City of Columbia revenue falls short again in FY’26 proposed budget
Olivia Hayes
COLUMBIA, Mo. (KMIZ)
Spending projections continue to rise, while revenue continues to fall for the City of Columbia.
The Columbia City Council is set to hear input from Columbia residents during its Monday night meeting.The City’s budget is made up of five different fund types: the general fund, enterprise funds, internal service funds, special revenue Funds and debt service funds.
Total costs increased for the second year in a row, with nearly $600 million in projected spending. The city allotted for $563 million of total spending for the 2025 fiscal year.
However, even with the city’s revenue increasing for the third year in a row, it’s no match for its needs. The city is predicting it will bring in around $560 million of revenue for 2026, according to online documents. That still leaves a deficit of $40 million, nearly double the city’s deficit for 2025 of $23 million.
The city’s general fund is also taking a hit, with a $1 million projected decrease in revenue for the 2026 fiscal year at around $133 million. The city lists $137 million in projected spending costs for 2026, leaving a $4 million deficit.
The general fund covers the expenses for the city’s public safety departments. The predicted spending needs for the police and fire departments, along with the municipal courts, for 2026 is projected to be nearly $75 million. However, the general fund only allotted $67 million for the new fiscal year.
The Columbia Police Department and the Columbia Fire Department saw cuts to their budgets. In the 2025 budget, the police department received $34,984,232. In the 2026 budget, the police department is receiving $34,841,846. Thats a decrease of more than $140,000.
The fire department received $31,489,019 in the 2025 budget. In the 2026 budget, the department is projected to receive $31,190,253, a decrease of nearly $300,000.
One of the ways the city is looking at bringing more money in is by changing the way it charges customers for water rates. Council members will hear public comment on that, the proposed budget and more at its meeting Monday night. The meeting is at 7 p.m. at Columbia City Hall.
The new budget cycle will begin Oct. 1, 2025.