Springfield City Commission hears 2026 budget; finance director says plan balanced but relies on one‑time fixes

City Finance Director Katie Evanston told the Springfield City Commission at a public hearing that the administration’s 2026 preliminary budget is balanced but depends heavily on one‑time transfers and operational reductions.

Evanston said General Fund revenues are projected at about $61.3 million for 2026, an increase of roughly $5.7 million compared with the revised 2025 budget. She said most of that apparent increase stems from a one‑time timing change tied to the city’s transition to a regional income tax collection agency (RETA), not from new recurring growth: “This timing change is the only reason the year‑over‑year income tax numbers appear higher. It is not new growth and will not repeat,” Evanston said.

The finance director said the budget began with a projected $6.9 million operational deficit for 2026. City leaders closed that gap through targeted operational efficiencies, a voluntary separation incentive program (VSIP), reductions in transfers from some funds and the use of other one‑time resources, including transfers from the Accrued Benefit Liability Fund. After these adjustments the preliminary General Fund is presented with an $88,000 surplus.

Evanston said personnel costs were reduced by more than $2.3 million from the 2025 original budget to the 2026 preliminary budget and reported a reduction in citywide authorized full‑time positions (transcript lists a reduction from approximately 595 to 568 positions) and a drop in general‑fund FTEs (from 288 to 261.5). She said police and fire remain authorized at 130 positions each, above charter minimums, and that the city is pursuing hiring to restore recent declines.

On capital needs, Evanston said the Permanent Improvement Fund is projected to bring in about $5.8 million in 2026, roughly $5.3 million of which comes from income tax, with project expenditures budgeted at $5.6 million. She highlighted a $2 million Neighborhood Street paving program and $500,000 for a sidewalk, curb and gutter program, and listed public safety equipment purchases including two police cruisers and a refurbished medic unit. Evanston also noted the city has used more than $20 million in ARPA funds over the past three years to support public safety investments.

Evanston warned of larger pressures in utility funds tied to regulatory mandates. She cited roughly $60 million in work for a high‑rate clarifier and $23 million for the Erie Express sewer as part of combined sewer overflow (CSO) obligations, and noted commissioners had legislated 1% annual sewer rate increases (including one effective 01/01/2026) and 12% water rate increases that took effect in 2025 and again on 01/01/2026.

During public comment, resident Mike Lowe urged the commission to address police and fire staffing, saying the city charter requires minimum staffing levels and asserting the city has not met those levels “for quite some time.” City staff responded that current staffing counts are below the authorized 130 positions but that recent staffing had been at or near charter minima and that hires are planned; staff provided on‑the‑record counts of about 123 in fire and about 122 in police and offered to provide documentation on staffing history.

Evanston said the full presentation and a PDF of the 2026 preliminary budget will be posted on the city’s website by the end of the week and invited questions and follow‑up; she provided a contact phone number and email. The presiding officer moved to conclude the hearing and the clerk called the roll; the recorded votes in the transcript were all affirmative and the hearing was closed by unanimous assent.

The hearing served as a presentation of the preliminary budget and a public comment opportunity; the transcript records discussion and questions but does not show any final appropriation ordinance or formal adoption vote for the 2026 budget during this session.