Augusta's 2006 sales tax receipts increased by $2.99 million over the previous year, according to City Administrator Fred Russell.

After months of wrestling to balance the city's 2007 general-fund budget with forced departmental cuts, a property-tax increase and talks of layoffs, Mr. Russell said he's "starting to feel better" about the city's financial picture.

"While it's not time to be overly happy yet, those numbers look good," he said.

Actually, they are far better than the administrator ever expected.

"We expected $27.4 million in local option sales tax revenues last year and received $36 million," he said.

The difference is $8.6 million.

"We projected SPLOST at $32 million a year, and so far, of the eight months of 2006 receipts have come in from the state we're at $23.06 million," he added.

If that trend continues, the government will receive $2.56 million more SPLOST dollars than anticipated for 2006.

The state Department of Revenue reports sales-tax revenues to counties monthly, but there is a two-month lag time between collections and reporting.

Overall, there has been a 6 percent increase in special-purpose sales tax revenues during the past six months, Mr. Russell said.

The increased tax receipts mean that people are still shopping in Augusta despite new retail stores opening up in Columbia County and North Augusta, he said.

"Every time I go to a store, I take an informal look at the parking lots, and we're getting people from all around the area. Lincolnton, Washington, Glascock," he said. "There are a lot of South Carolina cars. And that's without the renovations at Augusta Mall and the new River Watch mall."

Commissioner Joe Bowles agrees that the numbers show that people continue to shop in Augusta and that the economy is rebounding.

Commissioner Marion Williams, who said he didn't expect the increases but was not surprised, also agreed.

"All that negative stuff you hear about Augusta not growing is not true," he said. "If we had entertainment and nightlife, you'd probably see an even bigger increase."

Richmond County Republican Party Chairman Dave Barbee questioned why Mr. Russell had just discovered the increased revenue.

"I just think that's amazing," he said. "Do you mean to tell me they didn't know this until now, after they passed a property-tax increase? Let me put it this way: What kind of train schedule are they running? It's hard for me to believe they can't see a trend."

Mr. Russell said he has been saying all along that the sales-tax money is coming in better than was anticipated.

"I said that during the budget presentation in the fall, when we passed the budget and I'm going to say it again on Monday," he said.

"That's what I continually try to tell the commission; the budget's a moving target. While you need to use the best data you've got and be conservative in your projections, you don't want to be too conservative. You don't want to plan on having money you don't have either."

Mr. Russell declined to say whether he will follow through with promised layoffs this year after considering the extra funds.