Today, the pensions are 94.8% funded, the mayor says — as the tax has brought in some $45 million each year. But the tax expires early in 2025. If it's not replaced, city leaders say the budget will face cuts to jobs and services.
In August, the citizen commission and City Council sent a 3/4-cent sales tax proposal to voters on what to do next. If voters approve Springfield Question 1 on Tuesday, it would create a "replacement" tax. This would assign 1/4-cent of the tax for the retirement pension and for pay raises for police and firefighters. The other 1/2-cent of the tax would sunset after 10 years. That portion would be used on community projects under the city's Forward SGF comprehensive plan.
KSMU: Mayor McClure, welcome to KSMU News.
KEN MCCLURE: Thank you so much. I appreciate your having me.
Q. Now we're going to get right to questions here, Mr. Mayor. I know the city finance director said back in April that if this sales tax does not pass, it will create a hole in the city budget requiring cuts of 6% to 8%, including city jobs and services. Can you talk about the stakes of this vote on Springfield Question 1, in your opinion?
MCCLURE: The cost of not doing anything, the cost of not passing this replacement tax, will have a direct and immediate impact on city finances. First, we would continue as a city with our obligation to fund the remaining portion of the police-fire pension fund, and that will be anywhere between $3 million and $6 million a year. In addition, funds that we receive from the use tax, which are tied to online purchases, would be lost as well. Half of that goes into our transportation fund, the other in the general revenue fund. And so the impact would be that those funds would be lost. And if you have to go back 15 years before the existing police-fire pension tax was in place, the impact was dramatic hiring freezes, some cases, layoffs, but also a real reduction in public services. So the impact is great.
Q. Now, many people in Springfield are likely to favor small government in general and be disposed to oppose any tax question on their ballots. What's your response to voters who might have that type of opinion?
MCCLURE: First, it is not a tax increase. If it is approved on November 5, it will continue at the same rate. Our total [sales tax] for the city is 8.1%, and we are the next-to-the-lowest of the 11 Cities between Bolivar and Branson, running down that corridor in there. So we have a very, very competitive sales tax, and are among the lowest in our communities, so it's no tax increase.
Secondly, we continue with our obligation to fund the remaining part of the police-fire pension fund — we want to take care of our police officers, our firefighters — and then we have a great opportunity to fund the projects that we want to do through our comprehensive plan, which has been just recently adopted after a great amount of public input. So the opportunity is great, and the impact of not doing it is also great.
Q. Now, if — and let's stress "if" — Springfield eligible voters decide to replace the [existing] 3/4-cent city sales tax with the new city sales tax of the same amount, you and other city leaders are planning for a Citizens Advisory Council — this is my understanding — to be created pretty much immediately following the vote. What would be the purpose of that advisory council?
MCCLURE: That Advisory Council plays a critical role. We pride ourselves in being able to solicit and get input from the citizens of our community. That advisory committee is going to take that information and say, "How best can we use these funds?" They're going to have a real impact. And if, if passed in next week's election, Council will move almost immediately to start that process and make sure that we get a large enough group to be diverse and represent the community, small enough, though, it'll be functional. So that committee is going to play a key role, and that will serve as our oversight and advisory committee to City Council, and City Council, I think will be very, very interested in what that group ultimately proposes.
KSMU: If you're just joining us, we've been talking to the mayor of Springfield, Ken McClure, about Springfield Question 1 that's on voter ballots this Tuesday, November 5. And it would replace a 3/4-cent sales tax here in the city of Springfield with a similar tax diverted to some different purposes as was originally approved back in November 2009. Mayor McClure, thanks for taking the time today.
MCCLURE: Thank you very much.
