City of Columbia, Missouri  
Meeting Minutes - Final  
Finance Advisory and Audit Committee  
Conference Room 1C  
Columbia City Hall  
701 E. Broadway  
Monday, November 18, 2024  
Regular  
1:00 PM  
I. CALL TO ORDER  
Attending from the Finance Department was Mattew Lue, Shane Edwards and  
Jessica Sapp. Also in attendance was resident John Conway and Mike Murphy of  
CoMo Buzz.  
4 - Kristian Bloom, Randy Minchew, Brian Toohey and Peter Schneeberger  
Present:  
3 - Maria Oropallo, Thomas Richards and Karilee Gruenberg  
Excused:  
II. INTRODUCTIONS  
Introductions were made.  
Welcomed new member Peter Schneeberger.  
III. APPROVAL OF AGENDA  
Mr. Minchew made a motion to approve the agenda; Mr. Toohey seconded the  
motion and it was approved unanimously  
APPROVAL OF THE MINUTES  
IV.  
Attachments: FAAC Minutes_102124  
Mr. Minchew made a motion to approve the minutes as presented; Mr. Toohey  
seconded the motion and was approved unanimously.  
V. OLD BUSINESS  
FAAC Structure/Mandate Review  
There was some discussion about removing "FAAC Structure" from the agenda now that  
the committee has seven members.  
Minchew pointed out that there are still some items on the Mandate, for example, how  
FAAC can bring forward to the council, as well as how FAAC responds to the Council.  
No action was taken.  
Finance Ordinance Review  
New Ordinance - Purchasing policy still in Legal.  
City Council Agenda Review  
Nothing to report as Finance did not have any items on Council's agenda.  
Citizens Summit  
Lue explained that the proposed Citizen Summit is based on the Strategic Plan. The  
public is invited to hear about general city processes and to provide input. It is expected  
to be held on March 15, 2025. At the January FAAC meeting, he will provide an update.  
VI. NEW BUSINESS  
New Member Oath - Peter Schneeberger  
Payment in Lieu of Tax (PILOT) - Water & Light Utilities  
Lue pointed out that the Council could set any rate they wanted. The decision to use the  
property tax rate was established.  
Minchew said the PILOT mirrors the property tax collecting but doesn't mirror the property  
tax distribution.  
Lue responded that if there is a profit at the end of the year, it can be moved to GF.  
Minchew said calling it a property tax is the problem. It is not, and it is not distributed as  
such, which may be causing confusion.  
Technically, it can be collected at any rate. Minchew said it is important for the city to be  
clear. Encourages people to raise questions.  
Put it on old business. Utility annexed into the city, and now pays property tax.  
After some discussion, the FAAC agreed not to continue this item on the agenda.  
Revenues & Expenses  
Discussion included:  
1) Parking enforcement has moved. Edwards explained that the City tracks parking  
zones to see if we can bring more revenue.  
Currently, Parking is losing money. Some people are not paying the meter, probably due  
to not getting fined.  
Edwards said this is being discussed with Transportation Dept.  
2) The budget called for using $10M from reserves. In 2024, the city spent less and  
collected more tax revenue than budgeted. There was some spending, $4M from  
reserves, to pay for vehicles and equipment that this report may not reflect. Lue described  
how the City has changed equipment funding to preserve savings for future purchases.  
Vehicle equipment fund changes  
3) Use tax was much higher than expected. Budgeted for 9-10%, came in at 16%.  
4) The Hotel/Motel Tax review was requested for the next meeting.  
5) Edwards to present completed Local Tax info at the next meeting.  
6) Marijuana tax receipts are higher than expected.  
7) Internal service funds were explained and discussed  
8) Investment revenue policy was discussed, including how municipal investing is  
restricted. Lue reported the city did better than expected  
at around 5%  
9) Toohey asked what "Contribution" was. Lue replied he would bring an explanation to  
the next meeting.  
10) Schneeberger asked about Transfer in - Transfer out. Lue described it as payments  
from one fund to another fund.  
Public Safety Pensions  
City is looking at a move to LAGERS. FAAC will discuss the financial aspect in the next  
meeting.  
Monthly Economics Report  
• In October, the national headline remained stable at 3.33% while core inflation elevated  
to 2.60%, compared to 3.31% and 2.44% in September.  
• However, overall headline inflation among Midwestern cities with a population of less  
than 2.5 million increased from 2.11% to 2.32% in October, while core inflation (excluding  
food and energy) decreased to 2.86%, compared to 2.96% last month.  
• Housing inflation is concerning, as among Midwestern cities it remained high at 4.86%  
in October 2024, higher than September’s 4.69%, and Columbia is not the exception.  
• The unemployment rate in Columbia decreased by 0.85 percentage points in September  
to 2.39%, compared to 3.24% in August 2024. Missouri's unemployment rate followed a  
similar pattern and decreased by 0.85 percentage points in September to 3.03%,  
compared to 3.87% in August 2024.  
• The national unemployment rate slightly decreased by 0.17 percentage points during  
this time, from 4.22% to 4.05%, in September. However, in October 2024, the national  
unemployment rate rose to 4.15%, around nine percentage points.  
• In November, the Federal Reserve decided to reduce the interest rate further from 4.75 -  
5.00% to 4.50 - 4.75% by 25 basis points (bp), or 0.25%. The decision aims to support  
the committee’s main goals: maximize employment and lower the currently elevated  
inflation back down to its 2 percent target.  
• The median home price in Boone County is higher than that of the state of Missouri by  
around $60,050. In September 2024, the median home price in Boone County increased  
by 8.20%, while the average price increased by 9.82%, compared to September 2023.  
• Sales tax collections in November (September tax period) totaled around $5.46 million,  
while Use tax collections came to about $1,206,333, 18.82%, and 75.86% higher than  
last year in November. The September 2024 Use tax collections are equivalent to 22.10%  
of the total Sales tax collections, which is the second highest share in FY 24. This could  
be due to increased consumer spending - as during the month of September there were  
many University events, including football games.  
• In November (September tax period), marijuana-related excise tax collection was  
$64,959, around $2,500 more than the previous month.  
Note: All inflation measures are for Midwest cities with less than 2.5 million population.  
Attachments: Monthly Economic Report-November 2024  
VII. GENERAL COMMENTS BY PUBLIC, MEMBERS AND STAFF  
VIII. NEXT MEETING DATE  
December 9, 2024  
IX. ADJOURNMENT  
Mr. Schneeberger made a motion to adjourn the meeting; Mr. Bloom seconded  
the motion and it was approved unanimously.