The Sahuarita Town Council unanimously approved a $95.7 million tentative budget this week.
There are no changes in taxes or services in the draft budget for next fiscal year, which begins July 1.
Although the budgeted amount is 29 percent more than this year's budget, the total includes an estimated $22 million surplus, which the council plans to set aside for future needs.
Increased spending is mostly due to major capital projects - including improvements to Sahuarita Road, the Sahuarita Road-Interstate 19 interchange and the Pima Mine Road bridge - with funding from the Regional Transportation Authority and the Arizona Department of Transportation, said town Finance Director A.C. Marriotti.
A public hearing and final budget approval are scheduled for June 24.
However, town leaders are watching a bill at the state Legislature that could eliminate the construction sales tax. Marriotti estimated the town would receive $2.6 million in construction sales tax revenue next fiscal year.
Mayor Duane Blumberg said "we'd have to drastically revise next year's budget" if the state puts an end to the tax.
In other council action, Blumberg was reappointed as mayor by unanimous vote and council member Bill Bracco was appointed vice mayor in a 4-3 vote following last month's election.
Contact reporter Becky Pallack at email@example.com or 573-4251. On Twitter @BeckyPallack