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Columbia projects general fund shortfall beginning 2026; staff asked to find 3% in savings
Summary
Finance staff told the City Council at the April 21 pre-council meeting that sales-tax growth has slowed, producing a $1.7 million year-over-year drop and a budget trajectory that produces a general‑fund deficit beginning in 2026. Departments were asked to identify roughly 3% in reductions and to review long‑unfunded positions.
Columbia finance staff warned council members at the April 21 pre‑council meeting that a slowdown in sales tax growth and lower investment returns leave the city on a path toward a general‑fund deficit beginning in fiscal year 2026.
Finance Director Matthew Lou presented the revenue forecast and said the city expects to collect about $30.1 million in sales tax in fiscal 2025, roughly $1.7 million less than in 2024. ‘‘This is our…forecast for the fiscal year,’’ Lou said. City economist Deep Dev added that staff are using Oxford Economics projections and a 3.5% near‑term decline in historical monthly receipts to inform the outlook.
The forecast shows an expected ending cash balance of about $38 million in 2025 compared with a cash‑reserve target of about $25.7 million; at the presented trajectory staff said the reserve would be drawn down in later years and the city…
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