Jefferson City Mayor Carrie Tergin's first veto was a statement of both reason and principle.
The mayor last week vetoed the city's annual budget, after the 10-member City Council approved an amended blueprint that included an increase in the city's gross receipts utilities tax, or GRUT.
The council, on an 8-2 vote, overrode the mayor's veto. (Seven votes are required.) The council's increase in the utility tax rate from 5.65 percent to 6 percent is estimated to generate $294,000 annually for vehicle replacement, as well as vehicle and building maintenance.
The approved tax hike did not reach the authorized 7 percent ceiling, which would have raised an additional $1.1 million.
In her veto message, Tergin argued a GRUT increase is unnecessary. "I am not convinced that the city's financial need justifies increasing taxes by any amount at this time," she wrote.
Not only is a tax hike unnecessary, it adds to the tax burden on businesses and residents, and may jeopardize renewal of the city's half-cent capital improvements sales tax, to be placed before voters next year. The sales tax renewal is expected to generate about $5 million each year, or $25 million over the five-year duration.
We commend 4th Ward Councilman Carlos Graham, who raised concerns when discussion of a GRUT increase began and remained steadfast in his opposition.
Graham was one of the two council members to support Tergin's veto. "I just hope this doesn't come back to bite us in the butt," he said last week.
We also applaud 3rd Ward Councilman Ken Hussey, who supported the veto after voting in favor of the budget that included the GRUT increase. Hussey said he listened to constituents and decided, ultimately, the fractional tax hike wasn't worth jeopardizing public trust and confidence in the council.
We share concerns that a council-imposed $294,000 annual tax hike might threaten voter approval of $5 million in annual sales taxes.
Historically, veto powers rarely have been exercised by Jefferson City mayors, but the GRUT increase deserved a veto stamp.
The tax hike is an unnecessary half-measure that risks Jefferson City's future growth. Sadly, the mayor's veto did not generate sufficient foresight and support.