Fountain Hills reports stronger-than-expected third-quarter revenues, town CFO says

Fountain Hills recorded stronger-than-expected revenues for the third quarter, the town’s chief financial officer told the council, with retail, construction and tourism categories all beating projections.

“Total net taxable activity was 204 million dollars,” CFO Paul Swellinger said during the council meeting, adding that the quarter produced $5,700,000 in total transaction privilege tax (TPT) collections—about 4% higher than the same quarter last year and roughly 17% above the town’s projections for the period. Swellinger characterized the quarter as “one of the best” reports he’s provided in his tenure.

The report broke down several category gains: retail sales totaled about $3,100,000 (up about 4.6% year over year), remote/online sales were roughly $600,000 (about a 12.5% increase), construction-related collections were substantially above projections (roughly 28% above projection for that category), and services—an indicator of tourism and short-term stays—came in at about $800,000, roughly 65% over projections.

Swellinger cautioned that not all categories were up: utilities were down about 3% to $353,000 for the quarter and real-estate-related collections remained below last year’s comparable quarter in part because of a state change to the long-term residential rental tax. Still, he said, the town’s state-shared revenues and certain one-time receipts were above projections, leaving the general fund in a healthy position as the fiscal year closes.

The presentation concluded with questions from council members about the drivers of growth and how temporary spikes—especially in tourism-related categories—might affect next year’s budget. Swellinger said staff will continue monitoring trends and incorporate updated figures into next year’s budget planning.

The council took no vote on the revenue report itself; it was provided for review as part of regular financial reporting.