Springfield task force offers $4.5 million package: payroll tax, $500,000 library reduction and levy increases among recommendations

A citizen task force convened to study Springfield’s fiscal shortfall recommended a package of cuts, revenue changes and longer‑term economic strategies aimed at closing a $4.5 million structural gap, presenters told the Springfield City Council at a network session.

Ann Marie (presenter) said the task force met for nine consecutive weeks between Jan. 15 and March 12 and delivered a consensus report that builds on reductions already included in the city manager’s proposed fiscal‑year 2026 budget. "This report captures the work and recommendations of the task force," Ann Marie said, describing a process that scored potential options against seven criteria including general‑fund impact, economic competitiveness and community fairness.

The nut graf: The task force’s top recommendations—intended to be combined to reach the $4.5 million target—were a $500,000 reduction in the Springfield Public Library budget, a shared payroll tax estimated to generate about $2.3 million, and increases to current levies estimated to produce $1.3 million. The group also recommended nonrecurring property sales reviews, focused work on the Gateway UGB, business retention and lobbying on statewide measures (Measure 5 and Measure 50) as longer‑term strategies.

Most important recommendations and context

• Library reduction: The task force recommended targeting $500,000 in ongoing savings tied to the library budget. Members said the $500,000 was a target amount rather than a prescriptive staffing or hours change, and that staff and library leadership should identify the specific approaches. Volunteer and task force member Amy Oye, retired from the University of Oregon library system, urged caution about deep cuts to library services. "Once these are eliminated, they are never brought back," Oye said, citing examples from nearby jurisdictions.

• Shared payroll tax: The task force recommended a shared payroll tax, split equally between employers and employees, that the group estimated could raise $2.3 million. Presenters emphasized guardrails and simplicity—contrasting the proposal with Eugene’s more complex payroll tax structure. Task force member Michael Culver said revenue diversity is essential: "Revenue diversity is a requirement unless we want to do this again 2, 3, 4 or 5 years from now." The task force provided an illustrative figure of about $50 per employee per year as an order‑of‑magnitude example depending on final rate design.

• Levy adjustments: The group recommended increasing current levies to capture indirect costs in public safety and related services, estimating roughly $1.3 million in additional revenue if approved by voters. Councilors and presenters acknowledged that any levy changes would require voter approval and asked staff to return with timing options.

Other operational and policy options

• Traffic cameras: The task force listed traffic‑camera programs (benchmarked to Medford and Beaverton) as a public‑safety measure that may yield behavior changes and modest revenue; presenters emphasized safety benefits over large revenue expectations.

• Overtime and staffing: The task force discussed reducing police and fire overtime through operational changes and recruiting. Members and councilors noted overtime rose during periods of high vacancy and has improved as staffing recovered; staff flagged that reducing overtime can require up‑front investments (for hiring or other changes) to yield savings.

• Long‑term economic strategies: The report recommends a strategic review of city‑owned properties to identify sellable assets, advancing development readiness in the Gateway UGB, and prioritizing business retention and expansion. The task force also urged coordinated advocacy on statewide limits imposed by Measure 5 and Measure 50.

Council response and next steps

Council members praised the task force’s process and asked staff for more specificity on implementation. Councilor Blackwell asked whether the $500,000 library target equates to cutting one day of service; presenters said the dollar figure is a target and staff should identify precise reductions or alternatives. Councilors asked staff to return with:

• Options showing timing and how proposals would layer (for example, if levies, a payroll tax and other measures were pursued in overlapping timeframes), • Simple calculators or examples to show businesses and residents how a payroll tax would affect different employer sizes, and • Potential guardrails and administrative costs tied to a payroll tax so the net revenue effect is clear.

Council members also requested further work on vacancy/blight policies, property disposition, and public engagement plans. City Manager Nancy Newton and staff said the council would have another work session on June 30 to continue the discussion and refine public‑engagement and implementation timelines.

Quotes from task force members

"We learned how lean and mean Springfield runs, and that's awesome. But also something to keep in mind: it's taxing on your employees," said Jeff McGilvery, a task force member and UA Local 290 representative, describing operational constraints staff face.

Bonnie Nicholson, CEO of the Springfield Chamber of Commerce, said Springfield’s reputation for being "practical, fair, and trustworthy is one of our greatest assets," and urged the council to weigh competitiveness and timing when designing revenue tools.

Michael Culver, controller at International Paper, said the proposal intentionally pairs some cuts with revenue tools and emphasized credibility: "It is important that the city be willing to say, we're willing to do make a hard decision before we go and talk about revenue options."

How the task force worked

Presenters described a consensus process: task force members generated ideas, scored options against the seven criteria, and reconvened until a final, agreed list emerged. The task force explicitly left some matters out of scope—most notably, recommendations on deferred maintenance and long‑term capital investments such as street repairs and fire‑station projects—while noting that unresolved capital needs increase fiscal pressure.

What the report does not decide

The task force report is advisory. No formal council votes were taken on the recommendations at the session. Several councilors emphasized the need for careful public outreach and phased implementation rather than immediate adoption of multiple measures at once.

Ending

The council accepted the report and asked staff to return with cost, timing and public‑engagement details for council consideration at upcoming sessions, including a June 30 follow‑up. Staff and members of the task force made themselves available for further briefings and stakeholder outreach.