Mary Hansen
The State Journal-Register
Unlike their counterparts at the Statehouse, Mayor Jim Langfelder promised that he and the Springfield City Council would pass a spending plan before the next budget year begins on March 1. But there are still plenty of tough discussions to come, including addressing a multimillion-dollar gap in revenue and spending that the mayor has proposed closing with four tax increases.
Aldermen could vote on the tax hikes at their next meeting Feb. 7. Many say they have yet to make up their minds about the increases in the hotel, telecommunications, sales and natural gas taxes and want spending reductions first.
“We have some ideas on reducing expenses and some ideas on revenue that we have to offer,” said Ward 7 Ald. Joe McMenamin, who declined to provide specifics ahead of the next meeting.
In the mayor’s proposal, what the city spends on supplies and other operating expenses is down $2.5 million from this year. Langfelder said any further cuts would have to come from personnel and services, which are already lean.
The city spends nearly 80 percent of its money on pension payments and salaries and benefits for its workers. Citing that the workforce — excluding City Water, Light and Power employees — has dropped from 887 in 2006 to 727 this year, Langfelder said there’s not much room to reduce.
“That’s an 18 percent cut, so we have made those cuts,” he said.
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Langfelder said he heard from residents in ward meetings that they want visitors to bear more of the city’s tax burden, and that’s why he’s proposed the 0.25 percentage-point increase in sales tax and 1 percentage-point hike in the hotel tax.
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The increases to sales, hotel and telecommunications taxes and creation of a natural gas tax would raise an additional $5.7 million in the coming year.
Under the mayor’s proposal, the money would support general city spending, fund the library and Oak Ridge Cemetery, make additional pension payments and pay for new police cars, fire engines and public works equipment.
Joe McMenamin for Ward 7 