The pattern repeats.
A political subdivision holds a public hearing on tax rates. Few, sometimes no, members of the public attend. Hearing little objection, the political subdivision raises rates. The public becomes outraged.
The Jefferson City Council is considering an increase in its gross receipts utilities tax (GRUT) to finance capital projects.
The council hosted a public hearing Monday and delayed a decision after hearing from only two people.
One resident, Don Trabue, opposed an increase, largely on the basis that the city already enjoys greater tax revenues as utility rates rise.
Also addressing the council was Jefferson City Area Chamber of Commerce President and CEO Randy Allen, who spoke on behalf of the business community. He relayed concerns that increasing the GRUT for capital replacements could create confusion for city voters who will be asked next year to extend the city's half-cent capital improvements sales tax.
That concern previously was voiced by 4th Ward Councilman Carlos Graham and echoed in this forum on Aug. 12.
A GRUT increase to the maximum 7 percent would raise an estimated $1.1 million annually for the city. If next year's proposed sales tax extension is approved, the city expects to receive about $5 million each year, or $25 million over the five-year duration.
Credit Mayor Carrie Tergin for demonstrating leadership on this issue. She reminded council members a GRUT increase was not part of her proposed budget, and added: "I am comfortable with the current revenue projections which are conservative and reasonable."
She also said she is sensitive to the business concerns voiced by Allen, as well as the effect on families. "I also am concerned about the effect on businesses and industry which are large utility users," she said. "This is not new money; it is taking from other resources from these businesses, it is payroll, employees' salaries, expansion. It may boost the city's budget, but it comes from somewhere that could have a detrimental effect by possibly hurting efforts to grow businesses, which in turn impacts the local economy. Even for the homeowner, an increase can affect some already tight budgets."
We see no reason to increase the GRUT tax at this time.
An increase is unnecessary, it will burden local businesses and families, and it might jeopardize a capital improvements sales tax extension that would generate about five times as much revenue.
Council members, however, won't know your views unless you contact them. Their telephone numbers are listed below.
Speaking now will have more force and effect than complaining later.