Layoffs are possible for the city of Tucson as it seeks to eliminate a projected $33 million deficit, driven largely by streetcar and communications expenses, the city's chief financial officer said Wednesday.

“We will be looking at everything, which may include lay offs,” Assistant City Manager Kelly Gottschalk said in an interview.

City expenses that have grown 6 percent annually, while revenues have grown 3 percent and state funding takeaways in the last few years are contributing to the deficit, she said.

Additionally, expected summer 2014 startup of the Modern Streetcar and the city's participation in a new countywide communications system are adding significantly to city expenses, Gottschalk said.

While layoffs are possible, finance officials are trying to make reductions first by prioritizing the needs on a list of 273 city services, she said. The city government work force is 20 percent lower now than it was five years ago, Gottshalk said.