The Phoenix City Council has adopted a $3.05 billion operating budget for fiscal 2011 after a long process that resolved an estimated $277.3 million revenue ­shortfall.

The city’s $1.01 billion general fund budget adopted last week is down $185.5 million from fiscal 2008 and $79.2 million less than in fiscal 2005.

Tax revenues are expected to be down $85.7 million from fiscal 2010.

The City Council decided to keep the Phoenix’s unitary property tax rate at $1.82 per $100 of assessed value for another two years.

A 2% tax on food that the council approved in February and went into effect in April generated more than $3.3 million in its first month.

Officials said they expected the new tax to bring in $12.5 million in fiscal 2010, which ended June 30, and $50 million in fiscal 2011. The tax is set to expire in 2015.

In addition to the food tax, Phoenix cut services and programs by nearly $64 million and slashed city employees’ pay by 3.2%.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.