City of Columbia, Missouri
Meeting Minutes - Final
City Council
City Hall
Monday, February 24, 2025
2:00 PM
Budget Work Session
Council Chambers
701 E. Broadway
Columbia, MO.
I. CALL TO ORDER
Mayor Buffaloe called the meeting to order at approximately 2:00 p.m.
6 - Buffaloe, Foster, Waterman, Meyer, Peters, and Carroll
Present:
Absent:
1 - Lovelady
Revenue Discussion
Attachments: Revenue Presentation
Finance Director, Matthew Lue presented City Council members with the current revenue
outlook, some trends and emerging issues.
Lue went on to discuss the general fund revenue expenditure projections and general fund
revenues. Lue also showed a graph that showed Missouri cities general fund revenue
breakdown.
Next, Lue discussed Payments in Lieu of Taxes (PILOT). These are payments that help
local governments offset losses in tax revenue due to the tax exempt nature of owned real
property within its boundaries. PILOT payments make up 10.3% of all Governmental
revenue and is the third largest revenue source for Governmental activities.
Lue then went on to discuss progressive vs. regressive taxes. A progressive tax is a tax
system where the tax rate increases as an individual's income increases. Higher-income
earners pay a larger percentage of their income in taxes compared to lower-income
earners. Progressive taxes are designed to distribute the tax burden more equitably,
based on individuals' ability to pay. Progressive taxes include property tax, estate tax,
and federal income tax.
A regressive tax is a type of tax that takes a larger percentage of income from
lower-income individuals compared to higher-income individuals. Essentially, it
disproportionately impacts those with less money because the tax amount represents a
larger share of their income. Regressive taxes include sales tax, excise tax and payroll
tax.
Next, James McDonald, Assistant Finance Director discussed the pros and cons of
sales tax and property tax.
Lue discussed potential revenue sources which include sales tax, capital improvement
sales tax, parks sales tax, public safety department sales tax (state legislation would be
needed), economic development sales tax, capital improvements for public safety sales
tax, public safety sales tax, and additional tax on tobacco products.
