The Tucson City Council is betting local residents are willing to pay for better roads and parks and new equipment for police officers and firefighters.
The council directed City Manager Mike Ortega on Wednesday to move forward with a plan to raise at least $350 million in new revenues.
Voters would be asked to approve a half-cent sales tax increase in a special election next May and then, in November 2017, a $100 million bond.
The plan backed by the council is designed to tackle a portion of an estimated $1.2 billion in identified infrastructure needs in the city.
The half-cent sales tax increase would generate $50 million annually and would go to replace aging equipment and repair infrastructure for the Tucson Police and Fire departments as well as to fix city roads.
The council discussed whether to end the sales tax increase after five years as proposed by Ortega, but did not make a decision on whether to amend his proposal. The council will decide this issue, as well as how the funds should be spent, at a future meeting.
An increase in the secondary property tax would be necessary for the proposed $100 million bond and would go to pay for improvements in city parks.
If it passes next year, the average homeowner would pay no more than $9 in additional taxes on a home worth $150,000, the City Manager’s Office says.
Councilwoman Regina Romero said Tucson lacks the financial capacity in the current city budget to pay for all of its capital needs.
She acknowledged there are concerns that sales taxes are regressive, but said the increase would make Tucson’s sales tax comparable to what Marana and Oro Valley residents pay.
“It is not too much to ask for the reinvestment we want to do in our community,” she said.
Mayor Jonathan Rothschild said he has talked to many in the community who want to see the city invest in core services, and he believes the city has demonstrated the ability to manage its finances.
“There is no question in my four and a half years’ perspective as mayor that the city has made a lot of progress in balancing the budget,” he said.
The time has come, he said, where an investment in public safety, parks and roads is needed.
“When I look at what a half-cent sales tax means to an average person in Tucson,” Rothschild said, “it is an investment well worth making.”
City officials estimated the average person would pay an additional $3 a month if the half-cent sales tax increase is approved.
