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Posted on: March 5, 2019

City Council opens discussion on allocation of carryover funds

FOR IMMEDIATE RELEASE


At its March 5 Council Lunch Workshop, City Council opened discussions on how to allocate $2.8 million of a total of $4.8 million in carryover funds from the Fiscal Year (FY)2017 and FY2018 budgets, as well as heard from Finance Director David Holtmann.


The City had carryover funds of $700,000 from FY2016 that were held over to cover expected revenue shortfall in FY2017, $1.7 million in additional tax revenues coming in above the City’s budgeted projection in FY2017. The remaining $2.4 million in carryover funds from FY2018 is the result of City staff acting as good stewards of City resources, resulting in $600,000 in expenditure savings. Tax revenues in FY2018 exceeded budget projections by $1.8 million, according to Holtmann.


City Manager Jason Gage requested proposals from all City departments to determine how to allocate the funds, receiving 54 requests totaling about $18 million. A proposed plan outlines spending $2.8 million and holding $2 million in reserve.


The bulk of the proposed allocation of the funds ($1,472,500) will go toward facility repairs and replacement to aging City structures. An additional $532,000 allocated to Building Development Services for operational costs addressing chronic nuisance properties that are having a negative impact on Springfield’s neighborhoods and $500,000 for phase 2 of an enterprise software system.


Gage suggested the following allocation for carryover funds:


Facilities

  • $512,000 million in repairs and work on city-owned College Station.
  • $350,000 toward the design and construction of the Busch Municipal Building east facade exterior improvements to prevent water leaks.
  • $495,000 for replacement of Jordan Valley Ice Park’s cooling tower.
  • $60,000 would cover a partial renovation of Founder’s Park and $11,000 would update a part of Jordan Valley Park Fountain.
  • $55,500 will provide funds to rehab part of the interior of the Animal Shelter and $10,000 for roadway repairs to the facility.
  • Municipal Court Vestibule rebuild totaling $41,000.


Public Safety

  • $70,000 to replace six Fire Department turnout gear extractors and one additional unit for the Fire training facility; plus $8,000 for replacement ventilation and saws.
  • $25,000 for replacement and upgrade of Police Special Response Team gas masks.


Operations

  • $500,000 purchasing Infor software implementation, phase 2.
  • $301,000 for the demolition of additional dangerous buildings; $123,000 for seven Building and Development Services vehicles for land use and dangerous buildings inspections and $8,500 in safety equipment and apparel.
  • $100,000 to cover additional costs for abatement of chronic nuisance properties.
  • $100,000 to be allocated to the Department of Human Resources for a compensation study.
  • $30,000 for operations costs at the Department of Workforce Development.


 The City heavily relies on sales tax revenues as its main source of revenue to fund vital services, such as police and fire operations. In Springfield, approximately 60 percent of revenue in the General Fund comes from sales tax and use tax.

 “The City feels that the needs outlined in the carryover funds proposed allocation are the most pressing, and ones that we need to take care of right away,” Gage said. “Ultimately, how the City allocates the carryover funds is the decision of City Council. We are here to provide them with information and recommendations.”

The total is $2.8 million and is expected to come for a first reading of City Council on March 25. Approved funded items not spent by June 30 will carry forward to complete by June 30, 2020.

 

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For more information, please call David Holtmann, Finance Director, at 417-874-2203 or Cora Scott at 417-864-1009 or 417-380-3352.

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