Mesa officials are facing additional reductions in personnel and services as sales tax collections continue to fall below expectations.

The city had expected June tax collections would not match the $13.2 million collected in June 2007, but were surprised when revenues totaled only $11.3 million rather than the anticipated $12.9 million.

Mayor Scott Smith called the revenue drop unprecedented, and said he is concerned that cuts in city services may be necessary if collections do not increase.

The city instituted a hiring freeze in late 2007, and this spring had to cut more than 130 positions from the city’s 4,000 jobs.

Mesa has no property tax, and funds most city operations with sales tax revenues and profits from the municipal utility system.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.