Columbia City Council approves slew of utility rate increases
COLUMBIA, Mo. (KMIZ)
Columbia residents will see higher utility bills beginning Oct. 1 after the Columbia City Council approved increases to electric, water and trash rates Monday night, while delaying a decision on proposed parking rate changes.
The council approved a roughly 6% increase to electric utility rates in a 4-2 vote. Council members Valerie Carroll and Christina Hartman voted against the measure.
According to city documents, the increase is expected to generate an additional $8.6 million to help cover higher energy procurement costs, expiring energy contracts, growing demand and deferred infrastructure improvements.
However, during the meeting, Councilwoman Vera Elwood said she wants the city's communications department to do a better job engaging key stakeholders earlier in the process after several business owners spoke against the proposal.
The council also unanimously approved a 10% increase to water utility rates beginning Oct. 1.
City documents estimate the increase will generate approximately $3.4 million in additional revenue for maintenance, operations, capital improvements, reserve levels and debt coverage.
"As a part of Stantec’s water cost of service study, a 12% revenue increase was approved for FY 2026; the existing non-summer and summer tiered system usage was eliminated; a revised year-round tiered system usage was implemented; and the fire flow charges were combined with the monthly base charges to simplify the rate structure," meeting documents say.
The council also approved new trash collection rates that take effect Oct. 1, but amended the proposal to keep rates for Classification 1 customers unchanged. Classification 1 includes residents using the city's smallest curbside trash carts, while higher classifications cover larger cart sizes that will still see rate increases under the approved plan.
Jason West, communication and outreach supervisor for Columbia Utilities, said the proposed utility rate increases are intended to help maintain city infrastructure and equipment.
“Those rate increases are needed to help with infrastructure needs, maintenance on equipment, the trucks that are being driven to collect recycling and trash, the poles that we need to use and repair and replace for electrical needs, the pipes that are underground for the water system and the sewer system. All of those things require maintenance themselves… That’s where the bulk of these rate increases will go, is to help maintain and be able to stabilize and sustain service for everyone,” West said.
The council did not vote on proposed parking garage rate increases after members voted to table the ordinance and send it back to the Parking Commission for further review.
The proposal would have doubled parking garage rates from $1 every two hours to $1 per hour while reducing free parking from one hour to 30 minutes beginning Jan. 1, 2027. City officials said the additional revenue would help fund more than $1 million in elevator upgrades at the city's older parking garages.
During the meeting, Niki Davis, executive director of The District, urged council members to reject charging for garage parking on Saturdays.
“We are very much against it,” Davis said. “ Very specifically starting Saturdays being paid in garages. It will hurt our businesses in multiple different ways. We hear about it all the time already. ‘I came in and bought a $10 pair of sunglasses, I got a ticket and now this $10 sunglasses cost however much. ’ "
Councilwoman Valerie Carroll echoed those concerns. Councilwoman Betsy Peters later proposed tabling the ordinance and sending it back to the Parking Commission to consider revisions, including maintaining free garage parking on weekends. Council members said they hope to revisit the proposal before Aug. 17 so any changes can be incorporated into the city's upcoming budget.
