© CBS 5GLENDALE, AZ (CBS5) -
A new sales tax will be going into effect soon for city of Glendale residents in an effort to fill the budget gap.
Starting Aug. 1, the rate will go from 2.2% to 2.9%.
City officials said the economic recession caused them to get less money from two of the city's major sources: sales tax revenue and state shared revenue.
Part of the funding from the tax will go to the city-owned Jobing.com Arena. City officials said the cost of the arena management agreement is $17 million.
Before the City Council made $10 million in cuts for the fiscal year ending June 30, 2013, the city had an estimated $32 million budget deficit in the general fund, according to city officials.
They estimated the sales tax increase, which ends Aug. 1, 2017, will generate $22 million to help close the gap.
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