Phoenix Ends Fiscal Year With Balanced Budget, AAA Credit Rating

The City of Phoenix finished fiscal year 2010-11 with revenues right on target, expenses under budget and a AAA credit rating, the highest credit rating of the six largest cities in the United States. "Despite one of the worst economic meltdowns in the history of the United States, Phoenix maintained the highest possible bond rating, which in turn, has saved taxpayers millions of dollars in interest expenses," said Mayor Phil Gordon. "Because of careful planning and strong financial management, we are now strategically positioned to lead this great city into the future," he said. Other highlights from the 2010-11 budget include using the city's AAA credit rating to refinance and restructure debt, for a savings of $44.5 million; increasing the city's contingency, or rainy day, fund to $36 million, the highest level in the city's history; and earning a 95 percent approval rating from the public for city employees being "courteous and professional" when providing services to the community. "In 2009-10, Phoenix was faced with a $277 million deficit. Because of the leadership of the Mayor and City Council and the focus of city management, all employees and the community, we are now right on track," said City Manager David Cavazos. "I am pleased that the 2011-12 budget contains no reductions in services to the community and no increases in taxes or fees," he said. Sales tax collections continued to improve in 2010-11, with city retail sales increasing by 5.3 percent compared to 2009-10. And residents continued to pay lower Phoenix property taxes, decreasing by 41 percent when comparing 2009-10 to 2010-11.