QUARTERLY FINANCIAL REPORT 4th Qtr FY14-15 PERFORMANCE AT A GLANCE GENERAL FUND REVENUE YEAR TO DATE COMPARED TO BUDGET % 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 POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE 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 & Neighborhood Services Police Fire, Health & Medical (including 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 POSITIVE POSITIVE POSITIVE POSITIVE INFORMATIONAL REFERENCE Page 2 Page 3 Page 3 Page 4 Page 5 Page 5 Page 6 Page 6 Page 7 Page 7 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 9/16/2015 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 deb 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 speculate the rate will edge up before the end of 2015. 2.0% April 30, 2008 1.5% October 8, 2008 1.0% October 29, 2008 0% - 0.25% December 16, 2008 to date Third Quarter 2014 (revised estimate) Fourth Quarter 2014 (revised estimate) First Quarter 2015 (revised estimate) Second Quarter 2015 (second estimate) 4.3% 2.1% 0.6% 3.7% Source: U.S. Department of Commerce Source: Federal Reserve Bank UNEMPLOYMENT National 5.5% 5.4% 5.5% 5.3% Mar-15 Apr-15 May-15 Jun-15 State of Arizona 6.2% 6.0% 5.8% 5.9% Phoenix Metro Area 4.8% 4.9% 4.6% 5.4% 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 Administration, "Arizona's Workforce" Newsletter CITY INVESTMENT PORTFOLIO BUILDING PERMITS The City splits its investment portfolio between two investment firms with a different mix of holdings at each firm to reduce risk. The City's benchmark is the 0-3 year Merrill Lynch Treasury Index. Single-family building permits are an indicator of the general economy. Rate of return includes interest earnings as well as both realized Higher numbers of permits indicate an active construction market and resultant home sales. and unrealized gains/(losses). Fiscal Year 2014-15 Rate of Return 4th Quarter Fiscal Year State of Arizona Chandler Benchmark: 0.12% 0.65% Jan - Feb - Mar 2014 4,079 87 Wells Capital Management: 0.10% 0.55% Apr - May - Jun 2014 5,120 147 PFM: 0.10% 0.69% Jul - Aug - Sep 2014 4,506 126 Fiscal Year 2013-14 Rate of Return 4th Quarter Fiscal Year Oct - Nov - Dec 2014 3,850 105 Benchmark: 0.20% 0.57% Jan - Feb - Mar 2015 4,602 195 Wells Capital Management: 0.20% 0.70% Apr - May - Jun 2015 6,528 283 PFM: 0.19% 0.69% Beginning January 2015, the City began investing in a community Single family building permits are lower than the high-growth years, averaging 157 permits per quarter over the last six quarters. Fewer bank deposit program called Certificate of Deposit Account Registry Services (CDARS) to maximize the return on short-term building permits generally equates to less new construction, lower permit fees revenues and lower sales tax revenues. As show above, FY 2014-15 investments. FY 2014-15 interest earned in this program was ended strong. $41,645. Source: Investment Advisors Sources: U.S. Census Bureau and City of Chandler Transportation & Development Department. 2 9/16/2015 GENERAL FUND REVENUE ANALYSIS: OVERALL GENERAL FUND REVENUES FY 2014-15 1st Qtr Jul - Sep 14 $ 43,033,811 FY 15 Actual Revenue $ % of Budget Rec'd *% of Budget Hist. Rec'd 45,719,281 23.4% 22.1% 2nd Qtr Oct - Dec 14 48,275,977 50,744,354 26.0% 26.3% 3rd Qtr Jan - Mar 15 48,367,363 53,851,256 27.6% 27.8% 4th Qtr Apr - Jun 15 55,738,909 59,126,299 30.3% 31.0% $ 195,416,060 $ 209,441,190 107.3% 107.2% Total Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 15 Adopted Budget FY 14 70 60 50 40 30 20 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 for FY 2014-15 are $14.0M (7.2%) above the budget and $8.3M (4.2%) higher than actual collections for FY 2013-14. Although the fiscal year ended $14.0M over the adopted budget, revenues are updated based on actual collections and additional information available at the time when preparing the FY 2015-16 budget. This is done for the purpose of estimating the fiscal year end General Fund balance to determine available one-time funds for the FY 2015-16 budget preparations. In other words, $7.1M of the $14.0M over adopted budget was anticipated and has been incorporated into the FY 2015-16 budget. The true net impact of additional one-time funds, taking into account not only revenues, but expenditures and carryforwards as well, is currently being calculated. Overall, General Fund revenue, led by continuing strong Sales Tax and License and Permit collections, are performing well due to higher consumer confidence locally and a steady stream of new development activity in Chandler. Additionally, the percentage of budget received for the fiscal year is greater than 100%, resulting in a positive performance indicator. 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 FY 15 Budget Actual Revenue $ 99,261,000 $ 108,668,092 2,979,000 3,289,168 6,964,900 7,059,241 57,907,000 59,236,588 3,580,400 5,146,556 11,003,060 11,934,247 6,141,800 6,528,398 7,578,900 7,578,900 Total $ 195,416,060 % of Budget Rec'd to Date 109.5% 110.4% 101.4% 102.3% 143.7% 108.5% 106.3% 100.0% Indirect Costs 100% 4% 3% 6% 2% 3% 4% 4% 6% 2% 4% 3% 6% 3% 25% 26% 28% 28% 4% 4% 4% 3% 1% 2% 2% 52% 52% 52% 4% 3% 7% Other Revenues 80% 60% 2% Charges for Services Licenses & Permits State Shared Revenue 40% 52% Primary Property Taxes 20% $ 209,441,190 107.3% Franchise Fees 0% FY12 $188M FY13 $196M FY14 $201M FY15 $209M 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 9/16/2015 GENERAL FUND REVENUE ANALYSIS (continued): SALES TAX REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 24,633,529 23,737,389 FY 15 Actual Revenue $ % of Budget Rec'd *% of Budget Hist. Rec'd 26,750,744 26.9% 27.1% 25,387,630 25.6% 26.3% 3rd Qtr Jan - Mar 15 25,008,062 28,362,918 28.6% 27.7% 4th Qtr Apr - Jun 15 25,882,020 28,166,800 28.4% 28.4% 99,261,000 $ 108,668,092 109.5% 109.5% Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 15 Adopted Budget FY 14 30 25 20 15 10 Total $ 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 FY 2014-15 are $9.4M (9.5%) above the budget and $4.8M (4.6%) higher than FY 2013-14 actual collections. The percentage of budget received for the fiscal year is in excess of 100%, resulting in a positive performance indicator. It should be noted that House Bill (HB) 2111 required the State of Arizona to begin licensing and collecting transaction privilege tax (TPT), commonly referred to as sales tax, for all Cities beginning January 1, 2015, 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 January 1, 2016. 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 $ 49,729,135 106.9% 8,870,092 93.9% 13,194,526 105.6% 11,967,509 119.7% 10,188,718 113.2% 3,435,949 98.2% 3,261,716 155.3% 2,892,470 144.6% 260,712 104.3% % Chg from Prior Yr 4.9% -9.3% 6.2% 8.2% 6.8% -2.8% 10.6% 17.0% 0.8% 700,000 1,000,000 895,730 1,145,534 128.0% 114.6% 23.0% 5.1% 97,000,000 $ 105,842,091 109.1% 4.6% 39 FY 10-11 FY 11-12 43 FY 12-13 45 FY 13-14 47 0 20 6 11 11 10 10 40 9 12 12 12 60 8 4 10 9 4 11 9 4 11 10 4 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 for FY 2014-15 were $8.8M (9.1%) above the budget and $4.6M (4.6%) higher than FY 2013-14 actual collections. Contracting collections are lower for FY 2014-15 compared to last fiscal year due to the HB 2111 legislative requirement to shift from contracting to retail reporting for certain projects, while a decrease in FY 2014-15 telecommunications collections is due to state changes in alarm monitoring based on a court decision during the last legislative session. 4 9/16/2015 GENERAL FUND REVENUE ANALYSIS (continued): FRANCHISE FEE REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 58,142 FY 15 Actual Revenue $ % of Budget Rec'd *% of Budget Hist. Rec'd 59,573 2.0% 2.0% 715,482 718,439 24.1% 24.4% 3rd Qtr Jan - Mar 15 1,000,149 1,171,980 39.3% 34.2% 4th Qtr Apr - Jun 15 1,205,227 1,339,176 45.0% 41.2% 3,289,168 110.4% 101.8% Total $ 2,979,000 $ Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget Dollars in Thousands FY 15 Adopted Budget FY 14 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 for FY 2014-15 are $310,168 (10.4%) above the budget and $154,680 (4.9%) higher than FY 2013-14 actual collections due, in part, to a larger payments by Air Products and CenturyLink. The percentage of budget received for the fiscal year is greater than 100%, resulting in a positive performance indicator. PRIMARY PROPERTY TAX REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 49,033 FY 15 Actual Revenue $ % of Budget Rec'd *% of Budget Hist. Rec'd 32,045 0.5% 0.7% 3,498,525 3,587,964 51.5% 51.2% 3rd Qtr Jan - Mar 15 511,411 481,212 6.9% 7.5% 4th Qtr Apr - Jun 15 2,905,931 2,958,020 42.5% 42.5% 7,059,241 101.4% 101.9% 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 $ - * 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. The reduction in the property tax rate helped offset the increased valuations to relieve citizens' property tax bills to the City. Primary property tax collections for FY 2014-15 are $94,341 (1.4%) above the budget and $330,321 (-4.5%) lower than FY 2013-14 actual collections. The majority of collections come in the second and fourth quarters since the first half of the property tax bills are due in October and the second half is due in March. The performance indicator is positive because the percentage of budget received for the fiscal year is greater than 100%. 5 9/16/2015 GENERAL FUND REVENUE ANALYSIS (continued): STATE SHARED REVENUE FY 2014-15 1st Qtr Jul - Sep 14 % of Budget Rec'd *% of Budget Hist. Rec'd 12,057,349 $ 12,041,196 20.8% 2nd Qtr Oct - Dec 14 13,880,616 14,637,551 25.3% 24.4% 3rd Qtr Jan - Mar 15 14,846,903 14,684,279 25.4% 26.2% 4th Qtr Apr - Jun 15 17,122,132 17,873,562 30.9% 30.4% 57,907,000 $ 59,236,588 102.4% 102.0% Total $ FY 15 Actual Revenue $ 21.0% Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 15 Adopted Budget FY 14 * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 20 18 16 14 12 10 8 6 4 2 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 for FY 2014-15 are $597,535 (2.8%) above the budget and $993,243 (4.8%) higher than FY 2013-14 actual collections. 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, as well as surcharges from vehicle rentals. The respective city shares are determined by the proportion of city population to total incorporated population of the county. Collections for FY 2014-15 are $730,329 (8.8%) above the budget and $590,263 (7.0%) higher than FY 2013-14 actual collections. -- 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 for FY 2014-15 are $1,724 (less than 0.01%) below the budget and $2.2M (8.5%) higher than FY 2013-14 actual collections. The overall state shared revenue performance indicator is positive because the percentage of budget received for the fiscal year is greater than 100%. LICENSES & PERMITS REVENUE FY 2014-15 1st Qtr Jul - Sep 14 1,169,528 32.7% 1,040,699 29.1% 30.4% 3rd Qtr Jan - Mar 15 931,678 1,457,081 40.7% 32.5% 4th Qtr Apr - Jun 15 1,245,364 1,479,248 41.3% 43.5% 5,146,556 143.8% 125.1% 3,580,400 $ *% of Budget Hist. Rec'd 869,232 $ 534,126 % of Budget Rec'd 2nd Qtr Oct - Dec 14 Total $ FY 15 Actual Revenue $ 18.7% * 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, solicitors and transient merchants, 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 for FY 2014-15 are $1.6M (43.7%) above the budget and $332,828 (-6.1%) below FY 2013-14 actual collections. Budgeted amounts for building permits (the largest revenue in this category) have been kept at moderate levels since it is difficult to predict the timing of new development, but this category is performing very strong and exceeded expectations through the fourth quarter, resulting in a positive performance indicator. 6 9/16/2015 GENERAL FUND REVENUE ANALYSIS (continued): CHARGES FOR SERVICES REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2,420,101 FY 15 Actual Revenue $ 2,618,345 % of Budget Rec'd *% of Budget Hist. Rec'd 23.8% 24.3% 2nd Qtr Oct - Dec 14 2,363,036 2,306,054 21.0% 23.7% 3rd Qtr Jan - Mar 15 2,541,659 3,671,059 33.4% 25.5% 4th Qtr Apr - Jun 15 3,678,264 3,338,789 30.3% 36.9% 11,934,247 108.5% 110.4% Total $ 11,003,060 $ Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget 5 Dollars in Millions FY 15 Adopted Budget FY 14 4 3 2 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 for FY 2014-15 are $931,187 (8.5%) above the budget and $210,502 (1.8%) higher than FY 2013-14 actual collections. The majority of the collections above the FY 2014-15 budget were from plan review fees and public school revenues due to a new three-year grant cycle in school resource officer funding. A positive performance indicator occurs since the percentage of budget received for the fiscal year is greater than 100%. OTHER REVENUE FY 2014-15 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 1,386,806 FY 15 Actual Revenue $ 1,316,972 % of Budget Rec'd *% of Budget Hist. Rec'd 1,153,126 18.8% 24.0% 1,171,291 19.1% 21.0% 3rd Qtr Jan - Mar 15 1,632,776 2,128,002 34.6% 27.8% 4th Qtr Apr - Jun 15 1,805,246 2,075,979 33.8% 30.5% 6,528,398 106.3% 103.3% Total $ 6,141,800 $ Actual Revenue FY 15 Actual Revenue Historical Trend Actual to Budget 3 Dollars in Millions FY 15 Adopted Budget FY 14 2 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 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 for FY 2014-15 are $620,278 (6.3%) above the budget and $318,680 (5.1%) higher than FY 2013-14 actual collections. The majority of the increased revenue collections in FY 2014-15 is due to better than anticipated investment interest collections, partly due to the implementation of the CDARS program in January 2015 (explained on page 2), which has helped maximize the return on short-term investments. The performance indicator is positive because the percentage of budget received for the fiscal year is greater than 100%. 7 9/16/2015 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 $ 52,727,209 FY15 Actual Exp+Enc $ % of Budget Exp'd % of Budget Prior Yr 50,156,017 95.1% 93.2% Comm. & Neigh. Services 20,649,685 19,694,087 95.4% 94.5% Public Safety 96,115,969 93,552,019 97.3% 98.3% Transportation & Dev. 19,725,046 18,493,372 93.8% 92.0% Non-Dept. Pers. & O&M 14,424,592 3,257,910 22.6% 61.3% Subtotal $ 203,642,501 $ 185,153,405 90.9% 94.9% Non-Dept. Reserves $ $ - 0.0% 0.0% - 0.0% 0.0% 81.0% 84.4% Non-Dept. Contingencies Total 2,216,288 22,599,798 $ 228,458,587 $ 185,153,405 3 18 4 18 Non-Dept. Pers. & O&M 94 90 Transportation & Dev. Public Safety 24 20 41 50 Comm. & Neigh. Services General Government FY 14 Exp+Enc FY 15 Exp+Enc * Excluding Interfund Transfers 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% of revenues 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 is 90.9% of the adjusted budget compared to 94.9% of adjusted budget spent last fiscal year. As shown on the following pages, departments have expended between 90.8% and 97.5% of their General Fund adjusted budgets for 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 FY 15 Actual Exp+Enc FY 14 Actual Exp+Enc % Change from Prior Yr Actual $ 146,021,499 $ 141,380,121 $ 136,854,081 3.3% 57,621,002 43,773,284 41,150,679 6.4% 2,216,288 - - 0.0% 22,599,798 - - 0.0% $ 228,458,587 $ 185,153,405 $ 178,004,760 Operations & Maint. 24% 4.0% Personnel 76% * Excluding Interfund Transfers Total General Fund operating expenditures and encumbrances are reflected by spending category. Operating spending for FY 2014-15 is 4.0% higher than spending for FY 2013-14 mainly due to increases from labor negotiations and benefit changes in Personnel, and street improvements for Operations & Maintenance. 8 9/16/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MAYOR & COUNCIL EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 197,944 FY 15 Actual Exp+Enc $ 185,082 22.4% 22.7% 2nd Qtr Oct - Dec 14 197,944 185,845 22.5% 22.7% 3rd Qtr Jan - Mar 15 214,439 207,188 25.2% 24.7% 4th Qtr Apr - Jun 15 214,439 210,407 25.5% 23.6% 788,522 95.6% 93.7% Total $ 824,766 $ 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 - * 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 95.6% of their FY 2014-15 adjusted budget and has historically spent 93.7% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. CITY CLERK EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 284,332 FY 15 Actual Exp+Enc $ 309,958 37.1% 30.0% 2nd Qtr Oct - Dec 14 183,979 221,711 26.5% 19.5% 3rd Qtr Jan - Mar 15 183,979 122,038 14.6% 19.6% 4th Qtr Apr - Jun 15 183,980 139,940 16.7% 19.1% 793,647 94.9% 88.2% Total $ 836,270 $ 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 94.9% of their FY 2014-15 adjusted budget and has historically spent 88.2% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. Spending in FY 2014-15 included one-time expenditures for the primary and general elections held in the fall of 2014. 9 9/16/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): CITY MANAGER EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 9,655,379 FY 15 Actual Exp+Enc $ 9,203,460 28.3% 27.5% 2nd Qtr Oct - Dec 14 7,819,047 7,842,105 24.1% 22.3% 3rd Qtr Jan - Mar 15 7,029,432 6,552,891 20.2% 20.0% 4th Qtr Apr - Jun 15 8,001,485 7,813,397 24.0% 22.8% 31,411,853 96.6% 92.6% Total $ 32,505,343 $ 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, Cultural Affairs, Downtown Redevelopment, Economic Development, Human Resources, Information Technology, and Planning. Combined, these divisions spent 96.6% of their FY 2014-15 adjusted budget and have historically spent 92.6% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. 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 October 1, 2014, the Office of Neighborhood Resources is reflected as part of the new Community and Neighborhood Resources Department and the Cultural Affairs Division is moved into the City Manager Department (this switch is also not part of this Department's historical trend). LAW EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 865,973 FY 15 Actual Exp+Enc $ 767,810 21.3% 23.0% 2nd Qtr Oct - Dec 14 829,890 887,668 24.6% 22.1% 3rd Qtr Jan - Mar 15 974,219 784,849 21.7% 25.8% 4th Qtr Apr - Jun 15 938,137 900,937 25.0% 25.6% 3,341,264 92.6% 96.5% Total $ 3,608,219 $ 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 92.6% of their FY 2014-15 adjusted budget and has historically spent 96.5% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. 10 9/16/2015 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 FY 15 Actual Exp+Enc $ 865,870 20.4% 22.2% 995,077 1,013,172 23.9% 21.4% 3rd Qtr Jan - Mar 15 1,098,513 973,957 23.0% 23.7% 4th Qtr Apr - Jun 15 1,119,674 999,077 23.5% 24.1% 3,852,076 90.8% 91.4% Total $ 4,242,231 $ 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 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 90.8% of their FY 2014-15 adjusted budget and has historically spent 91.4% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. COMMUNICATIONS & PUBLIC AFFAIRS EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 647,688 FY 15 Actual Exp+Enc $ 595,483 25.7% 23.8% 2nd Qtr Oct - Dec 14 555,161 575,173 24.9% 20.3% 3rd Qtr Jan - Mar 15 578,293 612,549 26.5% 21.3% 4th Qtr Apr - Jun 15 532,028 327,410 14.2% 20.8% 2,110,615 91.3% 86.2% Total $ 2,313,170 $ 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 91.3% of their FY 2014-15 adjusted budget and has historically spent 86.2% of their adjusted budget for the fiscal year. This is due to increased spending on printing supplies and postage, which will be recharged to the departments using those services in the first quarter of FY 2015-16, keeping them at a positive performance indicator. 11 9/16/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MANAGEMENT SERVICES EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 2,030,723 FY 15 Actual Exp+Enc $ 1,759,101 24.3% 25.5% 2nd Qtr Oct - Dec 14 1,668,094 1,866,452 25.7% 21.1% 3rd Qtr Jan - Mar 15 1,813,145 1,516,071 20.9% 23.3% 4th Qtr Apr - Jun 15 1,740,619 1,561,752 21.5% 22.1% 6,703,376 92.4% 92.0% Total $ 7,252,581 $ 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 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 92.4% of their FY 2014-15 adjusted budget and have historically spent 92.0% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. NON-DEPARTMENTAL EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 2nd Qtr Oct - Dec 14 5,625,591 FY 15 Actual Exp+Enc $ 432,738 1,659,342 (371,505) 11.5% 26.4% -2.6% 2.4% 3rd Qtr Jan - Mar 15 5,769,837 1,636,370 11.3% 27.0% 4th Qtr Apr - Jun 15 2,596,426 333,703 2.4% 12.4% 3,257,910 22.6% 68.2% Total** $ 14,424,592 $ 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 - * 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 one-time needs from year to year. Non-departmental spending is 22.6% of the FY 2014-15 adjusted budget, with historical spending at 68.2% of the fiscal year's adjusted budget, resulting in a positive performance indicator. For FY 2014-15 and the prior year, spending consists mainly of contract costs for the Strategic Economic Development Continuum project. The percentage of budget expended for the fiscal year is significantly lower than the percentage of historical budget expended since Council approved Resolution No. 4838 at the February 12, 2015 Council Meeting to transfer $4.1 million in appropriation from contingency to non-departmental in order to conduct a Special Mid-Decade Census, and only $1.3 million was spent during this fiscal year. 12 9/16/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): TRANSPORTATION & DEVELOPMENT EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 6,114,764 FY 15 Actual Exp+Enc $ 6,086,813 30.9% 28.6% 2nd Qtr Oct - Dec 14 4,536,761 3,724,920 18.9% 21.6% 3rd Qtr Jan - Mar 15 4,734,011 5,048,044 25.6% 22.5% 4th Qtr Apr - Jun 15 4,339,510 3,633,595 18.4% 20.7% 18,493,372 93.8% 93.4% Total $ 19,725,046 $ 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 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 93.8% of their FY 2014-15 adjusted budget and has historically spent 93.4% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. COMMUNITY & NEIGHBORHOOD SERVICES EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 8,672,868 FY 15 Actual Exp+Enc $ 8,348,415 40.4% 40.4% 2nd Qtr Oct - Dec 14 2,271,465 2,937,626 14.2% 10.8% 3rd Qtr Jan - Mar 15 4,129,937 3,493,058 16.9% 19.6% 4th Qtr Apr - Jun 15 5,575,415 4,914,988 23.8% 25.2% 19,694,087 95.3% 96.0% Total $ 20,649,685 $ 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 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 Community & Neighborhood Services includes the following divisions budgeted in the General Fund: Administration, Aquatics, Code Enforcement, Community Development, Housing, Parks Development & Operations, Neighborhood Resources, Recreation, Sports & Fitness Facilities, and Nature & Recreation Facilities. The department spent 95.3% of their FY 2014-15 adjusted budget and has historically spent 96.0% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. Starting October 1, 2014, the Office of Neighborhood Resources merged with the Community Services Department to reflect a new Community & Neighborhood Services Department. The Center for the Arts, Library, and Museum have moved to report to the City Manager Department as the Cultural Affairs Division. These changes have not been reflected in the Department's historical trend. 13 9/16/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): POLICE EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 18,912,419 FY 15 Actual Exp+Enc $ 16,678,052 25.6% 28.4% 2nd Qtr Oct - Dec 14 14,347,352 16,685,380 25.6% 21.1% 3rd Qtr Jan - Mar 15 15,651,657 14,352,169 22.0% 23.8% 4th Qtr Apr - Jun 15 16,303,810 15,735,766 24.1% 24.9% 63,451,367 97.3% 98.2% Total $ 65,215,238 $ 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 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 the following cost centers: 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 97.3% of their FY 2014-15 adjusted budget and has historically spent 98.2% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. FIRE, HEALTH & MEDICAL EXPENDITURE FY 2014-15 COMPARISON Operating Only 1st Qtr Jul - Sep 14 $ 8,972,701 FY 15 Actual Exp+Enc $ 8,854,965 27.6% 27.8% 2nd Qtr Oct - Dec 14 6,729,526 8,035,171 25.1% 21.2% 3rd Qtr Jan - Mar 15 7,690,886 6,771,032 21.1% 23.9% 4th Qtr Apr - Jun 15 8,652,247 7,594,148 23.7% 25.9% 31,255,316 97.5% 98.8% Total $ 32,045,360 $ 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 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, Health & Medical includes the following cost centers: Administration, Emergency Services, Operations, Prevention & Preparedness, and Support Services. In addition, Citywide Fleet is managed by this department. The department spent 97.5% of their FY 2014-15 adjusted budget and has historically spent 98.8% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. 14 9/16/2015 ENTERPRISE FUNDS ENTERPRISE FUNDS ANALYSIS: WATER FUND ANALYSIS FY 2014-15 COMPARISON WATER FUND Revenues $ Land Sale 51,153,000 FY 15 Actual Revenue/ Exp+Enc $ 2,161,834 Intel Rev/Receivable 48,915,240 - 10,106,093 96% 98% 0% 0% 8,000,000 79% 20% Total Revenues $ 63,420,927 $ 56,915,240 90% 94% Operating Expenses $ 31,005,447 $ 26,183,288 84% 81% 1,148,314 70% 33% 0% 20% Major Capital Expenses 1,644,470 - WATER FUND ANALYSIS % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr Revenues 60 50 40 30 20 Intel Exp/Payable 10,106,093 Debt Service 18,674,174 18,355,354 98% 101% 10 Transfers Out 3,625,521 3,626,501 100% 100% 0 76% 85% FY14 Actual Total Expenses Net Rev / Exp POSITIVE $ 65,055,705 $ 49,313,457 $ (1,634,778) $ 7,601,783 Expenses 70 Dollars in Millions FY 15 Adjusted Budget FY15 Actual 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 $1.6 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 are 96% of budget compared to 98% for last fiscal year, while Operating Expenses are 84% of budget as compared to 81% for last fiscal year. Capital projects reimbursed by Intel Corporation are detailed separately under Revenues and Expenses to have no impact on the fund. This fiscal year includes $8 million received from Intel Corporation to purchase future water rights based on an existing agreement. The land sale is in process and will close escrow in FY 2015-16. WASTEWATER FUND ANALYSIS FY 2014-15 COMPARISON WASTEWATER FUND Revenues $ Land Sale 40,441,895 FY 15 Actual Revenue/ Exp+Enc $ 6,485,501 Intel Rev/Receivable 40,881,966 101% 101% 0% 0% 8,577,157 24% 79% - 35,836,801 WASTEWATER FUND ANALYSIS % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr Revenues 140 120 100 Total Revenues $ 82,764,197 $ 49,459,123 60% 85% Operating Expenses $ 19,172,574 $ 16,835,159 88% 80% 5,786,345 904,867 16% 28% Intel Exp/Payable 35,836,801 8,577,157 24% 79% Debt Service 16,072,292 15,958,740 99% 94% 20 Transfers Out 2,435,509 2,435,509 100% 100% 0 56% 80% Major Capital Expenses 80 60 40 FY14 Actual Total Expenses Net Rev / Exp POSITIVE $ 79,303,521 $ 44,711,432 $ 3,460,676 $ 4,747,691 Expenses 160 Dollars in Millions FY 15 Adjusted Budget FY15 Actual 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 Wastewater Operating Fund includes the following cost centers: Collection, Ocotillo Brine Reduction Facility, Lone Butte Wastewater Treatment, 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 $3.5M 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 are 101% of budget compared to 101% for last fiscal year, while Operating Expenses are 88% of budget as compared to 80% for last fiscal year. Capital projects reimbursed by Intel Corporation are detailed separately under Revenues and Expenses to have no impact on the fund. As noted above, the land sale is in process and will close escrow in FY 2015-16. 15 9/16/2015 ENTERPRISE FUNDS ENTERPRISE 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 $ - 14,150,407 - % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 101% 99% 0% 0% 99% Total Revenues $ 13,968,105 $ 14,150,407 101% Operating Expenses $ 13,264,900 $ Major Capital Expenses Transfers Out Total Expenses $ 12,644,072 95% 95% 397,037 267,760 67% 100% 1,128,551 1,128,551 100% 100% 14,040,383 95% 96% 14,790,488 $ Revenues Expenses 15 Dollars in Millions FY 15 Adjusted Budget 12 9 6 3 FY14 Actual Net Rev / Exp POSITIVE $ (822,383) $ FY15 Actual FY15 Budget 110,024 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 $882,383 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 are 101% of budget compared to 99% for last fiscal year, while Operating Expenses are 95% of budget as compared to 95% last fiscal 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 % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 1,026,225 98% 95% 269,780 26% 78% Total Revenues $ 2,086,250 $ 1,296,005 62% 92% Operating Expenses $ 1,096,364 $ 970,435 89% 96% 856,568 258,112 30% 23% Debt Service 27,938 27,938 100% 100% Transfers Out 105,380 105,380 100% 100% 1,361,865 65% 88% Major Capital Expenses 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 FY15 Actual FY15 Budget (65,860) 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 are 98% of budget compared to 95% for last fiscal year. Operating Expenses are 89% of budget as compared to 96% for last fiscal year. Major capital expenses are higher for FY 2014-15 as pavement improvements are performed on the taxiway and runway. 16 9/16/2015 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 8,054,134 183% 863,775 1,256,808 146% 4,165,730 7,957,738 191% 17,268,680 183% 9,437,990 $ % of Budget Rec'd to Date $ FY 14 Actual FY 14 Adjusted Budget FY 15 Actual FY 15 Adjusted Budget 9 8 Dollars in Millions SYSTEM DEVELOPMENT FEE (SDF) FUNDS 7 6 5 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 for FY 2014-15 were 183% of the budget as compared to the prior year's collections of 191% 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 SDF rates of 13%, a decrease in Reclaimed Water SDF rates of -25%, and an increase in Wastewater SDF rates of 7%. IMPACT FEE FUNDS ANALYSIS FY 2014-15 COMPARISON IMPACT FEE FUNDS Arterial Streets $ 3,759,633 146% 53,170 77,255 145% Public Buildings 163,490 231,181 141% Police 279,120 609,605 218% Fire 607,340 927,221 153% 3,000 11,547,886 146% 2,000 $ 7,931,180 $ FY 14 Adjusted Budget FY 15 Actual FY 15 Adjusted Budget 7,000 2,566,880 Total Impact Revenue FY 14 Actual 8,000 139% Parks $ % of Budget Rec'd to Date 5,942,991 Library 4,261,180 FY 15 Actual Revenue Dollars in Thousands FY 15 Adjusted Budget 6,000 5,000 4,000 1,000 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 for FY 2014-15 were 146% of the budget as compared to the prior year's collections of 381% 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 rates, decreases to the Park rates of -13% to -40% depending on the service area, a decrease of -19% for Library rates, an increase of 13% for Public Buildings rates, an increase of 69% for Police rates, and an increase of 20% for Fire rates. 17 9/16/2015 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 $ 14,633,470 113% 103% 114,274 181% 413% 14,747,744 113% 104% 8,573,835 92% 91% Major Capital Expenses 2,698,037 1,558,722 58% 91% Debt Service 4,677,025 4,432,317 95% 100% 23,708 23,708 100% 100% 14,588,582 87% 94% Transfers Out Total Expenses $ 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 FY14 Actual Net Rev / Exp $ (3,611,509) $ FY15 Actual FY15 Budget 159,162 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 are 113% of budget, which is 10% higher than last fiscal year's percentage. The City budgeted only $13M in Highway Users Tax for FY 2014-15 due to anticipated legislative redirection to public safety, however, this redirection did not occur, resulting in higher revenues for the City. Operating Expenses are 92% of adjusted budget, which is 1% higher than last fiscal year's percentage. GRANT FUNDS ANALYSIS FY 2014-15 COMPARISON GRANT REVENUES % of Budget Rec'd to Date 14 1,252,210 31% 12 1,900,000 1,455,197 77% 13,802,300 7,778,971 56% Public Safety 2,806,050 1,145,446 41% Community Services 2,301,132 508,722 22% General Government* $ General Govt - CDBG General Govt - HUD Municipal Utilities $ 100,000 T & D - Streets Total Grant Revenue 4,017,956 FY 15 Actual Revenue 6,858,485 $ 31,785,923 $ - 0% 5,223,646 76% 17,364,192 55% 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, in most cases 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 for FY 2014-15 were $17.4M (55% of adjusted budget) as compared to $16.3M (48% of adjusted budget) collected for FY 2013-14. 18 9/16/2015