The Mayor and Tucson City Council tonight will hold a public hearing and then vote on final adoption of the proposed Fiscal Year 2016 $1.368 billion Recommended Budget.
The Mayor and Council cannot add to the budget at this point. Although they can order a reduction or reallocation in appropriations as tentatively adopted, it is unlikely they will have the political will to do so.
After the City’s bond rating was reduced by Fitch, City Coucnilman Steve Kozachik expressed concern in his newsltter. He wrote, “We’re not addressing the “structural budget imbalance,” nor are we “increas(ing) reserve levels.” The overall message, though, should not be a surprise. When we’re told year after year that the Bond agencies have us on a negative outlook and we continue to use “one time fixes” and drain our rainy day fund to balance our budget, we should expect them to increase our cost of borrowing money. It’s the rating agencies telling borrowers that our fiscal house is not in order, and therefore we’re a more risky investment this year than in the past because we have done nothing to resolve that.”
The RESOLUTION ADOPTING FINAL BUDGET FOR FISCAL YEAR 2016 reads:
The attached resolution, determining and adopting final estimates of proposed expenditures for Fiscal Year 2016, is based on the tentative budget adopted on May 19, 2015. It assumes the adoption of a primary property tax rate, estimated to be $0.5326 per $100 assessed valuation (determined from the limited property value established for that purpose), that will yield $16,635,720 which is the maximum amount which can be raised by primary property tax levy for the 2016 Fiscal Year and includes $2,535,470 as reimbursement for involuntary tort or claims paid in Fiscal Year 2014. It also assumes the adoption of a secondary tax rate, estimated to be $1.0634 per $100 assessed valuation (determined from the full cash value established for the purpose), that will yield $33,217,410; the amount necessary to provide fully for all General Obligation bond debt service expenses. Section 1 of the attached resolution includes by reference that information required by state law. ARS §42-17101 requires that the city prepare a full and complete statement of the estimated expenditures and revenues for Fiscal Year 2016 and the different amounts of estimated revenues and proposed expenditures for Fiscal Year 2016. ARS §42-17101.3.(b) and §42-17102.B. require that the information be itemized in accordance with forms provided by the Auditor General.