The City of Sioux Falls sales tax grew by 5.7 percent according to February receipts, Mayor Dave Munson announced today.

The new numbers reflect the first positive growth in sales tax since July 2009. Sales tax receipts finished 2009 at 5.8 percent below 2008 returns.

“While it’s too early to say things are turning around for certain, this is exceptionally good news,” Munson said. “We knew going into 2010 that revenues were going to be unpredictable, so we are preparing for the worst. But to see such strong growth right away is more than I would have thought possible.”

February’s revenues also include some sales tax remitted by the state following an audit.

“That’s not an uncommon occurrence but it’s certainly a timely one in this case and it gives us a strong start for the year,” Munson said.

Last week, Munson and Finance Director Eugene Rowenhorst presented a contingency plan that departments would implement if revenues were not meeting projections. The plan called for holdbacks of up to 15 percent of the city’s non-personnel costs, along with reductions in wage growth.

“We still need to hold back on spending in these areas,” Munson said. “The whole purpose behind creating the plan is so that it can be implemented at various levels as revenues unfold throughout the year. If we had made drastic cuts up front, we may have eliminated services that ultimately may still be feasible to provide this year.”

The City Finance department will continue to monitor sales tax on a monthly basis and make recommendations to the Mayor and City departments when held back funds are able to be released.