Tuesday, December 29, 2009

Slumping Sales Tax Slices Springfield's Surplus: More Budget Cuts

City Manager Greg Burris has recommended budget cuts totaling more than $1.27 million to the Springfield City Council following a continued drop in sales tax revenue and other funding sources such as permit fees and payments in lieu of taxes (PILOT) from City Utilities. The cuts are outlined in a memo sent to Council today and, if approved by Council, would be implemented immediately rather than at the end of the 2010 fiscal year on June 30.

The second-quarter cuts follow $13.7 million in cuts made thus far in the last two fiscal years — $7 million in FY09 and $6.7 million following decreased revenue in the first quarter of FY10. Collective savings during the second quarter from the City’s ongoing hiring freeze total $645,000. The City is currently down 114 full-time positions, or about 10 percent of its work force.

Similar to last quarter, Burris is recommending the remaining shortfall be made through specific departmental cuts. Those cuts include:

A one-time reduction in the General Fund transfer to the Health Department budget totaling $225,000, much of which will be made up with federal grants, though this funding source is not permanent.
Eliminating a $100,000 reserve fund for Busch Building maintenance.
Eliminating funds for capital equipment purchases by the Public Works Department totaling $100,000.
Eliminating funds for capital equipment purchases for the Public Information Department’s City View channel totaling $100,000. This money was formerly restricted, but is no longer because of cable franchise changes.
Changes to telephone and facility cleaning services totaling $96,500.
Voluntary furloughs totaling $7,000. These furloughs are above and beyond the furlough time required of some employees following the first quarter budget cuts.
Burris’ memo to City Council and attachments detailing the cuts are available on the City’s Web site at www.springfieldmo.gov/cityconnect.

For more information, contact: City Manager Greg Burris, (417) 864-1006.

No comments: