Phoenix may end fiscal 2013 with a multimillion dollar surplus in a turnaround after posting the city’s biggest deficit ever in 2010.
City officials said last week that higher tax collections from an improving economy and more state assistance should result in a general fund surplus of $10 million to $15 million at the end of next fiscal year.
General fund collections are expected to be up almost 6% from fiscal 2012, and state-shared taxes will increase by 11%. Fiscal 2013 begins July 1.
The general fund budget is expected to be $1.06 billion, up $51 million from fiscal 2012.
Mayor Greg Stanton said he is hopeful that the improved outlook means the worst period is over.
“We hope this is the start of a trend where we can continue to add services in future budget years for the residents of our city,” he said.
A shortfall of $277 million in 2010 led to a temporary 2% sales tax on food that brings in $30 million a year for the general fund and $20 million for parks, public safety and transit.
The temporary sales tax will expire in 2015.
The shortfall also caused the closing of facilities such as parks and swimming pools, and $63 million in other spending cuts.
City manager David Cavazos said the proposed budget released last week is 100% structurally balanced. It includes $15 million that would restore half of the cuts to employee pay and benefits since 2010.
“This is a major, major turnaround,” Cavazos said.
The City Council will review Cavazos’s tentative budget today.
