Instead, Saxton, who has struggled to raise money in the hotly contested race, plans to run for a third term representing the capital's central city.

"There are many [city] departments hanging on by their white fingernails," she said late Friday. "It's going to take a long time for the next mayor to clean things up and restore confidence and pride by the employees. I would rather continue on with the goals that I've laid out and started."

She and Anderson have long had a strained relationship. The mayor, who decided not to seek a third term and will leave office after this year, could not be reached for comment.

Saxton, who was never considered a top mayoral contender, had been running on a platform of strengthening neighborhoods. She is considered a strong advocate for her district, though she has struggled to find support among other council members for her initiatives.

She's also had trouble raising money in a crowded field of contenders. She was one of seven people vying for the capital city's top spot. According to the June 1 campaign financial disclosures, she had raised just $100 since Feb. 15, bringing her total to nearly $65,000.

Other candidates had raised considerably larger amounts: Keith Christensen ($508,000), Jenny Wilson

($241,000), City Councilman Dave Buhler ($216,000) and House Minority Leader Ralph Becker ($176,000).

The race is widely expected to top $1 million.

Saxton said fundraising played a role in her decision. "I'm not in the inner circles. I have really this aversion to raising large sums of money for city of 180,000 [people]."

Because of a fire at her one-time reception center Anderson Commons, Saxton has had personal financial difficulties. She had to sell property after defaulting on payments to two loan companies.

The City Council overhauled its conflict of interest ordinance in part because of a loan she received from the city for Anderson Commons.

The news was a shocker for Buhler, a mayoral candidate and Saxton's colleague on the City Council.

"It's a surprise to me," he said late Friday night.

Buhler lauded Saxton's commitment to public service and integrity, noting cooperation on the council is "better than you'd expect with two members of the council running for mayor."

"I've known Nancy a long time. We were elected same day, almost 8 years ago, and served together all that time," he said of Saxton, who represents the district immediately west of his own District 6. "I'm sure she's making the decision she knows is best."

Saxton is the third candidate to drop out of the race. Megan Holbrook, the former Utah Democratic Party boss, quit the chase earlier this spring. Robert Comstock, a school teacher, also dropped out.

The other remaining declared candidates are surgeon J.P. Hughes and Centro Civico Mexicano Director John Renteria.

Saxton said she wouldn't be endorsing any candidates.

"I am looking forward to a new mayor and working with the next mayor of Salt Lake City."

hmay@sltrib.com