“Steady as she goes” is the fiscal picture portrayed by Mayor Linda Kavanagh in her State of the Town address to the council Feb. 19.

Kavanagh presented the financial report for the first half of the current fiscal year that ended Dec. 31.

Numbers indicate that revenues are relatively healthy with, in some cases, notable increases over the same period a year before.

However, even a positive revenue picture is barely keeping up with budgeted expenditures.

Local sales tax has generated $3.6 million the first half of the year, a 3.3 percent increase over last year and ahead of the average over the past five years.

However, even with the increase the local sales tax revenue is about 7 percent behind budget projections. Overall, for the first half of the year, revenues are about 3.5 percent behind budgeted expenditures.

Local retail sales tax is up about 5 percent over the prior year, and restaurants and bars are having a good year with sales tax collected up nearly 9 percent over a year ago.

While the number is still relatively small at $489,000, revenue from construction sales tax is up more than 32 percent from last fiscal year. Half of this revenue is placed in the capital projects fund.

Compared with last fiscal year, operating fund expenditures have increased by 11.6 percent for the first half of the fiscal year.

“We are getting by, but we could be doing better,” Kavanagh said. “There are not a lot of dollars left over. We need to very carefully watch what we spend our money on.”

Kavanagh had some positive things to say about economic development over the past year, saying the branding and social media campaigns are having an impact.

She highlighted four businesses that are either new to town or reflect significant expansion.

Those include Prevco Subsea Housings, a Tractor Supply Company store slated to open late this spring, the Sun Baked Bakery Shop and an office for “kewt,” Kewpie-Egg World Trading.

Kavanagh noted that kewt is the largest egg products producing company in Japan and has selected Fountain Hills for one of its international offices.

Major construction projects were also a highlight of Kavanagh’s comments. She said the work on the expansion and pavement upgrade on Shea Boulevard is proceeding well and within the scheduled timeline to be completed by June.

Work has also begun on the $7.6 million reconstruction of Saguaro Boulevard from Shea to Fountain Hills boulevards. This project is being funded by voter-approved bonds and will upgrade drainage facilities along the route and increase pavement specifications.

The mayor also noted the completion of the Avenue of the Fountains Plaza construction, calling it a much-improved amenity that is attracting citizens to the downtown area.

Kavanagh’s speech touched on all facets of the town and its operations and just plain good times.

She highlighted events and activities including concerts and movies in Fountain Park, Oktoberfest, St. Patrick’s Day, Thanksgiving Day Turkey Trot and Parade as well as July 4th and Halloween celebrations.

Many of these activities are done in cooperation and partnership with business or civic organizations.

Kavanagh also praised the Community Services and Development Services departments for their hard work over the past year. She is also pleased with the work of the town’s public safety contractors, Maricopa County Sheriff’s Office for law enforcement and Rural/Metro for fire and emergency medical services.

Kavanagh closed with a salute to the more than 700 volunteers who step up giving their own time and energy to make Fountain Hills a community everyone can enjoy.