Columbia approves 2018 budget after $1 million in cuts

2 months 3 weeks 4 days ago Monday, September 18 2017 Sep 18, 2017 Monday, September 18, 2017 10:33:00 PM CDT September 18, 2017 in News
By: Danielle Katz, KOMU 8 Reporter
loading

COLUMBIA - The city council voted on Columbia's 2018 fiscal year budget Monday night after a work session and public hearing. In order to increase general fund revenue, the city will make departmental budget cuts worth $1.1 million.

City Manager Mike Matthes submitted the budget to the city council in July. The Columbia City Council held four public hearings on the budget.

“We are looking at lean years ahead. We will have to change how we have always done things if we want to thrive as an organization dedicated to the service of others," Matthes said in his budget message.

The city council faces reductions in Columbia's general fund because of less revenue but also is planning for less spending. 

The city council voted not to raise utility rates as planned. It wanted to increase the electric rate by 1 percent and the water rate by 4 percent, but expressed some concerns with the Columbia Water and Light Advisory Board. It approved the water rate increase but denied the electric rate increase.

Third Ward council member Karl Skala said there was controversy over whether the board turned in financial reports on time. 

“We’ve all been in this boat because of the switch over to a very expensive but comprehensive new software system for billing," Skala said.

Second Ward council member Michael Trapp said he supported the electric utility increase because it was necessary to pay for operational expenses and needed capital investments.

"Delaying them will require steeper rate increases in the future and risk the city's bond rating. Even with the rate increase we are projected to fall short of our financial targets for reserves," Trapp said.

The city council has also made cuts in the IT and custodial departments and will continue a hiring freeze for the city's fire and police departments. One of the city's goals for 2018 is to avoid laying off full-time employees.

Matthes said the city's biggest challenges are low sales tax growth, rising health care and pension costs and high transit costs.

The city planned to raise paratransit costs per ride and eliminate three public bus routes since current transportation costs are exceeding revenue by $600,000.

Columbia's sales tax growth has also steadily declined since the 2011 fiscal year, when it was 5.8 percent, to a projected 1 percent for 2018. Skala said this is due to a large increase in online sales. 

Skala said a use tax voted on in November could recover up to $1 million per year.

More News

Grid
List
OLATHE, Kan (AP) — A third man has been convicted in the killing of a suburban Kansas City gun... More >>
50 minutes ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 8:46:29 AM CST December 14, 2017 in News
JEFFERSON CITY - The Missouri Department of Health and Senior Services said it concluded a three-month long investigation into a... More >>
1 hour ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 7:54:30 AM CST December 14, 2017 in News
JEFFERSON CITY - Mid-Missouri could be gaining its second, fully-accredited Montessori school. Tonight Woodland Montessori will put forward its... More >>
2 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 6:53:00 AM CST December 14, 2017 in News
UPDATE: The Missouri State Highway Patrol has confirmed they have arrested 36-year-old Audrey Griffith in Audrain County in connection with... More >>
2 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 6:49:00 AM CST December 14, 2017 in News
COLUMBIA - On Wednesday evening, Columbia Police Officers were dispatched to the 2300 block of Carpenter Drive in reference to... More >>
3 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 6:20:46 AM CST December 14, 2017 in News
COLUMBIA - Columbia Police Officers responded to the 1500 block of Vandiver Drive in reference to a reported home invasion... More >>
4 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 5:28:42 AM CST December 14, 2017 in News
Update: Columbia Police Officers have made an arrest in regards to Wednesday morning's incident in the 1500 block of Fir... More >>
4 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 4:50:00 AM CST December 14, 2017 in News
JEFFERSON CITY (AP) — The director of the Missouri Veterans Commission has resigned amid complaints about care at the St.... More >>
10 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 10:37:00 PM CST December 13, 2017 in News
SALINE COUNTY - Former Columbia Police officer Rob Sanders will head back to the courtroom in May 2018 as he... More >>
11 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 10:03:00 PM CST December 13, 2017 in News
The St. Louis Cardinals have acquired outfielder Marcell Ozuna from the Miami Marlins. The deal is pending a physical. ... More >>
11 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 9:41:00 PM CST December 13, 2017 in Sports
COLUMBIA - Today the Federal Communications Commission will vote on a plan to repeal net neutrality and librarians worry this... More >>
12 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 8:44:00 PM CST December 13, 2017 in Continuous News
AUDRAIN COUNTY - The man who was found on Audrain Road 913 Tuesday next to a crashed car died of... More >>
13 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 8:32:00 PM CST December 13, 2017 in News
MOBERLY - Missouri law enforcement is impeded by a number of issues in cases involving child sexual abuse. Alleged... More >>
13 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 8:20:00 PM CST December 13, 2017 in Target 8
COLUMBIA - The Columbia Chamber of Commerce hosted the ninth and final public hearing by the 21st Century Missouri Transportation... More >>
14 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 7:12:00 PM CST December 13, 2017 in News
COLUMBIA - The Federal Communications Commission vote to repeal net neutrality is fast approaching. The vote to remove regulations that... More >>
14 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 7:12:00 PM CST December 13, 2017 in News
JEFFERSON CITY - The Justice Reinvestment Task Force took a big step Wednesday when it comes to addressing mental health,... More >>
14 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 6:53:00 PM CST December 13, 2017 in News
COLUMBIA - As Columbia Regional Airport plans to expand, it got a push from Mayor Brian Treece. Treece called... More >>
14 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 6:37:00 PM CST December 13, 2017 in News
COLUMBIA - Missouri is among the worst states nationwide at preventing its young people from smoking and using tobacco, according... More >>
15 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 6:15:00 PM CST December 13, 2017 in News
Columbia, MO
Broken Clouds 33°
10am 34°
11am 34°
12pm 35°
1pm 36°

Select a station to view its upcoming schedule:

Coming Up Next

9:00a
Megyn Kelly TODAY
10:00a
Today with Kathie Lee & Hoda
11:00a
Rachael Ray
9:00a
The Steve Wilkos Show
10:00a
Jerry Springer
11:00a
Jerry Springer

Tonight's Schedule

6:30p
Football Night in Indianapolis
7:20p
Thursday Night Football
7:00p
iHeartRadio Jingle Ball 2017
8:30p
Whose Line Is It Anyway?
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld