutely required."
A relocation to Nixa from Republic and a rebranding occurred for Aspen Elevated Health; Kuick Noodles LLC opened; and Phelps County Bank launched a new southwest Springfield branch.
