ScottsdaleAZ.Gov

The May 2008 Arizona Blue Chip Economist Forecast reports an expected continuing deterioration of the economy at both the national and state levels for 2008 and well into 2009.  Several Blue Chip panelists are forecasting negative growth for jobs and retail sales in Arizona, as well as a very weak 1.2 percent growth in the nation's overall economy.  Financial Services staff will continue to closely monitor and report to Council on the status of the local economy, City revenues and expenditures, and will bring forward any necessary adjustments to the City's budget plan as we head into FY 2008/09. 

Yearend General Fund revenue estimates have been revised downward $13.4 million from the FY 2007/08 budget plan to reflect a slowing national and local economy and lower estimated City and State Shared Revenues due to declining sales tax collections. Despite the recent downturn in the economy and slowing revenue activity, Scottsdale ended the last fiscal year in good financial position due to prudent financial policies and practices.

As the single greatest revenue source for the General Fund, fiscal year-to-date Sales Tax revenues are down $3.9 million over FY 2006/07 and are down $8.1 million compared to year-to-date budget. Fiscal yearend revenue projections have been revised downward $9.2 million to reflect the latest sales tax activity. Also, State Shared Sales Tax revenue forecast has been revised downward by $2.5 million. (Refer to “General Fund Revenue” section, page 2, for more detail.)

Permit and Fee revenue is down $3.1 million fiscal year-to-date over the prior-year period; Budget-to-actual year-to-date revenue is down $3.4 million for FY 2007/08. Revenue projections have been revised downward $4.0 million. Planning department staff anticipates additional revenues in future months related to permit activity for SkySong and Scottsdale Quarter.