City hopes spending money boosts economy

The banking system is in crisis and the city budget looks grim, but Phoenix is still doing what it can to shore up the local economy.

The City Council agreed this week to accelerate its spending on a handful of capital projects, hoping the move will spur spending within the city.

Over the next two years, Phoenix will advance about $39 million from its capital budget for a variety of projects. The projects include acquisition of state land in Ahwatukee, trail construction, streetscape improvements, pavement rehabilitation, neighborhood revitalization and improvements to the Herberger Theater Center.

Officials say moving the projects up will create up to 10,000 new jobs, although it was unclear where that number came from. City Manager Frank Fairbanks said the move would encourage spending within Phoenix, which would benefit the city by boosting sales tax revenues.

"We're telling all our department heads, let's get things going," Fairbanks said. "It's a pathway for working our way out of this problem."

While Phoenix's general fund has been hurting from a decline in sales-tax revenues, the capital budget has held up nicely, Fairbanks said.

Phoenix only advanced projects that don't have operating expenses associated with them. The city, which is preparing for big budget cuts next year, will likely struggle to staff some projects currently in the planning phases.

"I think it will be a great way to get some things moving," Councilwoman Peggy Neely said.

Mayor Phil Gordon hopes to advance another capital project - replacing the Council Chambers' worn-out, '70s-era carpet, which besides being riddled with holes is a sickly color whose shade might be charitably described as "vomit."

"You'd think at least we could use some new carpet," Gordon said.

The staff said they would look into it.

•

Take that, Detroit . . . Phoenix's precipitous drop in the standings of environmentally friendly city led to some sharp words this week for the city that overtook it.

Detroit surged past Phoenix this week on a listing of the environmental performance of the 50 largest municipalities in the United States. Phoenix fell to No. 32, The Arizona Republic reported, down 10 places from just two years ago.

Judges apparently felt Detroit, at No. 31, was more sustainable than Phoenix.

"I don't know how you define sustainability, when everyone's moving out," Gordon said, referring to Detroit's significant loss of population in the past decade.

"Not to down Detroit," Gordon said. "It doesn't need any help" with that.

Ouch!

The mayor was clearly irked by Phoenix's drop on the list, given that sustainability is a near-constant source of conversation these days at most city meetings. Gordon went on to say that he doesn't know who would want to drink the water in Detroit, given pollution in the rivers.

Meanwhile, nobody stepped up to dispute any of the survey's actual findings.

Maybe Phoenix is more "green" than Detroit after all - green with envy.