Capital Projects Policy

The following information is provided from the 2023-2028 Capital Improvement Program Report prepared by the City’s Planning & Development Department.

The City of Springfield faces many tough challenges. As the City ages, so does its infrastructure. Streets and sidewalks deteriorate; once-new parks and community centers need refurbishing; old equipment needs replacing. As the City grows, so does its needs. New streets must be built to accommodate increased traffic; sanitary sewers must be extended to developing areas; storm sewers must be extended to developing areas; storm sewers are needed to handle increased runoff. Needs that weren’t evident 5, 10, or 20 years ago become pressing. The citizens of Springfield have been willing in the past, and continue to be willing today, to meet these needs. They have addressed these problems in a variety of ways. The Capital Improvements Program shows how some of these needs are being met through various public and private funding mechanisms. By employing a variety of taxes targeted to the needs identified in the CIP document, using available federal and state grants, and leveraging private donations, the citizens of Springfield continue to meet some of the capital needs of the City.

The Capital Improvements Program (CIP) is a Charter-required document that provides a mechanism for scheduling public physical improvements over several years. It establishes the City’s priorities for public projects based on available financial resources and project criteria. Going beyond just a listing of priority projects, the CIP can:

• Inform the public of projected capital improvements,

• Provide a mechanism for estimating all of the City’s capital needs,

• Allow public improvement proposals to be tested against a set of criteria,

• Better schedule improvements that take more than a year to construct,

• Provide an opportunity for long-range financial planning and management,

• Coordinate the activities of various departments in meeting project schedules.

The City’s capital improvement needs are significant and continually evolving. Long-range studies are in process to better understand some of these needs. There are also areas of uncertainty which could result in capital improvement needs. One example is future federal or state mandates associated with environmental stewardship. As these needs and cost estimates are identified, necessary projects could be recommended for inclusion in future Capital Improvement Programs. These studies and areas of concern include, but are not limited to, the following:

• Forward SGF Comprehensive Plan

• Public Works Facilities Decentralization

• EPA Stormwater Pollution Control Program

• Major Annexation Facility Needs

• Major Freeway Corridor Additions

• Wastewater System

• Inflow and Infiltration

• New or Expanded Treatment Facilities

• Sanitary Sewer Truck Expansion

• Fire Coverage Master Plan

What is a Capital Improvement?

A capital improvement is a major expenditure for either new or expanded physical facilities that is relatively large in size, expensive, and permanent. At a minimum, the project should cost $100,000, have a useful life of 6 years and/or should be financed by long-term debt. Capital improvements should include only those expenditures for facilities with relatively long-term usefulness and permanence. It should not include expenditures for equipment or service that prudent management principles would define as operating budget items and which ought to be financed out of current revenue.

Rolling stock (fire trucks, road graders, etc.) and the purchase of similar pieces of equipment should be included in the Capital Improvements Program only when they are part of the initial start-up of a project that involves a new service. Replacing fire trucks at existing stations is a capital expenditures included on the following graphs, but is not included in the Capital Improvements Program. The replacement of these fire trucks are, however, included in the City’s lifecycle replacement schedule, even if unfunded.

Listed below are examples of capital improvements:

• Land purchases

• Fire Stations and associated equipment

• Storm Sewers

• Sewer mains

• Sewage Treatment Plants

• Street construction projects

• Parking lots and garages

• Traffic signals

• Park land and development

• Tennis Courts

• Swimming Pools

• Major building additions and remodeling

• New buildings

• Computer systems

Adopted Capital Improvement Program (CIP) Strategies

The City’s primary responsibility is protection of life, health, and public safety. Projects that address serious health and safety needs receive the highest rating.

Improving existing infrastructure also rates as high ranking. Projects that improve existing streets, parks, etc. to adopted standards; projects that improve the efficiency and effectiveness of the City’s basic services; and projects that enhance City government’s ability to provide basic services receive the second highest rating. As a general rule, all other considerations being equal, improvement of existing infrastructure should rate higher than construction of new infrastructure improvements.

The City must also keep up with the community’s growth through the construction of new infrastructure improvements such as new streets, new parks, and greenways as needed.

In addition to these strategies, preserving and enhancing the quality of life for Springfield citizens is also important. Many things make up “quality of life”, including a clean environment, pleasant neighborhoods, diverse housing and job opportunities, and recreational and cultural opportunities. Where possible, the capital improvement projects that are preferred are those that have a long useful life, benefit the City as a whole, benefit the City’s low-and moderate-income citizens, and either protect or have no adverse impact on the environment.

Quality of life issues do not stop at the city boundaries. Development outside the city is also occurring at urban densities. People living in these areas expect services and public facilities at urban levels, and the density of development in these areas requires facilities, such as streets, built to urban standards. Services and facilities provided by Greene County and by special districts are generally not provided to urban standards because they were built for the primarily rural population of the county. The City is in the best position to provide services and facilities appropriate for the urban population, but provision of these facilities must be coordinated between the City and the County. Specifically, street projects that occur near the city limits should be coordinated between the City and the County.

Public Involvement Process

Public involvement in the development of the CIP is a Council priority. The public is involved through citizen requests to the Public Information Office and individual departments, input solicited from the Neighborhood Organizations, and Planning & Zoning Commission review & recommendations. Public hearings are then held when presented to City Council.

Operating Cost Associated with CIP

The cost of operating new or expanded facilities or infrastructure can be significant. In the CIP, the cost of the construction is estimated. Many of the planned improvements for FY2024 involve road and bridge improvements. Historically, those improvements have a minimal additional impact on the operating budget for the current fiscal year but have a cumulative impact over time. This impact of all improvements over the last ten years has necessitated additional staff for sidewalk/pavement and street repairs. FY2023 saw an increase in five staff positions for a new sidewalk/pavement maintenance crew for a cost of $300,493. In FY2024 an additional 5 person, concrete pavement maintenance crew was added for a cost of $301,283.

Traditionally, if operating and maintenance costs are identified in a project, the department responsible for the improvement is required to absorb the additional costs or submit a budget request to receive the funding necessary. Budget requests for CIP operating and maintenance costs are balanced against other requests for additional funding. The projects that will impact the operating budget in FY2024 are as follows:

• January 2020 bonds were issued for an additional fire station, replace two fire stations, renovate seven existing fire stations, new animal shelter, renovate historic city hall, renovate or replace public grounds operations facility and multiple storm water projects. One of the additional fire stations opened in February 2023 for an additional cost of $668,772 for seven firefighters and a portion of supervisory staff.

• With the renovation of fire stations, an increase in City facility square footage over time and aging structures, the need for additional building maintenance funding for repairs and preventative maintenance reached a point of critical need. In FY2024 an additional $250,000 was funded for operating supplies and services to address these needs.

As new and renovated facilities come on-line additional operating costs needs will be accessed.

Capital Improvements Sales Tax

This fund accounts for the proceeds of the City’s one-quarter-cent capital improvements sales tax, which was initially approved by voters in August 1989, and first went into effect October 1, 1989. Voters have renewed this initiative nine times. April 2019, voters approved the capital improvement sales tax to have a 20-year sunset, extending it until September 30, 2039. 77.4% of voters approved to support the 30-plus-year program. The proceeds from the capital improvements sales tax will be earmarked for specific projects on a five-year cycle with input from the community.

Transportation Sales Tax

This fund accounts for the proceeds of the City’s one-eighth-cent transportation sales tax, which was first approved by voters in November 1996 and took effect April 1, 1997. Proceeds are dedicated to construction of improvements to state highways located within the City of Springfield under the authority of the State Highway Improvement Corporation. November 2019, voters approved the transportation sales tax to have a 20-year sunset as well and the proceeds for highway improvements are disbursed at the discretion of the City and are not under the authority of the Corporation. With an 80% voter approval rate, this very important funding source was renewed.

The City and MoDOT have established an outstanding record of completing projects on-time and on-budget. To ensure accountability to the public, the City provides frequent updates as to progress on the program and requests input from citizens on future projects on a five-year cycle.

The approved transportation projects will support the economic vitality of the metropolitan area by enhancing regional competitiveness, productivity, and efficiency; by increasing the accessibility and mobility options available to people and for freight; by promoting energy conservation; by promoting efficient system management and operation, and by emphasizing the preservation of the existing transportation system.

Community Development Block Grants

The City has received a considerable amount of money each year from the state and federal governments to operate specific services and to make capital improvements within our community. One source that has been used in the past for capital improvements is the Community Development Block Grant (CDBG) funds. The City expects to receive $1.6 million in CDBG funds for program year 2023-2024. Community Development Block Grant funds must be used to benefit low and moderate-income citizens, eliminate blight, or address emergency situations. In addition to yearly CDBG allocations, the City has also received one-time grants for specific zoo, storm water, sanitary sewer, and street projects.

Public Works Improvements

This fund accounts for various public works improvement projects constructed from various federal and state grants and other revenues. This fund also accounts for the City’s joint venture expenditures related to the development of an industrial park.

Community Improvement Projects

This fund accounts for the City’s developer agreements and other improvements. Under terms of these developer agreements, up to 50% of the incremental increases, if any, in one-cent general sales tax revenues generated by businesses developed in specific areas are utilized to reimburse the cost of necessary public improvements made and paid for by developers.

Funding Policy

City Council has adopted policies for the application of Neighborhood Improvement Districts (NID) and Tax Increment Financing Districts (TIF) when appropriate. Subdivision regulations require developers to construct public infrastructure as part of the planning process.

Property Tax Projects

Since 1995, Springfield voters had approved using the current level property tax money to fund several major Capital Improvement Projects with no increase in the property tax rate. In November 2017, the voters of Springfield elected to continue the twenty-seven cent level property tax for construction, acquisition, maintenance, improvement, and upgrade of municipal facilities or municipal property and the staffing or provision of equipment for municipal facilities. This renewal will allow for additional services to be offered and a significant investment in the Life Cycle Replacement Plan of capital equipment.

Some of the voter approved capital projects include: Two new fire stations, replacement of two fire stations, renovation of Historic City Hall, address a number of storm water problems, renovate or replace Public Grounds Operation and Maintenance building, improvements to City-owned facilities; such as roof replacement of Police Headquarters, Mill and Lumber HVAC/Infill, and fire station improvements.