Slumping revenue projections, as well as refunds to Fairfax County for misallocated sales tax, will increase Alexandria’s projected shortfall of $10.5 million in the current fiscal year, according to city documents.

Prospects for the city’s proposed fiscal 2010 budget — to be presented Tuesday by the city manager — are also bleak. Under current tax rates and revenue policies, the outlook is about $35 million less than original revenue projections for the next fiscal year, which starts July 1.

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