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Springfield adopts $135 million budget; utilities drive spending and wastewater rebuild will mean more rates
Summary
City leaders approved a $135 million fiscal-year budget with no property tax increase, noting utilities make up roughly 80% of the total. City Manager Ryan Martin said a new wastewater plant (site: Lawrence Lane) is needed to meet state limits and could cost $50–$60 million, requiring additional rate increases during construction.
Springfield adopted a $135 million fiscal-year budget that keeps property tax rates unchanged while relying heavily on sales and utility revenues to pay for services and large capital projects.
"We passed a budget, it's $135 million," City Manager Ryan Martin said, adding that about 80% of the total budget is tied to city-owned utilities. He told attendees the general government portion is roughly $27.5 million and that the city is relying on sales tax—about $11 million—to fund services without a property tax increase.
Martin said the city faces rising costs for equipment and operations. On electricity, he said a modest rate increase will add roughly $5–$12 a month to an average residential bill, reflecting inflation and recent spikes in equipment prices.
The budget funds several capital priorities, including a planned third fire station on Batson Parkway and preliminary design funds for a replacement or renovation of City Hall. It also includes a 3% pay increase for city employees; Martin said the median hourly wage for city staff is about $23.60.
On wastewater, Martin said the city’s 40-year-old plant cannot meet new state discharge limits. "We're building a plant because it's 40 years old and end of life," he said, and estimated the new facility will cost between $50 million and $60 million. The plant site is planned at the end of Lawrence Lane, adjacent to the current facility.
"Rates are going to remain high—we'll have at least one more, I would say one maybe two more rate increases that will be necessary before the plant construction is complete," Martin said, noting that roughly half of wastewater rates go to pay debt service. He said the city expects construction to begin in late 2024 or possibly spring 2025, but cautioned cost uncertainty.
Water-system upgrades funded in the budget are intended to expand treatment to 10 million gallons per day; the city currently produces about 4 million gallons per day and secures an additional 2.33 million gallons per day from the Logan Todd Regional Water Commission to reach future demand.
Martin emphasized that some rate increases are temporary: as long-term debt is retired, he said rates can be lowered again. He urged residents to view the changes as investments in compliance and long-term service reliability.
Next steps: the city will move forward with design and procurement for the wastewater plant, continue related public outreach, and schedule future board actions tied to project financing and contracts.
