City of Columbia, $156 million behind on police and fire pension fund, considers public safety sales tax

COLUMBIA, Mo. (KMIZ)

The City of Columbia is considering a 1% public safety sales tax to help close the multi-million dollar gap in its police and fire retirement fund and support improvements across both departments.

Public safety makes up nearly half of the city's general fund spending for fiscal 2026, with about $66 million budgeted across police, fire and the municipal court. About a quarter of that fund is sales tax. Around $55 million of the public safety budget goes to employee salaries and benefits, leaving little room for other expenditures.

The city is already forecasting sales tax to come in on the lower end of its initial projection for FY 26 due to little to no growth from FY 25.

The city believes the 1% sales tax would bring in an additional $38 million for public safety departments by fiscal 2028. That money would go into a separate and dedicated account; public safety departments would also still receive about $60 million in general revenue funds.

City officials noted the most critical funding need is the retirement fund for Columbia police officers and firefighters. The police pension has a $66 million funding gap, while fire has a nearly $90 million funding gap for a total of around $156 million.

Additional priorities include a new police facility and vehicles, the renovation of three fire stations and two new fire stations, along with hiring 50 new police officers and 40 firefighters over four years.

Columbia has the seventh highest sales tax rate out of the most populated cities in the state, sitting at 7.975%. The new tax would make it the fourth-highest sales tax rate at 8.975%.

The tax increase would have to be passed with a vote by Columbia residents. The City Council will discuss the proposal at its meeting Monday night.