The City of Columbia budget for Fiscal Year 2026 is full of red numbers but it’s not as bad as it seems, city officials say.

Aldermen approved the budget following a public hearing at City Hall Monday night, with Columbia  Director of Finance Emily Voellinger reporting an expected $5.1 million deficit for the upcoming fiscal year beginning May 1.

She explained the deficit is the result of a change in the way the budget accounts for projects budgeted in prior fiscal years.

For instance, an expected $3.7 million deficit in FY25 is expected to end up as a $2.2 million surplus.

“The approach to account for all outstanding projects the city has not yet been billed for has been included in the (FY26) budget versus previously leaving that out,” Voellinger said, adding $1.5 million of the deficit is “what we are holding in reserves for major updates planned for city infrastructures.” 

In the general fund, revenues are expected to be about $8.1 million against just over $1 million in expenses will leave $7.1 million dollar surplus – though much of that balance will eventually be transferred to other department budgets.

Major deficits in the FY26 budget include $1.37 million in the city’s water budget. Much of the deficit is due to a $2 million transfer to the water improvement budget.

Upcoming infrastructure projects to the tune of $2.73 million include work on what Columbia City Administrator Doug Brimm described as the “southern front,” referring to plans for Columbia to provide future water service from the current city limits south to Hanover Road and west of Route 3.

As reported last week, the City of Waterloo has filed a request for declaratory judgement to prevent Columbia from providing water service to a group of parcels at the northwest corner of the intersection of Route 3 and Hanover Road.

Columbia has already reimbursed one property owner just over $450,000 for a water infrastructure project in that Hanover Road area.

Another significant project in that budget is an improvement to the Wecker Booster Pump Station putting the water replacement fund budget at a total of $685,000 in the red – even with a $2 million transfer from the water operations fund.

Sewer fund expenses are expected to be at least $100,000 over revenue with $635,000 in additional sewer line projects scheduled for the upcoming fiscal year.

In order to finance current and future infrastructure project, aldermen on Monday approved a 4 percent increase in water and sewer rates for city customers.

Brimm said this increase is a result of the “impact of increased expenditures for planned increases in the water and sewer operations budget operation fund,” and “accruing funds for future capital projects.”

Brimm explained the city will begin engineering and design  projects for an upgrade to the city’s wastewater sewer lagoon ahead of an Illinois Environmental Protection Agency 2035 deadline in hopes of avoiding rising costs due to inflation.

There is also a $1.4 million deficit in the city’s motor fuel fund, but much of that is due to projects carried over from the current fiscal year.

The capital development budget is projected to have $1.2 million in expenses over revenue, although there are several major projects slated for the new fiscal year – including a connector trail on Quarry Road and the second phase of Centerville Road reconstruction, with $650,000 being spent on Metter Avenue reconstruction and $600,000 going to the construction of Creekside Park.

The street department budget is expected to run a $1.8 million deficit with almost $500,000 being dedicated to street, sidewalk and drainage improvement projects.

Expenses are down in the ambulance fund from the current fiscal year by about $250,000, but revenue is also projected to be down about  $500,000, resulting in a deficit of $423,257.

As with many municipal budgets, the numbers themselves can be deceiving, though. 

During the April 7 meeting, Brimm stated the city is in “great financial shape.”

Even with a much higher cost and number of projects scheduled in the next fiscal year, Brimm still expects the city to wind up with an overall surplus of just under $10,000.

The expected general fund surplus at the conclusion of the current fiscal year will be about $1 million. The end of Fiscal Year 2024 saw a $900,000 surplus.

Brimm also noted operating budgets are scheduled as “worst case scenario.”

Other projects to begin this year are an exploration of a dog park and further development of Admiral Trost Park.

With a misfire of emergency alerts earlier this year, Brimm noted a system to fully automate emergency alerts has been included in the FY26 budget. 

He explained the item does not have its own budget line since the amount is under $25,000 for the upgrade.

There has been no official update from the city regarding expected costs or anticipated method of repair to Valmeyer Road, which has been closed From D Road to Bluff Road since April 11.

Brimm noted that $350,000 had been earmarked for improvements to Valmeyer Road in FY26 prior to the road collapse earlier this month – although initial approximations put repairs in the $500,000 range, if not higher.

A hail storm which damaged aeration lines at the current city wastewater lagoon will also require use of funds above what had originally been expected during creation of the budget.

Other changes to city fees approved Monday include a 2.6 percent increase in the cost of city trash and recycling, which Brimm said was the city  passing along an increase assessed by Reliable Sanitation for its work in the city.

During public input, Carl Woodcock once again addressed city officials regarding flooding concerns in an area of North Briegel Street.

Woodcock has spoken during public comment several times in recent years due to his basement being repeatedly flooded during heavy rain events.

On Monday, Woodcock noted a drainage improvement project was close to failing during heavy rains over the weekend. 

Woodcock’s main concern was a lack of communication from elected officials, saying he was “bamboozled” by not receiving any response to multiple messages recently sent to city officials.

Mayor Bob Hill noted the improvement projects in the area are not yet complete. 

Before the meeting, the City of Columbia acknowledged the varsity and junior  varsity Columbia Eagles Hockey Club teams for their success in the recently completed MVCHA league playoffs.  

The next meeting of the Columbia City Council will be at 6:30 p.m. May 5 at City Hall.