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City's costs for Tucson streetcar project balloon

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TUCSON, AZ (AP) -

Tucson Mayor Jonathan Rothschild is expressing disbelief that the city could end up paying an operating subsidy four times as much as was estimated two years ago.

According to the Arizona Daily Star, the new estimate puts the city's annual subsidy at $4.4 million, up from less  than $1 million under a 2011 estimate.

Reasons for the increase include the lack of expected contributions from the University of Arizona and other entities and increased costs for the management company.

Rothschild says the new figures are preliminary and that the city's cost will be far lower.

Deputy Transportation Director Carlos de Leon says the first car should be delivered in July, nearly a year later than originally expected. He says service should begin in July 2014.

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