Springfield Area Chamber of Commerce Questions

Maintaining the current infrastructure and positioning the city for additional growth are key economic-development strategies. Springfield’s ability to attract new businesses or create business expansion is dependant in part on our commitment to take care of the public infrastructure. Transportation networks require years of advance planning and this program will continue essential funding to allow Springfield to take care of its current system while addressing future infrastructure investments necessary for economic-development opportunities.

The other key benefit to business and economic development is the program’s impact on jobs, supplies and services in our community. In the past, many of these projects have been awarded to local and area consultants for design and contractors for construction. Bids for construction materials such as concrete, asphalt, and aggregate have been almost exclusively awarded to local companies. The capital improvements program has helped cushion Springfield from more severe effects of the national recession and would continue to produce positive results toward our economic recovery.

The program obviously has a significant effect on job creation and retention in our area. There are a number of different formulas to estimate this benefit. The City is not advocating any specific measurement tool, but several links to formulas used to estimate job creation/retention are listed below.

The U.S. House of Representatives Transportation and Infrastructure Committee uses a formula that indicates $1 million of construction would be about 28 jobs.

http://transportation.house.gov/Media/File/Full%20Committee/20081029/SSM_FC.pdf

The Federal Highway Administration cites job data from the U.S. Department of Transportation.

http://fastlane.dot.gov/2008/09/chief-economist.html?cid=131010872

The American Reinvestment and Recovery Act uses a method indicating that $1 million in construction work would yield about 11 jobs.

http://www.recovery.gov/About/Documents/Jobs_Report_Final.pdf

This can be addressed on several levels.

Improved roads translate to more efficient travel for motorists; less wear and tear on vehicles; and enhanced access for commercial vehicles. Less idling time in traffic lowers emissions to improve air quality through reduced fuel consumption. That, in turn, allows motorists to spend less money on fuel and keep supply and demand in check to moderate fuel costs. In the examples stated in the previous question, more economic development opportunities create a better quality of life.

New and rehabilitated neighborhood and school sidewalks give residents and schoolchildren enhanced opportunities to walk for the health and fitness benefits. This program also helps promote sustainable neighborhoods and schools.

The 2010-13 program includes a commitment to continue the reforestation recovery from the 2007 ice storm with the goal of maintaining Springfield’s long recognition as a Tree City U.S.A. The benefits of a robust urban tree canopy range from reducing summer cooling costs to improving oxygen levels.

The additional funding to improve bike routes and sidewalk connectivity to transit stops offers a valuable and sought-after alternative to the automobile that helps citizens lower costs, stay healthy, and again, reduce emissions that affect air quality. All of these goals point toward a more sustainable community with enhanced transportation options.

After the dedicated sales tax for the Police-Fire Pension System begins on April 1, the City’s overall sales tax rate will be 7.6 percent.

There will be no additional tax with the renewal of the ¼ cent sales tax to fund this program. The post-April 1 tax rate places Springfield in the middle range of surrounding communities.

Even with this renewal, the City’s combined sales tax rate for transportation-related uses will remain the lowest in the region at 0.375 percent, which combines the quarter-cent program and the eighth-cent sales tax for transportation used to partner with the Missouri Department of Transportation on major projects.

This would be a continuation of a 21-year program, so there is no additional cost to business. Overall, Springfield’s sales-tax rate remains competitive as shown above. The program represents 25 cents on $100 in taxable sales.

Again, as a continuation of a 21-year program, there is no additional cost so it remains 25 cents on $100 of taxable sales. It is estimated that about 50 percent of city sales tax is paid by non-residents. One of the reasons for funding capital improvements through sales tax is that non-residents who make purchases in Springfield help pay for the roads, sidewalks, signage, and other improvements enjoyed by all users of the transportation system.

The City has a clear record of accountability throughout the 21-year history of the quarter-cent program.

For the current 2007-10 program, the last major project – intersection improvements at National Avenue and Seminole Street – has been awarded with a summer 2010 completion date.

In the traditional project category, improvements such as sidewalk rehabilitation and restoration, major street stabilization, reforestation, neighborhood improvements, and economic development have taken place across Springfield in all Council zones. A map link will be included on the City’s election Web site that shows the broad geographic range of projects throughout the 21-year history.

Yes. As noted above, the quarter-cent program is divided into three main categories, two of which include specific projects. The third category, “traditional” projects, is based on a number of factors such as repaving and major maintenance schedules; consultations with Springfield Public Schools and the PTA Council for school sidewalks; applications for the NeighborWoods program; and economic-development opportunities that arise during the program. We work with citizens to set these priorities.

Yes. While a number of communities have approved a permanent capital improvements sales tax, Springfield purposefully includes a three-year sunset clause with each program to demonstrate accountability and fulfillment of the project goals for voter consideration.

The project list is developed through a variety of sources, including the Vision 20/20 long-range plan, input from stakeholder groups, citizen-service requests, neighborhood meetings and Neighborhood Assessments; and the bi-annual Citizen Survey review. Mapping of the projects shows broad geographic distribution across the city.

The new project list for the 2010-13 program was developed from those sources cited above. It was initially presented to the City Council at its weekly lunch meeting in February. Following that, two public meetings were held and an online survey resulted in about 200 responses, which were forwarded to the Council at a follow-up lunch meeting. At the first reading of Council Bill 2010-073 on March 8, four citizens spoke in favor of the program and none spoke against it.

Project updates are provided through traditional and social media information, on-street informational signs, and events such as groundbreakings and ribbon-cuttings. The quarter-cent projects are included in a Capital Improvements status update produced every six months.

For the new projects involving conceptual and preliminary design and right-of-way acquisition, the City will seek additional public input before reaching a final design stage.

In addition, the individual projects are awarded through a public, competitive bidding process and the bid awards must be approved by the City Council, which gives the public another opportunity for input.

This program has been in place since 1989; as a matter of historical perspective, the sales tax was selected on the basis of fairness because both residents and non-residents use city infrastructure. The City also has used the sales tax as a “pay-as- you-go” approach to avoid paying additional cost in debt service for bonds to finance the projects. It also is the least expensive funding source to administer.

The impact of losing this program would be far more pronounced now than in previous years because of the current state of the economy and the City’s budget. The City has had to reduce its transfer from the General Fund to the Transportation Fund by nearly $2.5 million since FY08. That is a key reason why the upcoming program focuses heavily on maintaining existing infrastructure.

In addition, the City would lose a number of potential opportunities to leverage state and federal funds as well as face losing out on economic development opportunities that would attract private business investment using the public-private cost-share portion of the program.

The program also provides significant support for local job creation and retention and sales of supplies and equipment. Funds spent in the community typically turn over multiple times in economic benefits to dollars invested.