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A capacity crowd filled a conference room on Tuesday at the Santa Fe Convention Center to hear a presentation by city's water department.
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The 3% excise tax would be placed on the November ballot.
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After a long and sometimes acrimonious debate the Governing Body voted 5-4 to reject the prohibition.
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The two-year pilot program will being July 1st.
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The Santa Fe Charter Review Commission will present its recommendations to the Governing Body during Wednesday's meeting.
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With less than two weeks before having to submit recommendations to the Governing Body, the Commission wants to hear more from the public regarding proposed changes to the City Charter.
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The Santa Fe Governing Body has approved a pilot program to house the homeless.
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The Santa Fe Finance Committee will be working on the city's $403 million through August.
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The bill's cosponsors decided to hold back on any decision regarding the monument.
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After a long night of public comments and discussion the Governing Body decided to wait to make a decision on the resolution regarding the next steps.