Ferguson proposes tax hike to cover costs of revamping police and court

FERGUSON • Voters will be asked this summer whether to raise their utility tax to cover some of the city’s cost of revamping its police and court to comply with a settlement with the the U.S. Justice Department.

Mayor James Knowles III and the City Council met Sunday to consider putting a 2-percent increase in the city utility tax on the ballot Aug. 2. Knowles and council members voted unanimously to send the issue to voters. But they voted to table a proposed property tax hike also intended to help meet the city’s financial obligation under its agreement with the Justice Department.

Protests over a police officer’s fatal shooting of Michael Brown in 2014 prompted the Justice Department to investigate Ferguson’s police and court practices. The investigation resulted in allegations of illegal stops, searches and arrests driven partly by racial bias and a demand from the government to make changes.

The special Sunday session was needed to allow the city to meet St. Louis County election officials’ deadline of Tuesday to receive issues included on the Aug. 2 ballot.

Some council members said they preferred submitting both tax hikes to voters, pointing out that voters narrowly defeated a property tax increase in the election April 5.

But all agreed that winning approval of two tax increases in one election would be difficult. Council members noted that the utility tax increase needs only simple-majority approval for passage while a property tax increase would require approval bytwo-thirds of voters.

Knowles said he believes voters will favor the higher utility tax even though it would not end all the city’s budget problems.

“I think we can stop some of the bleeding and keep up services with the utility tax,” he said.

City officials estimate the utility tax increase — to 8 percent from 6 percent — would generate $700,000 in annual revenue. They said the property tax hike increase would have raised $500,000 annually.

While defeating the property tax increase in April, voters approved a half-cent city sales tax hike for economic development. The City Council passed an ordinance Sunday to begin collecting the tax.

Before deciding the tax-hike matters, Knowles and council members spent more than two hours going over the city’s proposed fiscal 2017 budget. More meetings will be held before the budget year begins July 1.

City leaders spent months negotiating the resulting agreement with the Justice Department to change police practices. A federal judge approved the agreement on April 19.

Ferguson officials are trying to find the money needed to pay for the agreement’s costs while maintaining services and preserving the jobs of three firefighters needed to keep the city’s second firehouse in operation.

City officials hope to get grants to help defray the costs of meeting Justice Department requirements that require police staffing levels. Among cost-saving measures under consideration is the transfer of emergency response dispatching to St. Louis County.

A Ferguson police officer shot Brown during an altercation on Aug. 9, 2014. A county grand jury’s decision in November 2014 not to indict the officer in the shooting led to protests, rioting and looting.

Tim Bryant • 314-340-8206

tbryant@post-dispatch.com

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