SPRINGFIELD — It takes a steady hand to operate the tractor for Springfield Public Works.
The tractor includes a hydraulic lever employees used to lift several items. The idea is that once the button is pushed to stop a lift, the lever should be frozen in position. Springfield’s tractor is so old lifted items have a tendency to swing, endangering nearby structures. With considerable practice, Public Works director Lee French can judge the trajectory of that swing, pre-empting any problems.
“It takes a talented operator,” City Clerk Lee Penton said.
French would like a new piece of equipment that would operate with precision and he’s requested one for many years. But he’s been met with a chorus of nos, starting with Mayor Ralph Hammond and descending to finance director Lauren Laramore. Penton said employees have been instructed to repair broken shovels.
“Trust me; what he had was not an easy job,” Penton said of Hammond.
With a hiring freeze, a salary freeze, elimination of health care for employee families, a freeze on all equipment, collection of delinquent fire assessment fees, a 15 percent increase on water fees and a 10 percent increase on sewer fees, the city of Springfield is close to breaking even. Springfield still faces a proposed budget deficit of $660,905, which it will plug with property taxes, about 3.5 mills. A mill is equal to $1 for every $1,000 of taxable value.
“I’m proud of what we’ve accomplished,” Laramore said. “People had to be real creative to keep the lights on.”
The financial situation could be much worse — and has been much worse. As of September 2012, the city’s general fund had a deficit of $1.9 million.
The poster child department for the city’s previous mismanagement is the now-defunct cable department. Springfield sold the cable department in December 2013 for $37,000. In three consecutive years — 2010, 2011 and 2012 — the cable department lost $117,000, $105,000 and $110,000, respectively. The budget for the department was about $200,000. Penton estimates the department, active starting in the early 1990s, had been hemorrhaging money since 2006.
“When they first came in, they made money. Over the years, we did not keep up with technology and things got outdated,” Penton said. “The city wasn’t in the position to spend $300,000 to expand [cable] lines, to keep up with technology.”
Other losses
Over that same three-year span, the Springfield water department lost $223,000, $401,000 and $432,000, and the city still is facing a loss for the 2013-14 fiscal year, projected at $97,121. Sewer also lost money in previous years, including $115,626 during the 2011-12 budget year, but the sewer fund is projected to make a $231,145 profit at the end of the 2013-14 fiscal year. The losses in the water department would have been a much easier fix than cable, with the city raising rates to match Bay County’s rising charges.
“I don’t think anybody knew how to read a financial statement,” Laramore said. “Nobody understood what they were looking at.”
Former City Clerk Teresa Cox, who was in charge of finances, was let go in 2009, allegedly for disagreeing with personal purchases made by former Mayor Robert Walker with the city’s credit card. Anne Andrews, again having total financial responsibility, took over for Cox and was fired in 2013 for fraudulently using the city’s credit card and falsifying documents.
“Since my term began, we have discovered bills unpaid, bills paid late, checks signed but never sent, and several unauthorized credit card purchases by Mrs. Anne Andrews … that appear to be for her personal benefit,” Hammond wrote in a statement at the time.
There was not a finance director until Laramore was hired in June 2013 in concurrence with Hammond’s first term as mayor. Now, Penton pointed out that he has no control over the city’s finances.
“Even if you’re completely honest, what if you make a mistake?” Penton said of the former system. “We had lots of different people out of place.”
Laramore has adjusted city practices to keep better records; the city is two years behind on audits because of a lack of records.
Consequences
Springfield’s recent financial distress has led to a dropoff in services. The city has not been able to afford to regularly patch roads and clean ditches.
“I want to fix all the issues that are credible,” Penton said. “They deserve that.”
While the institution of a tax will give the city more financial flexibility, the city will need to keep a tight belt for the foreseeable future.
“The only thing we can do is start to make things better,” Penton said. “We didn’t get into this problem yesterday and we’re not going to be able to get out of it tomorrow.”