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FOR IMMEDIATE RELEASE
The compliance report for the fiscal year ended June 30, 2020 has been completed by the City’s independent audit firm, RSM. The report is typically released in December in conjunction with the 2020 Comprehensive Annual Financial Report (CAFR); however, it was delayed this year due to the timing of the release of CARES Act guidance from the White House Office of Management and Budget.
In FY2020 (July 1, 2019-June 30, 2020), the City received just over $14.3 million in federal grant funds.
The City’s Finance Department presented the CAFR at the Dec. 15, 2020 Council Lunch Workshop in compliance with the City Charter, which requires an annual report to the City Council on the financial condition of the City. Springfield City Council received an unmodified opinion, the highest level given, on the City’s financial statement audit.
The Finance Department received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for the 43rd consecutive year for the 2019 CAFR. The department also received the GFOA Distinguished Budget Award for the 14th consecutive year for the 2020 budget presentation.
The equity of the City at the close of the 2020 fiscal year was about $964 million, an increase of $20 million over last year. This is also referred to as net position. Governmental activities increased the City’s net position by $8 million. Sales and use tax revenues, the largest governmental category, were $135 million, or 58%, of total revenues. Revenues from governmental activities totaled $235 million, or 71%, of the total City revenues. Sales tax increased approximately $1.2 million from last year.
The largest portion of the City’s net position, $689.9 million (72%), reflects its investments in capital assets, e.g., land, construction in progress, buildings, improvements, machinery and equipment and infrastructure, less any related debt used to acquire those assets that are still outstanding.
The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City’s net position, $38.5 million (4%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City’s net position, $235.8 million (24%) represents unrestricted net position that may be used to meet the City’s ongoing obligations to citizens and creditors.
The City finished the fiscal year much better than it had anticipated given the impacts of the COVID-19 pandemic. The City implemented significant costs saving measures in April 2020 in anticipation of lower sales tax revenues for the remainder of the fiscal year due to COVID-19.
Sales tax is the City’s largest revenue source totaling over one-third of the City’s annual revenue. While sales tax did not meet budget for the year, sales tax collections were much better than anticipated for the remainder of the year and were only down 1% from budget. The City did not have to utilize any of its stabilization funds to fill revenue shortfalls and in fact maintained its stabilization fund at a higher level than required to be well positioned for the recovery.
“In addition to providing the highest quality of services possible, the City of Springfield must always be accountable for the collection and use of the public’s dollars. Ensuring stability of the City’s financial position is also essential. We take these responsibilities seriously and continue to live by these values,” said City Manager Jason Gage.
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For more information, please call Finance Director David Holtmann at 417-864-1632, or Director of Public Information and Civic Engagement Cora Scott at 417-864-1009 or 417-380-3352.