QUARTERLY FINANCIAL REPORT 1st Qtr FY14-15 PERFORMANCE AT A GLANCE GENERAL FUND REVENUE Economic Indicators General Fund Revenue Quarterly Analysis General Fund Revenue Category Analysis Sales Tax (& collection detail) Franchise Fees Primary Property Tax Revenue Detail by State Shared Revenue Category Licenses & Permits Charges for Services Other Revenues GENERAL FUND EXPENDITURE YEAR TO DATE COMPARED TO HISTORICAL % REFERENCE POSITIVE Page 2 Page 3 POSITIVE Page 3 POSITIVE Page 4 POSITIVE Page 5 POSITIVE Page 5 POSITIVE Page 6 POSITIVE Page 6 POSITIVE Page 7 NEGATIVE Page 7 YEAR TO DATE COMPARED TO BUDGET % General Fund Expenditure + Enc. Analysis by Function and by Expenditure Category Mayor & Council City Clerk City Manager Law City Magistrate Expenditure Communications & Public Affairs Detail by Management Services Department Non-Departmental Transportation & Development Community Services Police Fire (includes Citywide Fleet) OTHER FUNDS POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE YEAR TO DATE COMPARED TO BUDGET % POSITIVE Water Fund Analysis Wastewater Fund Analysis Solid Waste Fund Analysis Airport Fund Analysis System Development & Impact Fee Analysis Highway User Revenue Fund Analysis Grants POSITIVE WARNING POSITIVE POSITIVE 0 INFORMATIONAL REFERENCE Page 8 Page 8 Page 9 Page 9 Page 10 Page 10 Page 11 Page 11 Page 12 Page 12 Page 13 Page 13 Page 14 Page 14 REFERENCE Page 15 Page 15 Page 16 Page 16 Page 17 Page 18 Page 18 PERFORMANCE INDICATORS POSITIVE = Variance < 2% compared to historical trends or positive variance > 0% for % to budget. WARNING = Variance of 2 - 5% compared to historical trends. NEGATIVE = Variance of > 5% compared to historical trends or negative variance < 0% for % to budget. 1 11/10/2014 THE QUARTERLY FINANCIAL REPORT Report Objectives * Provide historical comparisons to identify trends or deviations from trends. * Develop performance benchmarks to measure positive and negative results. * Create an executive level report to highlight potential issues or concerns. What is Included in the Report The report emphasizes General Fund, with analysis of its revenue and each category of revenue, and the expenditures by department. Also included is a summary and analysis of Enterprise Funds, System Development Fee and Impact Fee Funds, the Highway User Tax Fund, and Grants. How to Read the Report * Page 1 serves as a table of contents and quick view of performance issues. * The benchmarks are Positive (navy colored), Warning (grey colored), and Negative (maroon colored), providing an initial indicator to determine if the category needs to be monitored closely in the upcoming period. * Performance indicators for General Fund revenue are comparing the percent of year-to-date actuals collected to total budget AND the budget prorated based on the historical trend (last four years) of average actual year-to-date collections. * Performance indicators for General Fund expenditures are based on whether they are within budget for the percent of year-to-date actuals expended plus encumbrances compared to the total budgeted expenditures. * Performance indicators for Enterprise Funds focus on the relationship between Operating Revenues and Operating Expenses (including debt service and indirect cost allocation) and the percentage of budget received/expended. ECONOMIC INDICATORS GROSS DOMESTIC PRODUCT (GDP) INTEREST RATES Real gross domestic product - the output of goods and services produced by labor and property located in the US. This table reflects the four most recent changes to the Federal Funds Rate by the Federal Reserve Board. The change to the GDP is an indicator of the general direction of the economy. Slow or negative growth will likely mean lower revenues for the City. Lowering the Federal Funds Rate is a way for the Federal Reserve Board to make it less expensive for banks to borrow money for loans and investments and (in theory) pumping additional dollars into the economy. Recent announcements state this rate will remain low through 2015. 2.0% April 30, 2008 1.5% October 8, 2008 1.0% October 29, 2008 0% - 0.25% December 16, 2008 to date 3.5% -2.1% 4.6% 3.5% Fourth Quarter 2013 (revised) First Quarter 2014 (revised estimate) Second Quarter 2014 (third estimate) Third Quarter 2014 (advance estimate) Source: US Department of Commerce Source: Federal Reserve Bank UNEMPLOYMENT National 6.1% 6.2% 6.1% 5.9% Jun-14 Jul-14 Aug-14 Sep-14 State of Arizona 6.9% 7.0% 7.1% 6.9% Phoenix Metro Area 6.5% 6.3% 6.3% 5.8% High unemployment rates are a reflection of a slow economy and the reduced demand for goods and services. The Phoenix Metro Area unemployment rate is typically lower than the national and state rates. Source: Arizona Department of Commerce, "Arizona Workforce" Newsletter CITY INVESTMENT PORTFOLIO BUILDING PERMITS Single-family building permits are an indicator of the general economy. The City splits its investment portfolio between two investment Higher numbers of permits indicate an active construction market and firms with a different mix of holdings at each firm to reduce risk. resultant home sales. Fiscal Year 2014-15 Rate of Return 1st Quarter Fiscal Year State of Arizona Chandler Benchmark: 0.03% 0.03% Apr - May - Jun 2013 5,455 167 Wells Capital Management: 0.03% 0.03% Jul - Aug - Sep 2013 4,544 133 PFM: 0.05% 0.05% Oct - Nov - Dec 2013 3,908 102 Fiscal Year 2013-14 Rate of Return 1st Quarter Fiscal Year Jan - Feb - Mar 2014 4,079 87 Benchmark: 0.22% 0.22% Apr - May - Jun 2014 5,120 147 Wells Capital Management: 0.26% 0.26% Jul - Aug - Sep 2014 4,506 126 PFM: 0.26% 0.26% The City's benchmark is the 0-3 year Merrill Lynch Treasury Index. Single family building permits are lower than the high-growth years, Rate of return includes interest earnings as well as both realized averaging 127 permits over the last six quarters. Fewer building permits and unrealized gains/(losses). generally equates to less new construction, lower permit fees revenues and lower sales tax revenues. Source: Investment Advisors Source: U.S. Census Bureau, City of Chandler Transportation & Development Department. 2 11/10/2014 GENERAL FUND REVENUE ANALYSIS: OVERALL GENERAL FUND REVENUES FY 2014-15 1st Qtr Jul - Sep 14 $ 43,033,811 2nd Qtr Oct - Dec 14 47,077,526 3rd Qtr Jan - Mar 15 49,750,862 4th Qtr Apr - Jun 15 55,553,861 Total $ 195,416,060 FY 15 Actual Revenue $ 45,719,281 % of Budget Rec'd *% of Budget Hist. Rec'd 23.4% Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget 70 Dollars in Millions FY 15 Adopted Budget FY 14 22.1% 60 50 40 30 20 $ 45,719,281 23.4% 22.1% 10 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE General Fund revenue collections through the first quarter of FY 2014-15 are $2.7M (6.2%) above the budget based on historical trend and $1.3M (2.8%) higher than actual collections through the first quarter of FY 2013-14. Overall, General Fund revenue, led by continuing strong Sales Tax collections, are performing well due to higher consumer confidence and a steady stream of new development activity in Chandler. The following charts provide more detail regarding the various sources of General Fund revenues. GENERAL FUND REVENUES BY CATEGORY FY 2014-15 General Fund Collection History by Category % Revenue Categories Sales Tax Franchise Fees Primary Property Tax State Shared Revenue Licenses & Permits Charges for Services Other Revenues Indirect Cost Allocation FY 15 Adopted Budget $ 99,261,000 2,979,000 6,964,900 57,907,000 3,580,400 11,003,060 6,141,800 7,578,900 FY 15 Actual Revenue $ 26,750,744 59,573 32,045 12,041,195 1,169,528 2,618,345 1,153,126 1,894,725 Total $ 195,416,060 $ 45,719,281 % of Budget Rec'd to Date 26.9% 2.0% 0.5% 20.8% 32.7% 23.8% 18.8% 25.0% Indirect Costs 100% 4% 3% 7% 3% 4% 4% 6% 2% 4% 3% 6% 3% 25% 26% 28% 80% 60% 4% 2% 4% 1% 4% 4% 3% 6% 3% 26% Other Revenues Charges for Services 0% 0% Licenses & Permits 2% State Shared Revenue 40% 52% 52% 52% 59% Primary Property Taxes 20% Franchise Fees 23.4% 0% FY12 $188M FY13 $196M FY14 $201M FY15 $46M Local Sales Taxes POSITIVE This chart summarizes General Fund revenue collections by category for FY 2014-15. The graph helps us visualize what percentage each revenue category is to the total General Fund. As you can see, the percentage spread of revenue sources are relatively consistent over the years with local sales taxes and state shared revenues being the largest General Fund revenue sources. The next several pages provide an analysis of each revenue category except Indirect Cost Allocation (payments by the Water, Wastewater, Solid Waste, and Airport Enterprise Funds to the General Fund for City services provided for operations). 3 11/10/2014 GENERAL FUND REVENUE ANALYSIS (continued): SALES TAX REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 24,633,529 FY 15 Actual Revenue $ 26,750,744 % of Budget Rec'd *% of Budget Hist. Rec'd 26.9% 27.1% 23,843,574 3rd Qtr Jan - Mar 15 25,081,126 4th Qtr Apr - Jun 15 25,702,771 Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget 30 Dollars in Millions FY 15 Adopted Budget FY 14 25 20 15 10 Total $ 99,261,000 $ 26,750,744 26.9% 27.1% 5 * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Figures above include General Fund Local Sales Tax Collections and the related revenues of License Fees, Audit Assessments, Penalties, and Interest. Sales tax collections for the first quarter of FY 2014-15 are $2.1M (8.6%) above the budget based on historical trend and $702,026 (2.7%) higher than FY 2013-14 actual collections through the first quarter. It should be noted that HB2111 required the State of Arizona to begin licensing and collecting sales tax for all non-program Cities beginning 1/1/15, which the City anticipated to have a negative impact on sales tax revenue collections during FY 2014-15. This deadline was extended one year by the State to 1/1/16. SALES TAX COLLECTION HISTORY 4 Years Actual Sales Tax by Category (in millions) Retail Contracting Utilities Real Property Rentals Restaurants & Bars Telecommunications Personal Prop. Rentals Hotels/Motels Publishing/Printing FY 15 Adopted Budget $ 46,500,000 9,450,000 12,500,000 10,000,000 9,000,000 3,500,000 2,100,000 2,000,000 250,000 Amusements Use Tax TOTAL SALES TAX FY 15 Actual % of Actual Revenue to Budget $ 11,761,188 25.3% 2,217,609 23.5% 4,366,368 34.9% 2,813,162 28.1% 2,354,716 26.2% 864,193 24.7% 791,414 37.7% 480,496 24.0% 56,187 22.5% 700,000 1,000,000 $ 97,000,000 $ % Chg from Prior Yr 4.3% -7.5% 3.3% 3.8% 3.7% -1.4% 13.9% 8.8% -18.8% 172,209 168,597 24.6% 16.9% -8.0% -44.8% 26,046,139 26.9% 2.3% 39 FY 10-11 FY 11-12 43 FY 12-13 45 6 11 10 10 47 FY 13-14 0 20 11 40 8 4 9 10 12 12 12 60 9 4 9 4 11 10 4 11 80 100 Retail Contracting Utilities Real Property Rentals Restaurants & Bars Telecommunications Personal Prop. Rentals Hotels/Motels Publishing/Printing Amusements 120 Use Tax The above figures reflect General Fund Sales Tax Collections by category and exclude the related revenues of License Fees, Audit Assessments, Penalties, and Interest. Sales Tax collections through the first quarter of FY 2014-15 were $1.9M (7.8%) above the budget based on historical trend and $586,743 (2.3%) higher than FY 2013-14 actual collections through the first quarter. Lower contracting and use tax collections reflect a slowdown of development in the first quarter of FY 2014-15 compared to the first quarter of the last fiscal year. 4 11/10/2014 GENERAL FUND REVENUE ANALYSIS (continued): FRANCHISE FEE REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 58,142 $ 59,573 % of Budget Rec'd *% of Budget Hist. Rec'd 2.0% 2.0% 715,482 3rd Qtr Jan - Mar 15 1,000,149 4th Qtr Apr - Jun 15 1,205,227 Total FY 15 Actual Revenue $ 2,979,000 $ 59,573 2.0% Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget Dollars in Thousands FY 15 Adopted Budget FY 14 2.0% 1,400 1,200 1,000 800 600 400 200 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Franchise Fees are paid by Arizona Public Service (2% of Commercial and Residential Sales), Southwest Gas Corporation (2% of Commercial and Residential Sales), Cox Communications (5% of Gross Revenue), Air Products (2% of Gross Sales), and Centurylink Cable Services (5% of Gross Sales). The historical trend (FY 2010-11 through FY 2013-14) reflects Qwest's exit from the cable business in FY 2010-11 and reentry in the market in FY 2012-13 as Centurylink. Franchise fee collections through the first quarter of FY 2014-15 are $1,431 (2.5%) above the budget based on historical trend and $7,594 (14.6%) higher than FY 2013-14 actual collections through the first quarter. PRIMARY PROPERTY TAX REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 49,033 FY 15 Actual Revenue $ 32,045 % of Budget Rec'd *% of Budget Hist. Rec'd 0.5% 0.7% 3,498,525 3rd Qtr Jan - Mar 15 511,411 4th Qtr Apr - Jun 15 2,905,931 Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget 4 Dollars in Millions FY 15 Adopted Budget FY 14 3 2 1 Total $ 6,964,900 $ 32,045 0.5% 0.7% - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE This presentation only includes primary property taxes (supporting General Fund operations) and does not include secondary property taxes (supporting debt service on capital projects and recorded in the General Obligation Debt Service Fund). Property tax collections are due starting October 1st and March 1st each year. For FY 2014-15, Chandler will collect a primary tax rate of $0.2992 per $100 of assessed valuation and a secondary tax rate of $0.88 per $100 of assessed valuation for a total rate of $1.1792, representing a decrease of $0.0922 from the rates adopted for FY 2013-14. There is a two-year lag between the market value and recording assessed valuations, therefore, the City's primary assessed valuation increased 5.6% in FY 2014-15, the first year of increases in assessed valution since FY 2009-10. Primary property tax collections through the first quarter of FY 2014-15 are $16,988 (-34.6%) below the budget based on historical trend and $28,274 (-46.9%) lower than FY 2013-14 actual collections through the first quarter. The reduction in the property tax rate helped offset the increased valuations to relieve citizen property tax bills to the City. 5 11/10/2014 GENERAL FUND REVENUE ANALYSIS (continued): STATE SHARED REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 12,057,349 2nd Qtr Oct - Dec 14 13,799,216 3rd Qtr Jan - Mar 15 14,821,682 4th Qtr Apr - Jun 15 17,228,753 Total $ 57,907,000 FY 15 Actual Revenue $ $ 12,041,196 12,041,196 % of Budget Rec'd *% of Budget Hist. Rec'd 20.8% 21.0% 20.8% Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 15 Adopted Budget FY 14 18 16 14 12 10 8 6 4 21.0% 2 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE -- State Shared Sales Tax: The state sales tax rate is currently 5.6%, of which a portion of the various categories of sales tax are distributed to cities and towns based on population as state shared sales tax. Collections through the first quarter of FY 2014-15 are $73,465 (2.2%) above the budget based on historical trend and $118,161 (3.6%) higher than FY 2013-14 actual collections through the first quarter. This revenue category reflects a small but steady growth in Arizona's overall economy. -- Vehicle License Tax: Cities and towns receive 25% of the net revenues collected for vehicle licensing within their county from the state. The respective city shares are determined by the proportion of city population to total incorporated population of the county. Collections through the first quarter of FY 2014-15 are $92,734 (-5.7%) below the budget based on historical trend and $275,874 (-15.3%) lower than FY 2013-14 actual collections through the first quarter. -- Urban Revenue Sharing: Fifteen percent (15%) of the 2012 State income tax collection is distributed to cities and towns as urban revenue sharing based upon population and is known for budget purposes since there is a two year lag in distribution. Collections through the first quarter of FY 2014-15 are $3,115 (less than 0.01%) below the budget based on historical trend and $566,406 (8.6%) higher than FY 2013-14 actual collections through the first quarter. LICENSES & PERMITS REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 534,126 % of Budget Rec'd *% of Budget Hist. Rec'd $ 1,169,528 32.7% 18.7% $ 1,169,528 32.7% 18.7% 869,232 3rd Qtr Jan - Mar 15 931,678 4th Qtr Apr - Jun 15 1,245,364 Total FY 15 Actual Revenue $ 3,580,400 * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget Dollars in Thousands FY 15 Adopted Budget FY 14 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE This category includes revenue for various licenses: transaction privilege sales tax, alcoholic beverages, peddlers and solicitors, secondhand and junk dealers, amusements, and professional/occupational licenses, as well as cable license application fees. In addition, revenue from building, alarm, and fiber optic permits are included. License and permit collections through the first quarter of FY 2014-15 are $635,402 (119.0%) above the budget based on historical trend and $210,605 (22.0%) above FY 2013-14 actual collections through the first quarter. Budgeted amounts have been kept at moderate levels since it is difficult to predict the timing of new development, but this category has started the year very strong and exceeded expectations. 6 11/10/2014 GENERAL FUND REVENUE ANALYSIS (continued): CHARGES FOR SERVICES REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2,420,101 2nd Qtr Oct - Dec 14 2,363,036 3rd Qtr Jan - Mar 15 2,541,659 4th Qtr Apr - Jun 15 3,678,264 Total $ 11,003,060 FY 15 Actual Revenue $ $ 2,618,345 2,618,345 % of Budget Rec'd *% of Budget Hist. Rec'd 23.8% 24.3% 23.8% Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget 5 Dollars in Millions FY 15 Adopted Budget FY 14 4 3 2 24.3% 1 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Charges for Services include revenue from various engineering, recreation, and library fees, police and fire miscellaneous service reimbursements, and public school reimbursement. Charges for services collections through the first quarter of FY 2014-15 are $198,244 (8.2%) above the budget based on historical trend and $253,085 (10.7%) higher than FY 2013-14 actual collections through the first quarter. OTHER REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 1,386,806 2nd Qtr Oct - Dec 14 1,316,972 3rd Qtr Jan - Mar 15 1,632,776 4th Qtr Apr - Jun 15 1,805,246 Total $ 6,141,800 FY 15 Actual Revenue $ $ 1,153,126 1,153,126 % of Budget Rec'd *% of Budget Hist. Rec'd 18.8% 24.0% 18.8% Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget 2 Dollars in Millions FY 15 Adopted Budget FY 14 1 24.0% - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr NEGATIVE Other revenue captures interest income, fines and forfeitures, sale of land and fixed assets, and other miscellaneous items. Revenue streams in this category are not constant. Other revenue collections through the first quarter of FY 2014-15 are $233,680 (-16.9%) below the budget based on historical trend and $174,076 (-13.1%) lower than FY 2013-14 actual collections through the first quarter. A negative indicator is reflected for this revenue category since the variance between the percentage of budget received and the percentage of budget historically received is greater than 5%. This is due to higher collections in prior years for Rentals of Property. 7 11/10/2014 GENERAL FUND EXPENDITURE ANALYSIS: GENERAL FUND EXPENDITURES + ENCUMBRANCES for FY 2014-15 by FUNCTION Dollars in Millions FY 15 Adjusted Budget * Dept. Operating General Government $ 45,215,463 FY15 Actual Exp+Enc $ % of Budget Exp'd % of Budget Prior Yr 13,513,506 29.9% 30.5% 33.4% 32.9% Community Services 25,016,157 8,348,415 Public Safety 94,898,892 25,270,663 26.6% 27.0% Transportation & Dev. 21,264,335 6,522,425 30.7% 28.5% 1,659,342 14.8% 29.7% 55,314,351 28.0% 28.9% - 0.0% 0.0% - 0.0% 0.0% 24.1% 25.5% Non-Dept. Pers. & O&M 11,227,259 Subtotal $ 197,622,106 $ Non-Dept. Reserves $ $ Non-Dept. Contingencies Total 2,698,000 28,881,559 $ 229,201,665 $ 55,314,351 * Excluding Interfund Transfers 2 7 2 6 Non-Dept. Pers. & O&M 25 25 Transportation & Dev. Public Safety 8 8 Community Services 14 14 General Government FY 14 1Q YTD Exp+Enc FY 15 1Q YTD Exp+Enc Total General Fund operating expenditures are reflected by City function, along with budgeted non-departmental reserves (encumbrance and unencumbered carryforward, utility, fuel, and downtown redevelopment) and contingencies (15% and Council). Since General Obligation debt and General Fund capital expenditures are reflected in the General Obligation Debt and General Capital Projects Funds, this presentation only includes General Fund operating expenditures to more clearly reflect the results of operations. FY 2014-15 operating spending through the first quarter is 28.0% of the adjusted budget compared to 28.9% of adjusted budget spent last fiscal year through the first quarter. As shown on the following pages, departments have expended between 20.4% and 38.5% of their General Fund adjusted budgets through the first quarter of FY 2014-15. GENERAL FUND EXPENDITURES + ENCUMBRANCES for FY 2014-15 by CATEGORY FY 2014-15 General Fund Actual Expenditures + Encumbrances *Dept. Operating Personnel Operations & Maint. Reserves Contingencies Total FY 15 Adjusted Budget $ 145,550,683 FY 15 Actual Exp+Enc $ 52,071,423 32,410,707 FY 14 Actual Exp+Enc $ 22,903,644 % Change from Prior Operations Yr Actual & Maint. 31,649,587 2.4% 22,361,826 2.4% 2,698,000 - - 0.0% 28,881,559 - - 0.0% $ 229,201,665 $ 55,314,351 $ 54,011,413 2.4% 41% Personnel 59% * Excluding Interfund Transfers Total General Fund operating expenditures and encumbrances are reflected by spending category. Operating spending through the first quarter of FY 2014-15 is 2.4% higher than spending through the first quarter of FY 2013-14 mainly due to increases from labor negotiations and benefit changes in Personnel, and street improvements for Operations & Maintenance. 8 11/10/2014 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MAYOR & COUNCIL EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 197,944 2nd Qtr Oct - Dec 14 197,944 3rd Qtr Jan - Mar 15 214,439 4th Qtr Apr - Jun 15 214,439 Total $ 824,766 FY 15 Actual Exp+Enc $ $ 185,082 185,082 22.4% 22.7% 22.4% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 250 200 150 100 50 22.7% * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Mayor and Council spent 22.4% of their FY 2014-15 adjusted budget and has historically spent 22.7% of their adjusted budget through the first quarter of the fiscal year. CITY CLERK EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 281,495 2nd Qtr Oct - Dec 14 184,982 3rd Qtr Jan - Mar 15 160,854 4th Qtr Apr - Jun 15 176,939 Total $ 804,270 FY 15 Actual Exp+Enc $ $ 309,958 309,958 38.5% 31.2% 38.5% 31.2% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 350 300 250 200 150 100 50 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE The City Clerk has spent 38.5% of their FY 2014-15 adjusted budget and has historically spent 31.2% of their adjusted budget through the first quarter of the fiscal year. First quarter spending in FY 2014-15 included expenditures for the primary election held in the fall of 2014. 9 11/10/2014 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): CITY MANAGER EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 9,655,379 2nd Qtr Oct - Dec 14 5,080,924 3rd Qtr Jan - Mar 15 5,937,890 4th Qtr Apr - Jun 15 6,373,852 Total $ 27,048,045 FY 15 Actual Exp+Enc $ 9,203,460 34.0% 33.1% $ 9,203,460 34.0% 33.1% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Millions FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 10 9 8 7 6 5 4 3 2 1 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE City Manager includes the following divisions budgeted in the General Fund: Administration, Buildings & Facilities, Downtown Redevelopment, Economic Development, Human Resources, Information Technology, Office of Neighborhood Resources, and Planning. Combined, these divisions spent 34.0% of their FY 2014-15 adjusted budget and have historically spent 33.1% of their adjusted budget through the first quarter of the fiscal year. Starting July 1, 2014, the Planning Division is reported in this Department instead of in the Transportation & Development Department (but is not part of this Department's historical trend). Starting with the Quarterly Report for the second quarter, the Office of Neighborhood Resources will be reflected as part of the new Community and Neighborhood Resources Department and the Cultural Affairs Division will be moved into the City Manager Department. LAW EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 865,973 2nd Qtr Oct - Dec 14 829,890 3rd Qtr Jan - Mar 15 974,219 4th Qtr Apr - Jun 15 938,137 Total $ 3,608,219 FY 15 Actual Exp+Enc $ $ 767,810 767,810 21.3% 23.0% 21.3% 23.0% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 1,000 800 600 400 200 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Law spent 21.3% of their FY 2014-15 adjusted budget and has historically spent 23.0% of their adjusted budget through the first quarter of the fiscal year. 10 11/10/2014 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): CITY MAGISTRATE EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 1,028,967 $ 865,870 20.4% 22.2% 995,077 3rd Qtr Jan - Mar 15 1,098,513 4th Qtr Apr - Jun 15 1,119,674 Total FY 15 Actual Exp+Enc $ 4,242,231 $ 865,870 20.4% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 1,200 1,000 800 600 400 200 22.2% 1st Qtr * Historical Trend represents the average of the past 4 years % of actual to budget 2nd Qtr 3rd Qtr 4th Qtr POSITIVE City Magistrate spent 20.4% of their FY 2014-15 adjusted budget and has historically spent 22.2% of their adjusted budget through first quarter of the fiscal year. COMMUNICATIONS & PUBLIC AFFAIRS EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 642,608 2nd Qtr Oct - Dec 14 449,826 3rd Qtr Jan - Mar 15 535,507 4th Qtr Apr - Jun 15 514,086 Total $ 2,142,027 FY 15 Actual Exp+Enc $ $ 595,483 595,483 27.8% 25.7% 27.8% 25.7% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 700 600 500 400 300 200 100 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Communications and Public Affairs (CAPA) also includes Video Production and Print, Mail, & Graphics. CAPA spent 27.8% of their FY 2014-15 adjusted budget and has historically spent 25.7% of their adjusted budget through the first quarter of the fiscal year. 11 11/10/2014 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MANAGEMENT SERVICES EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 2,008,927 2nd Qtr Oct - Dec 14 1,650,190 3rd Qtr Jan - Mar 15 1,793,685 4th Qtr Apr - Jun 15 1,721,939 Total $ 7,174,741 FY 15 Actual Exp+Enc $ $ 1,759,101 1,759,101 24.5% 25.7% 24.5% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 25.7% 2,100 1,800 1,500 1,200 900 600 300 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Management Services Department includes the following divisions budgeted in the General Fund: Administration, Budget, Accounting, Purchasing, Central Supply, Tax & License, and Utility Services (reimbursed by the Municipal Utilities Department through the Indirect Cost Allocation). These divisions spent 24.5% of their FY 2014-15 adjusted budget and have historically spent 25.7% of their adjusted budget through the first quarter of the fiscal year. NON-DEPARTMENTAL EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 5,613,630 $ 1,659,342 14.8% 33.9% 449,090 3rd Qtr Jan - Mar 15 2,582,270 4th Qtr Apr - Jun 15 2,582,269 Total** FY 15 Actual Exp+Enc $ 11,227,259 $ 1,659,342 14.8% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget 5 Dollars in Millions FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 4 3 2 1 33.9% - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr ** Excludes Reserves and Contingencies POSITIVE Non-Departmental includes citywide costs that do not belong to a specific department (i.e., memberships, legal fees, studies, Strategic Economic Development, and miscellaneous Downtown Redevelopment). Spending in this category fluctuates due to the changing "onetime" needs from year to year. Spending for this category for FY 2014-15 and the prior year consists mainly of contract encumbrances for the Strategic Economic Development Continuum project, the Photo Red Light contract, and the Animal Control contract with Maricopa County. 12 11/10/2014 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): TRANSPORTATION & DEVELOPMENT EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 6,042,170 2nd Qtr Oct - Dec 14 4,482,900 3rd Qtr Jan - Mar 15 4,677,809 4th Qtr Apr - Jun 15 4,287,991 Total $ 19,490,870 FY 15 Actual Exp+Enc $ $ 6,086,813 6,086,813 31.2% 28.9% 31.2% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget 7 6 Dollars in Millions FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 5 4 3 2 28.9% 1 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Transportation and Development includes the following divisions budgeted in the General Fund: Administration, Development Services, Engineering, Capital Projects, Streets, Traffic Engineering, Transit Services, and Street Sweeping. Starting July 1, 2014, the Planning Division is no longer reported in this Department, but instead is in the City Manager's Department (but is part of this Department's historical trend). The department spent 31.2% of their FY 2014-15 adjusted budget and has historically spent 28.9% of their adjusted budget through the first quarter of the fiscal year. COMMUNITY SERVICES EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 8,755,655 2nd Qtr Oct - Dec 14 4,753,070 3rd Qtr Jan - Mar 15 5,253,393 4th Qtr Apr - Jun 15 6,254,039 Total $ 25,016,157 FY 15 Actual Exp+Enc $ 8,348,415 33.4% 33.3% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget 9 Dollars in Millions FY 15 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 8 7 6 5 4 3 $ 8,348,415 33.4% 2 33.3% 1 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Community Services includes Administration, Center for the Arts, Library, Aquatics, Parks Development & Operations, Recreation, Sports & Fitness Facilities, Nature & Recreation Facilities, and Museum. The department spent 33.4% of their FY 2014-15 adjusted budget and has historically spent 33.3% of their adjusted budget through the first quarter of the fiscal year. Starting with the Quarterly Report for the second quarter, the Office of Neighborhood Resources will merge with this Department to reflect a new Community and Neighborhood Resources Department. The Center for the Arts, Library, and Museum will move to report to the City Manager Department as a Cultural Affairs Division. 13 11/10/2014 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): POLICE EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 18,633,530 2nd Qtr Oct - Dec 14 14,135,781 3rd Qtr Jan - Mar 15 15,420,852 4th Qtr Apr - Jun 15 16,063,389 Total $ 64,253,552 FY 15 Actual Exp+Enc $ 16,678,052 26.0% 28.9% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Millions FY 15 Adjusted Budget % of Budget *Hist. Trend Expended % of by Qtr Budget 21 18 15 12 9 6 $ 16,678,052 26.0% 28.9% 3 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Police includes Administration, Professional Standards, Property & Evidence, Forensic Services, Field Operations, Criminal Investigations, Planning & Research, Communications, Technology, Records, Detention Services, and Community Resources & Training. The department spent 26.0% of their FY 2014-15 adjusted budget and has historically spent 28.9% of their adjusted budget through the first quarter of the fiscal year. FIRE EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 8,901,191 2nd Qtr Oct - Dec 14 6,993,793 3rd Qtr Jan - Mar 15 7,629,593 4th Qtr Apr - Jun 15 8,265,392 Total $ 31,789,969 FY 15 Actual Exp+Enc $ 8,854,965 27.9% 28.0% FY 14 Actual Exp+Enc FY 15 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Millions FY 15 Adjusted Budget % of Budget *Hist. Trend Expended % of by Qtr Budget 9 8 7 6 5 4 3 $ 8,854,965 27.9% 28.0% 2 1 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Fire includes Administration, Emergency Services, Operations, Prevention & Preparedness, Support Services, and Citywide Fleet. The department spent 27.9% of their FY 2014-15 adjusted budget and has historically spent 28.0% of their adjusted budget through the first quarter of the fiscal year. 14 11/10/2014 ENTERPRISE FUNDS WATER FUND ANALYSIS FY 2014-15 COMPARISON WATER FUND ANALYSIS WATER FUND Revenues $ Intel Rev/Receivable 61,314,834 FY 15 Actual Revenue/ Exp+Enc $ 2,203,386 13,986,284 - % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 23% 27% 0% 23% Total Revenues $ 63,518,220 $ 13,986,284 22% 27% Operating Expenses $ 30,916,630 $ 11,704,533 38% 33% 1,045,999 11% 23% 0% 23% Major Capital Expenses 9,547,177 Intel Exp/Payable 2,203,386 Debt Service 18,674,175 Transfers Out 3,625,521 Total Expenses Net Rev / Exp POSITIVE - Revenues 60 50 40 30 20 0% 0% 10 980,056 27% 24% 0 21% 21% - $ 64,966,889 $ 13,730,588 $ (1,448,669) $ 255,696 Expenses 70 Dollars in Millions FY 15 Adjusted Budget FY14 Actual Q1 YTD FY15 Actual Q1 YTD FY15 Budget The performance indicator for Enterprise Funds focuses on the relationship between Operating Revenues and Operating Expenses (including debt service and indirect cost allocation) and the percentage of budget received/expended. The Water Operating Fund includes the following cost centers: Administration, Water Distribution, Water Treatment Plant, Environmental Resources, Water Quality, Water Systems Maintenance, San Tan Vista Water Treatment Plant, Meter Services, and Water Capital. The Water Operating Fund supports operating functions and major capital costs that can be paid without borrowing. The Net Revenue/Expense for FY 2014-15 reflects a budgeted $1.4 million drawdown of fund balance. Transfers Out include Indirect Cost Allocation to the General Fund of $3,528,594 and payment of $96,927 to the Technology Replacement Fund. Year-to-date Operating Revenues through the first quarter are 26% of budget compared to 27% through the first quarter of last year, while Operating Expenses through the first quarter are 38% of budget as compared to 33% through the first quarter of last year. Capital projects reimbursed by Intel are detailed separately under Revenues and Expenses to have no impact on the fund. WASTEWATER FUND ANALYSIS FY 2014-15 COMPARISON WASTEWATER FUND ANALYSIS WASTEWATER FUND Revenues $ Intel Rev/Receivable 46,956,231 FY 15 Actual Revenue/ Exp+Enc $ 35,836,801 Revenues % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 8,605,679 18% 20% 18,334,595 51% 31% 140 120 100 Total Revenues $ 82,793,032 $ 26,940,274 33% 28% Operating Expenses $ 18,701,408 $ 7,975,946 43% 38% 5,786,345 473,469 8% 18% Intel Exp/Payable 35,836,801 18,334,595 51% 31% 40 Debt Service 16,072,293 0% 0% 20 639,279 26% 25% 0 27,423,289 35% 28% Major Capital Expenses Transfers Out Total Expenses Net Rev / Exp POSITIVE - 2,435,509 $ 78,832,356 $ $ 3,960,676 $ Expenses 160 Dollars in Millions FY 15 Adjusted Budget 80 60 FY14 Actual Q1 YTD FY15 Actual Q1 YTD FY15 Budget (483,015) The performance indicator for Enterprise Funds focuses on the relationship between Operating Revenues and Operating Expenses (including debt service and indirect cost allocation) and the percentage of budget received/expended. The Wastewater Operating Fund includes the following cost centers: Collection, Wastewater Lone Butte Treatment Plant, Wastewater Quality, Airport Water Reclamation Facility, Ocotillo Water Reclamation Facility, and Wastewater Capital. The Wastewater Operating Fund supports operating functions and major capital costs that can be paid without borrowing. The Net Revenue/Expense for FY 2014-15 reflects a budgeted $4.0M increase to fund balance. Transfers Out include Indirect Cost Allocation to the General Fund of $2,394,973 and payment of $40,536 to the Technology Replacement Fund. Year-to-date Operating Revenues through the first quarter are 18% of budget compared to 20% throught the first quarter of last year, while Operating Expenses through the first quarter are 43% of budget as compared to 38% through the first quarter of last year. Capital projects reimbursed by Intel are detailed separately under Revenues and Expenses to have no impact on the fund. 15 11/10/2014 ENTERPRISE FUNDS OTHER FUNDS ANALYSIS (continued): SOLID WASTE FUND ANALYSIS FY 2014-15 COMPARISON SOLID WASTE FUND ANALYSIS SOLID WASTE Revenues $ Transfers In FY 15 Actual Revenue/ Exp+Enc 13,968,105 $ - 3,100,640 - % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 22% 22% 0% 0% Total Revenues $ 13,968,105 $ 3,100,640 22% 22% Operating Expenses $ 13,324,883 $ Major Capital Expenses Transfers Out Total Expenses $ 10,428,912 78% 81% 268,922 18,920 7% 88% 1,128,551 312,301 28% 24% 10,760,133 73% 76% 14,722,356 $ Revenues Expenses 15 Dollars in Millions FY 15 Adjusted Budget 12 9 6 3 - Net Rev / Exp WARNING $ (754,251) $ FY14 Actual Q1 YTD (7,659,493) FY15 Actual Q1 YTD FY15 Budget The performance indicator for Enterprise Funds focuses on the relationship between Operating Revenues and Operating Expenses (including debt service and indirect cost allocation) and the percentage of budget received/expended. The Solid Waste Operating Fund supports operating functions and major capital costs that can be paid without borrowing. The Net Revenue/Expense for FY 2014-15 reflects a budgeted $754,251 drawdown of fund balance. Transfers Out include Indirect Cost Allocation to the General Fund of $1,088,333 and payment of $40,218 to the Technology Replacement Fund. Year-to-date Operating Revenues through the first quarter are 22% of budget compared to 22% through the first quarter of last year, while Operating Expenses through the first quarter are 78% of budget as compared to 81% last year. A warning indicator occurs due to large encumbrances ($8.0M) recorded at the start of the fiscal year for the Solid Waste collections contract to support costs through the end of the fiscal year and then spent against for the remainder of the year, with revenues more equally apportioned throughout the year. AIRPORT FUND ANALYSIS FY 2014-15 COMPARISON AIRPORT FUND ANALYSIS AIRPORT FUND Revenues $ General Fund Subsidy 1,042,600 FY 15 Actual Revenue/ Exp+Enc $ 1,043,650 253,661 - % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 24% 27% 0% -9% Total Revenues $ 2,086,250 $ 253,661 12% 20% Operating Expenses $ 1,096,364 $ 287,747 26% 26% 202,352 24% 8% Major Capital Expenses 856,568 Debt Service 27,938 - 0% 0% Transfers Out 105,380 30,380 29% 24% $ 520,479 25% 24% $ (266,818) Total Expenses Net Rev / Exp POSITIVE $ $ 2,086,250 - Revenues Expenses 2,400 2,100 Dollars in Thousands FY 15 Adjusted Budget 1,800 1,500 1,200 900 600 300 FY14 Actual Q1 YTD FY15 Actual Q1 YTD FY15 Budget The performance indicator for Enterprise Funds focuses on the relationship between Operating Revenues and Operating Expenses (including debt service and indirect cost allocation) and the percentage of budget received/expended. The Airport Fund supports operating functions and major capital costs that can be paid without borrowing. The Net Revenue/Expense for FY 2014-15 reflects no budgeted change in fund balance. General Fund Subsidy reflects budgeted transfers from the General Fund to help support operations. Transfers Out include Indirect Cost Allocation to the General Fund of $100,000 and a payment of $5,380 to the Technology Replacement Fund. Year-to-date Operating Revenues through the first quarter are 24% of budget compared to 27% through the first quarter of last year. Operating Expenses through the first quarter are 26% of budget as compared to 26% through the first quarter of last year. Major capital expenses are higher in the first quarter of FY 2014-15 as they perform pavement improvements to the taxiway and runway. 16 11/10/2014 OTHER FUNDS OTHER FUNDS ANALYSIS (continued): SYSTEM DEVELOPMENT FEE FUNDS ANALYSIS FY 2014-15 COMPARISON Water FY 15 Adjusted Budget $ Reclaimed Water Wastewater Total SDF Revenue $ 4,408,485 FY 15 Actual Revenue $ 1,753,825 % of Budget Rec'd to Date 40% 863,775 306,853 36% 4,165,730 1,793,321 43% 3,853,999 41% 9,437,990 $ FY 14 Actual Q1 YTD FY 14 Adjusted Budget FY 15 Actual Q1 YTD FY 15 Adjusted Budget 5 Dollars in Millions SYSTEM DEVELOPMENT FEE (SDF) FUNDS 4 3 2 1 0 Note: Budget and Actual amounts reflect SDF revenues and the interest earned on fund balances, and excludes loan transfers in/out or proceeds from bond sales. POSITIVE System Development fees (SDFs) are based on development and fluctuate quarterly as well as from year to year. The graph shows the FY 2014-15 budget and year-to-date collections as compared to the FY 2013-14 budget and year-to-date collections. Collections through the first quarter of FY 2014-15 were 41% of the budget as compared to the prior year's collections through the first quarter of 38% of the budget. Starting July 28, 2014, Water Resource SDFs are combined with Water SDFs in the same fund based on the recently adopted Infrastructure Improvements Plan (IIP). For comparative purposes, both years show Water and Water Resource SDFs combined. The modified SDFs effective July 28, 2014 resulted in an increase in Water SDFs of 13%, a decrease in Reclaimed Water SDFs pf (-25%), and an increase in Wastewater SDFs of 7%. IMPACT FEE FUNDS ANALYSIS FY 2014-15 COMPARISON IMPACT FEE FUNDS Arterial Streets $ 48% 2,566,880 903,116 35% 53,170 21,538 41% Public Buildings 163,490 56,411 35% Police 279,120 127,522 46% Fire 607,340 210,901 35% 3,353,605 42% Library $ % of Budget Rec'd to Date 2,034,117 Parks 4,261,180 FY 15 Actual Revenue Dollars in Thousands FY 15 Adjusted Budget FY 14 Actual Q1 YTD FY 14 Adjusted Budget FY 15 Actual Q1 YTD FY 15 Adjusted Budget 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Total Impact Revenue $ 7,931,180 $ 1,000 500 0 Note: Budget and Actual amounts reflect Impact Fee revenues and the interest earned on fund balances, and excludes loan transfers in/out or proceeds from bond sales. POSITIVE Impact fees are based on development and fluctuate quarterly as well as from year to year. The graph shows the FY 2014-15 budget and year-to-date collections as compared to FY 2013-14 budget and year-to-date collections. Collections through the first quarter of FY 2014-15 were 42% of the budget as compared to the prior year's collections through the first quarter of 66% of the budget. Impact fees were modified as of July 28, 2014, resulting in various changes to the fee categories depending on the land use type as noted in the recently adopted IIP. The change in single family fees for each fee category include a decrease of (-2%) for Arterial Streets, decreases of (-13%) to (-40%) depending on the service area for Parks, a decrease of (-19%) for Library, an increase of 13% for Public Buildings, an increase of 69% for Police, and an increase of 20% for Fire. 17 11/10/2014 OTHER FUNDS OTHER FUNDS ANALYSIS (continued): HIGHWAY USER FUND (HURF) ANALYSIS FY 2014-15 COMPARISON HIGHWAY USER FUND ANALYSIS Highway Users Tax $ Other FY 15 Actual Revenue/ Exp+Enc 13,000,000 $ 63,000 Total Revenues $ Operating Expenses $ 13,063,000 $ 9,275,739 Major Capital Expenses 2,698,037 Debt Service 4,677,025 Transfers Out Total Expenses $ 23,708 $ 2,275,852 18% 16% 5,785 9% 35% 2,281,637 17% 16% 3,115,493 34% 31% 361,409 13% 32% 0% 0% 23,708 100% 0% 3,500,610 21% 23% - 16,674,509 $ Revenues % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr Expenses 18 15 Dollars in Millions FY15 Adjusted Budget 12 9 6 3 0 Net Rev / Exp $ (3,611,509) $ FY14 Actual Q1 YTD (1,218,973) FY15 Actual Q1 YTD FY15 Budget POSITIVE Highway Users Tax is collected by the state on all gasoline sales. It is combined with other state-level vehicle related revenues, and distributed to cities and towns by using two formulas based upon population. Funds are restricted for use on streets and related projects. The Net Revenue/Expense for FY 2014-15 reflects a budgeted fund balance drawdown of $3.6M. Transfers Out include payment of $23,708 to the Technology Replacement Fund. Operating Revenues received through the first quarter are 18% of budget, which is 2% higher than last year's first quarter percentage. Operating Expenses through the first quarter are 34% of adjusted budget, which is 3% higher than last year's percentage. GRANT FUNDS ANALYSIS FY 2014-15 COMPARISON GRANT REVENUES % of Budget Rec'd to Date 14 85,555 2% 12 1,900,000 214,613 11% 13,802,300 1,887,475 14% Public Safety 2,806,050 95,473 3% Community Services 2,301,132 221,950 10% General Government* $ General Govt - CDBG General Govt - HUD Municipal Utilities T & D - Streets Total Grant Revenue $ 4,017,956 FY 15 Actual Revenue $ 100,000 - 0% 6,858,485 - 0% 31,785,923 $ 2,505,066 8% FY 15 Adjusted Budget FY 15 Actual Revenue 10 Dollars in Millions FY 15 Adjusted Budget 8 6 4 2 Gen Govt * Includes City Manager, Economic Development, Information Technology and Law Gen GovtCDBG Gen GovtHUD Public Safety Comm Svs MUD T & D-Streets Grants are an additional source of funds for major capital projects and certain operating programs. Grant sources include federal, state, and county governments as well as donations from businesses, organizations, or individuals to support particular programs. The adopted budget for grants is unique because it is developed before final approval on grant awards from other agencies is received in an effort to allow for adequate appropriation to spend anticipated grants. Additionally, grant revenues for many programs are received on a reimbursable basis, so the revenue on a large capital project may lag one to two fiscal years after the project is initiated. Actual collections through the first quarter of FY 2014-15 were $2.5M (8% of adjusted budget) as compared to $3.8M (11% of adjusted budget) collected through the first quarter of FY 2013-14. 18 11/10/2014