Newly approved Springfield tax will fund public safety, community initiatives 

Last edited 8:50 a.m., Nov. 8, 2024 [Editor's note: A misspelling of Tony Kelley's name has been corrected.]

Springfield voters have approved Question 1, a three-quarter-cent sales tax to continue paying into the city’s Police and Fire Pension Fund while also funding public safety initiatives and city projects. 

The Nov. 5 election marks the first time voters were presented with the tax, which replaces a three-quarter-cent tax that voters first approved in 2009 and renewed in 2014 and 2019 to cover costs of the city’s Police and Fire Pension Fund. That previous tax will sunset on March 31, 2025. 

The Greene County clerk’s office reports that all 56 city precincts have been tallied, with 61.8% of voters saying yes to the tax. A total of 66,880 votes were cast. 

Replacing the old three-quarter-cent tax with a new one at the same level will not result in an increase in taxes. City officials say that tax raises about $45 million annually. 

The new tax has two parts, as unanimously recommended by the Citizens’ Commission on Community Investment, a 30-member ad hoc committee formed in March by Mayor Ken McClure to make a recommendation for whether and how to replace the expiring tax. 

One-quarter cent, or a third of the tax, will continue paying into the Police and Fire Pension Fund, which in October was reported to be 94.8% funded. When the tax was established, the fund was only 36% funded. Tony Kelley, administrative director for the retirement system, called the turnaround a success story in previous Springfield Business Journal reporting. 

The portion of the tax, estimated at $15 million annually, also will fund public safety measures, including salary increases for police and fire personnel to a level that is competitive with pay in peer cities, according to a news release from the city. This portion of the tax is permanent. 

Since the original tax was founded, new hires in the city have been placed under the state-run Missouri Local Government Employees Retirement System, or LAGERS, but there are still about 80 active participants in the old system, according to Kelley. 

The other two-thirds of the tax – or half-cent – is estimated to raise $30 million annually and is earmarked for initiatives found in Forward SGF, the city’s 20-year comprehensive plan that ends in 2040. This portion of the tax will sunset in 10 years unless voters approve a renewal. 

The citizens’ commission offered what co-chair Tom Prater described as guardrails for this portion of the tax. Projects should be completed with no debt obligation, and matching funds will be sought where possible. Projects should generate sales tax or other revenue, generate economic growth or improve quality of life, Prater said. 

In a news release from the city, McClure expressed his gratitude to voters. 

“We deeply appreciate Springfield taxpayers for their commitment to the future and safety of our city,” he said. “This vote was confirmation that we are moving in the right direction and have the support of the people.” 

A citizens’ advisory committee will be formed to provide oversight of the half-cent portion of the tax as well as project recommendations. The news release states that those Springfield residents who are interested in applying for membership may do so on the city’s website.