City Council Report: OBM projects narrowing city funds in coming years; city taking resumes for Ward 1 vacancy

Budget season started in Springfield began on Tuesday, January 14 with a report from the Office of Budget Management to the Springfield Committee of the Whole. OBM Director Ramona Metzger sat with members of her staff to cover details on spending in recent years, this year’s budget as well as OBM’s projections for the upcoming fiscal years.

The FY2026 budget proposal, which covers the 2025 calendar year, was received in December, before the city went on holiday. While the city is not required to pass the budget until the end of February, January traditionally serves as budget season: two additional budget season workshop sessions are planned before the council will assess the budget proposal.

Springfield’s corporate fund finished out 2024 with an ending balance of over $47 million. The corporate fund ballooned after 2020 thanks to federal money provided through the American Rescue Plan Act, with two tranches of ARPA funds in FY2023 and FY 2024 raising total fund balances to $70M. With ARPA support concluded, Springfield’s fund balance has now returned to pre-COVID levels; staffing headcounts have returned to pre-COVID levels as well, with the total city authorized positions sitting at 1490 persons.

Using precautionarily conservative estimates for city revenue and, in Director Metzger’s words, “aggressive” estimates for expenditures, the city is expecting to earn $725 million to cover operating costs of $721.8 million. Based on this projection, the city would spend almost 99.5% of its expected revenue throughout the year.

Nearly 41% of city revenue was collected from utilities (CWLP) with taxes amounting to a little more than 24%. However, the Office of Public Utilities is projected to incur up to 44% of expenses for FY2026.

A major area of concern highlighted by OBM is the city’s pension fund. The city’s property tax rates have remained static at 0.9385 per $100 of equalized assessed value since 1984. Pension requirements, Metzger reported, continue to outpace funding provided by property taxes; at current rate of growth and following the requirements of state statute for 90% funding by calendar year 2040, an actuary estimated the gap in city pension funding would grow to over $377 million in 15 years’ time.

At the current rate of shortfall, OBM concluded that a rate increase of 0.1949 would be required, bringing the total property tax rate to 1.1334 per $100 of EAV.

Complicating matters, state legislation is pending which would potentially raise Tier 2 pension benefits to the same level as Tier 1 benefits.

“If that were to pass, we would need another $4.750 million,” said Metzger, “which, in property tax dollars, that would be an increased rate of another 17 cents [in addition to the aforementioned 19.49 cents].”

Alderpeople on the latter half of the horseshoe seemed uncomfortable with the prospect of a hike on the city’s long-repressed property tax rates. But even at current rates and with current expenses, the city’s corporate fund balance is estimated to decline from $44.1 million currently to $4.213 million by 2029.

“I’m glad I’m gonna be off the council then,” joked Ald. Ralph Hanauer of Ward 10, “you guys have a good time with that one.”

As Director Metzger reiterated to Ald. Shawn Gregory of Ward 2, the estimates were based on less than optimistic forecasting using current trends. Ald. Lakeisha Purchase of Ward 5 encouraged the OBM personnel to be diligent about notifying the city council of changes in those trends.

Nevertheless, while Ward 9 Ald. Jim Donelan recognized the estimates for both incomes and expenses would be subject to change, more so for those predictions cast further out, he still grimly warned that “changes” would be necessary.

Applications for Ward 1 vacancy now open

On Monday, the City of Springfield announced that it is accepting applications to refill the vacant seat of Ward 1 alderperson following the appointment of Chuck Redpath to city clerk. A new header on the city’s website directs prospective applicants to contact the city via email no later than 4:30 PM on January 21, 2025.

Ward 1 applications open on City webpage

While not discussed at length during Committee of the Whole, the subject was briefly raised to the alderpeople when, during citizens’ addresses to the council, Ward 1 residents Steven Simpson-Black and Jane Ford presented their petition calling for greater public involvement in the appointment process.

Public speakers continued to fume on Tuesday over the city clerk situation, noting the unaddressed absence of Clerk Redpath at his first Committee of the Whole following his appointment; another city employee filled in for the clerk’s tasks during the meeting.

Some unusual technical issues further marred the later portion of committee proceedings on Tuesday, such as ordinance text and voting records flowing off the visible screen area.

voting bugged

Multiple commenters also took issue with an apparent new city policy of completely cutting off microphones at the 5:00 mark of public address. The new policy made no exception for persons answering questions from alderpeople after the 5:00 timer had run down, effectively rendering replies inaudible during lengthier discussions.

Mayor’s Office seeking to add dedicated professional to unhoused outreach

During a presentation by directors of the mayor’s office, Community Relations Director Ethan Posey elaborated to the alderpeople that the mayor’s office intends to add a qualified mental health professional to serve full-time as a Community Care Services Specialist for direct interaction with Springfield’s unhoused community.

Community advocates have heavily emphasized to the city that there is a need for more personnel to directly coordinate with the needs of the unhoused and the services which attempt to assist them. The new position, as Director Posey explained, directly addresses that stated need.

As the director explained, this proposed office would address recommendations from experts and members of the public to reduce unnecessary law enforcement contact with the unhoused. Similar policies of non-LEO response, as was highlighted at length during tumultuous public comment sections in the city’s “public camping” ban saga, have been deemed effective in substantially larger municipalities such as Chicago.

Springfield Community Relations Director Ethan Posey, Springfield Committee of the Whole, City Council, 2025/01/14

“This is somebody who will be on the street,” said Posey. “They will have an office in my building, so if there is a day where we have less traffic on the street, they can be there inputting information into the HMIS system.

“This is an effort to cover some of the gaps in service, and the feedback we’ve gotten, over the past six months to a year, about what we can do to build better relationships with our unhoused community.”

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