The Town of Sahuarita is coming out of the pandemic “better than anticipated” with its proposed budget of $94,927,520 for fiscal year 2022.
The proposed budget is $35.27 million, or 59%, more than last year’s adopted budget and the town credits that increase to more funding sources.
This budget was presented to the Town Council during a study session Monday where staff highlighted the growth in community spending and new-home permits.
Town Finance Director A.C. Marriotti told the council that things are going great in the local economy, revenue is way up and growth in Sahuarita is healthy.
Marriotti said as they were producing the budget last year they were trying to consider potential impacts from COVID-19.
“We didn’t know what to expect and economists didn’t know,” he said. “As the year has gone on, and we’re actually living out (fiscal year) 2021, our economy is doing great. A lot of people are shopping at home, which contributes to the general sales tax locally. People who would have been lost to Tucson are doing more shopping locally.”
The budget highlighted a surprising positive from the pandemic — people kept their spending money in the community.
Marriotti said development remains strong as well. They planned for 340 homes to be permitted and will see more than 500.
Along with revenue from regular sales tax, a new tax code was created in the state that allows the town to collect a sales tax from online sales. Marriotti said while major online retailers like Amazon were already paying a sales tax, now other companies, like third parties working with Amazon, are paying as well.
The major revenue sources for the town are town sales tax, construction tax, franchise tax, building permit fees, sewer connection fees, shared state sales tax, shared state income tax, shared state vehicle license tax, state shared highway user revenue fund and sewer user fees.
Major revenues account for $32.83 million, or 78%, of total revenue anticipated to be reported in FY22.
Tentative budget adoption is scheduled for the June 10 council meeting and will have a public hearing and finalization June 24. The recommended budget can be viewed at sahuaritaaz.gov/budget.