Mesa’s revenues rebound

Mesa is on track to bring in more than the $131 million of sales tax revenue expected in fiscal 2013, officials said last week in the city’s latest financial report.

Revenues from the sales tax, which accounts for almost 90% of Mesa’s general fund collections, were 2% above projections through August. Sales tax revenues provide 15% of the city’s total budget.

Total sales tax collections over the last 12 months are up 5%.

Total tax collections in August were up 7.3% from last year, the city said, with revenues from the sales tax on new cars up 21% since the fiscal year began July 1.

City Councilman Dennis Kavanaugh said tax revenues will improve further as new businesses are flocking to an area near Fiesta Mall where the city is renovating streets and landscaping.

Economic activity from businesses at the mall is down 10% over the past 12 months, with sales in the area off by 24% over the same period.

“The amount of new construction, new projects, and renovation going on in the area is a wonderful step in the right direction to once again make it a destination for visitors to Mesa,” Kavanaugh said.

The sales tax generated $155 million for the city in fiscal 2007, but collections fell to $149 million in fiscal 2008 and $121 million in fiscal 2011.

Mesa’s $256 million of outstanding GO debt is rated Aa2 by Moody’s Investors Service and AA by Standard & Poor’s.

Mesa has about 440,000 residents.

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Arizona
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