December 29, 2009

News Release

For Immediate Release

Slumping Sales Taxes Force Further Budget Cuts

City Manager Greg Burris has recommended budget cuts totaling more than $1.27 million to the Springfield City Council following a continued drop in sales tax revenue and other funding sources such as permit fees and payments in lieu of taxes (PILOT) from City Utilities. The cuts are outlined in a memo sent to Council today and, if approved by Council, would be implemented immediately rather than at the end of the 2010 fiscal year on June 30.

The second-quarter cuts follow $13.7 million in cuts made thus far in the last two fiscal years — $7 million in FY09 and $6.7 million following decreased revenue in the first quarter of FY10. Collective savings during the second quarter from the City’s ongoing hiring freeze total $645,000. The City is currently down 114 full-time positions, or about 10 percent of its work force.

Similar to last quarter, Burris is recommending the remaining shortfall be made through specific departmental cuts. Those cuts include:

Burris’ memo to City Council and attachments detailing the cuts are available on the City’s Web site at www.springfieldmo.gov/cityconnect.

For more information, contact: City Manager Greg Burris, (417) 864-1006.

city of springfield

Office of the City Manager

840 Boonville Avenue • P.O. Box 8368 • Springfield, MO 65801
417-864-1000 • Fax: 417-864-1912 • springfieldmo.gov