Columbia City Council receives some pushback over proposed water utility rate increase in 2025 budget

COLUMBIA, Mo. (KMIZ)

The Columbia City Council held its first-of-three public hearings over the proposed 2025 fiscal year budget during Monday night's meeting at City Hall.

A proposed water utility rate increase was the hot topic of conversation. 

The proposed rates are designed to implement a revenue increase to maintain adequate cash reserves and to meet the utility's debt coverage requirements. Previously City Manager De’Carlon Seewood said the rate increase would be roughly 4%. During Monday’s meeting city staff said that the average increase for Columbia utility customers, based on average usage data will be around $2.58 per bill. 

The majority of people who spoke during the public hearing wanted to talk about the proposed rate increase. Some pushed back, while others simply wanted clarification from the city on where the money would go. 

Julie Ryan -- co-founder of the COMO Clean Water Coalition -- spoke during the meeting. She told ABC 17 News that the coalition has “always supported incremental annual increases to help operational rates,”  but was against this one.

“We need an overhaul in leadership, and we need an overhaul and true communication of what's happening.  We don't understand what the cost of services is for our community members. We don't understand how that relates to what those increases need to be," Ryan said. "And we really don't have a great financial picture that anybody can clearly explain to our ratepayers and our community members. That needs to happen.

"So, we need to hit pause. We need to make sure that we're on the right path and we need people to understand what there really is financially available, and what those rate increases really need to be and we're just not there yet. We need everybody to hit pause, find that vision, find that leadership before we move forward with any new rate increases for our ratepayers.” 

Ryan expressed her frustration with the city for not purchasing any land for a new water tower in southwest Columbia and slow progress on water treatment plant upgrades that she believes should have been completed three years ago. Both projects were part of a 2018 bond issue that voters passed.

“Right now, we need to stop funding failed leadership and we need to actually get done the things that need to get done. And we as residents deserve advanced treatment technologies  and not just putting a Band-Aid on something because that's all we're able to finance at this point in time,” Ryan said

During the meeting, city staff said the proposed plan could include three or four more rate increases in the next five years. Each rate increase would be evaluated year-by-year to determine how much it will be.

This comes after the city conducted a comprehensive water rate analysis and found that its water utility rate is cheaper than similar cities, according to city documents. City staff added that the current rate is one of the most affordable in the state for a community of its size. 

A budget message was delivered last month followed by a work session. The city cited infrastructure, housing social services and public safety as its biggest priorities. The proposed budget for 2025 comes in at a $21 million deficit. The city will be bringing in roughly $537 million compared to the $558 million it expects to spend.

The city has addressed the public regarding the budget and they are encouraging Columbia residents to attend the upcoming council meetings. This includes Monday, Aug. 19, and Tuesday, Sept. 3.

If approved by the City Council, the water rate increases would go into effect Oct. 1.