Mesa awash in red ink, tax increase considered

MesaBy Gary Nelson | The Arizona Republic

Mesa residents are facing property- ax and utility rate hikes this year, in part because the city is trying to catch up with fiscal practices that most other cities accepted in the 20th century.

The Valley’s second-largest city has long been plagued by budget shortfalls, and last year was the first in more than five years that did not require big trims to the operating fund.

City Manager Chris Brady said the slower-than-expected economic recovery has put an $8.5 million dent in projected revenue for the fiscal year beginning July 1.

“We could eliminate a lot of services” to deal with the shortfall, Brady said. But the City Council and residents have told him they don’t want that, so he’s pulling out all the stops to keep the city running and to maintain its emergency-fund balance.

One step is a tax increase — something that residents didn’t face even when Mesa staggered under a $60 million-plus shortfall five years ago. Mesa coped with that by reorganizing departments, reducing services and eliminating about 350 positions.

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