06/02/2026
Thoughts?
In the first of a 5-part series, Buz reports, "the City of Columbia had $534 million in cash reserves as of March 31. That number is real. But it is often misunderstood."
With tax hikes pending voter approval, it's a good time to address this half-billion dollars in and ratepayer money.
"Those cash reserves are sometimes cited in public arguments as if it were one large reserve account city hall could use to avoid new taxes, rate increases or budget cuts," CoMoBuz continues.
$534 million out of a $600 million annual budget is an 89% cash reserve. Government accounting standards recommend 17% and no local ordinance or City Council guideline mandates more than 25%.
In brief, City Hall is taking in and sitting on, WAY too much of OUR cash. It is the BIGGEST indicator that does not need more rate, fee, fine, or tax increases.
"City officials call it 'pooled cash.' It’s the combined balance of many separate city funds ... some is legally restricted ... Some is already assigned ... "
Of course. No argument here. But City Hall is STILL sitting on TOO much of our cash. As a percentage of the annual budget, it's way out of whack. What's more, A LOT of the city's pooled cash is "unrestricted and unassigned." Hundreds of millions, in fact. With NO restrictions of any kind.
Finally: what "city officials" say is exactly what's gotten us into this financial mismanagement mess. A State would be a lot more credible, but "city officials" fought like crazy the only attempt to do a state audit about 8 years ago. Why, if they can stand by what they say with hard facts?
"Much of Columbia’s pooled cash is held at UBS, a Swiss-based global financial services company with major U.S. operations ... Cash is also held in the Missouri Securities Investment Program ... and $2 million in the city’s working checking account at Commerce Bank. The city reported about $23 million in investment income during its 2024 fiscal year."
But what good is that "investment income" doing US? Why can't it be returned via lower taxes, lower utility bills? Or pay for cops & firefighters?
STOP! Of course it can't, right? Cuz this restriction, this mandate, this project, this rule, this blah blah blah.
If all these funds were SO restricted, why do city leaders keep spending the money on stuff we don't need, on projects that have NOTHING to do with said restrictions?
They do it ALL the time. They built that HUGE new City Hall downtown with pooled cash funds and NO vote of the people. They spent millions for that Providence Park & the McKinney Building and dozens of other unusual projects (like bullet proof glass in City Hall lobbies while the Mayor can't stop preaching about how safe downtown Columbia is).
"Pooling cash can improve liquidity and increase investment earnings. But it does not erase the legal, accounting or policy restrictions attached to the underlying funds."
Tell "city officials" that. They erase those qualifiers whenever THEY want. They only enforce them when We the People want or need something.
The BS level is staggering. And it is corrupting an institution, Columbia City Hall, that has both tremendous goodwill among its citizens and also, tremendous power. To make life harder. Or easier, for all of us.
More than ever, We the People need the latter, the make life easier, option.