Phoenix may open its libraries longer, hire more paramedics and offer extra classes at senior centers later this year as officials consider the most significant budget expansion since the recession decimated city finances and forced cuts to services.

Even after expanding some services, city officials are projecting a surplus of $10 million to $15 million in the general-fund budget for the 2012-13 fiscal year that begins July1. Increased state-shared and local tax revenues from an improving economy, coupled with savings from tightening city operations, have contributed to what officials describe as a "major turnaround."

Two years ago, Phoenix faced the biggest budget deficit in city history.

In 2010, city management and elected officials had to make painful decisions to close a $277million budget shortfall. That included imposing a 2 percent food tax, shutting down parks, closing public pools and cutting $63 million in other programs and services.

"We are cautiously optimistic that this is a great trend for our community," Mayor Greg Stanton said. "We hope this is the start of a trend where we can continue to add services in future budget years for the residents of our city."

In a sign of the local economy's improvement, general-fund revenue is projected to increase 5.8 percent for 2012-13 over the current year. Most of the growth is expected to come from a boost in local sales-tax collections, as the economy picks up, and an 11 percent increase in state-shared tax collections.

The city is proposing to add new services or restore those that disappeared as the city wrestled with four consecutive years of budget deficits.

Last year's general-fund operating budget was $1.06 billion. The 2012-13 general-fund operating budget is expected to increase by 4.8 percent, or $51million.

As part of his trial budget plan released Thursday afternoon, City Manager David Cavazos recommended spending $5.4million on expanded public services and 71 positions to manage the increased workload. The additional spending would be spread across a range of departments from police and fire to the Public Transit Department and mayor and City Council offices.

The budget proposal also includes $4 million in spending cuts and reducing 40 positions in other departments.

"We have a 100 percent structurally balanced budget," Cavazos said. "This is a major, major turnaround.

About $9.9 million will pay for rising costs to fund employee pensions.

Another $15 million of the increase is attributed to restoring half of the 3.2 percent in wage and benefit cuts city employees took for the past two years, assuming all of the city's labor unions sign collective-bargaining contracts agreeing to the move.

The budget also includes other increasing expenditures such as health-care and fuel costs.

Phoenix still is in labor talks with five of its employee unions and associations. Only two have agreed or tentatively agreed to the 1.6 percent pay restorations.

For the 2010 and 2011 fiscal years, Phoenix had to rein in a combined general-fund shortfall of $277million. That deep financial hit forced the city to change how it does business, resulting in the savings that will allow Phoenix to pay for additional city services in the coming year, Cavazos said.

Wage and benefit cuts to city employees over two years have reduced Phoenix's compensation costs more than $100 million, and the city has found more than $40 million in savings through its Innovation and Efficiency Task Force.

But there has also been public sacrifice needed to balance the city budget. In 2010, Phoenix increased a variety of rates, fees and fines to increase revenue. It also levied an emergency 2 percent food tax that generates $30 million for the general fund annually and another $20 million for other special funds dedicated to parks and preserves, public safety and transit.

The food tax is set to expire in 2015. Several council members, including Stanton, have called for its early repeal, but a vote failed in November.

Cavazos said his budget proposal assumes continuation of the food tax and said if the City Council votes to repeal the tax early, he'll come up with an alternative plan based on elected officials' directions.

"I can only base the trial budget on what are known revenue sources, and that still includes the food tax," Cavazos said.

The Phoenix City Council is expected to discuss Cavazos' recommendations next Tuesday.

The proposed $5.4 million in service expansions include:

Extending hours at Ironwood, Cholla, Cesar Chavez, Palo Verde and Juniper and Burton Barr Central libraries, adding about 13 positions for $425,000.

Restoring weekend hours from August through Labor Day for nine city pools and adding six positions in the Parks and Recreation Department for $157,000.

Boosting efforts to combat blight, such as illegal signs and graffiti, adding five positions in the Neighborhood Services Department for $433,000.

Adding classes for seniors for $150,000.

Transferring sworn officers performing desk duties to street patrol by shifting the administrative work to civilian employees, adding 21 positions to the Phoenix Police Department for $1 million. The Fire Department will add 11 positions at a cost of $1 million. Seven positions will be for ambulance rescues and four will be to take dispatch calls. Phoenix staffs its own ambulances with Fire Department paramedics.

Phoenix resident Lisa Rodriguez, one of dozens waiting outside the Burton Barr Central Library on Wednesday morning for the doors to open at 11 a.m., said the proposal to extend library hours would make it more convenient for those who rely on the library to access the Internet or do research for homework.

"It's good news for the students," said Rodriguez, 21.