Tax Increase Part of New Springfield Budget Proposal

14 04 2008

City Manager Bob Cumley unveiled the latest proposal for the Springfield budget which includes collecting a previously approved property tax on Springfield landowners.  According to the Springfield News-Leader, “the city’s police and fire pension ordinance authorized the city to collect the property tax, which Cumley said would generate an unexpected $365,600.”

If the budget is passed as proposed the cuts and new revenues will generate just over $6.2 million dollars which is just over a million more than needed to meet the pension obligation.  Mayor Carlson said the Council needs to consider what cuts to make softer with the new money (if they wish to do so.)  Councilman Dan Chiles suggested that some of the money be put away to offset future decreases in sales tax revenue due to the impending recession.  (I think that’s a brilliant idea and I don’t think it would be wise to pass the budget without a savings provision because we all know the economy is set for a downturn.)  Councilman Ralph Manley suggested the budget be passed as is without changes.

The new plan leaves 20 police positions unfilled, 5 fire department positions unfilled and 17 city jobs unfilled.  They will not be closing fire stations because to do so would lower the city’s ISO 2 rating and increase insurance rates.


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