UPDATE: City manager anticipates $5 million less for next year’s budget

UPDATE: City Manager Mike Matthes expects a one percent, or $5 million dollar, decrease in the 2019 fiscal year budget for the city.

“Our old way of funding things is not sustainable, and it’s not producing the kind of revenue that our community expected,” Matthes told reporters after his address Friday morning.

Matthes forecasted a loss of more than $900,000 for the next fiscal year, which starts on Oct. 1. Matthes said a raise in the property tax could help counter the continuing loss of revenue.

A proposal introduced to the Columbia City Council on Monday would allow the finance department to recalculate the tax rate from 41 cents for every $100 of value to a maximum of 43 cents. If the city council votes to set the rate at 43 cents, it could bring in nearly $470,000 a year.

Matthes said that money could be used to save for a new fire station in either the east of southwest parts of town, where response times are lower than other parts of town for the fire department.

“I think it’s a qualitative improvement that I think is not only needed, but expected, and my opinion owed to that part of the community, benefits us all,” Matthes said.

ORIGINAL: The city’s reliance on sales tax is to blame for a smaller budget, said Columbia city leaders.

The loss of sales tax revenue has impacted city workers. Councilman Matt Pitzer said the city can’t pay city employees according to the cost of living increases.

City Manager Mike Matthes said he is considering a priority-based budgeting process for next year. The process takes city departments and ranks them on which the city should fund from most to least important.

Mayor Treece said listening to what voters want is the best way to find the city’s priorities.

“I don’t think we need to hire a consultant to show us where our priorities are,” Treece said.

Instead he said the city should find what Columbia citizens believe needs funding most.

“I think we need to listen to the voters who elected us, who want us to invest in public safety and in infrastructure and in good safe streets,” Treece said.

Columbia plans to give city employees a 25-cent an hour raise.

The city will hold three hearings on the budget over the next few weeks for public input.

The first hearing is scheduled at 7 pm on Aug 20.