Crystal Thomas
The State Journal Register
Springfield City Council members unanimously voted down a 4 percent tax on natural gas, which would have raised about $1.2 million to pay for pensions and equipment, at Tuesday’s city council meeting.
The vote was 9-0.
Mayor Jim Langfelder proposed the tax after aldermen complained he wasn’t doing enough to diversify the city’s revenue source. In the first year of the tax, the revenue would have gone toward pension payments and then would have been split between pensions and equipment every year after. The city now spends more on its police and fire pension payments than it collects in property taxes.
Last month, the city council worked through an $11.4 million revenue shortfall by making cuts and raising the city’s sales and telecommunication taxes. At the end of the process, however, the city still had a $2.5 million shortfall with the expectation that pensions payments and wage increases would put the city in another hole next year.
A few aldermen explained why they voted against the natural gas tax, which started a spat between Ward 7 Ald. Joe McMenamin and Ward 10 Ald. Ralph Hanauer.
McMenamin praised the mayor for bringing up the natural gas tax, though he ultimately said he would not support the tax because his constituents want the city to focus on cutting expenses.
“I disagree with what the aldermen that are saying we have cut to the bone,” McMenamin said. “We have cut to the bone in some ways, but we have not touched the pay and benefits of our city employees.”
McMenamin said the city was not doing enough to slow down increases in current employees’ salaries. That, he said, would eventually lessen the city’s pensions burden.
“They know big salaries mean big pensions,” McMenamin said.
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Langfelder said throughout the year, the city will work to slow down spending and hiring. The city will use $2.5 million out of its rainy day fund to cover costs.
Langfelder cautioned the city would need to work toward a long-term solution to the city’s structural deficit in the upcoming year.
Joe McMenamin for Ward 7 