Columbia City Council Budget Workshop Summary - May 26, 2026

On May 26, 2026, the Columbia City Council convened a Budget Workshop from 1:13 p.m. to 4:04 p.m. to continue its review of the proposed Fiscal Year 2026/2027 budget. The meeting featured extensive discussion on the General Fund, public safety priorities, enterprise funds (Water & Sewer, Stormwater, Parking), the Capital Improvement Program, and strategies for revenue generation. Council adopted the agenda as amended and later entered into an Executive Session regarding property sales and a legal claim.

Consent Calendar

• The agenda was adopted unanimously upon a motion by Councilor Sam Johnson and seconded by Councilor Edward McDowell, with an amendment to add a discussion of legal advice relating to a pending claim. Councilors Bailey, Herbert, Brennan, Johnson, and McDowell voted in favor. Councilor Peter M. Brown was absent. (5-0-1)

Discussion Items

• Budget Framework & Efficiencies: City Manager Teresa Wilson noted the city is having to utilize more fund balance than previously and proposed measures such as millage increases. Assistant City Manager Missy Caughman explained that a "flat budget" holds departments to their previous year's allocations. Significant operational efficiencies were reported, including reducing the work order backlog from over 5,000 to under 1,100 through technology and the use of private contractors. Wilson highlighted improvements in animal control response, false-alarm notifications, and civilian accident response.
• Public Safety & Annexation Impact: Police Chief William “Skip” Holbrook reported that the city has annexed 37 residential and 35 commercial properties in the last 30 months, adding roughly 2,000 units. He stated that the police department is reaching a “critical mass” and that public safety demands are increasing with growth. Councilor Edward McDowell raised concerns about the public safety impact of a potential 350-acre development at Blue Ridge Terrace. Councilor Tina Herbert requested detailed data on the operational costs of future annexations to inform decisions.
• Millage Rates & Revenue Alternatives: A central debate focused on a potential millage increase. Councilor Herbert stated she could not support raising the millage for projects costing between $200,000 and $600,000 and preferred seeking budget cuts. Councilor Sam Johnson suggested selling available parcels to bridge funding gaps rather than imposing new taxes or fees. City Manager Wilson reiterated that the millage is the primary recurring revenue tool available under state law. A discussion exploring a vacant lot/property fee and revisiting legal constraints on a public safety fee occurred.
• Enterprise Funds: Missy Caughman presented the proposed $232 million Water & Sewer budget, which serves 375,000 customers and includes the final year of a planned 5% rate adjustment. The Stormwater budget is proposed at $20.5 million, with a rate review underway. The Parking Fund budget is proposed at $7.2 million, reflecting a 28% increase in revenues due to full implementation of prior rate adjustments. Henry Simons introduced Larry Hall as the new Parking Operations Administrator.
• Capital Improvement Program (CIP): No General Fund CIP is proposed for FY 2026/2027. The proposed enterprise CIP includes $93 million for Water & Sewer, $6 million for Stormwater, and $2.6 million for Parking improvements.

Key Outcomes

• Agenda adopted unanimously (5-0-1) with an amendment for an Executive Session item.
• Council voted unanimously to enter Executive Session at 3:30 p.m. to discuss negotiations regarding the sale of property at 801 Blossom Street and 816 Greene Street, and to receive legal advice regarding Washington v. City of Columbia.
• The budget schedule was confirmed: the Special Revenue Workshop and Budget Public Hearing will be held on June 9, 2026, followed by Final Budget Approval on June 16, 2026.
• Staff was directed to continue exploring alternative revenue sources, including a vacancy tax on properties and revised impact fees, and to provide council with an annexation impact template.
• The council noted a future retreat for strategic planning related to long-term revenue and sustainability.