Phoenix reports increase in sales tax collections

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PHOENIX -- For the first time in three years, Phoenix is reporting a year-over-year growth in sales-tax collections.

April sales-tax collections were $29.7 million, compared to $29.2 million in April 2009 collections.  May collections were $28.1 million, up from $27.9 million in May 2009.

City Manager David Cavazos said the growth trend is expected to continue through June.  

Cavazos also said, “Instead of being upside down, we’re right on target”, referring to the $277.3 million shortfall in fiscal 2009-10 and 2010-11 general-fund revenue.

The reports are welcome news as the City Council is scheduled to hold a public hearing on Wednesday to adopt the fiscal 2010-2011 final budget.

The reported numbers exclude revenue generated from the 2 percent food tax, in effect since April 1.

The city estimated the food tax would bring in approximately $12.5 million in the first three months and has reported an approximate $3.34 million in revenue in the first month.

Phoenix officials say it's too early to determine if the food tax revenue is on track to meet projections.