“This outcome underscores the City’s dedication to responsible governance and long-term financial sustainability, ensuring Springfield remains on solid fiscal footing in the years ahead,” Heck wrote. “Make no mistake though, the preparation of this 2026 preliminary budget was a difficult undertaking and only further highlights the need to stay vigilant in our continued analysis of both revenues and expenditures across all funds.”
The city projects a General Fund revenue of $61.27 million, a $5.7 million increase from the revised 2025 budget, driven in part by increased income tax collection due to the city’s move to the tax collection through the Regional Income Tax Agency (RITA). Income tax makes up more than 80% of the city’s General Fund revenue.
Springfield began collecting income tax through RITA last July. City Finance Director Katie Eviston said at the time it is estimated to save the city about $500,000 annually.
RITA, an Ohio nonprofit that handles municipal income tax collection for more than 400 state municipalities, has access to federal tax filings that the city does not and can find individuals who have not paid income taxes to the cities in which they reside through IRS data.
The city last year reduced staffing through a voluntary separation program and “strategic restructuring,” with employees going from 595 to 561 full-time equivalent positions.
Springfield’s Permanent Improvement fund includes $5.78 million in revenue with $6.8 million in expenditures. Requests had totaled $8.9 million.
The fund prioritizes neighborhood street paving, equipment upgrades and facility maintenance.
Across all funds, the city estimates around $32.7 million in capital investment this year. More than 60% of that is funded through grants, low-interest or forgivable loans and other “special revenue sources,” according to documents.
The city’s Water and Sewer Fund has seen increasing expenses outpacing revenue due to growing costs of materials, rising workforce costs and ongoing federally required infrastructure projects under the U.S. Environmental Protection Agency’s Combined Sewer Overflow program.
“These projects represent some of the City’s most significant long-term financial obligations—critical to maintaining regulatory compliance, environmental stewardship, and public health," Heck wrote. “However, many mandates are unfunded, requiring substantial local investment placing a continued burden on our ratepayers.”
The city has some of the most affordable utility rates in the region, though it has increased these over the past few years.
The overall preliminary General Fund budget is similar to 2025’s original budget, which saw a more than $3.6 million decrease when it was revised. The 2026 preliminary budget saw an increase of about $5.7 million from the 2025 revised budget.
As the city’s workforce shrinks, many salaries continue to grow, with a projected $2.5 million increase.
Salaries within the city manager’s office are projected to shrink by more than $200,000, with the economic development department seeing a more than $98,000 increase in salaries. The finance department is also projected to see an about $16,000 reduction in salary payments.
Anticipated projects this year include various improvements at the Springfield-Beckley Municipal Airport, largely funded by outside sources; street and stormwater improvements also largely funded by outside sources; and various fire gear and facilities upgrades funded by the Permanent Improvement fund.
More than 59.4% of projects are estimated to be funded by outside sources.
While Heck acknowledged the challenges the city, like others across the nation, faces, he painted an optimistic picture of the future, saying the city is “well positioned not only to withstand uncertainty but to continue building a stable, resilient, and thriving future for its residents.”
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