The city will make the payout to a maximum of 30 applicants based on Heck’s discretion, and he said mass exits will not be allowed from any single city department.
“As we look to right-size our workforce to address current economic conditions and decreased revenues, we’re looking at creative ways to achieve those goals and reducing our workforce while continuing to provide the core services to our residents and business community,” Heck said.
Making a $25,000 separation payment to each of 30 employees would cost the city $750,000 in the short term, but city government could gradually make up that money and much more if they are paying fewer employees going forward.
Once applications are accepted, the city will evaluate where to “strategically reallocate resources throughout the organization,” Heck said.
The city approved a budget for 595 full-time employees in 2025, which is higher than last year but a substantial decrease from previous years.
Credit: Bill Lackey
Credit: Bill Lackey
One department that could seen an impact is the Springfield Fire Rescue Division. Staffing levels have largely remained the same for the last several years, Chief Jacob King said.
In 2026, 19% of the workforce will be eligible for retirement, but they can continue working for eight more years, King said.
He said the fire department does not expect a negative impact from the separation agreements, but rather sees it as an opportunity to bring in some newer employees.
The city currently has three jobs for hire listed on its website: a lateral entry police officer, a neighborhood services manager in the community development department and a federal programs specialist, also in the community development department.
Also July 1, the city will begin an agreement with the Regional Council of Governments to outsource municipal income tax collections to the Regional Income Tax Agency (RITA). This change led to six city jobs also being eliminated but the city previously said some employees could move to other jobs within the city.
Credit: Bill Lackey
Credit: Bill Lackey
The city in December projected a $5.3 million decrease in 2025 general fund revenue, down to an expected $59.2 million. Although city income tax revenue is projected to increase 2.8% compared to the 2024 budget, that makes up the majority of city services funding.
Springfield relied on moving $5 million in federal American Rescue Plan Act (ARPA) revenue replacement funds at the end of 2024 to balance the 2025 budget. That was the deadline to officially obligate funds, or else they would have been returned to the U.S. Treasury.
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