On Wednesday morning, June 16, Columbia City Council held first reading of the coming year’s (July 1, 2010–June 30, 2011) general fund budget. Passed on first reading, the budget’s second reading was scheduled for Wednesday night, June 23, at 6:00, the day after this story went to press. Presumably passed, the budget for the coming year is presented here in detail. For even further detail, go to the city’s website: columbiasc.net.

But first, one exception.

One peculiar exception to proven practices in budgetary matters was the awarding of $250,000 to the Midlands Housing Alliance for its first year of operations with its homeless transition shelter. The first year does not begin until maybe April 2011, once the place is up and running, but the MHA needed the assurance of the $250,000 in operating funds support from the city before construction could begin.

The state’s Department of Revenue sends a rebate to the city upon an establishment’s purchase of a liquor license, and last week the city could count an extra $200,000 in the liquor rebate fund available for whatever purposes city council cared to declare. The liquor rebate money, however, is not available as operating funds, but it is legally available for stormwater projects, according to Adam Beam at

The State newspaper. So council simply shifted the $200,000 from the liquor rebate account to the utilities section of the city. That extra $200,000 pushed into the engineering department at one end essentially pushed out a corresponding $200,000 at the other end, freeing up the $200,000 to use as operating support for the MHA’s homeless shelter.

But the MHA needed another $50,000 to add to the magical $200,000 to make the total $250,000. Between some savings from eliminated positions and some slush from community development block grant money, the city could find another $50,000 to make the MHA happy with its first year’s operating gift of $250,000 from the City of Columbia.

The rest of the budget is more straightforward. As departing Mayor Coble is proud to cite on the cover page of the new budget: “Budget is in balance. No tax increase. No furloughs. No reduction or elimination of services.”

The general fund is $107,395,624, which is an increase of $1.09 million over fiscal year 2009/2010. The total allows for $1 million as a reserve for unanticipated or emergency expenses.

Under its capital replacement program, the city’s budget will include the debt service to cover the issuing of bonds to pay for about $2 million in vehicle technology upgrades and the following 80 vehicles: two fire pumpers, 26 solid waste heavy trucks, three street division heavy trucks, one traffic engineering bucket truck, and 48 police vehicles.

Sources for the general fund come from the following: general property tax, 46%, $49,273,135; licenses and permits, 26%, $27,470,800; fines and forfeitures, 1%, $913,611; other agencies, 10%, $11,087,058; current service charges, 8%, $9,032,605; misc. revenue, interest and use of city property, 0.2%, $254,050; transfers in, 9%, $9,363,430; all comes to $107,395,624.

Expenditures covered by the general fund go to the following: general government, 6%, $6,595,735; finance, 2%, $2,097,909; municipal court, 2%, $2,415,898; development services, 4%, $4,007,140; public safety, 48%, $50,180,257; public works, 16%, $17,447,106; parks and recreation, 9%, $9,275,097; general services, 1%, $1,428,812; information technology, 3%, $2,766,042; debt service, 3%, $5,421,114; nondepartmental and transfers out, 5%, $5,760,514; all comes to $107,395,624.

The general fund budget, according to the previous two paragraphs, sources and expenditures, is balanced.

In addition to the general fund budget, the city will collect and spend for the water and sewer operating fund, $103, 708, 324; storm water operating fund $6,101,396; and the parking fund $7,411,396; altogether another $117,221,116 in three budget categories separate from the general fund.

The water and sewer operating fund will collect a 2% rate increase for the coming year, which will provide needed revenue for the capital improvement program and debt service. This year’s water and sewer debt service is projected at $21,977,312. Water and sewer transfers to the general fund in the coming year will be $4,500,000.

The storm water operating fund of $6,101,396 will transfer to the general fund $1,000,000, same as the current year.

The parking fund will also transfer to the general fund $1,000,000, a decrease of $250,000. The parking fund revenue is collected as follows: parking meters, $2,050,000; garages and lots, $2,303,100; non–moving violations, $1,900,000; misc. and transfers in, $1,158,296; all for a total of $7,411,396.

The city budgets for another four special revenue categories: (1) hospitality tax, (2) accommodations tax, (3) county services, and (4) grants.

The city adopted Ordinance No. 2003–017, effective June 30, 2003, imposing a 2% local hospitality tax on the sale of prepared food and beverages (for immediate consumption or carry–out) by a restaurant, hotel, motel, bar, caterer, or other food service facility within the city. For FY 2010/2011 the city plans on a hospitality budget of $8,490,180: HTAX commitments and contingencies, $2,550,000; EdVenture, $509,850; Columbia Museum of Art, $695,250; Historic Columbia, $451,500; Columbia Music Festival Assoc., $225,000; S. C. State Museum, $200,000; transfers to general fund, $2,300,000; and debt service, $1,558,580; all for $8,490,180.

The S. C. Legislature enacted Bill H2186, which imposed a 2% tax on all accommodations in the state. The purpose of the act is to promote tourism and enlarge tourism’s economic benefits through advertising, and promotion. Also, another purpose of the act is to enhance the ability of the municipality to attract and provide for tourists. The city’s accommodations tax budget for FY 2010/2011 is $1,225,000 and is planned for the following expenditures: convention and visitors bureau, $1,000,000; Lake Murray tourism, $150,000; community promotions, $40,000; contingency, $10,000; and transfers to the general fund, $25,000; all which comes to $1,225,000.

County services budget is approved and funded by Richland County for fire services, $17,206,407, and 911 emergency communications services, $2,197,270. The total county services budget for FY 2010/2011 is $19,603,486.

The city’s grants budget this year will be in two parts: (1) CDBG, HOME and HOPWA total $5,110,935, and (2) other grants come to $14,000,622. The first part is a collection of three entitlement– based, federally funded grants. The second part includes federal and state grants that are awarded based on formula or competitive process grants.

In the end, the city’s combined total budget for FY 2010/2011 comes from: general fund, $107,395,624; water and sewer fund, $103,708,324; storm water fund, $6,101,396; parking fund, $7,411,396; hospitality tax, $8,490,180; accommodations tax, $1,225,000; county services, $19,603,486; and grants, $19,111,557.

The city’s total budget, then, is altogether $273,046,963.