QUARTERLY FINANCIAL REPORT 1st Qtr FY15-16 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 WARNING Page 7 POSITIVE 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 & Organizational Support 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 WARNING POSITIVE POSITIVE POSITIVE 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 11/23/2015 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 either before the end of 2015 or in the beginning of 2016. 2.0% April 30, 2008 1.5% October 8, 2008 1.0% October 29, 2008 0% - 0.25% December 16, 2008 to date Fourth Quarter 2014 (revised estimate) First Quarter 2015 (revised estimate) Second Quarter 2015 (third estimate) Third Quarter 2015 (advance estimate) 2.1% 0.6% 3.9% 1.5% Source: U.S. Department of Commerce Source: Federal Reserve Bank UNEMPLOYMENT National 5.3% 5.3% 5.1% 5.1% Jun-15 Jul-15 Aug-15 Sep-15 State of Arizona 5.9% 6.1% 6.3% 6.3% Phoenix Metro Area 5.4% 5.7% 5.8% 5.5% 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 2015-16 Rate of Return 1st Quarter Fiscal Year State of Arizona Chandler Benchmark: 0.24% 0.24% Apr - May - Jun 2014 5,120 147 Wells Capital Management: 0.15% 0.15% Jul - Aug - Sep 2014 4,506 126 PFM: 0.27% 0.27% Oct - Nov - Dec 2014 3,850 105 Fiscal Year 2014-15 Rate of Return 1st Quarter Fiscal Year Jan - Feb - Mar 2015 4,602 195 Benchmark: 0.03% 0.03% Apr - May - Jun 2015 6,528 283 Wells Capital Management: 0.03% 0.03% Jul - Aug - Sep 2015 6,175 328 PFM: 0.05% 0.05% Beginning January 2015, the City began investing in a community Single family building permits are lower than the high-growth years, averaging 197 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 shown above, FY 2015investments. Interest earned in this program is recorded upon maturity of the securities; no interest has been recorded through 16 continues the upward trend in building permits. the first quarter of FY 2015-16. Source: Investment Advisors Sources: U.S. Census Bureau and City of Chandler Transportation & Development Department. 2 11/23/2015 GENERAL FUND REVENUE ANALYSIS: OVERALL GENERAL FUND REVENUES FY 2015-16 1st Qtr Jul - Sep 15 $ 44,668,547 2nd Qtr Oct - Dec 15 47,505,521 3rd Qtr Jan - Mar 16 53,892,807 4th Qtr Apr - Jun 16 58,765,264 Total $ 204,832,139 FY 16 Actual Revenue $ 47,554,715 % of Budget Rec'd *% of Budget Hist. Rec'd 23.2% 22.4% Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 16 Adopted Budget FY 15 70 60 50 40 30 20 $ 47,554,715 23.2% 22.4% 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 2015-16 are $2.9M (6.5%) above the budget based on historical trend and $1.8M (4.0%) higher than actual collections through the first quarter of FY 2014-15. 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 the historical percentage of budget received, 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 2015-16 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 16 Adopted Budget $ 104,189,750 3,175,000 7,272,000 60,260,300 4,488,000 11,767,600 6,505,099 7,174,390 FY 16 Actual Revenue $ 27,422,274 60,406 21,719 12,662,061 1,806,432 2,434,996 1,353,229 1,793,598 Total $ 204,832,139 $ 47,554,715 % of Budget Rec'd to Date 26.3% 1.9% 0.3% 21.0% 40.3% 20.7% 20.8% 25.0% Indirect Costs 100% 4% 4% 6% 2% 4% 3% 6% 3% 4% 3% 6% 2% 4% 3% 5% 4% 26% 28% 28% 27% 4% 3% 0% 0% 2% 2% 52% 52% 80% 60% 4% 1% Charges for Services Licenses & Permits State Shared Revenue 40% 52% 58% Primary Property Taxes 20% 23.2% Other Revenues Franchise Fees 0% FY13 $196M FY14 $201M FY15 $209M FY16 1QYTD $48M Local Sales Taxes POSITIVE This chart summarizes General Fund revenue collections by revenue category for FY 2015-16. 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 11/23/2015 GENERAL FUND REVENUE ANALYSIS (continued): SALES TAX REVENUE FY 2015-16 1st Qtr Jul - Sep 15 2nd Qtr Oct - Dec 15 $ 25,807,536 FY 16 Actual Revenue $ 27,422,274 % of Budget Rec'd *% of Budget Hist. Rec'd 26.3% 27.2% 24,778,890 3rd Qtr Jan - Mar 16 26,589,898 4th Qtr Apr - Jun 16 27,013,426 Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 16 Adopted Budget FY 15 30 25 20 15 10 Total $ 104,189,750 $ 27,422,274 26.3% 27.2% 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 through the first quarter of FY 2015-16 are $1.6M (6.3%) above the budget based on historical trend and $671,530 (2.5%) higher than FY 2014-15 actual collections through the first quarter. The performance indicator is positive because the difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is less than 2%. 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. This deadline was extended to January 1, 2016, but the date will continue to move until the Arizona Department of Revenue can complete the necessary technological improvements, testing, and taxpayer education. SALES TAX COLLECTION HISTORY Retail Contracting Utilities Real Property Rentals Restaurants & Bars Telecommunications Personal Prop. Rentals Hotels/Motels Publishing/Printing Amusements Use Tax TOTAL SALES TAX FY 16 Adopted Budget $ 48,200,000 8,900,000 13,000,000 11,200,000 9,800,000 3,500,000 3,200,000 2,500,000 250,000 FY 16 Actual % of Actual Revenue to Budget $ 11,859,573 24.6% 2,182,707 24.5% 4,773,111 36.7% 3,152,686 28.1% 2,440,539 24.9% 791,229 22.6% 753,964 23.6% 463,007 18.5% 65,592 26.2% 730,000 820,000 $ 102,100,000 $ % Chg from Prior Yr 0.8% -1.6% 9.3% 12.1% 3.6% -8.4% -4.7% -3.6% 16.7% 231,339 256,407 31.7% 31.3% 34.3% 52.1% 26,970,154 26.4% 3.5% 4 Years Actual Sales Tax by Category (in millions) FY 11-12 43 FY 12-13 45 FY 13-14 47 11 10 10 50 FY 14-15 0 20 12 12 12 9 40 Retail Utilities Restaurants & Bars Personal Prop. Rentals Publishing/Printing Use Tax 10 13 60 9 4 11 9 4 11 10 4 12 80 10 3 100 120 Contracting Real Property Rentals Telecommunications Hotels/Motels Amusements 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 2015-16 were $1.6M (6.4%) above the budget based on historical trend and $924,015 (3.5%) higher than FY 2014-15 actual collections through the first quarter. 4 11/23/2015 GENERAL FUND REVENUE ANALYSIS (continued): FRANCHISE FEE REVENUE FY 2015-16 1st Qtr Jul - Sep 15 $ 2nd Qtr Oct - Dec 15 60,016 $ 60,406 % of Budget Rec'd *% of Budget Hist. Rec'd 1.9% 2.0% 735,285 3rd Qtr Jan - Mar 16 1,094,265 4th Qtr Apr - Jun 16 1,285,434 Total FY 16 Actual Revenue $ 3,175,000 $ 60,406 1.9% Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget Dollars in Thousands FY 16 Adopted Budget FY 15 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 reflects CenturyLink's entry in the market in FY 2012-13. Franchise fee collections through the first quarter of FY 2015-16 are $390 (0.6%) above the budget based on historical trend and $833 (1.4%) higher than FY 2014-15 actual collections through the first quarter. The performance indicator is positive because the difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is less than 2%. PRIMARY PROPERTY TAX REVENUE FY 2015-16 1st Qtr Jul - Sep 15 $ 2nd Qtr Oct - Dec 15 45,584 FY 16 Actual Revenue $ 21,719 % of Budget Rec'd *% of Budget Hist. Rec'd 0.3% 0.6% 3,613,131 3rd Qtr Jan - Mar 16 509,192 4th Qtr Apr - Jun 16 3,104,093 Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget 4 Dollars in Millions FY 16 Adopted Budget FY 15 3 2 1 Total $ 7,272,000 $ 21,719 0.3% 0.6% - * 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 2015-16, 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 no change from the rates adopted for FY 2014-15. The City's primary assessed valuation increased 4.5% in FY 2015-16, but the secondary assessed valuation decreased 0.05%, resulting in no net increase for the median home value. Primary property tax collections through the first quarter of FY 2015-16 are $23,865 (-52.4%) below the budget based on historical trend and $10,326 (-32.2%) lower than FY 2014-15 actual collections through the first quarter. 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 difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is less than 2%. 5 11/23/2015 GENERAL FUND REVENUE ANALYSIS (continued): STATE SHARED REVENUE FY 2015-16 1st Qtr Jul - Sep 15 $ 12,432,702 2nd Qtr Oct - Dec 15 14,471,873 3rd Qtr Jan - Mar 16 15,402,744 4th Qtr Apr - Jun 16 17,952,981 Total $ 60,260,300 FY 16 Actual Revenue % of Budget Rec'd *% of Budget Hist. Rec'd $ 12,662,061 21.0% 21.0% $ 12,662,061 21.0% 21.0% Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 16 Adopted Budget FY 15 * 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 through the first quarter of FY 2015-16 are $29,503 (0.8%) above the budget based on historical trend and $204,065 (6.1%) higher than FY 2014-15 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, 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 through the first quarter of FY 2015-16 are $197,181 (11.0%) above the budget based on historical trend and $455,577 (29.7%) higher than FY 2014-15 actual collections through the first quarter. -- Urban Revenue Sharing: Fifteen percent (15%) of the 2013 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 2015-16 are $2,675 (less than 0.04%) above the budget based on historical trend and $38,776 (-0.5%) lower than FY 2014-15 actual collections through the first quarter. The overall state shared revenue performance indicator is positive because the difference between the percentage of budget received through the first quarter and the percentage of historical budget received through the first quarter is less than 2%. LICENSES & PERMITS REVENUE FY 2015-16 1st Qtr Jul - Sep 15 $ 662,206 2nd Qtr Oct - Dec 15 1,070,217 3rd Qtr Jan - Mar 16 1,218,545 4th Qtr Apr - Jun 16 1,537,032 Total $ 4,488,000 FY 16 Actual Revenue $ $ 1,806,432 1,806,432 % of Budget Rec'd *% of Budget Hist. Rec'd 40.3% 19.4% 40.3% 19.4% Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget Dollars in Thousands FY 16 Adopted Budget FY 15 2,500 2,000 1,500 1,000 500 - * 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 category includes revenue for various licenses: transaction privilege sales tax, alcoholic beverages, transient merchants, 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 2015-16 are $1.1M (172.8%) above the budget based on historical trend and $636,904 (54.5%) above FY 2014-15 actual collections through the first quarter. 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 first quarter, resulting in a positive performance indicator. 6 11/23/2015 GENERAL FUND REVENUE ANALYSIS (continued): CHARGES FOR SERVICES REVENUE FY 2015-16 1st Qtr Jul - Sep 15 $ 2,462,981 2nd Qtr Oct - Dec 15 2,564,826 3rd Qtr Jan - Mar 16 3,020,800 4th Qtr Apr - Jun 16 3,718,993 Total $ 11,767,600 FY 16 Actual Revenue $ $ 2,434,996 2,434,996 % of Budget Rec'd *% of Budget Hist. Rec'd 20.7% 23.2% 20.7% Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget 5 Dollars in Millions FY 16 Adopted Budget FY 15 4 3 2 23.2% 1 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr WARNING 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 2015-16 are $27,985 (-1.1%) below the budget based on historical trend and $183,349 (-7.0%) lower than FY 2014-15 actual collections through the first quarter. A warning performance indicator occurs since the difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is more than 2%. This is due to FY 2014-15 reflecting higher ambulance revenues in the first quarter due to a timing difference in collection of receipts, while FY 2015-16 reflects a return to the normal revenue stream. OTHER REVENUE FY 2015-16 1st Qtr Jul - Sep 15 $ 1,403,922 2nd Qtr Oct - Dec 15 1,334,631 3rd Qtr Jan - Mar 16 1,765,255 4th Qtr Apr - Jun 16 2,001,291 Total $ 6,505,099 FY 16 Actual Revenue $ 1,353,229 % of Budget Rec'd *% of Budget Hist. Rec'd 20.8% 21.3% Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget 3 Dollars in Millions FY 16 Adopted Budget FY 15 2 1 $ 1,353,229 20.8% 21.3% - * 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 through the first quarter of FY 2015-16 are $50,692 (-3.6%) below the budget based on historical trend and $200,104 (17.4%) higher than FY 2014-15 actual collections through the first quarter. The performance indicator is positive because the difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is less than 2%. 7 11/23/2015 GENERAL FUND EXPENDITURE ANALYSIS: GENERAL FUND EXPENDITURES + ENCUMBRANCES for FY 2015-16 by FUNCTION Dollars in Millions FY 16 Adjusted Budget * Dept. Operating General Government $ Comm. & Neigh. Services 53,850,313 FY16 Actual Exp+Enc $ 21,776,880 Public Safety Transportation & Dev. Non-Dept. Pers. & O&M 15,507,344 28.8% 29.7% 7,668,238 35.2% 36.9% 24,848,556 24.6% 26.6% 21,118,323 7,976,263 37.8% 31.2% 4,563,555 25.1% 14.8% 60,563,956 28.1% 28.9% - 0.0% 0.0% - 0.0% 0.0% 25.0% 25.5% 18,151,733 $ 215,741,372 $ Non-Dept. Reserves $ $ Total % of Budget Prior Yr 100,844,123 Subtotal Non-Dept. Contingencies % of Budget Exp'd 2,474,361 24,233,072 $ 242,448,805 $ 60,563,956 * Excluding Interfund Transfers 2 6 5 8 25 25 Non-Dept. Pers. & O&M Transportation & Dev. Public Safety 8 8 Comm. & Neigh. Services 16 14 General Government FY 15 1Q YTD Exp+Enc FY 16 1Q YTD Exp+Enc Total General Fund operating expenditures and encumbrances 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 2015-16 operating spending through the first quarter is 28.1% 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 23.2% and 37.8% of their General Fund adjusted budgets through the first quarter of FY 2015-16. GENERAL FUND EXPENDITURES + ENCUMBRANCES for FY 2015-16 by CATEGORY FY 2015-16 General Fund Actual Expenditures + Encumbrances *Dept. Operating Personnel Operations & Maint. Reserves Contingencies Total FY 16 Adjusted Budget $ 156,012,932 FY 16 Actual Exp+Enc $ 59,728,440 35,190,435 FY 15 Actual Exp+Enc $ 25,373,521 % Change from Prior Operations Yr Actual & Maint. 32,410,707 8.6% 22,903,644 10.8% 2,474,361 - - 0.0% 24,233,072 - - 0.0% $ 242,448,805 $ 60,563,956 $ 55,314,351 9.5% 42% Personnel 58% * Excluding Interfund Transfers Total General Fund operating expenditures and encumbrances are reflected by spending category. Operating spending through the first quarter of FY 2015-16 is 9.5% higher than spending through the first quarter of FY 2014-15 mainly due to increases from labor negotiations and benefit changes in Personnel, and encumbrances for the 2015 mid-decade Special Census in Operations & Maintenance. 8 11/23/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MAYOR & COUNCIL EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 204,453 2nd Qtr Oct - Dec 15 204,453 3rd Qtr Jan - Mar 16 221,491 4th Qtr Apr - Jun 16 221,491 Total $ 851,888 FY 16 Actual Exp+Enc $ $ 207,027 207,027 24.3% 23.0% 24.3% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 16 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 250 200 150 100 50 23.0% * 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 24.3% of their FY 2015-16 adjusted budget and has historically spent 23.0% of their adjusted budget through the first quarter of the fiscal year, resulting in a postive performance indicator. CITY CLERK EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 236,196 2nd Qtr Oct - Dec 15 140,441 3rd Qtr Jan - Mar 16 121,290 4th Qtr Apr - Jun 16 140,440 Total $ 638,367 FY 16 Actual Exp+Enc $ $ 197,171 197,171 30.9% 32.9% 30.9% 33.0% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 16 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 spent 30.9% of their FY 2015-16 adjusted budget and has historically spent 33.0% of their adjusted budget through the first quarter of 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 that are not ocurring in FY 2015-16. 9 11/23/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): CITY MANAGER & ORGANIZATIONAL SUPPORT EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 11,519,500 2nd Qtr Oct - Dec 15 6,615,140 3rd Qtr Jan - Mar 16 7,243,823 4th Qtr Apr - Jun 16 7,981,256 FY 16 Actual Exp+Enc $ 10,196,052 30.6% 32.6% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Millions FY 16 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 12 9 6 3 Total $ 33,359,719 $ 10,196,052 30.6% 32.6% - * 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 & Organization Support 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 30.6% of their FY 2015-16 adjusted budget and have historically spent 32.6% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. LAW EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 818,239 2nd Qtr Oct - Dec 15 853,815 3rd Qtr Jan - Mar 16 924,966 4th Qtr Apr - Jun 16 960,541 Total $ 3,557,561 FY 16 Actual Exp+Enc $ $ 826,728 826,728 23.2% 22.3% 23.2% 22.3% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 16 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 23.2% of their FY 2015-16 adjusted budget and has historically spent 22.3% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. 10 11/23/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): CITY MAGISTRATE EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 1,042,169 2nd Qtr Oct - Dec 15 1,032,229 3rd Qtr Jan - Mar 16 1,137,488 4th Qtr Apr - Jun 16 1,159,422 Total $ 4,371,308 FY 16 Actual Exp+Enc $ $ 1,012,063 1,012,063 23.2% 21.7% 23.2% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 16 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 1,200 1,000 800 600 400 200 21.7% 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 23.2% of their FY 2015-16 adjusted budget and has historically spent 21.7% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. COMMUNICATIONS & PUBLIC AFFAIRS EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 729,903 2nd Qtr Oct - Dec 15 604,058 3rd Qtr Jan - Mar 16 654,396 4th Qtr Apr - Jun 16 528,551 Total $ 2,516,908 FY 16 Actual Exp+Enc $ $ 644,808 644,808 25.6% 25.4% 25.6% 25.4% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 16 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 25.6% of their FY 2015-16 adjusted budget and has historically spent 25.4% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. 11 11/23/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MANAGEMENT SERVICES EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 2,076,256 2nd Qtr Oct - Dec 15 1,779,648 3rd Qtr Jan - Mar 16 1,853,800 4th Qtr Apr - Jun 16 1,705,496 Total $ 7,415,199 FY 16 Actual Exp+Enc $ $ 2,127,583 2,127,583 28.7% 25.8% 28.7% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 16 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 25.8% 2,400 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 28.7% of their FY 2015-16 adjusted budget and have historically spent 25.8% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. Higher spending in FY 2015-16 is due to increased software maintenance expense for the Utility and Tax systems. NON-DEPARTMENTAL EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 5,808,555 2nd Qtr Oct - Dec 15 3,267,312 3rd Qtr Jan - Mar 16 5,627,037 4th Qtr Apr - Jun 16 3,448,829 Total** $ 18,151,733 FY 16 Actual Exp+Enc $ $ 4,563,555 4,563,555 25.1% 17.7% 25.1% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget 5 Dollars in Millions FY 16 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 4 3 2 1 17.7% - * 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 25.1% of the FY 2015-16 adjusted budget, with historical spending of the adjusted budget at 17.7% through the first quarter of the fiscal year, resulting in a positive performance indicator. The percentage of budget expended for the fiscal year is significantly higher 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 2015 mid-decade Special Census. FY 2014-15 spending on this project was $1.3 million, so the remainder is encumbered and being spent during this fiscal year. 12 11/23/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): TRANSPORTATION & DEVELOPMENT EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 6,969,047 2nd Qtr Oct - Dec 15 4,223,665 3rd Qtr Jan - Mar 16 5,490,764 4th Qtr Apr - Jun 16 4,434,847 Total $ 21,118,323 FY 16 Actual Exp+Enc $ $ 7,976,263 7,976,263 37.8% 30.4% 37.8% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget 9 8 Dollars in Millions FY 16 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 7 6 5 4 3 2 30.4% 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. The department spent 37.8% of their FY 2015-16 adjusted budget and has historically spent 30.4% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. Increased spending levels in FY 2015-16 are mainly due to asphaltic pavement maintenance program encumbrances. COMMUNITY & NEIGHBORHOOD SERVICES EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 7,839,677 2nd Qtr Oct - Dec 15 3,919,838 3rd Qtr Jan - Mar 16 4,355,376 4th Qtr Apr - Jun 16 5,661,989 Total $ 21,776,880 FY 16 Actual Exp+Enc $ 7,668,238 35.2% 34.7% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget 9 Dollars in Millions FY 16 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 8 7 6 5 4 3 $ 7,668,238 35.2% 2 34.7% 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 35.2% of their FY 2015-16 adjusted budget and has historically spent 34.7% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. 13 11/23/2015 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): POLICE EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 19,568,606 2nd Qtr Oct - Dec 15 15,519,929 3rd Qtr Jan - Mar 16 16,194,708 4th Qtr Apr - Jun 16 16,194,709 Total $ 67,477,952 FY 16 Actual Exp+Enc $ 16,502,889 24.5% 28.5% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Millions FY 16 Adjusted Budget % of Budget *Hist. Trend Expended % of by Qtr Budget 21 18 15 12 9 6 $ 16,502,889 24.5% 28.5% 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 24.5% of their FY 2015-16 adjusted budget and has historically spent 28.5% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. FIRE, HEALTH & MEDICAL EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 10,006,605 2nd Qtr Oct - Dec 15 7,936,273 3rd Qtr Jan - Mar 16 8,281,328 4th Qtr Apr - Jun 16 8,281,328 Total $ 34,505,534 FY 16 Actual Exp+Enc $ 8,641,579 25.0% 28.6% FY 15 Actual Exp+Enc FY 16 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Millions FY 16 Adjusted Budget % of Budget *Hist. Trend Expended % of by Qtr Budget 12 10 8 6 4 $ 8,641,579 25.0% 28.6% 2 - * 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 25.0% of their FY 2015-16 adjusted budget and has historically spent 28.6% of their adjusted budget throught the first quarter of the fiscal year, resulting in a positive performance indicator. 14 11/23/2015 ENTERPRISE FUNDS ENTERPRISE FUNDS ANALYSIS: WATER FUND ANALYSIS FY 2015-16 COMPARISON WATER FUND Revenues $ Land Sale 51,563,620 FY 16 Actual Revenue/ Exp+Enc $ 2,161,834 13,669,336 - 27% 23% 0% 0% Total Revenues $ 53,725,454 $ 13,669,336 25% 22% Operating Expenses $ 31,461,463 $ 11,560,626 37% 38% Major Capital Expenses 8,432,883 79,486 1% 11% Debt Service 21,296,860 - 0% 0% Transfers Out 3,418,349 822,000 24% 27% $ 12,462,112 19% 21% (10,884,101) $ 1,207,224 Total Expenses Net Rev / Exp POSITIVE $ $ 64,609,555 WATER FUND ANALYSIS % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr Revenues Expenses 70 Dollars in Millions FY 16 Adjusted Budget 60 50 40 30 20 10 0 FY15 Actual Q1 YTD FY16 Actual Q1 YTD FY16 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 2015-16 reflects a budgeted $10.9 million drawdown of fund balance. Transfers Out include Indirect Cost Allocation to the General Fund of $3,265,610, payment of $130,349 to the Technology Replacement Fund and payment of $22,390 to the Workers Compensation Self-Insurance Trust. Year-to-date Operating Revenues through the first quarter are 27% of budget compared to 23% through the first quarter of the fiscal year, while Operating Expenses through the first quarter are 37% of budget as compared to 38% through the first quarter of the fiscal year. As noted in revenues above, a land sale is in process and will close escrow in FY 2015-16. WASTEWATER FUND ANALYSIS FY 2015-16 COMPARISON WASTEWATER FUND Revenues $ 42,876,330 FY 16 Actual Revenue/ Exp+Enc $ 9,696,216 WASTEWATER FUND ANALYSIS % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 23% 18% Land Sale 6,485,501 - 0% 0% Intel Reimbursement 5,500,000 - 0% 51% Revenues 140 120 100 Total Revenues $ 54,861,831 $ 9,696,216 18% 33% Operating Expenses $ 20,742,067 $ 6,631,278 32% 43% 16,629,729 80% 8% 40 0% 0% 20 606,614 25% 26% 0 23,867,621 35% 35% Major Capital Expenses 20,714,983 Debt Service 23,598,390 Transfers Out 2,466,991 Total Expenses Net Rev / Exp POSITIVE $ $ 67,522,431 - $ (12,660,600) $ Expenses 160 Dollars in Millions FY 16 Adjusted Budget 80 60 FY15 Actual Q1 YTD FY16 Actual Q1 YTD FY16 Budget (14,171,405) 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 2015-16 reflects a budgeted $12.7M drawdown of fund balance. Transfers Out include Indirect Cost Allocation to the General Fund of $2,410,880, payment of $40,536 to the Technology Replacement Fund and payment of $15,575 to the Workers Compensation Self-Insurance Trust. Year-to-date Operating Revenues through the first quarter are 23% of budget compared to 18% through the first quarter of the fiscal year, while Operating Expenses through the first quarter are 32% of budget as compared to 43% through the first quarter of the fiscal year. As noted in revenues above, a land sale budgeted in FY 2014-15 is in process and will close escrow in FY 2015-16. 15 11/23/2015 ENTERPRISE FUNDS ENTERPRISE FUNDS ANALYSIS (continued): SOLID WASTE FUND ANALYSIS FY 2015-16 COMPARISON SOLID WASTE FUND ANALYSIS SOLID WASTE Revenues $ Transfers In FY 16 Actual Revenue/ Exp+Enc 14,904,810 $ 586,194 3,173,519 - % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 21% 22% 0% 0% Total Revenues $ 15,491,004 $ 3,173,519 20% 22% Operating Expenses $ 13,631,945 $ 10,605,708 78% 78% 946,276 107,967 11% 7% 1,017,133 241,412 24% 28% 10,955,088 70% 73% Major Capital Expenses Transfers Out Total Expenses $ 15,595,354 $ Revenues Expenses 18 15 Dollars in Millions FY 16 Adjusted Budget 12 9 6 3 - Net Rev / Exp WARNING $ (104,350) $ FY15 Actual Q1 YTD (7,781,569) FY16 Actual Q1 YTD FY16 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 2015-16 reflects a budgeted $104,350 drawdown of fund balance. Transfers Out include Indirect Cost Allocation to the General Fund of $954,940, payment of $51,485 to the Technology Replacement Fund, and payment of $10,708 to the Workers Compensation Self-Insurance Trust. Year-to-date Operating Revenues through the first quarter are 21% of budget compared to 22% through the first quarter of the fiscal year, while Operating Expenses through the first quarter are 78% of budget as compared to 78% through the first quarter of the fiscal year. A warning indicator occurs due to large encumbrances ($8.1M) 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 2015-16 COMPARISON AIRPORT FUND ANALYSIS AIRPORT FUND Revenues $ General Fund Subsidy 1,085,823 FY 16 Actual Revenue/ Exp+Enc $ 974,366 264,511 - % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 24% 24% 0% 0% Total Revenues $ 2,060,189 $ 264,510 13% 13% Operating Expenses $ 1,089,500 $ 287,396 26% 26% 837,996 86,948 10% 24% Debt Service 27,313 - 0% 0% Transfers Out 105,380 25,000 24% 29% $ 399,344 19% 25% $ (134,834) Major Capital Expenses Total Expenses Net Rev / Exp POSITIVE $ $ 2,060,189 - Revenues Expenses 2,400 2,100 Dollars in Thousands FY 16 Adjusted Budget 1,800 1,500 1,200 900 600 300 FY15 Actual Q1 YTD FY16 Actual Q1 YTD FY16 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 2015-16 reflects no budgeted change in fund balance since the General Fund Subsidy is budgeted from the General Fund to make up the funding needed to help support operations and/or Major Capital Expenses. Cash funded Major Capital Expenses are higher in FY 2015-16 to support projects such as replacement of fuel tanks, airport security gates, and internal/external building improvements. Transfers Out include Indirect Cost Allocation to the General Fund of $100,000 and a payment of $5,380 to the Technology Replacement Fund. The Debt Service expense will be paid off by July 1, 2018. Year-to-date Operating Revenues through the first quarter are 24% of budget compared to 24% through the first quarter of the fiscal year. Operating Expenses through the first quarter are 26% of budget as compared to 26% through the first quarter of the fiscal year. 16 11/23/2015 OTHER FUNDS OTHER FUNDS ANALYSIS (continued): SYSTEM DEVELOPMENT FEE FUNDS ANALYSIS FY 2015-16 COMPARISON Water FY 16 Adjusted Budget $ 8,782,200 FY 16 Actual Revenue $ 4,281,046 % of Budget Rec'd to Date 49% Reclaimed Water 1,287,000 707,947 55% Wastewater 8,241,500 4,463,204 54% 9,452,197 52% Total SDF Revenue $ 18,310,700 $ Dollars in Millions SYSTEM DEVELOPMENT FEE (SDF) FUNDS FY 15 Actual Q1 YTD FY 15 Adjusted Budget FY 16 Actual Q1 YTD FY 16 Adjusted Budget 10 9 8 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 2015-16 budget and year-to-date collections through the first quarter as compared to the FY 2014-15 budget and year-to-date collections through the first quarter. Collections through the first quarter of FY 2015-16 were 52% of the budget as compared to the prior year's collections through the first quarter of 41% of the budget. FY 2015-16 collections reflect two large multi-family developments that pulled permits sooner than anticipated. IMPACT FEE FUNDS ANALYSIS FY 2015-16 COMPARISON IMPACT FEE FUNDS Arterial Streets $ 101% 2,129,800 2,496,474 117% 81,200 52,623 65% Public Buildings 253,500 137,160 54% Police 665,000 358,756 54% 1,006,800 536,262 53% 8,133,722 94% Library Fire $ % of Budget Rec'd to Date 4,552,447 Parks 4,521,500 FY 16 Actual Revenue Dollars in Thousands FY 16 Adjusted Budget FY 15 Actual Q1 YTD FY 15 Adjusted Budget FY 16 Actual Q1 YTD FY 16 Adjusted Budget 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Total Impact Revenue $ 8,657,800 $ 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 2015-16 budget and year-to-date collections through the first quarter as compared to FY 2014-15 budget and year-to-date collections through the first quarter. Collections through the first quarter of FY 2015-16 were 94% of the budget as compared to the prior year's collections through the first quarter of 42% of the budget. FY 2015-16 collections reflect two large multi-family developments that pulled permits sooner than anticipated. 17 11/23/2015 OTHER FUNDS OTHER FUNDS ANALYSIS (continued): HIGHWAY USER FUND (HURF) ANALYSIS FY 2015-16 COMPARISON HIGHWAY USER FUND ANALYSIS Highway Users Tax $ Other FY 16 Actual Revenue/ Exp+Enc 14,000,000 $ 79,000 Total Revenues Operating Expenses $ $ 14,079,000 $ 9,609,452 $ 2,349,441 17% 18% 14,689 19% 9% 2,364,130 17% 17% 2,900,745 30% 34% 950,451 21% 13% Major Capital Expenses 4,575,742 Debt Service 3,745,650 - 0% 0% 23,708 - 0% 100% 21% 21% Transfers Out Total Expenses $ 17,954,552 $ 3,851,196 Revenues % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr Expenses 21 18 Dollars in Millions FY16 Adjusted Budget 15 12 9 6 3 0 Net Rev / Exp $ (3,875,552) $ FY15 Actual Q1 YTD (1,487,066) FY16 Actual Q1 YTD FY16 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 2015-16 reflects a budgeted fund balance drawdown of $3.9M. Transfers Out include payment of $23,708 to the Technology Replacement Fund. Operating Revenues received through the first quarter are 17% of budget, which is 1% lower than the percentage through the first quarter of last fiscal year. Operating Expenses through the first quarter are 30% of adjusted budget, which is 4% lower than the percentage through the first quarter of last fiscal year. A warning indicator occurs due to encumbrances recorded at the start of the fiscal year, with revenues more equally apportioned throughout the year. GRANT FUNDS ANALYSIS FY 2015-16 COMPARISON GRANT REVENUES General Government* $ Comm. & Neigh. Services C&NS - CDBG & HOME C&NS - HUD Municipal Utilities % of Budget Rec'd to Date 14 266,617 5% 12 164,601 1,115 1% 2,940,000 129,395 4% 12,316,554 1,781,690 14% 4,922,206 FY 16 Actual Revenue $ 100,000 9,000 9% Public Safety 4,110,000 157,727 4% T & D - Streets 3,790,361 1,655,589 44% 4,001,133 14% Total Grant Revenue $ 28,343,722 $ FY 16 Adjusted Budget FY 16 Actual Revenue 10 Dollars in Millions FY 16 Adjusted Budget 8 6 4 2 Gen Govt * Includes Airport, CAPA, City Manager, Cultural Affairs, Economic Development, Law, and Magistrate Comm & Neigh Svs C&NS-CDBG C&NS-HUD & HOME MUD Public Safety 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 through the first quarter of FY 2015-16 were $4.0M (14% of adjusted budget) as compared to $2.5M (8% of adjusted budget) collected through the first quarter of FY 2014-15. 18 11/23/2015