The city of Columbia held two public meetings Monday to explain the city's proposed 2026 budget to residents.
The budget includes $598 million in expenses, but the city only expects to bring in $560 million, which leaves a $40 million deficit.
Even with those numbers city officials say the budget is not in jeopardy.
"Our operating budget is within balance. It's actually at an increase from the previous years. I believe we're at somewhere between $550-some million, and then there's like $539 million in expenditures. So it's a healthy operating budget that is not operating in a deficit," the city's Director of Finance Matthew Lue said.
Part of what has led to the increase in expenses are the city's planned capital interests projects.
Projects like the renovations to Fire Station 10, Albert Oakland Pool and roadwork are expensed in a single year but the city collects revenue for those projects over multiple years.
The city hopes to avoid increasing the sales tax for the 2026 fiscal year. City officials say that while they'll explore all options, raising the tax isn't fully off the table.
"I think what the city will do is look at all means of revenue, see what we can do to enhance what we currently have, and then after that, I don't know if anything will be off the table for discussions in the future," Lue said.
Though the sales tax remains a concern, city officials say there's a lot of opportunity for diversifying revenue.
"We're looking at all of our fees and service charges, some that haven't been changed in many years to make sure that they're on par with the services that we're delivering," Lue said.
There will also be three regular Columbia City Council meetings where residents can provide input on the 2026 budget, starting at 7 p.m. Aug. 18.
