EIR Third Quarter.pdf

Phoenix Economic Indicators Report 
Third Quarter FY20 20-21
Table of Contents 
Phoenix Sky Harbor Airport Total Passengers  ….  1 
City Sales Tax - Restaurants/Bars ….…………………  5 
Water Service Accounts  ……………………………..…..  1 
City Sales Tax - Contracting …….……………………….  6 
New Home Construction Permits Issued  ………...  2 
State Sales  Tax - Total   …………………………………..  6 
New Multifamily Units Permitted …………………..... 2 
State Vehicle License Tax  ……………………………….  7 
Total Valued of Permitted Activity  …………………... 3 
Phoenix Primary Net Assessed Value  …….….…..  7 
Solid Waste –Residential Customer Growth …     ..3 
Phoenix Full Cash Value …………………….……………  8 
City Sales Tax - Total   .…..…………………………………  4 
Phoenix Median Household Income  ………………  8 
City Sales Tax - Retail  ………………………………………. 4 
Phoenix Unemployment Rate  ….…….………….…… 9 
City Sales Tax - Hotel/Motel …………………………….  5 
Phoenix Labor Force Participation  …….……….….. 9 
Executive Summary 
Economic indicators, such as those included in this report, provide measurements for 
evaluating the health of our economy, the latest business cycles, and how consumers are 
spending and generally faring.  Included in this report are aviation, utility, new develop-
ment, state and local sales tax, vehicle sales, property values, and employment statistics.  
Each statistic is shown through a graph presenting current year-to-date data (for data 
available on a monthly basis), prior year-to-date, prior three year average of year-to-date 
data, and peak year data (if current year is not the peak year) for a quarter of the current 
fiscal year (July 1 - June 30).  Each indicator has its own peak year where performance 
was at its highest since 2000.  Each graph is accompanied by a description of the signifi-
cance of the measure as an economic indicator, and a statement about the current year 
data in relation to prior years.  Many of the statistics are measures on a monthly basis, but 
a few are only available quarterly or annually.

Phoenix Sky Harbor Airport Total Passengers
Current YTD Compared to:
Prior Year 
-49.9%
3 Year Avg.
-50.4%
Peak Year (FY 
2018-19)
-51.3%
Totals
CYTD
16,424,000
PYTD
32,757,000
3YRAVG
33,105,000
Peak Year (FY 
2018-19)
33,751,000
Current YTD Compared to:
Prior Year 
0.8%
3 Year Avg.
1.7%
Peak Year (FY 
2019-20)
1.7%
Totals
CYTD
436,763
PYTD
433,140
3YRAVG
429,379
Peak Year (FY 
2019-20)
433,140
Significance: The number of passengers utilizing the Phoenix Sky Harbor airport can be an indicator for regional tourism 
and business activity.
Current Year: Passenger activity has been significantly negatively impacted due to COVID-19. Passenger Traffic for 
the month of March decreased 49.9% as compared with March of the previous year and is 50.4% lower than the three 
year average. Industry data lags two months.  
Total Single-Family Water Service Accounts
Significance: Single-family water services account growth is a measurement indicating revenue generated through 
services provided by the Public Works Department. The number of water service accounts can be an indicator of 
changes in population and development. 
Current Year: Water service accounts reflect a consistent upward trend in residential customers. 
425,000
427,000
429,000
431,000
433,000
435,000
437,000
439,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
Current YTD
Prior YTD
3YR AVG YTD
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
Current YTD
Prior YTD
3YR AVG YTD
Peak Year (FY2018-19)
Page 1

Total New Home Construction Permits Issued
Current YTD Compared to:
Prior Year 
13.1%
3 Year Avg.
11.2%
Peak Year (FY 
2004-05)
-62.4%
Totals
CYTD
3,419
PYTD
3,024
3YRAVG
3,076
Peak Year (FY 
2004-05)
9,100
New Multifamily Units Permitted
Current YTD Compared to:
Prior Year 
-16.1%
3 Year Avg.
7.9%
Peak Year (FY 
2019-20)
-0.7%
Totals
CYTD
5,030
PYTD
5,997
3YRAVG
4,661
Peak Year (FY 
2019-20)
5,997
Significance: New single family homes are a key economic indicator, reflecting local population growth as well as spill 
over benefits to other sectors of the economy such as demand for construction labor/materials, retail, manufacturing and 
utilities.
Current Year: Planning and Development experienced a 3.7% growth in residential construction permits in 2019-20 over 
the prior year and 7.2% over the 3 year average. They are projecting continued growth into the next fiscal year based on 
recent population growth in Maricopa County.
Significance: New multi-family construction is a key economic indicator of local population growth or shifts in housing 
preferences and its spill over benefits to other sectors of the economy such as demand for construction labor/materials, 
retail, manufacturing and utilities.  
Current Year: Planning and Development experienced a 41.9% growth in multi-family residential permits in 2019-20 over 
the prior year and 33.1% over the 3 year average. They are projecting irregular growth due to the number of large 
projects currently being built by out of state developers and local developers not wanting to saturate the market within the 
infill area. Plans under review will continue to add units as local developers move forward with projects that attract a 
different market than the infill projects. 
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
Current YTD
Prior YTD
3YR AVG YTD
Peak Year (FY2004-05)
400
1,400
2,400
3,400
4,400
5,400
6,400
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
Current YTD
Prior YTD
3YR AVG YTD
Page 2

Total Value of Permitted Activity
Current YTD Compared to:
Prior Year 
10.7%
3 Year Avg.
15.3%
Peak Year (FY 
2019-20)
42.9%
Totals
CYTD
$4,864,885,378
PYTD
$4,394,594,244
3YRAVG
$4,221,153,426
Peak Year (FY 
2019-20)
$4,394,594,244
Solid Waste - Residential Customer Growth
Current YTD Compared to:
Prior Year 
0.9%
3 Year Avg.
1.7%
Peak Year (FY 
2019-20)
1.7%
Totals
CYTD
409,087
PYTD
405,587
3YRAVG
402,307
Peak Year (FY 
2019-20)
405,587 
Significance: The valuation of new construction is an indicator of one facet of Phoenix's economic strength because it 
reflects the permit value of new construction projects. 
Current Year: Planning and Development experienced a 19.7% increase in permit valuation in 2019-20 over the prior year 
and a 16.9% increase over the 3 year average. They are projecting slightly increasing permit valuation for 2020-21 versus 
the prior year due to state projections of  population growth in Maricopa County.
Significance: Residential customer growth is an indicator of one facet of Phoenix's economic strength because it reflects 
the growth in households. The graph shows a consistent upward trend in the count of Solid Waste residential customers.
Current Year: The number of residential living units being serviced by the Public Works Department Solid Waste Division 
is consistently trending upwards. This is a new measure being tracked. Solid Waste staff recently updated their 
methodology used to track this measure, resulting in a retroactive udpate for the numbers for November and December 
2020.
$400,000,000
$1,400,000,000
$2,400,000,000
$3,400,000,000
$4,400,000,000
$5,400,000,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
Current YTD
Prior YTD
3YR AVG YTD
398,000
400,000
402,000
404,000
406,000
408,000
410,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
Current YTD
Prior YTD
3YR AVG YTD
Page 3

City Sales Tax - Total
Current YTD Compared to:
Prior Year 
3.3%
3 Year Avg.
11.1%
Peak Year (FY 
2019-20)
10.9%
Totals
CYTD
$781,771,000
PYTD
$756,437,000
3YRAVG
$703,836,000
Peak Year (FY 
2019-20)
$756,437,000 
City Sales Tax - Retail
Significance: Retail sales tax represents retail sales, not including the sales tax on food.
Current YTD Compared to:
Prior Year 
15.2%
3 Year Avg.
25.9%
Peak Year (FY 
2019-20)
27.8%
Totals
CYTD
$358,027,000
PYTD
$310,831,000
3YRAVG
$284,312,333
Peak Year (FY 
2019-20)
$310,831,000 
Current Year: City sales tax collections have been negatively impacted by COVID-19 primarily in the hotel/motel, 
restaurants/bars, and amusement sales tax categories. However, current year growth accounts for additional retail sales 
tax collected from online retailers which became effective October 2019. Prior year values have not been adjusted for 
inflation.    
Current Year: City sales tax have been negatively impacted by COVID-19 however, current year growth accounts for 
additional retail sales tax collected from online retailers which became effective October 2019. Prior year values have not 
been adjusted for inflation. 
Significance: City sales tax (all funds including: General Fund, T2050, Public Safety, 3PI, Convention Center, Sports 
Facilities, and Capital Construction) represents overall local economic activity related to taxable sales.  
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
$50,000,000
$150,000,000
$250,000,000
$350,000,000
$450,000,000
$550,000,000
$650,000,000
$750,000,000
$850,000,000
Current YTD
Prior YTD
3YR AVG YTD
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
$22,000,000
$72,000,000
$122,000,000
$172,000,000
$222,000,000
$272,000,000
$322,000,000
$372,000,000
$422,000,000
Current YTD
Prior YTD
3YR AVG YTD
Page 4

City Sales Tax - Hotel/Motel
Current YTD Compared to:
Prior Year 
-49.8%
3 Year Avg.
-45.4%
Peak Year (FY 
2018-19)
-45.5%
Totals
CYTD
$18,804,000
PYTD
$37,452,000
3YRAVG
$34,414,667
Peak Year (FY 
2018-19)
$34,504,000
City Sales Tax - Restaurants/Bars
Current YTD Compared to:
Prior Year 
-17.8%
3 Year Avg.
-13.5%
Peak Year (FY 
2018-19)
-13.6%
Totals
CYTD
$55,734,000
PYTD
$67,770,000
3YRAVG
$64,396,000
Peak Year (FY 
2018-19)
$64,491,000 
Significance:  Hotel/Motel sales tax revenue represents taxable sales for these businesses and is an indicator of tourism 
activity.
Current Year: Hotel/motel sales tax collections has been negatively impacted by COVID-19. Prior year values have not 
been adjusted for inflation.
Significance: Restaurants/Bars sales tax revenue represents taxable sales for these businesses and is an indicator of 
economic strength, population growth, and tourism.
Current Year: Restaurants/bars sales tax collections has been negatively impacted by COVID-19. Prior year values have 
not been adjusted for inflation.  
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
$1,000,000
$6,000,000
$11,000,000
$16,000,000
$21,000,000
$26,000,000
$31,000,000
$36,000,000
$41,000,000
Current YTD
Prior YTD
3YR AVG YTD
Peak Year (FY2018-19)
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
$4,500,000
$14,500,000
$24,500,000
$34,500,000
$44,500,000
$54,500,000
$64,500,000
$74,500,000
Current YTD
Prior YTD
3YR AVG YTD
Peak Year (FY2018-19)
Page 5

City Sales Tax - Contracting
Current YTD Compared to:
Prior Year 
5.2%
3 Year Avg.
27.5%
Peak Year (FY 
2006-07)
-4.4%
Totals
CYTD
$70,189,000
PYTD
$66,735,000
3YRAVG
$55,065,333
Peak Year (FY 
2006-07)
$73,425,000 
State Sales Tax - Total
Current YTD Compared to:
Prior Year 
9.3%
3 Year Avg.
17.4%
Peak Year (FY 
2019-20)
18.9%
Totals
CYTD
$142,472,000
PYTD
$130,398,000
3YRAVG
$121,359,333
Peak Year (FY 
2019-20)
$130,398,000 
Significance: Contracting sales tax revenue presents activity in the commercial, retail and residential construction 
markets.
Current Year: Prior year values have not been adjusted for inflation.  
Significance: State sales tax accounts for approximately 37.6% of total state shared revenues based on the FY 2019-20 
actuals. Total state shared revenue is approximately 35.0% of total general fund revenue. State shared sales tax 
revenues are distributed to cities and towns based on relative population share in Arizona. The population share in FY 
2000-01 was 33.7%. The current population share is 29.03% as of June 2020. 
Current Year: State sales tax collections have been negatively impacted by COVID-19 primarily in the hotel/motel, 
restaurants/bars, and amusement sales tax categories. However, current year growth accounts for additional retail sales 
tax collected from online retailers which became effective October 2019. Prior year values have not been adjusted for 
inflation.  
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
$5,000,000
$15,000,000
$25,000,000
$35,000,000
$45,000,000
$55,000,000
$65,000,000
$75,000,000
$85,000,000
Current YTD
Prior YTD
3YR AVG YTD
Peak Year (FY2006-07)
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
$11,000,000
$31,000,000
$51,000,000
$71,000,000
$91,000,000
$111,000,000
$131,000,000
$151,000,000
Current YTD
Prior YTD
3YR AVG YTD
Page 6

State Vehicle License Tax
Current YTD Compared to:
Prior Year 
10.2%
3 Year Avg.
15.5%
Peak Year (FY 
2019-20)
16.2%
Totals
CYTD
$59,841,047
PYTD
$54,296,483
3YRAVG
$51,812,793
Peak Year (FY 
2019-20)
$54,296,483 
Phoenix Primary Net Assessed Valuation
Calendar Year Compared to:
Prior Year 
6.3%
3 Year Avg.
5.9%
 Peak Year (TY 
2010)
-7.9%
Totals
TY 2021
$14,800,877,416
TY 2020
$13,923,185,918
3YRAVG
$13,982,360,232
 Peak Year (TY 
2010)
$16,063,200,689 
Current Year: Year-to-Date vehicle license tax collections reflect adjustments made by the Arizona Department of 
Transportation due to a new system implementation, and reflect prior year collections in the current year, causing 
revenue collections to be artificially inflated. Prior year values have not been adjusted for inflation. 
Current Year: Tax year 2021 (FY 2021-22) Primary NAV grew by 6.3% over the prior year; 2.3% is attributable to new 
property and 4.0% is attributable to appreciation in previously-taxed property. Prior-year values have not been adjusted 
for inflation.
Significance: Phoenix's assessed valuation is based on the Primary Net Assessed Value (Primary NAV), which beginning 
in FY 2015-16, is the single value used for calculating both Primary Property Taxes and Secondary Property Taxes. The 
assessed valuation provides an indicator of the basis for City property tax revenue. This statistic is updated once per 
year, in February.
Significance: State vehicle license tax accounts for approximately 15.4% of total state shared revenues based on the FY 
2019-20 actuals. Total state shared revenue is approximately 35.0% of total general fund revenue in Phoenix. State 
shared vehicle license tax revenues are distributed to cities and towns in Maricopa County based on their relative 
population share of Maricopa County. The City of Phoenix's population share in FY 2000-01 was 48.51%, and the current 
population share is 40.41%, as of June 2020.  
$0
$4,000,000,000
$8,000,000,000
$12,000,000,000
$16,000,000,000
$20,000,000,000
3YR AVG
TY 2019
TY 2020
TY 2021
Peak Year
(TY 2010)
Series1
TY = Tax Year
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Current YTD
Prior YTD
3YR AVG YTD
Page 7

Phoenix Full Cash Value
Calendar Year Compared to:
Prior Year 
10.4%
3 Year Avg.
9.7%
 Peak Year (TY 
2019)
N/A
Totals
2020
$198,012,408,578
2019
$179,418,109,860
3YRAVG
$180,568,569,804
 Peak Year (TY 
2020)
N/A
Phoenix Median Household Income
Calendar Year Compared to:
Prior Year 
5.2%
3 Year Avg.
0.0%
Peak Year (CY 
2008)
-9.4%
Totals
2018
$54,765
2017
$52,080
3YRAVG
$52,058
Peak Year (CY 
2008)
$57,507 
Significance: This measure includes the income of the householder and all other individuals 16 years of age and older in 
the household. Median income is the amount that divides the income distribution into two equal groups, half at income 
levels above that amount, and half at income levels below that amount. 
Current Year: The increase in 2018 over prior years is an indication of moderate recovery from the 2008 recession. Data 
is from the U.S. Census Bureau American Community Survey Five-Year Estimates. Peak year reflects the highest since 
2005 (the oldest readily available data set). The most recent ACS Five-Yar Estimate data is from 2018.
Significance: Full cash value is an indicator of both commercial and residential property values, an important indicator of 
one facet of economic health. This statistic is updated once per year, in February, and lags market conditions by 
approximately one year. Due to assessed valuation growth limits and statutory changes in assessment ratios, however, 
trends in full cash value do not correlate to trends in the tax base for property taxes.
Current Year: Tax year 2020 (FY 2020-21) full cash value grew by 10.4% over the prior year. Growth rates were 
consistent across agricultural, commercial and residential property types. Prior year values have not been adjusted for 
inflation.
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
3YR AVG
CY 2016
CY 2017
CY 2018
Peak Year
(CY 2008)
CY = Calendar year
 $-
 $40,000,000,000
 $80,000,000,000
 $120,000,000,000
 $160,000,000,000
 $200,000,000,000
 $240,000,000,000
3YR AVG
TY 2017
TY 2018
TY 2019
2020
(Peak Year)
Series1
TY = Tax Year
Page 8

Phoenix Unemployment Rate
Calendar Year Compared to:
Prior Year 
90.5%
3 Year Avg.
46.3%
 Peak Year 
(CY 2009)
-25.2%
Totals
2020
8.0%
2019
4.2%
3YRAVG
5.5%
 Peak Year 
(CY 2009)
10.7%
Phoenix Labor Force Participation
Calendar Year Compared to:
Prior Year 
0.9%
3 Year Avg.
0.8%
 Peak Year 
(CY 2005)
-5.4%
Totals
2018
66.7%
2017
66.1%
3YRAVG
66.2%
 Peak Year 
(CY 2005)
70.5%
Significance: This measures the percentage of the population (16 years of age and older) that is in the labor force. The 
labor force is defined as the total population of employed and unemployed people (16 years of age and older). People are 
classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently 
available for work. 
Current Year: The labor force participation rate slightly increased from 2017 to 2018 indicating an increase in the 
percentage of the population that is either employed or unemployed and actively looking for work. Data is from the U.S. 
Census Bureau American Community Survey Five-Year Estimates. Peak year reflects the highest since 2005 (the oldest 
readily available data set). The most recent ACS Five-Yar Estimate data is from 2018.
Significance: This measures the percentage of the labor force that are unemployed. Those individuals (16 years of age 
and older) who do not have a job but are available for work, except in the case of temporary illness, and actively seeking 
work during the week including the 12th of the month. The only exceptions to these criteria are individuals who are waiting 
to be recalled from a layoff and individuals waiting to report to a new job within 30 days—these, too, are considered 
unemployed. This statistic is updated once per year, in April.
Current Year: The unemployment rate in 2020 reflects nationwide impacts of COVID-19. Data is from the United States 
Department of Labor, Bureau of Labor Statistics. Peak year reflects the highest since 1990 (the oldest readily available 
data set).
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
3YR AVG
CY 2017
CY 2018
CY 2019
CY 2020
Peak Year
(CY 2009)
CY = Calendar year
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
3YR AVG
CY 2016
CY 2017
CY 2018
Peak Year
(CY 2005)
CY = Calendar year
Page 9