Office of the City Council
City of Springfield, Illinois
News Release–
FOR IMMEDIATE RELEASE: ——————————————————————— DATE: February 6, 2017
Tim Griffin, 217.789-2151, tim.griffin@springfield.il.us
ALDERMEN PROPOSE CUTS TO CITY BUDGET
Springfield, Illinois – In an effort to reduce the tax increases proposed, Springfield Aldermen are introducing a plan to cut spending, while preserving the City’s fund reserves.
The plan calls for:
- Cutting Operating Lines in the Corporate Fund (non-personnel) by 2%, saving $350,000
- Eliminating Vacancies & Other Reductions, saving $1,100,000
- Repaying the Corporate Fund $1,300,000 from the utility
- Delaying improvements to the Municipal Center Complex, saving $1,100,000
“With the present budget situation the right thing to do is to make cuts, slow down spending, eliminate as many vacant positions as possible, and delay major projects,” says Ward 9 Alderman Jim Donelan. “A large portion of our population works for the State of Illinois and this is not the time to increase their financial burden.”
The original budget proposal by the administration calls for increasing three taxes: (a) City Sales Tax by 11%, (b) Telecommunications Tax by 50%, (c) Hotel/Motel Tax by 17%, and (d) adding a new 4% tax on Natural Gas.
The choices which the administration provided to Aldermen have been either to raise taxes or spend down fund reserves. Instead this proposal makes cuts across the board and is a good compromise that preserves fund reserves.
“This plan does not raise taxes and preserves our fund reserves” says Ward 10 Alderman Ralph Hanauer. “We need to do the responsible thing for our citizens,” Alderman Hanauer added.
Ward 1 Alderman Chuck Redpath says, “this approach will provide residents less of a tax burden during tough economic times.” Alderman Redpath continued, “just like at home, when revenues decrease, so too does spending. It’s really pretty simple.”
Ward 7 Alderman Joe McMenamin says, “CWLP has made a dramatic financial turnaround the last two years and is now much more secure with a growing cash position.” One of the first actions the current City Council took two years ago was to authorize releasing $4.4 million from the Corporate Fund to the City’s Electric Fund. This action allowed the utility to maintain its debt coverage ratio and avoid a technical default on its bond covenants. Alderman McMenamin continued, “since then the City has entered into a new coal contract, refinanced its utility debt, renegotiated portions of the wind contracts, and restructured utility rates, all of which have significantly improved CWLP’s cash position.” Due to these positive changes, now is the time for the utility to begin repaying the $4.4 million to the Corporate Fund.
“This Aldermanic budget plan allows for equipment for the Police and Fire Departments, and Public Works” says Ward 3 Alderman Doris Turner. The original budget proposal called for double this amount in new equipment expenditures during this Fiscal Year.
Throughout the Fiscal Year, the budget and appropriation ordinance may be adjusted to meet the needs of the City. Ward 5 Alderman Andrew Proctor says, “raising taxes based on fear and the unknown is not a good approach. We will continue monitoring revenues and expenses throughout the year making adjustments as necessary, so that City services can continue.”
Ward 2 Alderman Herman Senor says, “any increase in taxes would decrease the amount of disposable income to Ward 2 residents. This plan helps prevent this from occurring.”
In addition, Aldermen encourage the following actions be taken:
- Slow down non-public safety hiring (hold positions open at least three months)
- Slow down major purchases
- Post detailed revenues on the City’s Website monthly.
These actions will lead to more savings and increase accountability and transparency.
The Council will continue working toward budget reductions.
###
Joe McMenamin for Ward 7 