The Mayor and Tucson City Council this week heard results from the first quarter of the current fiscal year's spending plan.
Unaudited numbers show the City is spending less of its reserves than first thought and also is saving money through job vacancies that aren't being filled. Slower than projected Business Privilege Tax growth is causing the City to revise its initial projections from 3 percent growth rate to 2 percent, with an estimated reduction in revenue of $3.8 million. Of particular concern is a 36.8 percent drop in contracting sales tax revenue due to a shift in state law.
On the plus side, the City expects to bring in more than $1 million from the Auto Mall annexation and nearly $2 million from the recent Tax Amnesty Program.