Halfway through the fiscal year the Town of Fountain Hills is maintaining its balance on budget matters.

The town had collected $8.6 million in revenues through Dec. 30, 2013, the end of the second quarter for the 2013/14 Fiscal Year.

The General Fund for unrestricted budget expenses is the key to staying on sound fiscal ground with state and local sales taxes, state shared revenues including income taxes, accounting for 92 percent of the General Fund revenues, which are 93 percent of the town’s total budget.

Through the first half of the fiscal year the town had collected $6.1 million in General Fund revenues. This is slightly behind budgeted expenditures.

With $3.5 million in local sales tax collected, that is a 6 percent increase over last year, but encompasses 89 percent of the budget.

The retail sector for sales tax generated $1.6 million in revenue, up 5.2 percent over a year ago, and slightly ahead of the average over the last five years.

Sales tax collected through bar and restaurant activity in Fountain Hills has brought in $268,190 during the first half of the year. That is a 4.5 percent increase over the previous year and well ahead of the five-year average.

The transportation and telecommunications portion of sales tax has collected $808,509 for the first half of the fiscal year. That is an increase of just under 3 percent, and again ahead of the average for the past five years.

Through the first half of the current fiscal year the construction sales tax has brought in $365,422. This is a 34.5 percent increase over a year ago and the best year since the 09/10 fiscal year.

Half the revenue from construction sales taxes is placed in the capital projects fund.

Overall the General Fund expenditures have increased by about 1.8 percent over the first half of last fiscal year. Those increases have come primarily in the fire and emergency medical contract with a slight increase in Community Services expenditures.

The Highway User Revenue Fund has generated $973,891 during the first half of the year. That does not include the state Vehicle License Tax, which the town is using for the Pavement Management Fund.

The Pavement Management expenses were nearly all made during the first half of the fiscal year.

Revenues for the town’s restricted funds are well ahead of expenditures, with the exception of the capital projects, which will generate additional revenues during the second half of the year.

The town’s fund balances also remain healthy with more than $22 million set aside in restricted funds that include debt service, capital projects and the Rainy Day Fund.

The Rainy Day Fund and General Fund reserves are not available for appropriation. Other restricted funds have specific purposes such as economic development, development fees, HURF and public art.

Deputy Town Manager and Finance Director Julie Ghetti will be outlining the financial report to the Town Council at its regular session this Thursday, Feb. 6.

While General Fund revenues are about 7 percent under budget, expenditures are down by 6 percent.

“Local economic indicators remain positive with a 6 percent increase over the prior year,” Ghetti said.