Columbia adopts FY2026 budget after amendment to reduce interfund transfer; general fund shows small projected deficit

The Columbia City Council approved the fiscal year 2026 budget on third and final reading Sept. 15, following a pair of council motions to amend the published amendment sheet and to adopt the ordinance as amended.

Budget staff presented an overview of the process and the numbers. Matthew Liu, presenting for finance, described the role of fund accounting in municipal budgets and said the city’s proposed FY2026 totals included roughly $559 million in revenue and $608 million in total expenditures when capital projects are included.

Liu said the general fund proposed budget shows $132.6 million in revenue and $135.3 million in operating expenditures, leaving a projected general fund deficit of about $2.7 million. He briefed council on the city’s cash reserves and noted that a one‑time settlement in FY2025 had boosted available cash in the prior year.

Councilmembers also approved a technical correction to an amendment previously numbered 54: Budget staff and the budget analyst Megan Montesinos explained that a previously recorded $900,000 transfer in the amendments was not required because the project revenue and expense are in the same fund. Montesinos told the council, “This will replace line number 54 on the amendments that you approved last time, and it's just a correction, essentially.” The council voted to replace amendment line 54 with the corrected figures and then adopt Bill 183-25 as amended; the roll call was unanimous.

Council discussion and public comment emphasized transparency and public engagement. Michelle Casey of the Central Missouri Humane Society asked council to consider municipal support for a planned shelter capital project; she said the shelter’s building has safety and mold issues and urged city partnership in a new facility. Several speakers praised staff’s outreach and the expanded budget town halls and graphics, while others asked for clearer breakdowns of “services” and “miscellaneous” line items in future documents.

Staff described a multistep public engagement calendar this year — town halls, work sessions and pre-council briefings — and said they would continue to refine budget communications in response to council and public feedback.