The Tucson City Council agreed to consider two changes to the City Charter that open the door to sales tax hikes β but only if voters agree to pay more.
The Council will vote next month to send some of the charter changes recommended by a citizens committee to the ballot in November.
In urging the Council to include the tax measures on the list to be voted on, Mayor Jonathan Rothschild said it will allow the city to ask voters to approve a small sales tax hike to create a dedicated funding source for infrastructure or other city needs.
He noted neighboring towns Marana and Oro Valley are increasing their sales taxes to create dedicated funding sources for police and parks, respectively.
The charter, which is like the cityβs constitution and can only be changed by voters, limits sales and property tax rates.
Rothschild said the current charter limits on tax hikes mean the city has βlimited itself financially, beyond every other city in Arizona,β and as a result, has to use more expensive financing instruments.
Some Council members werenβt sure if now is the right time to ask voters about charter changes, given a crowded ballot and economic uncertainty.
But the mayor said the street bonds program, which is repairing miles of main streets in the city, is βshowing Tucsonans that government can meet its obligations and fulfill its promises.β
One proposition would change the charter to apply the cityβs property tax cap of $1.75 per $100 of assessed value only to the cityβs primary property tax levy, but not the secondary tax levy.
The other would mean the city could collect sales taxes beyond the current 2 percent limit. Voters would have to approve any tax increases.
ANIMAL CARE BUDGET
The city is still in negotiations with Pima County on a contract to provide animal services, interim City Manager Martha Durkin said. The current contract covers services through the end of June.
The city manager has budgeted $3.7 million for next fiscal year, including no increase because the county hasnβt provided figures indicating increased costs and because the city canβt afford to pay more, she said.
The county has increased costs at the center for good reasons, including more humane treatment of animals, but has also billed the city for $449,000 in additional administrative overhead costs it hadnβt agreed to pay, Durkin said.
Revenue from pet licenses is expected to bring in $1.1 million, but thatβs too low by two-thirds, Durkin said, and the city will launch a campaign to get more people to license their pets.
BUDGET CAP AND WATER RATES APPROVED
In other action, the Council discussed next yearβs budget and water rates.
- The Council adopted a tentative budget of $1.37 billion. The action sets a cap on spending for the fiscal year beginning July 1. Next fiscal year would be the first since at least 2008 with no staffing cuts, but city workers also wonβt get a pay raise.
- Tucson Water customers will see their rates rise 4.71 percent, beginning in July, which will be about $4 a month more for the average residential customer.
