QUARTERLY
FINANCIAL

REPORT

3rd 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
NEGATIVE
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

GENERAL FUND PERFORMANCE INDICATORS
POSITIVE
WARNING
NEGATIVE

Revenue: POSITIVE if variance of '% of Budget Rec'd' < 2% under or greater than historical trend.
Expenditure: POSITIVE if variance of '% of Budget Expended' is < 100%.
= Revenue: WARNING if variance of '% of Budget Rec'd' > 2%, but < 5% under historical trend.
Revenue: NEGATIVE if variance of '% of Budget Rec'd' > 5% under historical trend.
= Expenditure: NEGATIVE if variance of '% of Budget Expended' is > 100%.

=

1

5/2/2016

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.

First Quarter 2015 (revised estimate)
Second Quarter 2015 (third estimate)
Third Quarter 2015 (revised estimate)
Fourth Quarter 2015 (third estimate)

October 8, 2008
October 29, 2008
December 16, 2008
December 17, 2015

0.6%
3.9%
2.0%
1.4%

Source: U.S. Department of Commerce

1.5%
1.0%
0% - 0.25%
0.25% - 0.50%

Source: Federal Reserve Bank

UNEMPLOYMENT

National
5.0%
4.9%
4.9%
5.0%

Dec-15
Jan-16
Feb-16
Mar-16

State of Arizona
5.9%
5.6%
5.5%
5.4%

Phoenix Metro Area
4.7%
4.6%
4.5%
4.5%

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. Rate of return includes interest earnings as well as both
realized and unrealized gains/(losses).

Single-family building permits are an indicator of the general economy.
Higher numbers of permits indicate an active construction market and
resultant home sales.

Fiscal Year 2015-16 Rate of Return
3rd Quarter Fiscal Year
Benchmark:
0.67%
0.60%
Wells Capital Management:
0.71%
0.65%
PFM:
0.78%
0.90%
Fiscal Year 2014-15 Rate of Return
3rd Quarter Fiscal Year
Benchmark:
0.38%
0.53%
Wells Capital Management:
0.33%
0.45%
PFM:
0.41%
0.59%
Beginning January 2015, the City began investing in a community
bank deposit program called Certificate of Deposit Account
Registry Services (CDARS) to maximize the return on short-term
investments. Interest earned in this program is recorded upon
maturity of the securities; $89,081 of interest has been recorded
through the third quarter of FY 2015-16.

Oct - Nov - Dec 2014
Jan - Feb - Mar 2015
Apr - May - Jun 2015
Jul - Aug - Sep 2015
Oct - Nov - Dec 2015
Jan - Feb - Mar 2016

Source: Investment Advisors

State of Arizona
3,850
4,602
6,528
6,175
5,289
5,814

Chandler
105
195
283
328
261
319

Single family building permits average 248 permits per quarter over the
last six quarters which reflects stable development, although lower than the
building boom of the mid 2000s (as expected). Fewer building permits
generally equates to less new construction, lower permit fees revenues
and lower sales tax revenues. As shown above, FY 2015-16 continues a
stable trend in building permits as shown by the above average numbers.
Sources: U.S. Census Bureau and City of Chandler Transportation & Development
Department.

2

5/2/2016

GENERAL FUND

REVENUE ANALYSIS:
OVERALL GENERAL FUND REVENUES FY 2015-16

1st Qtr

Jul - Sep 15

$

44,668,547

FY 16
Actual
Revenue
$

% of
Budget
Rec'd

*% of
Budget
Hist. Rec'd

47,554,715

23.2%

22.4%

2nd Qtr Oct - Dec 15

50,328,534

53,405,653

26.1%

25.5%

3rd Qtr

Jan - Mar 16

52,481,301

53,318,979

26.0%

28.9%

4th Qtr

Apr - Jun 16

57,353,757
$ 154,279,347

75.3%

76.8%

Total

$ 204,832,139

Actual Revenue

FY 16

Actual Revenue

Historical Trend Actual to Budget

70

Dollars in Millions

FY 16
Adopted
Budget

FY 15

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 through the third quarter of FY 2015-16 are $8.0M (5.4%) above the budget based on historical trend of
actual year-to-date collections and $4.0M (2.6%) higher than actual collections through the third 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 stable
consumer confidence locally and a steady stream of new development activity in Chandler. Additionally, the percentage of budget received
for the fiscal year is less than 2% under 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
$ 82,742,102
2,104,538
4,353,588
42,810,140
4,923,869
7,371,999
4,592,318
5,380,793

% of
Budget
Rec'd to
Date
79.4%
66.3%
59.9%
71.0%
109.7%
62.6%
70.6%
75.0%

Total

$ 204,832,139

$ 154,279,347

75.3%

Indirect Costs
100%

4%
4%
6%
2%

4%
3%
6%
3%

4%
3%
6%
2%

3%
3%
5%
3%

26%

28%

28%

28%

4%

4%

3%

3%

2%

2%

52%

52%

80%

60%

1%

1%

Other Revenues
Charges for Services
Licenses & Permits
State Shared Revenue

40%

52%

54%

Primary Property Taxes

20%

Franchise Fees
0%

FY13 $196M

FY14 $201M

FY15 $209M

FY16 3QYTD
$154M

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 enterprise operations).

3

5/2/2016

GENERAL FUND

REVENUE ANALYSIS (continued):
SALES TAX REVENUE FY 2015-16

1st Qtr

Jul - Sep 15

$

25,807,536

FY 16
Actual
Revenue
$

% of
Budget
Rec'd

*% of
Budget
Hist. Rec'd

27,422,274

26.3%

27.2%

2nd Qtr Oct - Dec 15

24,724,376

26,673,519

25.6%

26.2%

3rd Qtr

Jan - Mar 16

26,519,585

28,646,309

27.5%

28.1%

4th Qtr

Apr - Jun 16

27,138,253

Total

$ 104,189,750

$

82,742,102

79.4%

Actual Revenue

FY 16

Actual Revenue

Historical Trend Actual to Budget

35

Dollars in Millions

FY 16
Adopted
Budget

FY 15

30
25
20
15
10

81.5%

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 third quarter of FY 2015-16 are $5.7M (7.4%) above the budget based on historical trend and
$2.2M (2.8%) higher than FY 2014-15 actual collections through the third quarter. The performance indicator is a warning because the
percentage of budget received through the third quarter is more than 2% less than the percentage of historical budget received through the
third quarter. Since the difference is only 2.1% and the percentage change of actual to budget based on historical trend is 7.4% over
budget, the warning indicator has been changed to positive to remove concern.
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 system 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
$ 37,673,480
78.2%
6,179,069
69.4%
10,871,146
83.6%
9,737,254
86.9%
7,757,071
79.2%
2,398,375
68.5%
2,285,662
71.4%
1,890,831
75.6%
198,247
79.3%

730,000
820,000
$ 102,100,000

$

% Chg
from
Prior Yr
3.6%
-9.1%
4.8%
10.4%
5.9%
-7.1%
-3.9%
1.9%
-0.4%

721,635
879,222

98.9%
107.2%

15.3%
7.6%

80,591,992

78.9%

3.2%

4 Years Actual Sales Tax by Category (in
millions)
FY 11-12

43

FY 12-13

45

FY 13-14

47

10

FY 14-15

50

9

0

20

11

12

10

40

10

12
12
13
60

9 4

11

9 4

11

10 4

12

10 3

80

100

Retail

Contracting

Utilities

Real Property Rentals

Restaurants & Bars

Telecommunications

Personal Prop. Rentals

Hotels/Motels

Publishing/Printing

Amusements

120

Use Tax

The above figures reflect General Fund sales tax collections by category and exclude the related revenues of license fees, audit
assessments, penalties, and interest. Sales tax collections through the third quarter of FY 2015-16 were $5.2M (7.0%) above the budget
based on historical trend and $2.5M (3.2%) higher than FY 2014-15 actual collections through the third quarter. It should be noted that
many of the categories are positive, including Retail, Restaurants & Bars, and Hotel/Motels, reflecting strong consumer confidence and
healthy tourism.

4

5/2/2016

GENERAL FUND

REVENUE ANALYSIS (continued):
FRANCHISE FEE REVENUE FY 2015-16

1st Qtr

Jul - Sep 15

$

2nd Qtr Oct - Dec 15

60,016

2.0%

735,285

760,184

23.9%

24.9%

1,283,948

40.4%

37.1%

1,094,265

4th Qtr

Apr - Jun 16

1,285,434
$

*% of
Budget
Hist. Rec'd

1.9%

Jan - Mar 16

3,175,000

$

% of
Budget
Rec'd

60,406

3rd Qtr

Total

FY 16
Actual
Revenue

$

2,104,538

66.2%

Actual Revenue

FY 16

Actual Revenue

Historical Trend Actual to Budget

Dollars in Thousands

FY 16
Adopted
Budget

FY 15

64.0%

1,600
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 includes the impact of CenturyLink's entry in the market in FY 2012-13.
Franchise fee collections through the third quarter of FY 2015-16 are $214,972 (11.4%) above the budget based on historical trend and
$154,546 (7.9%) higher than FY 2014-15 actual collections through the third quarter. The performance indicator is positive because the
percentage of budget received through the third quarter is more than the percentage of historical budget received through the third quarter.

PRIMARY PROPERTY TAX REVENUE FY 2015-16

1st Qtr

Jul - Sep 15

$

2nd Qtr Oct - Dec 15

45,584

FY 16
Actual
Revenue
$

% of
Budget
Rec'd

*% of
Budget
Hist. Rec'd

21,719

0.3%

0.6%

3,613,131

3,819,730

52.5%

51.4%

3rd Qtr

Jan - Mar 16

509,192

512,139

7.0%

7.2%

4th Qtr

Apr - Jun 16

3,104,093
4,353,588

59.8%

59.2%

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

$

* 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 value homeowner.
Primary property tax collections through the third quarter of FY 2015-16 are $185,681 (4.5%) above the budget based on historical trend and
$252,367 (6.2%) higher than FY 2014-15 actual collections through the third 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 percentage of budget received through the third quarter is more than the percentage of historical budget received
through the third quarter.

5
5/2/2016

GENERAL FUND

REVENUE ANALYSIS (continued):
STATE SHARED REVENUE FY 2015-16

1st Qtr

Jul - Sep 15

12,662,061

21.0%

21.0%

14,787,309

24.5%

24.6%

3rd Qtr

Jan - Mar 16

15,397,400

15,360,770

25.5%

26.2%

4th Qtr

Apr - Jun 16

17,937,725
42,810,140

71.0%

71.8%

60,260,300

$

*% of
Budget
Hist. Rec'd

14,492,473

$

12,432,702

% of
Budget
Rec'd

2nd Qtr Oct - Dec 15

Total

$

FY 16
Actual
Revenue

$

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 third quarter of FY 2015-16 are $8,593
(-0.1%)
below the budget based on historical trend and $673,145 (4.8%) higher than FY 2014-15 actual collections through the third 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 third quarter of FY 2015-16 are $497,603 (7.9%) above the budget based on historical trend
and $890,298 (15.1%) higher than FY 2014-15 actual collections through the third 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 third
quarter of FY 2015-16 are $1,445 (less than 0.01%) below the budget based on historical trend and $116,329 (-0.5%) lower than
FY
2014-15 actual collections through the third quarter.
The overall state shared revenue performance indicator is positive because the percentage of budget received through the third quarter is less
than 2% under the percentage of historical budget received through the third quarter.

LICENSES & PERMITS REVENUE FY 2015-16

1st Qtr

Jul - Sep 15

$

662,206

FY 16
Actual
Revenue
$

% of
Budget
Rec'd

*% of
Budget
Hist. Rec'd

1,806,432

40.3%

19.4%

2nd Qtr Oct - Dec 15

1,070,217

1,592,091

35.5%

31.3%

3rd Qtr

Jan - Mar 16

1,218,545

1,525,346

34.0%

35.7%

4th Qtr

Apr - Jun 16

1,537,032

Total

$

4,488,000

$

4,923,869

109.8%

86.4%

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 third quarter of
FY 2015-16 are $2.0M (66.9%) above the budget based on historical trend and $1.3M (34.3%) above FY 2014-15 actual collections through
the third 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 third
quarter, resulting in a positive performance indicator.
6
5/2/2016

GENERAL FUND

REVENUE ANALYSIS (continued):
CHARGES FOR SERVICES REVENUE FY 2015-16

1st Qtr

Jul - Sep 15

$

2,462,981

FY 16
Actual
Revenue
$

2,434,996

% of
Budget
Rec'd

*% of
Budget
Hist. Rec'd

20.7%

23.2%

2nd Qtr Oct - Dec 15

2,564,826

2,363,655

20.1%

24.2%

3rd Qtr

Jan - Mar 16

3,020,800

2,573,348

21.9%

28.5%

4th Qtr

Apr - Jun 16

3,718,993

Total

$

11,767,600

$

7,371,999

62.7%

Actual Revenue

FY 16

Actual Revenue

Historical Trend Actual to Budget

5

Dollars in Millions

FY 16
Adopted
Budget

FY 15

4
3
2

75.9%

1
-

* Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

NEGATIVE

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 third quarter of FY 2015-16 are $676,608
(-8.4%) below the budget based on historical trend and $1.2M (-14.2%) lower than FY 2014-15 actual collections through the third quarter.
A negative performance indicator occurs since percentage of budget received through the third quarter is more than 5% below the
percentage of historical budget received through the third quarter. This is due to lower FY 2015-16 public school revenues through the third
quarter due to a timing difference in collection of receipts of more than $1M.

OTHER REVENUE FY 2015-16

1st Qtr

Jul - Sep 15

$

2nd Qtr Oct - Dec 15

1,403,922

21.3%

1,334,631

1,615,570

24.8%

19.0%

1,623,519

25.0%

31.4%

4,592,318

70.6%

71.7%

Jan - Mar 16

1,765,255

Apr - Jun 16

2,001,291
$

*% of
Budget
Hist. Rec'd

20.8%

3rd Qtr

6,505,099

$

% of
Budget
Rec'd

1,353,229

4th Qtr
Total

FY 16
Actual
Revenue

Actual Revenue

FY 16

Actual Revenue

Historical Trend Actual to Budget

3

Dollars in Millions

FY 16
Adopted
Budget

FY 15

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 through the third quarter of FY 2015-16 are $88,510 (2.0%) above the
budget based on historical trend and $139,900 (3.1%) higher than FY 2014-15 actual collections through the third quarter. The performance
indicator is positive because the percentage of budget received through the third quarter is less than 2% under the percentage of historical
budget received through the third quarter.

7
5/2/2016

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
Public Safety
Transportation & Dev.
Non-Dept. Pers. & O&M

53,859,406

FY16
Actual
Exp+Enc
$

% of
Budget
Exp'd

% of
Budget
Prior Yr

38,817,469

72.1%

72.6%

21,777,009

15,439,037

70.9%

72.5%

100,859,178

77,614,960

77.0%

74.0%

21,118,498

16,284,780

77.1%

75.4%

18,127,185

5,601,357

30.9%

18.9%

Subtotal

$ 215,741,276

$ 153,757,603

71.3%

69.4%

Non-Dept. Reserves

$

$

-

0.0%

0.0%

-

0.0%

0.0%

63.6%

61.6%

Non-Dept. Contingencies
Total

2,474,361
23,604,386

$ 241,820,023

$ 153,757,603

* Excluding Interfund Transfers

3
15

6
16
Non-Dept. Pers.
& O&M

70

78

Transportation &
Dev.
Public Safety

15

15

38

Comm. & Neigh.
Services

39
General
Government

FY 15
3Q YTD
Exp+Enc

FY 16
3Q YTD
Exp+Enc

Total General Fund operating budget, 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 third quarter is 71.3% of the adjusted budget compared to 69.4% of adjusted budget spent last
fiscal year through the third quarter. As shown on the following pages, departments have expended between 69.1% and 77.9% of their
General Fund adjusted budgets through the third 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

FY 16
Actual
Exp+Enc

FY 15
Actual
Exp+Enc

% Change
from Prior
Yr Actual

$ 156,038,684

$ 112,095,262

$ 103,527,198

8.3%

59,702,592

41,662,341

37,461,087

11.2%

2,474,361

-

-

0.0%

23,604,386

-

-

0.0%

$ 241,820,023

$ 153,757,603

$ 140,988,285

Operations
& Maint.
27%

9.1%
Personnel
73%

* Excluding Interfund Transfers

Total General Fund operating expenditures and encumbrances are reflected by spending category. Operating spending through the third
quarter of FY 2015-16 is 9.1% higher than spending through the third quarter of FY 2014-15 mainly due to increases from labor negotiations
and benefit changes in Personnel, and spending on the 2015 mid-decade Special Census project, which is included in the Operations &
Maintenance category.

8

5/2/2016

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
MAYOR & COUNCIL EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

204,445

FY 16
Actual
Exp+Enc
$

207,027

24.3%

23.0%

2nd Qtr Oct - Dec 15

204,445

218,303

25.6%

22.8%

3rd Qtr

Jan - Mar 16

221,482

196,613

23.1%

25.2%

4th Qtr

Apr - Jun 16

221,483

Total

$

851,855

$

621,943

73.0%

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

250
200
150
100
50

71.0%

* 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 73.0% of their FY 2015-16 adjusted budget and has historically spent 71.0% of their adjusted budget through the
third quarter of the fiscal year, resulting in a postive performance indicator. Spending is trending slightly higher this fiscal year due to
personnel and benefit changes.

CITY CLERK EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

236,195

FY 16
Actual
Exp+Enc
$

197,171

30.9%

32.9%

2nd Qtr Oct - Dec 15

140,440

133,138

20.8%

20.2%

3rd Qtr

Jan - Mar 16

121,289

111,679

17.5%

17.2%

4th Qtr

Apr - Jun 16

140,440
441,988

69.2%

70.3%

Total

$

638,364

$

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 69.2% of their FY 2015-16 adjusted budget and has historically spent 70.3% of their adjusted budget through the third
quarter of the fiscal year, resulting in a positive performance indicator. Spending within the historical trend includes one-time expenditures
for primary and general elections that are not ocurring in FY 2015-16.

9
5/2/2016

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

FY 16
Actual
Exp+Enc
$

10,196,052

30.6%

32.6%

2nd Qtr Oct - Dec 15

6,617,744

7,812,108

23.4%

18.7%

3rd Qtr

Jan - Mar 16

7,244,996

6,175,398

18.5%

20.5%

4th Qtr

Apr - Jun 16

7,982,444
24,183,558

72.5%

71.8%

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

$

33,364,684

$

* 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 72.5% of their FY 2015-16 adjusted budget and have historically spent 71.8% of their adjusted budget through the third
quarter of the fiscal year, resulting in a positive performance indicator. Spending is trending slightly higher this fiscal year due to retirement
payouts for several long-time employees.

LAW EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

2nd Qtr Oct - Dec 15

818,224

826,728

23.2%

22.3%

853,799

914,594

25.7%

22.4%

821,846

23.1%

24.8%

3rd Qtr

Jan - Mar 16

924,949

4th Qtr

Apr - Jun 16

960,525

Total

$

FY 16
Actual
Exp+Enc

3,557,497

$

$

2,563,168

72.0%

69.5%

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 72.0% of their FY 2015-16 adjusted budget and has historically spent 69.5% of their adjusted budget through the third quarter of
the fiscal year, resulting in a positive performance indicator. Spending is slightly higher this fiscal year due to a one-time decision package
to purchase a new multi-function copier for the Prosecutor's Office.

10
5/2/2016

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
CITY MAGISTRATE EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

1,042,169

FY 16
Actual
Exp+Enc
$

1,012,063

23.2%

21.7%

2nd Qtr Oct - Dec 15

1,032,229

1,070,247

24.4%

21.5%

3rd Qtr

Jan - Mar 16

1,137,430

940,303

21.5%

23.6%

4th Qtr

Apr - Jun 16

1,159,401

Total

$

4,371,229

$

3,022,613

69.1%

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

66.8%

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 69.1% of their FY 2015-16 adjusted budget and has historically spent 66.8% of their adjusted budget through the third
quarter of the fiscal year, resulting in a positive performance indicator. Spending has slightly increased this fiscal year due to a one-time
decision package to purchase a new video surveillance system utilizing Court Enhancement funds.

COMMUNICATIONS & PUBLIC AFFAIRS EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

729,882

FY 16
Actual
Exp+Enc
$

644,808

25.6%

25.4%

2nd Qtr Oct - Dec 15

604,041

590,027

23.5%

21.4%

3rd Qtr

Jan - Mar 16

654,377

634,041

25.2%

22.7%

4th Qtr

Apr - Jun 16

528,536
1,868,876

74.3%

69.5%

Total

$

2,516,836

$

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 74.3% of their
FY 2015-16 adjusted budget and has historically spent 69.5% of their adjusted budget through the third quarter of the fiscal year, resulting in
a positive performance indicator. FY 2015-16 personnel spending has increased due to all positions filled compared to several vacant
positions in the historical trend.

11
5/2/2016

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
MANAGEMENT SERVICES EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

2,077,482

FY 16
Actual
Exp+Enc
$

2,127,583

28.7%

25.8%

2nd Qtr Oct - Dec 15

1,780,699

1,558,741

21.0%

21.8%

3rd Qtr

Jan - Mar 16

1,854,895

1,581,231

21.3%

22.8%

4th Qtr

Apr - Jun 16

1,706,502

Total

$

7,419,578

$

5,267,555

71.0%

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

70.4%

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 71.0% of their FY 2015-16 adjusted budget and have historically spent 70.4% of their adjusted budget
through the third quarter of the fiscal year, resulting in a positive performance indicator. Spending is trending slightly higher in FY 2015-16 is
mainly 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

$

2nd Qtr Oct - Dec 15

5,800,699

FY 16
Actual
Exp+Enc
$

4,563,555

25.2%

17.8%

3,262,893

875,347

4.8%

9.8%

3rd Qtr

Jan - Mar 16

5,619,427

162,455

0.9%

17.2%

4th Qtr

Apr - Jun 16

3,444,166
5,601,357

30.9%

44.8%

Total**

$

18,127,185

$

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
-

* 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 opportunity funding, and miscellaneous Downtown Redevelopment). Spending in this category fluctuates due to the
changing one-time needs from year to year. Non-departmental spending is 30.9% of the FY 2015-16 adjusted budget, with historical
spending of the adjusted budget at 44.8% through the third quarter of the fiscal year, resulting in a positive performance indicator. Council
approved Resolution No. 4838 at the February 12, 2015 Council Meeting to transfer $4.1 million in appropriation from contingency to nondepartmental 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. The historical trend spending percentage is higher due to large one-time
projects completed in prior years (i.e., Continuum).

12
5/2/2016

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
TRANSPORTATION & DEVELOPMENT EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

6,969,104

FY 16
Actual
Exp+Enc
$

7,976,263

37.8%

30.4%

2nd Qtr Oct - Dec 15

4,223,700

3,701,190

17.5%

18.8%

3rd Qtr

Jan - Mar 16

5,490,809

4,607,327

21.8%

24.7%

4th Qtr

Apr - Jun 16

4,434,885

Total

$

21,118,498

$

16,284,780

77.1%

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

73.9%

1
-

* Historical Trend represents the average of the past 4 years % of actual to budget

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

POSITIVE

Transportation and Development includes the following divisions budgeted in the General Fund: Administration, Development Services,
Engineering, Capital Projects, Streets, Traffic Engineering, Transit Services, and Street Sweeping. The department spent 77.1% of their
FY 2015-16 adjusted budget and has historically spent 73.9% of their adjusted budget through the third 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 that will be spent throughout the fiscal year, as well as increased professional/contract amounts from decision packages
awarded for landscape maintenance.

COMMUNITY & NEIGHBORHOOD SERVICES EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

7,839,723

FY 16
Actual
Exp+Enc
$

7,668,238

35.2%

34.7%

2nd Qtr Oct - Dec 15

3,919,862

4,097,355

18.8%

17.6%

3rd Qtr

Jan - Mar 16

4,355,402

3,673,444

16.9%

19.2%

4th Qtr

Apr - Jun 16

5,662,022

Total

$

21,777,009

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

$

15,439,037

70.9%

2

71.5%

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 70.9% of their FY 2015-16 adjusted budget and has historically
spent 71.5% of their adjusted budget through the third quarter of the fiscal year, resulting in a positive performance indicator.

13
5/2/2016

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
POLICE EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

19,568,467

FY 16
Actual
Exp+Enc
$

16,502,889

24.5%

28.5%

2nd Qtr Oct - Dec 15

15,519,819

20,165,534

29.9%

22.1%

3rd Qtr

Jan - Mar 16

16,194,593

15,916,362

23.5%

23.6%

4th Qtr

Apr - Jun 16

16,194,593
52,584,785

77.9%

74.2%

Total

$

67,477,472

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

$

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 77.9% of their FY 2015-16 adjusted budget and has historically spent 74.2% of their adjusted budget through
the third quarter of the fiscal year, resulting in a positive performance indicator. Spending is trending slightly higher this fiscal year due to
retirement payouts for several long-time employees.

FIRE, HEALTH & MEDICAL EXPENDITURE FY 2015-16 COMPARISON

Operating Only
1st Qtr

Jul - Sep 15

$

10,011,110

FY 16
Actual
Exp+Enc
$

8,641,579

25.0%

28.5%

2nd Qtr Oct - Dec 15

7,939,846

9,456,989

27.4%

22.3%

3rd Qtr

Jan - Mar 16

8,285,057

7,779,376

22.6%

23.7%

4th Qtr

Apr - Jun 16

8,285,056

Total

$

34,521,069

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

$

25,877,944

75.0%

74.5%

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 75.0% of their FY 2015-16 adjusted
budget and has historically spent 74.5% of their adjusted budget throught the third quarter of the fiscal year, resulting in a positive
performance indicator. Spending is trending slightly higher this fiscal year due to retirement payouts for several long-term employees.

14
5/2/2016

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

35,975,473

70%

80%

2,069,112

96%

0%

Total Revenues

$

53,725,454

$

38,044,585

71%

78%

Operating Expenses

$

31,461,665

$

21,786,010

69%

68%

Major Capital Expenses

8,432,883

238,359

3%

12%

Debt Service

21,296,860

2,676,623

13%

49%

Transfers Out

3,418,349

2,596,349

76%

76%

$

27,297,341

42%

53%

(10,884,303) $

10,747,244

Total Expenses
Net Rev / Exp
POSITIVE

$
$

64,609,757

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
Q3 YTD

FY16 Actual
Q3 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. Debt Service is paid twice a year, with the second quarter at interest only and the
fourth quarter comprised of principal and interest. Year-to-date Operating Revenues through the third quarter are 70% of budget
compared to 80% through the third quarter of the prior fiscal year, while Operating Expenses through the third quarter are 69% of
budget as compared to 68% through the third quarter of the prior fiscal year. As shown in revenues above, a land sale budgeted in
FY 2014-15 has closed escrow in FY 2015-16.

WASTEWATER FUND ANALYSIS FY 2015-16 COMPARISON

WASTEWATER FUND
Revenues

$

42,876,330

FY 16 Actual
Revenue/
Exp+Enc
$

WASTEWATER FUND ANALYSIS

% of Budget
Rec'd/Exp'd % of Budget
to Date
Prior Yr

32,745,310

76%

70%

Land Sale

6,485,501

6,207,337

96%

0%

Intel Reimbursement

5,500,000

1,211,302

22%

24%

Total Revenues

$

54,861,831

$

40,163,949

73%

50%

Operating Expenses

$

20,742,126

$

13,413,694

65%

73%

82%

16%

Revenues

60
50
40
30
20

Major Capital Expenses

20,714,983

16,969,266

Debt Service

23,598,390

3,090,543

13%

42%

10

Transfers Out

2,466,991

1,860,377

75%

75%

0

$

35,333,880

52%

40%

(12,660,659) $

4,830,069

Total Expenses
Net Rev / Exp
POSITIVE

$
$

67,522,490

Expenses

70
Dollars in Millions

FY 16
Adjusted
Budget

FY15 Actual
Q3 YTD

FY16 Actual
Q3 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 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. Debt Service is paid twice a year, with the second quarter at interest only and the fourth
quarter comprised of principal and interest. Year-to-date Operating Revenues through the third quarter are 76% of budget compared to
70% through the third quarter of the prior fiscal year, while Operating Expenses through the third quarter are 65% of budget as
compared to 73% through the third quarter of the prior fiscal year. As shown in revenues above, a land sale budgeted in FY 2014-15 has
closed escrow in FY 2015-16.
\

15
5/2/2016

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

% of Budget
Rec'd/Exp'd % of Budget
to Date
Prior Yr

10,692,321

72%

73%

998,280

170%

0%

Total Revenues

$

15,491,004 $

11,690,601

75%

73%

Operating Expenses

$

13,631,926 $

11,644,228

85%

86%

946,276

608,777

64%

63%

1,017,133

775,721

76%

76%

13,028,726

84%

85%

Major Capital Expenses
Transfers Out
Total Expenses

$

15,595,335 $

Revenues

15
12
9
6
3
FY15 Actual
Q3 YTD

Net Rev / Exp
WARNING

$

(104,331) $

Expenses

18

Dollars in Millions

FY 16
Adjusted
Budget

FY16 Actual
Q3 YTD

FY16 Budget

(1,338,125)

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 $104,331 drawdown of fund balance. Transfers In consists of the consolidation of
the New Container Fund into the Solid Waste Operating Fund. 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 SelfInsurance Trust. Year-to-date Operating Revenues through the third quarter are 72% of budget compared to 73% through the third
quarter of the prior fiscal year, while Operating Expenses through the third quarter are 85% of budget as compared to 86% through the
third quarter of the prior 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
$

974,442

% of Budget
Rec'd/Exp'd % of Budget
to Date
Prior Yr

738,153

68%

73%

117,079

12%

23%

Total Revenues

$

2,060,265

$

855,232

42%

49%

Operating Expenses

$

1,089,576

$

738,898

68%

66%

837,996

242,711

29%

29%

Debt Service

27,313

1,156

4%

5%

Transfers Out

105,380

80,380

76%

76%

1,063,145

52%

50%

Major Capital Expenses

Total Expenses
Net Rev / Exp
POSITIVE

$
$

2,060,265
-

$
$

Revenues

Expenses

2,400
2,100
Dollars in Thousands

FY 16
Adjusted
Budget

1,800
1,500
1,200
900
600
300
FY15 Actual
Q3 YTD

FY16 Actual
Q3 YTD

FY16 Budget

(207,913)

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, and reflects the interest payment in December. Year-to-date Operating
Revenues through the third quarter are 68% of budget compared to 73% through the third quarter of the prior fiscal year. Operating
Expenses through the third quarter are 68% of budget as compared to 66% through the third quarter of the prior fiscal year.

16
5/2/2016

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
$

9,282,417

% of Budget
Rec'd to
Date
106%

Reclaimed Water

1,287,000

1,501,920

117%

Wastewater

8,241,500

9,441,606

115%

20,225,943

110%

Total SDF Revenue

$

18,310,700

$

Dollars in Millions

SYSTEM
DEVELOPMENT FEE
(SDF) FUNDS

FY 15 Actual Q3 YTD

FY 15 Adjusted Budget

FY 16 Actual Q3 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 third quarter as compared to the FY 2014-15 budget and year-to-date
collections through the third quarter. Collections through the third quarter of FY 2015-16 were 110% of the budget as compared to the
prior year's collections through the third quarter of 129% of the budget.

IMPACT FEE FUNDS ANALYSIS FY 2015-16 COMPARISON

IMPACT FEE FUNDS
Arterial Streets

$

Parks
Library
Public Buildings
Police
Fire

4,521,500

FY 16
Actual
Revenue
$

% of Budget
Rec'd to
Date

6,640,451

147%

2,129,800

5,103,702

240%

81,200

103,188

127%

253,500

259,837

102%

665,000

686,014

103%

1,006,800

1,016,772

101%

13,809,964

160%

Dollars in Thousands

FY 16
Adjusted
Budget

FY 15 Actual Q3 YTD

FY 15 Adjusted Budget

FY 16 Actual Q3 YTD

FY 16 Adjusted Budget

7,000
6,000
5,000
4,000
3,000
2,000

Total Impact Revenue

$

8,657,800

$

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 2015-16 budget
and year-to-date collections through the third quarter as compared to FY 2014-15 budget and year-to-date collections through the third
quarter. Collections through the third quarter of FY 2015-16 were 160% of the budget as compared to the prior year's collections
through the third quarter of 106% of the budget.

17
5/2/2016

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 $

69%

71%

63,125

80%

105%

9,663,905

69%

71%

7,327,960

76%

71%

4,575,742

4,107,916

90%

57%

Debt Service

3,745,650

3,745,650

100%

95%

23,708

23,708

100%

100%

15,205,234

85%

76%

Total Expenses

$

$

9,600,780

Major Capital Expenses
Transfers Out

9,609,395

17,954,495 $

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

$

(3,875,495) $

FY15 Actual
Q3 YTD

(5,541,329)

FY16 Actual
Q3 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 third quarter are 69% of budget, which is 2%
lower than the percentage through the third quarter of last fiscal year. Operating Expenses through the third quarter are 76% of adjusted
budget, which is 5% higher than the percentage through the third quarter of last fiscal year.

GRANT FUNDS ANALYSIS FY 2015-16 COMPARISON
GRANT REVENUES

General Government*

$

Comm. & Neigh. Services
C&NS - CDBG & HOME
C&NS - HUD
Municipal Utilities

4,922,206

FY 16
Actual
Revenue
$

% of Budget
Rec'd to
Date

14
12

994,020

20%

164,601

48,034

29%

2,940,000

756,050

26%

12,316,554

5,755,851

47%

100,000

9,000

9%

Public Safety

4,110,000

917,454

22%

T & D - Streets

3,790,361

4,939,742

130%

13,420,151

47%

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

Comm &
Neigh Svs

C&NS-CDBG C&NS-HUD
& HOME

MUD

Public Safety T&D-Streets

* Includes Airport, Cultural Affairs, Economic Development, and Magistrate

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 third quarter of FY 2015-16 were $13.4M (47% of adjusted budget) as compared to $9.3M (29% of adjusted
budget) collected through the third quarter of FY 2014-15.

18
5/2/2016