Arizona Republic from Phoenix, Arizona • Page 21

STREET EDITON STATE EDITION Wednesday, November 16, The Arizona Republic B3 DECORATIVE FABRICS At A Discount Drapery Upholstery Bedtpraada Etc. all In stock now. QaiCOCORNERS 10401 N. Scottsdale Rd. (south of 8hea), Mesa blames sluggish economy for likely shortfall of $8 million WANTED: OLD RUGS TOP CASH PAID Oriental Rug Center 7120 E.

Indian School Rd. 481-0828 Scottedale CAN YOU HEAR? At Maryval Hearing Aid Center The Professional will Test and Evaluate Your Need AT NO CHARGE. CALL NOW FOR YOUR HEARING TEST. MARYVALE HEARING AID CENTER CALL 2696141 7J9iVVJjOMASakSyjT 17 said. "Obviously, we weren't being conservative enough." Luster said neither hiring freezes nor spending cutbacks are planned, and no firm decisions are anticipated until at least Dec.

1. The annual deficit projections assume the following conditions: an 8 percent carry-over in surplus funds, 50 new jobs, a 3.5 percent salary increase for existing employees, a 4 percent increase for inflation, a 5 percent utility-rate hike and no increase in capital expenditures. from developers for water and wastewater connections are now projected to be $3,9 million, compared with the $6.2, mjllion originally budgeted. The city's 1 percent sales tax is now expected to generate $32.9 million during 'the budget year, compared with the $34.5 million budgeted. City, Manager Charles Luster said Mesa officials underestimated what effect a sluggish economy would have on this year's budget.

"We, thought we were being very conservative in the first place," Luster By David Schwartz The Arizona Republic A sluggish economy is being blamed by Mesa officials for projec- tions that the city will generate $8 million less during the 1988-89 budget year than anticipated. Additionally, a city study indicates that, at its current rate of spending and revenue collection, Mesa will be $6.4 million in the red by the 1989-90 budget year and as much as $52.2 million in the red by fiscal 1992-93. The $8 million revenue loss this year. is expected to be offset by more than $21 million carried over to the current budget from the 1987-88 budget. But, in future years, spending will have to be curtailed or new sources of revenue will have to be found to keep future budgets in the black.

The Mesa city charter requires the budget be balanced. Mesa does not levy a property tax. However, a 19-member committee formed by Mayor Peggy Rubach to study the city's financial course is expected to consider imposing such a tax. The committee is expected to make its recommendations in time to be included in the 1989-90 budget, which is effective July 1, 1989. "Our revenue picture is bleaker than we thought it would be," said Mike Hutchinson, Mesa's assistant city manager.

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Nearly every budget category contains a projected revenue shortfall. However, the biggest shortages are in construction fees and sales taxes. According to the city, fees collected CHRISTOWN MALL 249-1877 LOS ARCOS MALL 947-5676 greater Phoenix Area iOi-nin UAvUn nmn.t nil (nkn. Mnitinn rnttnn Unnino nncBi varv for this fabric. (Near Wards) McDowell Scottsdale Rds.

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Hayes said Armstrong is listed as an investigative lead, not a suspect. Last Wednesday, Armstrong, who was driving Argcnti's pickup truck, was pulled over near Bitter Springs, south of Page, by a Department of Public Safety officer. She was cited for speeding and driving without proof of insurance. On Thursday, she asked a woman in Bitter Springs if she could leave the truck at the woman's house for five days. The woman, who said she did not know Armstrong, called the DPS, which confiscated the truck.

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