CHICAGO — St. Louis voters Tuesday rejected a $180 million bond measure that the city had promoted as needed to help get deferred infrastructure work completed.
The measure received 61% of the vote, short of the required 66% approval needed. The ballot measure drew only 7% of registered voters to the polls.
The city had planned to repay the debt over 20 years with higher property and vehicle taxes. The city council endorsed legislation putting the question to voters and Mayor Francis Slay signed it after a report from the council's capital committee last year promoted the need for $155 million in spending to tackle long deferred projects.
The bonds would have financed projects across the city, equipment purchases for the police and fire departments, improvements to city buildings, demolition projects, and street and bridge projects. The city last asked voters to approve $65 million in borrowing in 1999.
Supporters argued the borrowing would allow the city to tap low interest rates and preserve its operating budget for services, supporters argue. City comptroller Darlene Green, whose office manages city borrowing, last month raised concerns over plans to use $10 million for city ward projects which she said already receive funding through the sales tax.
Green said in a statement July 23 that most of the bond measure would fund critical safety and infrastructure projects. But she added that "taxpayers would be asked to pay twice, once from the ½ cent sales tax when making retail purchases and again from their property tax."
Fitch Ratings affirmed the city's AA-minus general obligation rating in June.
It noted risks posed by the need to review every five years a city earnings tax that accounts for about 35% of general fund revenues. The next voter renewal comes in April 2016.
"If not renewed, the tax would be phased out in 10% increments over 10 years, and the city would be prohibited from instituting a new earnings tax. Though there has been strong approval, the risk of losing its largest revenue source to voter disapproval is unusual for a local government," Fitch warned.
