After Mayor Carrie Tergin sought to veto the city's 2016 budget, the Jefferson City Council successfully overrode the attempt, keeping the budget as passed earlier this month.
At the council meeting Monday, Tergin announced her veto of the 2016 budget because it includes an increase to the city's gross receipts utility tax, or GRUT.
"I am not convinced that the city's financial need justifies increasing taxes by any amount at this time," Tergin said.
The approved budget included a utility tax rate increase from 5.65 percent to 6 percent, which is estimated to raise $294,000 in new revenue and would be used to address the city's vehicle replacement and maintenance needs.
The city's gross receipts utility tax is capped at 7 percent; to increase the rate any higher would require a public vote. The telephone tax has remained at 7 percent for years, but the gas and electric taxes were lowered to 6.55 percent in 1982 and to 5.65 percent in 1984.
According to the city charter, a veto by the mayor triggers an automatic question to the council: Should the ordinance take effect despite the disapproval of the mayor?
That question was approved by a vote of 8-2, with 3rd Ward Councilman Ken Hussey and 4th Ward Councilman Carlos Graham casting the opposing votes.
Graham, who also voted against the budget earlier this month, said nothing has changed for him and he continues to have concerns on how the tax increase will effect the renewal of the city's half-cent capital improvement sales tax, which will be on the ballot next year.
"I just hope this doesn't come back to bite us in the butt," Graham said of the utility tax increase. "I'm still standing with my constituents."
Hussey, who had voted to approve the budget earlier this month, said in the last couple of weeks he has heard from residents who have concerns about the tax increase, primarily that it was done without a public vote. Hussey said he questioned whether less than $300,000 per year was worth jeopardizing the public trust and confidence in the council.
In discussing the veto, 2nd Ward Councilman Rick Mihalevich said nothing has changed since the budget was approved earlier this month and noted that if the city's long-term finances begin to look better, the tax can be rolled back next year.
Fifth Ward Councilman Larry Henry said it is the council's responsibility to do what has to be done, even if it's raising taxes, regardless of how popular it will be.
"No one wants to do it, but it's where we're at," Henry said. "I'm willing to take that hit."