Ferguson tax hike fails, raising concerns about reform costs

(AP) — Ferguson voters on Tuesday approved one tax increase meant to shore up its finances but rejected another, creating uncertainty about whether the Missouri town where 18-year-old Michael Brown died in a police shooting will be able to afford changes required in a settlement with the U.S. Department of Justice.

Voters in the St. Louis suburb approved a half-cent sales tax increase for economic development, according to complete, unofficial results.

[...] Mayor James Knowles III said, the City Council will have to re-evaluate the financial situation and the impact failure of the property tax measure will have on the Justice Department consent decree.

Much of Ferguson's deficit is due to fallout from the shooting, such as sales tax declines, skyrocketing legal costs and the loss of hundreds of thousands of dollars in court fines and fees from reforms already in place.

In a letter to Ferguson leaders last month, Justice Department Civil Rights Division leader Vanita Gupta said "it is not uncommon for financial or staffing challenges to arise" when implementing Justice Department agreements.