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Columbia presents FY2027 budget proposal with no property tax increase and 5% water/sewer rate adjustment
Summary
City staff presented a proposed $500 million consolidated FY2027 budget, with a $203 million general fund that does not raise property taxes, a $232 million water and sewer budget that includes a 5% rate adjustment (about $3.92 monthly on an average in‑city bill), and $93 million in water CIP; council advanced the budget on first reading.
Missy Kaufman, assistant city manager, presented the City of Columbia’s proposed FY2027 consolidated budget to the council and public, stressing that the plan maintains service levels without a property tax increase and relies on multiple restricted funds and user fees.
Kaufman said the consolidated budget is roughly $500 million, with the general fund proposed at $203 million and water and sewer composing the largest share. She said the proposal uses about $5 million of fund balance and increases capital lease proceeds from $4 million this year to $15 million next year to fund rolling stock and technology replacement.
On enterprise funds, Kaufman said the water and sewer budget is proposed at $232 million to serve more than 400,000 customers in and outside the city. She said the package includes a 5% water and sewer rate adjustment and that the average in‑city user’s bill (about 6,000 gallons or 800 cubic feet per month on the city’s example) would rise by about $3.92 a month.
Kaufman reviewed special revenues and tourism-related funds. She said hospitality tax is proposed at $17.4 million, the tourism development fee roughly $5.9 million, and state accommodations tax about $3.9 million, each governed by state restrictions and reviewed by an external hospitality committee whose funding recommendations the council will consider next week.
The capital improvement program (CIP) highlights included a $93 million water CIP and a $60.6 million wastewater CIP, with $24 million of cash-funded water and sewer CIP. Kaufman emphasized that debt service remains a significant component of the enterprise budgets and that the CIP blends cash and debt to fund plant improvements and capacity projects.
Council moved and seconded to take up ordinance 2026044 to raise revenue and adopt the FY2027 budget. A roll call recorded affirmative votes from all members present, and the ordinance advanced on first reading. Kaufman and council members noted that second reading and final adoption are scheduled next week before the July 1 fiscal year start.
The presentation and first reading materials will be posted on the city website and the council invited public comment during the hearing period.
