The Stories That Shaped 2008, No. 2: New city manager tackles pension fund

When Greg Burris started work in September as Springfield's city manager, he took on all the normal responsibilities of the job: overseeing the various departments and acting as leader and spokesperson for the city's 1,850 employees.

But for better or for worse, Burris also will be irrevocably linked with one issue: the Police and Fire pension fund.

The pension fund issue was not new in 2008 - city officials had known for several years that the plan was not at the proper funding level - but this was the year that the issue came to a head.

Several factors have led to the pension plan being underfunded, including several years of the city not putting in the full actuarial recommended contribution and disappointing returns on the fund's investments.

The result: As of the end of October, fund assets of $97 million were $197 million less than the 100 percent funding level.

The city was forced to make the full actuarial contribution in fiscal 2009, which began in July, because of legislation that allows the state to withhold sales tax revenues if cities don't make the full contribution at least once every five years.

To do that, the city had to cut $5.2 million from the budget. That meant nearly $1.8 million in reductions for the Parks and Health departments and the Public Works department's transportation budget, along with a $260,000 cut in funding for outside agencies.

The city also eliminated 36 full-time employees, including 20 in Police and Fire, by not filling open positions.

The city still is looking for long-term ways to make the fund solvent.

"It has become obvious that we cannot budget-cut ourselves out of this deficit," Burris said at the Nov. 10 City Council meeting where he laid out his plan. "It's also become obvious that we can't invest our way out of this."

Burris' plan to fix the pension fund is built around a 1-cent citywide sales tax increase, to last five years or until the pension plan is fully funded. If that tax passes on the ballot in February 2009, it would create an estimated $40 million a year.

"We've done everything we can reasonably do to make the pension plan work," Councilwoman Cindy Rushefsky said at council's Nov. 24 meeting. "The only way it's going to survive is if we have this sales tax."

The city also plans to contribute at least $10 million from an expected settlement with several telecommunications companies and to increase its annual contribution.

New Police and Fire hires will be put in the Local Government Employees Retirement System, or LAGERS, which provides pension benefits for all other city employees.

Council passed a resolution Dec. 15 putting those requirements in writing.

It's a tough issue for a new city manager to start with - especially Burris, who had no previous experience in city government. He spent 25 years with Missouri State University, most recently as vice president for administrative and information services and chief information officer, before moving into city government.

But city staff and council members have expressed their admiration for Burris - even Rushefsky, who was the lone dissenting vote in the decision to pick him. After noting concern about Burris' lack of municipal credentials, she has changed her tune.

"I have been extraordinarily impressed with Mr. Burris' ability to get a handle on this problem, and to do it quickly," she said in November.

"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," she added.

Aside from the pension plan, Burris said one of his other goals is to boost downtown development, which has slowed due to the overall economy.

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