City of Springfield, Illinois

James O. Langfelder - Mayor

Skip Navigation LinksHome > BudgetOverview > Budget Scenarios

Corporate Fund Scenarios

Corporate Fund Overview

What impacts the Corporate Fund Budget?

Proposed City's Budget

From our Proposed Budget to Scenarios

Give us your Suggestion!

We want to hear from you!

Workshops & Budget Books

Proposed department budgets & presentations



Our Goal $11.4M

Important Dates
  • Public Hearing
    Tuesday, Frebuary 13, 2018
  • City Council Vote
    Tuesday, February 20, 2018

Scenario 1 – Proposed Budget

Scenario Breakdown

Mayor Jim Langfelder is proposing various cuts to the departments that make up the Corporate fund to aid in the FY 19 Corporate Fund budget deficit. Along with these cuts, two new revenue enhancements are proposed which would bring in a total of $5.32 million each year if approved by the City Council.


Below is an overview of these proposed Corporate Fund cuts and the money saved in addition to the revenue enhancements proposed.


   First Pass Cuts (Decrease to Corporate Expenses)

Option

Amount

Potential Impact

Health Insurance - Employer Fringe Flat from FY18 ($835,076) City of Springfield Health Insurance Costs were held flat from FY18 rather than the projected increase, as cost savings measures over the last couple of years have continued to improve the outlook of the plan.
Commodities ($48,525) Items such as office supplies, other small supplies items, cleaning supplies, uniform costs, etc.
Equipment ($44,375) Office items, furniture, heavy equipment, fire apparatus, etc.
Telecommunications ($67,696) Radio and Telephone equipment, parts, repairs, service contracts, etc.
Automotive Equipment (Fleet Department Reductions Benefits Corporate Fund) ($387,614) This primarily represents the expense associated with maintaining and fueling the city’s fleet of vehicles and equipment.
Travel ($5,158) Seminars, training, conferences, etc.
Total First Pass Cuts ($1,388,444)

   Cuts to Personnel and Services

Option

Amount

Potential Impact

Job Cuts ($540,927) Elimination:
  • Police Department – Civilian Info Systems Manager & Data Input Operator
  • Office of Budget and Management - Accountant I
  • Human Resources – Training & Development Specialist
  • Public Works – Building Permit Assistant, Master Operating Engineer and GEO Info Systems Tech II
  • Mayor’s Office – One attorney vacancy and three employees going to half time
Repositioning 4 Firefighters to Division I from Division II & III ($280,000) Division 1 is frontline Fire Department Personnel. Repositioning delays hiring of 4 firefighters.
CWLP Consolidation of Services ($47,216) Accounts Payable and Security Services Consolidated with CWLP as well as a Messenger moving to CWLP.
Police Hiring Lag ($280,000) Potential lack of officers due to retiring positions not being filled. To ensure constant service levels, increased overtime.
Miscellaneous Operational Cuts ($901,500) Library & Self Insurance Transfer, Temporary Salaries, Overtime, Uniform Transition, Various Operational Lines, Awards & Grants, Landfill Services, Equipment, & Travel
Demolitions ($245,000) Decreased excavator rentals, cost for contracted demos, and tipping charges.
Lot Mowing ($50,000) Diminishment of City of Springfield lots. Lower response to tall grass violations.
Total Cuts to Personnel & Services ($2,344,643)

   Revenue Enhancements

Option

Amount

Notes

Total Rate

City Sales Tax - 0.25% $4,300,000 Total = Full Year 8.75%
Telecomm - 2.00% $1,020,000 Total = Full Year 6.00%
Total $5,320,000

   Comparable Cities

City

Total Sales Tax

Total Telecomm

Springfield (Proposed) 8.75% 6.00%
Bloomington 8.75% 6.00%
Champaign 9.00% 6.00%
Decatur 9.00% 6.00%
Normal 8.75% 6.00%
Peoria 9.00% 6.00%
Urbana 9.00% 6.00%

   Tax Comparisons On a $100 Purchase


   Other

Option

Amount

Potential Impact

Cost Center Reimbursements $1,406,407
Miscellaneous Revenue Changes ($63,515)
Net Expense Changes ($442,827)
Fund Balance Usage $1,400,000
Total $2,300,065

   Totals from Above

Description

Amount

First Pass Cuts $1,388,444
Cuts to Personnel and Services $2,344,643
Revenue Enhancements $5,500,000
Other $2,120,065
Total $11,353,152

Scenario 2 – Revenue Enhancements Only

Scenario Breakdown

Another option for FY 19 Corporate Fund consideration would be to only include revenue enhancements along with a minimal fund balance transfer. This would mean no cuts to services or personnel in the Corporate Fund. A revenue enhancement only budget would generate as much as $10 million with a fund balance transfer of $1.25 million.



Following are the different type of revenue enhancement options including the amount of funds generated and how it compares with our peer cities.


   Revenue Enhancements - Option(s) City Sales and Food & Beverage Tax

Option 1

Amount

Notes

Comments

Total Rate

Natural Gas Tax - 4.0% $1,500,000 Total = Full Year 4.0%
Telecomm - 2.00% $1,200,000 Total = Full Year 6.00%
Muni Motor Fuel Tax - $0.04 per gallon $2,200,000 Total = Full Year $0.04 per gallon
Package Liquor Tax - 2.00% $500,000 Total = Full Year 2.00%
Property Tax - $0.0615 per $100.00 EAV $1,350,000 Past Deadline for FY19 $1.00 PER $100 EAV
If only revenue enhancements are incorporated, requirement of Fund Balance usage would equal 1% $1,250,000
City Sales Tax - 0.25% $4,300,000 Total = Full Year 8.75%
Food & Beverage Tax - 1.0% $2,500,000 Total = Full Year Restaurant/ prepared food tax 1.0%
Total $14,800,000


Option 2

Amount

Notes

Comments

Total Rate

Natural Gas Tax - 4.0% $1,500,000 Total = Full Year 4.0%
Telecomm - 2.00% $1,200,000 Total = Full Year 6.00%
Muni Motor Fuel Tax - $0.04 per gallon $2,200,000 Total = Full Year $0.04 per gallon
Package Liquor Tax - 2.00% $500,000 Total = Full Year 2.00%
Property Tax - $0.0615 per $100.00 EAV $1,350,000 Past Deadline for FY19 $1.00 PER $100 EAV
If only revenue enhancements are incorporated, requirement of Fund Balance usage would equal 1% $1,250,000
City Sales Tax - 0.25% $4,300,000 Total = Full Year 8.75%
Food & Beverage Tax - 2.0% $5,000,000 Total = Full Year Restaurant/ prepared food tax 2.0%
Total $17,300,000


Option 3

Amount

Notes

Comments

Total Rate

Natural Gas Tax - 4.0% $1,500,000 Total = Full Year 4.0%
Telecomm - 2.00% $1,200,000 Total = Full Year 6.00%
Muni Motor Fuel Tax - $0.04 per gallon $2,200,000 Total = Full Year $0.04 per gallon
Package Liquor Tax - 2.00% $500,000 Total = Full Year 2.00%
Property Tax - $0.0615 per $100.00 EAV $1,350,000 Past Deadline for FY19 $1.00 PER $100 EAV
If only revenue enhancements are incorporated, requirement of Fund Balance usage would equal 1% $1,250,000
City Sales Tax - 0.5% $8,600,000 Total = Full Year 9.00%
Food & Beverage Tax - 1.0% $2,500,000 Total = Full Year Restaurant/ prepared food tax 1.0%
Total $19,100,000


Option 4

Amount

Notes

Comments

Total Rate

Natural Gas Tax - 4.0% $1,500,000 Total = Full Year 4.0%
Telecomm - 2.00% $1,200,000 Total = Full Year 6.00%
Muni Motor Fuel Tax - $0.04 per gallon $2,200,000 Total = Full Year $0.04 per gallon
Package Liquor Tax - 2.00% $500,000 Total = Full Year 2.00%
Property Tax - $0.0615 per $100.00 EAV $1,350,000 Past Deadline for FY19 $1.00 PER $100 EAV
If only revenue enhancements are incorporated, requirement of Fund Balance usage would equal 1% $1,250,000
City Sales Tax - 0.5% $8,600,000 Total = Full Year 9.00%
Food & Beverage Tax - 2.0% $5,000,000 Total = Full Year Restaurant/ prepared food tax 2.0%
Total $21,600,000


   Comparable Cities

City

Sales Tax(.25%)

Sales Tax(.5%)

Food & Beverage Tax (1.0%)

Food & Beverage Tax (2.0%)

Natural Gas Tax

Telecomm Tax

Muni Motor Fuel Tax

Package Liquor Tax

Property Tax

Springfield 8.75% 9.00% 1.00% 2.00% 4.00% 6.00% $0.04 per Gal 2.00% $1.00 per EAV
Bloomington 8.75% 8.75% 2.00% 2.00% 3.75% 6.00% $0.04 per Gal 4.00% $1.34 per EAV
Champaign 9.00 9.00% 0.50% 0.50% 2.75% 6.00% $0.04 per Gal 0.00% $1.32 per EAV
Decatur 9.00% 9.00% 2.00% 2.00% 4.25% 6.00% $0.05 per Gal 0.00% $1.65 per EAV
Normal 8.75% 8.75% 2.00% 2.00% 5.00% 6.00% $0.04 per Gal 4.00% $1.41 per EAV
Peoria 9.00% 9.00% 2.00% 2.00% 5.00% 6.00% $0.04 per Gal 4.00% $1.55 per EAV
Urbana 9.00% 9.00% 1.00% 1.00% 5.00% 6.00% $0.05 per Gal 1.00% $1.36per EAV

   Totals from Above

Description

Amount

Revenue Enhancements + Option 1 $14,800,000
Revenue Enhancements + Option 2 $17,300,000
Revenue Enhancements + Option 3 $19,100,000
Revenue Enhancements + Option 4 $21,600,000

Scenario 3 - Usage of Fund Balance & Cuts

Scenario Breakdown

A third option for the FY 19 Corporate Fund deficit fix is the consideration of spending down fund balance in combination with department cuts. No revenue enhancements would be implemented.

Fund balance is defined as the difference between current assets less current liabilities. The fund balance accounts for the tax-supported activities of the City of Springfield vs. the other funds mentioned on the previous page that are designated for specific uses (i.e. CWLP, Convention & Visitors Bureau, Planning & Economic Development).

It is recommended by the Government Finance Officers Association (GFOA) that a city’s fund balance should be maintained between 8% to 15%. The City Council passed on January 2, 2018, that the City of Springfield’s fund balance could not be spent below 8% without City Council approval. Currently the City’s fund balance is at 11.9% which equals $14.2 million.

For Corporate Fund department cuts, the departments outlined what personnel and services could be eliminated in FY 19. Again, those departments are the Police and Fire Departments, Public Works, Lincoln Library, Human Resources, Office of Budget & Management, Office of the Mayor, comprised of Community Relations, Communications and Corporation Counsel, the Office of City Clerk and the Office of City Treasurer. Below are department cut options, in addition to spending down 4% of fund balance. The total amount of fund balance that could be used with this scenario is $3.3 million. This would mean $8.04 million in department cuts would need to be implemented.




   First Pass Cuts (Decrease to Corporate Expenses)

Option

Amount

Potential Impact

Health Insurance - Employer Fringe Flat from FY18 $835,076 City of Springfield Health Insurance Costs were held flat from FY18 rather than the projected increase, as cost savings measures over the last couple of years have continued to improve the outlook of the plan.
Commodities $48,525 Items such as office supplies, other small supplies items, cleaning supplies, uniform costs, etc.
Equipment $44,375 Office items, furniture, heavy equipment, fire apparatus, etc.
Telecommunications $67,696 Radio and Telephone equipment, parts, repairs, service contracts, etc.
Automotive Equipment (Fleet Department Reductions Benefits Corporate Fund) $387,614 This primarily represents the expense associated with maintaining and fueling the city’s fleet of vehicles and equipment.
Travel $5,158 Seminars, training, conferences, etc.
Total $1,388,444

   Cuts to Personnel and Services

Option

Amount

Potential Impact

Non-Police & Fire Sworn Job Cuts $540,927 Eliminates Police Department's Info Systems Manager & Data Input Operator, Office of Budget and Management's Accountant I, Human Resources' Training & Development Specialist, Public Works' Building Permit Asst, Master Operating Engineer, and GEO Info Sys Tech I, One attorney Vacancy, & three Mayor's Office employees going to half time. Additional Fiscal Officer Position needed for Police Department. These tasks will have to be redistributed amongst remaining employees.
Repositioning 4 Firefighters to Division I from Division II & III $280,000
Reduction of 25 Firefighter Positions $1,931,472 All firehouses would remain open. The number of fire trucks in service would reduce by 2. There is potential for increased response times adding atleast one minute to the average response.
Reduction of 25 Police Officer Positions $2,275,351 Reduces the Neighborhood Police Officer Unit, the Proactive Crimes Unit, the Street Crimes Unit, the Traffic Services Section, Task Force Officers, and Field Operations Officers. Diminishes protection to the City of Springfield.
CWLP Consolidation of Services $47,216 Accounts Payable and Security Services Consolidated with CWLP as well as a Messenger moving to CWLP.
Police Hiring Lag $280,000 Potential lack of officers due to retiring positions not being filled. To ensure constant service levels, increased overtime.
Miscellaneous Operational Cuts $901,500 Library & Self Insurance Transfer, Temporary Salaries, Overtime, Uniform Transition, Various Operational Lines, Awards & Grants, Landfill Services, Equipment, & Travel
Demolitions $245,000 Decreased excavator rentals, cost for contracted demos, and tipping charges.
Snow Removal $150,000 Contracted Snow Removal Services from Sangamo Construction & PH Broughton.
Lot Mowing $50,000 Diminishment of City of Springfield lots. Lower response to tall grass violations.
POLICE Body Camera System/Storage $130,000 Effectively ends use of body cameras by the Springfield Police Department.
POLICE Eastside Camera Expansion $60,000 Cameras for intersections.
POLICE Reduction of 2 Civilian Traffic Wardens $92,146 This could affect revenue.
POLICE Computer Upgrades/E-Citation Intiative $25,000
PUBLIC WORKS Removal of Centracs Traffic Light Software $85,900
Net Expense Growth Offset ($442,827) An increase in some expense areas was unavoidable, particularly in the area of computers and software for security purposes.
Total $6,651,685

   Fund Balance

Option

Amount

Comments

Fund Balance usage would equal 4% $3,300,000 Per City Code, fund balance cannot drop below 8%
Total $3,300,000

   Totals from Above

Description

Amount

First Pass Cuts $1,388,444
Cuts to Personnel and Services $6,651,685
Fund Balance $3,300,000
Total $11,340,129

Scenario 4 - Combination of Revenue Enhancements & Cuts

Scenario Breakdown

After reviewing the information provided in this section of the website, residents may feel there are other types of revenue enhancements they prefer seeing and/or other department cuts.

Using the Suggestion Form, please share your thoughts about what enhancements and/or cuts you feel are best as a citizen of Springfield. Please use the list provided by the impacted departments for reference.

Remember, there are other departments and services that operate out of funds that are NOT the Corporate Fund. None of these funds can be used, nor impact, the City’s Corporate Fund. Again, the Corporate Fund encompasses the Police and Fire Departments, Public Works, Lincoln Library, Human Resources, Office of Budget & Management, Office of the Mayor, comprised of Community Relations, Communications and Corporation Counsel, the Office of City Clerk and the Office of City Treasurer.