Here’s my prediction – Rental tax -YES, the council will think they are taxing big bad landlords but in reality it’s renters that will pay. Trash Increase – NO Uhlich and Trasoff ran on eliminating the trash fee so don’t expect this political football to go anywhere in an election year. Bed Tax – YES, easy target because it only hits out of towners. It is kind of biting the hand that feeds you. The MTCV is collecting $9m as it is. Any discussion on how they are spending their funds? Bus Fare – YES, it needs to happen. We are way out of line with other communities. We don’t have the political leadership or will to make this tough decision so the RTA will take over Sun Tran and promptly raise fares. Utility Tax – who knows – No telling how this council will go on this one. It hits everyone so the impact on low to middle class families will be noticeable.  The memo forgot to mention an Ad Tax – look for that one coming soon. Low Income Housing Trust Fund – watch this one closely. It’s a classic take from the rich and give to the poor. All it will do is increase the prices of housing and drive investors out of city limits. We’ll probably see increases in sign permit renewals, building permits etc. Development Services will need to recoup as much as they can.  Water Fees - YES – we went up 8.9% last year, expect another 10% or so this year. Sewer Fees - YES. Anyone notice your TEP bills have a new tiered pricing structure. Higher users pay more – keep an eye on that on because it can be a big escalator. Wonder who this will hit the hardest?  What you are witnessing is nickle and diming an entire class of people and business right out of a community.

We are starting to hear of lay offs finally today, with over 5600 employees at the City cutting 12 here or 30 there is a drop in the bucket.  – fromt the Star – HERE.

City ponders new taxes, boost in fees to balance budget

February 23, 2009, 6:26 p.m.

CARLI BROSSEAU
Tucson Citizen

Higher parks and recreation fees, higher bus fares, taxes on rental properties and gem show vendors buying temporary licenses are among the “revenue enhancements” Tucson officials have proposed in a report sent to the city manager Feb. 4.

The report, obtained by the Tucson Citizen through a public records request, examined ways the city can increase its tax and fee collections to cover its costs. It suggested that most fees be hitched to an index or cost-recovery formula to avoid financial handwringing whenever there is an economic downturn.

“Without intermittent fee increases, or a mechanism for incremental increases, the city will continue to find itself in situations during economic downturns when it is forced to cut entire services and programs,” the report states.

The report was written by the city’s Revenue Enhancement Team, which consists of staffers from the finance, transportation, legal and internal auditing departments.

The panel suggests returning to the city’s 1996 user-fee policy, which sets a percentage of the cost of a service that must be paid by the fee.

Seemingly small changes could mean significant revenue for the city, which is looking to save another $30 million next fiscal year (which starts July 1) to match expected revenues. Any new or reinstated taxes would likely take effect in July.

The City Council is scheduled to discuss City Manager Mike Hein’s proposals for closing the $30 million gap at its meeting Tuesday. They include $5 million in unspecified revenue enhancements.

The options on the table and the amounts they are expected to raise annually are:

•A 2 percent tax on residential rental real estate – $12 million.

• Raising residential trash and recycling fees by 4 percent – $986,000.

• A 25 percent increase in most bus fares – $1.8 million, with economy and express fares exempted. The basic fare would go from $1 to $1.25.

• Doubling the bed tax levied on hotels to $2 a night – $1.8 million.

• Utility tax increases on water, power and cable – $5 million

Officials also recommended that advertising, health spa memberships and tanning salons be taxed, that residential rental property owners be licensed and that builders be prevented from taking a cost-of-land deduction on their taxes.

City golf courses may also raise fees due to a $1.1 million bill they left the city’s general operating budget for the 2008 fiscal year, which ended June 30.

Twice in the past dozen years the City Council considered a proposal put together by a “revenue enhancement team.” Of the 10 suggestions made in 1997 and 2000, one was implemented: the much debated trash collection fee.