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C
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OF
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UCSON
C
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ELEASE
Contact:
Mike Letcher
Date:
December 15, 2009City Manager
TDD:
(520)
791-2639Office: (520) 791-4204
Page:
1 of 3
STRATEGIES BEING CONSIDERED TO BALANCE CITY BUDGET
With economic conditions worsening for local and regional governments, City staff are presenting strategies to the Mayor and Council to address projected budget deficits for this year and thenext.At today’s Study Session, City staff outlined possible options to eliminate a nearly $32 millionshortfall for this year’s $421 million General Fund budget, which ends June 30, 2010.The current fiscal year budget problem is a result of the continued economic recession. The Cityof Tucson is susceptible to this recession due to its reliance on sales tax collections to fund services. Asan example, in fiscal year 2007, City sales tax revenues were $202.3 million; for fiscal year 2010, theyare currently projected to be $155.5 million. This is a 23% reduction in three years. Population anddemand for services have increased in this timeframe. For general operations, the City collects only 3%of revenues from property taxes, which is a less volatile source.“Every option is on the table to address this problem. Core services remain a priority, but theyare not immune to reduction,” said City Manager Mike Letcher. “We know, too, that residents are veryconcerned about the impact these decisions will have on the future of our community. But delayingaction now will only compound the magnitude of the problem.”(
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FOR IMMEDIATE RELEASE
C
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STRATEGIES BEING CONSIDERED TO BALANCE CITY BUDGET
Page 2 of 2Strategies to reduce budget deficits for the remainder of this fiscal year and the next couldinclude reduction or elimination of General Fund subsidies for discretionary programs; increases incertain fees and taxes; additional debt restructuring; reduction of the City’s workforce; and changes toemployee compensation and benefit policies.Like other municipal governments, the City is not able to reduce its general fund deficit bytransferring money from restricted sources such as federal grants or highway user revenue funds, or from its enterprise departments of Water and Environmental Services.Further details will be presented to the Mayor and Council on Tuesday, January 5, 2010, by theCity Manager. Implementation of new policies or ordinances would follow immediately.Dialogues held with the public this past fall were helpful in gauging community priorities for City services and options for addressing the budget situation. Results of the dialogues have been provided to the Mayor and Council and are posted on the City’s website atwww.tucsonaz.gov/dialogues.Additional meetings are scheduled with City employees, funded organizations, and communitystakeholders, and information will continue to be posted to the City website to keep all parties informed.A copy of Tuesday’s PowerPoint presentation to Mayor and Council, “Budget, Revenues, andCash Position Update,” has been posted in Hot Topics on the City’s website atwww.tucsonaz.govandhas been included with e-mail distribution of this media release.
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