QUARTERLY FINANCIAL REPORT 4th Qtr FY15-16 PERFORMANCE AT A GLANCE GENERAL FUND REVENUE YEAR TO DATE COMPARED TO BUDGET % Economic Indicators General Fund Revenue Quarterly Analysis General Fund Revenue Category Analysis Sales Tax (& collection detail) Franchise Fees Primary Property Tax Revenue Detail by State Shared Revenue Category Licenses & Permits Charges for Services Other Revenues GENERAL FUND EXPENDITURE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE POSITIVE YEAR TO DATE COMPARED TO BUDGET % General Fund Expenditure + Enc. Analysis by Function and by Expenditure Category Mayor & Council City Clerk City Manager & 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 POSITIVE POSITIVE POSITIVE POSITIVE INFORMATIONAL REFERENCE Page 2 Page 3 Page 3 Page 4 Page 5 Page 5 Page 6 Page 6 Page 7 Page 7 REFERENCE Page 8 Page 8 Page 9 Page 9 Page 10 Page 10 Page 11 Page 11 Page 12 Page 12 Page 13 Page 13 Page 14 Page 14 REFERENCE Page 15 Page 15 Page 16 Page 16 Page 17 Page 18 Page 18 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 9/6/2016 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 debt service and indirect cost allocation) and the percentage of budget received/expended. ECONOMIC INDICATORS GROSS DOMESTIC PRODUCT (GDP) INTEREST RATES Real gross domestic product - the output of goods and services produced by labor and property located in the US. This table reflects the four most recent changes to the Federal Funds Rate by the Federal Reserve Board. The change to the GDP is an indicator of the general direction of the economy. Slow or negative growth will likely mean lower revenues for the City. Lowering the Federal Funds Rate is a way for the Federal Reserve Board to make it less expensive for banks to borrow money for loans and investments and (in theory) pumping additional dollars into the economy. Third Quarter 2015 (revised estimate) Fourth Quarter 2015 (revised estimate) First Quarter 2016 (revised estimate) Second Quarter 2016 (advance estimate) October 8, 2008 October 29, 2008 December 16, 2008 December 17, 2015 2.0% 0.9% 0.8% 1.2% 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% 5.0% 4.7% 4.9% Mar-16 Apr-16 May-16 Jun-16 State of Arizona 5.4% 5.5% 5.6% 5.8% Phoenix Metro Area 4.5% 4.7% 4.7% 5.3% 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 4th Quarter Fiscal Year Benchmark: 0.41% 1.01% Wells Capital Management: 0.52% 1.17% PFM: 0.55% 1.46% Fiscal Year 2014-15 Rate of Return 4th Quarter Fiscal Year 0.65% Benchmark: 0.12% Wells Capital Management: 0.10% 0.55% PFM: 0.10% 0.69% 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 separate from the City's investment firms. Interest earned in this program is recorded upon maturity of the securities; $129,841 of interest has been recorded in FY 2015-16. Jan - Feb - Mar 2015 Apr - May - Jun 2015 Jul - Aug - Sep 2015 Oct - Nov - Dec 2015 Jan - Feb - Mar 2016 Apr - May - Jun 2016 Source: Investment Advisors State of Arizona 4,602 6,528 6,175 5,289 5,814 6,955 Chandler 195 283 328 261 319 398 Single family building permits average 327 permits per quarter for FY 2015-16, compared to 177 average permits per quarter for FY 2014-15. Fewer building permits generally equates to less new construction, lower permit fees revenues and lower sales tax revenues. As shown above, FY 2015-16 is trending higher in building permits as shown by the above average numbers. Sources: U.S. Census Bureau and City of Chandler Transportation & Development Department. 2 9/6/2016 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% Actual Revenue 70 60 50 2nd Qtr Oct - Dec 15 50,328,534 53,405,653 26.1% 25.5% 3rd Qtr Jan - Mar 16 51,318,640 53,318,979 26.0% 28.9% 4th Qtr Apr - Jun 16 58,516,418 61,671,145 30.1% 31.4% 20 $ 204,832,139 $ 215,950,492 105.4% 108.2% 10 Total Actual Revenue FY 16 Historical Trend Actual to Budget Dollars in Millions FY 16 Adopted Budget FY 15 40 30 1st Qtr * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 2nd Qtr 3rd Qtr 4th Qtr POSITIVE General Fund revenue collections for FY 2015-16 are $11.1M (5.4%) above budget, compared to $6.5M (3.1%) higher than actual collections for FY 2014-15. Although the fiscal year ended $11.1 over the adopted budget, when preparing the FY 2016-17 budget, revenues were updated based on actual collections and additional information available at the time. This is done for the purpose of estimating the fiscal year end General Fund balance to determine available one-time funds for the FY 2016-17 budget preparation. Through this process, $5.3 million of the $11.1 million surplus was anticipated and has been incorporated into the FY 2016-17 budget. The final net impact of additional one-time funds, taking into account not only revenues, but expenditures and carryfoward as well, is currently being calculated. Overall, General Fund revenue, led by continuing strong Sales Tax and License and Permit collections, are performing well due to stable consumer confidence locally and a steady stream of new development activity in Chandler. The percentage of budget received for the fiscal year is greater than 100%, resulting in a positive performance indicator. The following charts provide more detail regarding the various sources of General Fund revenues. GENERAL FUND REVENUES BY CATEGORY FY 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 $ 112,261,762 3,333,938 7,410,738 60,712,442 6,634,160 11,886,399 6,536,663 7,174,390 % of Budget Rec'd to Date 107.7% 105.0% 101.9% 100.8% 147.8% 101.0% 100.5% 100.0% Total $ 204,832,139 $ 215,950,492 105.4% Indirect Costs 100% 4% 4% 6% 2% 4% 3% 6% 3% 4% 3% 6% 2% 3% 3% 6% 3% 26% 28% 28% 28% 4% 4% 3% 3% 2% 2% 2% 52% 52% 52% Other Revenues 80% 60% 1% Charges for Services Licenses & Permits State Shared Revenue 40% 52% Primary Property Taxes 20% Franchise Fees 0% FY13 $196M FY14 $201M FY15 $209M FY16 $216M 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 9/6/2016 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 29,519,660 28.3% 28.6% $ 104,189,750 $ 112,261,762 107.7% 110.1% Total 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 5 * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Figures above include General Fund local sales tax collections and the related revenues of license fees, audit assessments, penalties, and interest. Sales tax collections for FY 2015-16 are $8.1M (7.7%) above budget and $3.6M (3.3%) higher than FY 2014-15 actual collections. The percentage of budget received for the fiscal year is greater than 100%, resulting in a positive performance indicator. It should be noted that House Bill (HB) 2111 required the State of Arizona to begin licensing and collecting transaction privilege tax (TPT), commonly referred to as sales tax, for all Cities beginning January 1, 2015. This deadline was extended until the Arizona Department of Revenue can complete the necessary technological system improvements, testing, and taxpayer education, which is projected to be January 1, 2017. 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 $ 51,180,771 106.2% 8,855,057 99.5% 13,786,741 106.1% 13,217,561 118.0% 10,752,479 109.7% 3,234,369 92.4% 3,125,459 97.7% 2,957,686 118.3% 248,433 99.4% % Chg from Prior Yr 2.9% -0.2% 4.5% 10.4% 5.5% -5.9% -4.2% 2.3% -4.7% 730,000 820,000 1,019,940 1,127,257 139.7% 137.5% 13.9% -1.6% $ 102,100,000 $ 109,505,753 107.3% 3.5% 4 Years Actual Sales Tax by Category (in millions) 12 10 FY 12-13 45 FY 13-14 47 10 FY 14-15 50 9 FY 15-16 51 0 20 12 13 14 9 40 Retail Utilities Restaurants & Bars Personal Prop. Rentals Publishing/Printing Use Tax 60 9 4 11 10 4 11 12 13 80 10 3 11 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 for FY 2015-16 were $7.4M (7.3%) above budget and $3.7M (3.5%) higher than FY 2014-15 actual collections. 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. Contracting collections reflect the first full fiscal year impact of the HB2111 legislative requirement to shift from contracting to retail reporting for certain projects. Telecommunications collections continue to decline due to the replacement of landlines with cellular phones. Personal property rentals tend to decline as construction declines since it includes large equipment rentals. 4 9/6/2016 GENERAL FUND REVENUE ANALYSIS (continued): FRANCHISE FEE REVENUE FY 2015-16 1st Qtr Jul - Sep 15 $ 2nd Qtr Oct - Dec 15 60,016 FY 16 Actual Revenue $ % of Budget Rec'd *% of Budget Hist. Rec'd 60,406 1.9% 2.0% 735,285 760,184 23.9% 24.9% 3rd Qtr Jan - Mar 16 1,094,265 1,283,948 40.4% 37.1% 4th Qtr Apr - Jun 16 1,285,434 1,229,400 38.8% 43.6% 3,333,938 105.0% 107.6% Total $ 3,175,000 $ Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget Dollars in Thousands FY 16 Adopted Budget FY 15 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 for FY 2015-16 are $158,938 (5.0%) above budget and $44,770 (1.4%) higher than FY 2014-15 actual collections. The percentage of budget received for the fiscal year is greater than 100%, resulting in a positive performance indicator. 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 3,057,150 42.1% 44.2% 7,410,738 101.9% 103.4% 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 collected 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 for FY 2015-16 are $138,738 (1.9%) above budget and $351,497 (5.0%) higher than FY 2014-15 actual collections. The majority of collections come in the second and fourth quarters since the first half of the property tax bills are due in October and the second half is due in March. The percentage of budget received for the fiscal year is greater than 100%, resulting in a positive performance indicator. 5 9/6/2016 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 17,902,302 29.7% 30.5% 60,712,442 100.8% 102.3% 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 for FY 2015-16 are $35,568 (-0.2%) below budget and $873,597 (4.0%) higher than FY 2014-15 actual collections. This revenue category reflects a small but steady growth in Arizona's overall economy. -- Vehicle License Tax: Cities and towns receive 25% of the net revenues collected for vehicle licensing within their county from the state, as well as surcharges from vehicle rentals. The respective city shares are determined by the proportion of city population to total incorporated population of the county. Collections for FY 2015-16 are $487,691 (5.2%) above budget and $757,362 (8.4%) higher than FY 2014-15 actual collections. -- 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 for FY 201516 are $19 (less than 0.01%) above budget and $155,105 (-0.5%) lower than FY 2014-15 actual collections. The percentage of budget received for the fiscal year is greater than 100% for state shared revenues, resulting in a positive performance indicator. 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 1,710,291 38.0% 45.0% 6,634,160 147.8% 131.4% Total $ 4,488,000 $ 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 for FY 2015-16 are $2.1M (47.8%) above budget and $1.5M (28.9%) above FY 2014-15 actual collections. Budgeted amounts for building permits (the largest revenue in this category) have been kept at moderate levels since it is difficult to predict the timing of new development and permits pulled, but this category is performing very strong and exceeded expectations for the fiscal year. The percentage of budget received for the fiscal year is greater than 100%, resulting in a positive performance indicator. 6 9/6/2016 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 4,514,400 38.3% 35.1% 11,886,399 101.0% 111.0% Total $ 11,767,600 $ Actual Revenue FY 16 Actual Revenue Historical Trend Actual to Budget 5 Dollars in Millions FY 16 Adopted Budget FY 15 4 3 2 1 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Charges for Services include revenue from various engineering, recreation, and library fees, police and fire miscellaneous service reimbursements, and public school reimbursement. Charges for services collections for FY 2015-16 are $118,799 (1.0%) above budget and $47,848 (-0.4%) lower than FY 2014-15 actual collections. The effect of a previously reported timing difference in the receipt of public school revenues is shown in the graph, with approximately $1 million of public school revenues received in the fourth quarter in FY 2015-16 versus the third quarter of FY 2014-15. The percentage of budget received for the fiscal year is greater than 100%, resulting in a positive performance indicator. OTHER REVENUE FY 2015-16 1st Qtr Jul - Sep 15 $ 2nd Qtr Oct - Dec 15 1,403,922 FY 16 Actual Revenue $ 1,334,631 % of Budget Rec'd *% of Budget Hist. Rec'd 1,353,229 20.8% 21.3% 1,615,570 24.8% 19.0% 3rd Qtr Jan - Mar 16 1,765,255 1,623,519 25.0% 31.4% 4th Qtr Apr - Jun 16 2,001,291 1,944,345 29.9% 34.8% 6,536,663 100.5% 106.5% Total $ 6,505,099 $ 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 for FY 2015-16 are $82,256 (0.5%) above budget and $8,265 (0.1%) higher than FY 2014-15 actual collections. The percentage of budget received for the fiscal year is greater than 100%, resulting in a positive performance indicator. 7 9/6/2016 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 53,627,677 FY16 Actual Exp+Enc $ % of Budget Exp'd % of Budget Prior Yr 51,286,319 95.6% 95.1% 21,788,532 20,595,562 94.5% 95.4% 104,094,563 103,577,340 99.5% 97.3% 21,088,781 20,114,026 95.4% 93.8% 14,964,090 5,886,688 39.3% 22.6% Subtotal $ 215,563,643 $ 201,459,935 93.5% 90.9% Non-Dept. Reserves $ $ - 0.0% 0.0% - 0.0% 0.0% 83.4% 81.0% Non-Dept. Contingencies Total 2,473,838 23,435,386 $ 241,472,867 $ 201,459,935 3 18 6 20 Non-Dept. Pers. & O&M 94 104 Transportation & Dev. Public Safety 20 21 50 Comm. & Neigh. Services 51 General Government FY 15 Exp+Enc FY 16 Exp+Enc * Excluding Interfund Transfers 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 is 93.5% of the adjusted budget compared to 90.9% of adjusted budget spent last fiscal year. As shown on the following pages, departments have expended between 91.0% and 99.7% of their General Fund adjusted budgets for 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 $ 156,416,038 $ 153,188,337 $ 141,380,121 8.4% 59,147,605 48,271,598 43,773,284 10.3% 2,473,838 - - 0.0% 23,435,386 - - 0.0% $ 241,472,867 $ 201,459,935 $ 185,153,405 Operations & Maint. 24% 8.8% Personnel 76% * Excluding Interfund Transfers Total General Fund operating expenditures and encumbrances are reflected by spending category. Operating spending for FY 2015-16 is 8.8% higher than spending for 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 9/6/2016 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 16 221,483 216,166 25.4% 24.7% 838,109 98.4% 95.7% Total $ 851,855 $ 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 - * 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 98.4% of their FY 2015-16 adjusted budget and has historically spent 95.7% of their adjusted budget for 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 16 140,440 147,729 23.2% 19.5% 589,717 92.4% 89.8% 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 92.4% of their FY 2015-16 adjusted budget and has historically spent 89.8% of their adjusted budget for 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 9/6/2016 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 30.8% 32.9% 2nd Qtr Oct - Dec 15 6,617,744 7,812,108 23.6% 18.9% 3rd Qtr Jan - Mar 16 7,244,996 6,175,398 18.7% 20.7% 4th Qtr Apr - Jun 16 7,716,997 7,581,368 22.9% 22.0% 31,764,926 96.0% 94.5% 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. Expended Trend % of by Qtr Budget 12 9 6 3 Total $ 33,099,237 $ * 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 & Organizational 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 96.0% of their FY 2015-16 adjusted budget and have historically spent 94.5% of their adjusted budget for 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 15 820,257 FY 16 Actual Exp+Enc $ 855,920 826,728 23.2% 22.2% 914,594 25.6% 22.3% 3rd Qtr Jan - Mar 16 927,247 821,846 23.0% 24.7% 4th Qtr Apr - Jun 16 962,911 918,498 25.8% 25.7% 3,481,666 97.6% 94.9% Total $ 3,566,335 $ 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 97.6% of their FY 2015-16 adjusted budget and has historically spent 94.9% of their adjusted budget for 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 multifunction copier for the Prosecutor's Office. 10 9/6/2016 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 1,107,083 25.4% 24.1% 4,129,696 94.5% 90.9% Total $ 4,371,229 $ 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 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 94.5% of their FY 2015-16 adjusted budget and has historically spent 90.9% of their adjusted budget for 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 $ 711,790 FY 16 Actual Exp+Enc $ 644,808 25.4% 25.1% 2nd Qtr Oct - Dec 15 610,106 590,027 23.3% 21.2% 3rd Qtr Jan - Mar 16 635,527 634,041 24.9% 22.5% 4th Qtr Apr - Jun 16 584,685 444,359 17.5% 20.2% 2,313,235 91.0% 89.0% Total $ 2,542,108 $ 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 1st Qtr * Historical Trend represents the average of the past 4 years % of actual to budget 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Communications and Public Affairs (CAPA) also includes Video Production and Print, Mail, & Graphics. CAPA spent 91.0% of their FY 2015-16 adjusted budget and has historically spent 89.0% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. FY 2015-16 personnel spending has increased since all positions are filled compared to some vacant positions in the historical trend. 11 9/6/2016 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MANAGEMENT SERVICES EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 2,077,372 FY 16 Actual Exp+Enc $ 2,127,583 28.7% 25.8% 2nd Qtr Oct - Dec 15 1,780,605 1,558,741 21.0% 21.8% 3rd Qtr Jan - Mar 16 1,854,797 1,581,231 21.3% 22.8% 4th Qtr Apr - Jun 16 1,706,412 1,785,606 24.1% 21.9% 7,053,161 95.1% 92.3% Total $ 7,419,186 $ 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 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 95.1% of their FY 2015-16 adjusted budget and have historically spent 92.3% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. Spending is trending slightly higher in FY 2015-16 due mainly 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 $ 5,835,995 FY 16 Actual Exp+Enc $ 4,563,555 30.5% 21.5% 5.8% 11.9% 2nd Qtr Oct - Dec 15 3,292,100 875,347 3rd Qtr Jan - Mar 16 5,686,354 162,455 1.1% 20.9% 4th Qtr Apr - Jun 16 149,641 285,331 1.9% 0.7% 5,886,688 39.3% 55.0% Total** $ 14,964,090 $ 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 39.3% of the FY 2015-16 adjusted budget, with historical spending of the adjusted budget at 55.0% for 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 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 of $2.8M was encumbered, with $2.1 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 9/6/2016 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): TRANSPORTATION & DEVELOPMENT EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 6,959,298 FY 16 Actual Exp+Enc $ 7,976,263 37.8% 30.5% 2nd Qtr Oct - Dec 15 4,217,756 3,701,190 17.6% 18.8% 3rd Qtr Jan - Mar 16 5,483,083 4,607,327 21.8% 24.7% 4th Qtr Apr - Jun 16 4,428,644 3,829,246 18.2% 19.4% 20,114,026 95.4% 93.4% Total $ 21,088,781 $ 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 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 95.4% of their FY 2015-16 adjusted budget and has historically spent 93.4% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. COMMUNITY & NEIGHBORHOOD SERVICES EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 7,843,872 FY 16 Actual Exp+Enc $ 7,668,238 35.2% 34.7% 2nd Qtr Oct - Dec 15 3,921,936 4,097,355 18.8% 17.5% 3rd Qtr Jan - Mar 16 4,357,706 3,673,444 16.9% 19.2% 4th Qtr Apr - Jun 16 5,665,018 5,156,525 23.6% 24.3% 20,595,562 94.5% 95.7% Total $ 21,788,532 $ 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 2 1 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Community & Neighborhood Services includes the following divisions budgeted in the General Fund: Administration, Aquatics, Code Enforcement, Community Development, Housing, Parks Development & Operations, Neighborhood Resources, Recreation, Sports & Fitness Facilities, and Nature & Recreation Facilities. The department spent 94.5% of their FY 2015-16 adjusted budget and has historically spent 95.7% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. 13 9/6/2016 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): POLICE EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 19,767,120 FY 16 Actual Exp+Enc $ 16,502,889 23.4% 27.2% 2nd Qtr Oct - Dec 15 15,531,309 20,165,534 28.6% 21.1% 3rd Qtr Jan - Mar 16 16,237,277 15,916,362 22.4% 22.5% 4th Qtr Apr - Jun 16 19,061,151 17,770,830 25.3% 27.1% 70,355,615 99.7% 97.9% Total $ 70,596,857 $ 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 99.7% of their FY 2015-16 adjusted budget and has historically spent 97.9% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. Spending is trending slightly higher this fiscal year due to early hires and retirement payouts for several long-time employees. FIRE, HEALTH & MEDICAL EXPENDITURE FY 2015-16 COMPARISON Operating Only 1st Qtr Jul - Sep 15 $ 10,044,750 FY 16 Actual Exp+Enc $ 8,641,579 24.9% 28.4% 2nd Qtr Oct - Dec 15 7,620,155 9,456,989 27.3% 22.2% 3rd Qtr Jan - Mar 16 8,312,897 7,779,376 22.6% 23.6% 4th Qtr Apr - Jun 16 8,659,267 8,459,590 24.3% 24.7% 34,337,534 99.1% 98.9% Total $ 34,637,069 $ 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 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 99.1% of their FY 2015-16 adjusted budget and has historically spent 98.9% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. Spending is trending slightly higher this fiscal year due to early hires and retirement payouts for several long-term employees. 14 9/6/2016 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 % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 50,931,485 99% 92% 2,069,112 96% 0% Total Revenues $ 53,725,454 $ 53,000,597 99% 90% Operating Expenses $ 31,461,665 $ 26,931,331 86% 84% 8,432,883 221,675 3% 70% Debt Service 23,212,876 20,197,834 87% 98% Transfers Out 3,418,349 3,418,349 100% 100% $ 50,769,189 76% 76% (12,800,319) $ 2,231,408 Major Capital Expenses WATER FUND ANALYSIS Revenues Expenses 70 Dollars in Millions FY 16 Adjusted Budget 60 50 40 30 20 10 0 Total Expenses Net Rev / Exp POSITIVE $ $ 66,525,773 FY15 Actual FY16 Actual 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 $12.8 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 are 99% of budget compared to 92% for the prior fiscal year, while Operating Expenses are 86% of budget as compared to 84% for the prior fiscal year. As shown in revenues above, a land sale budgeted in FY 2014-15 has closed escrow in FY 2015-16. Debt Service includes the early payoff of a water and sewer revenue bond, which will generate interest savings, with the reduced level of percentage of budget expended due to a reduction in the amount of the 2015 bond sale versus what had been initially planned and budgeted. WASTEWATER FUND ANALYSIS FY 2015-16 COMPARISON WASTEWATER FUND Revenues $ 42,876,330 FY 16 Actual Revenue/ Exp+Enc $ % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 45,856,942 107% 87% Land Sale 6,485,501 6,207,337 96% 0% Intel Reimbursement 5,500,000 2,750,107 50% 24% Total Revenues $ 54,861,831 $ 54,814,386 100% 50% Operating Expenses $ 20,742,126 $ 16,208,306 78% 88% Major Capital Expenses 20,714,983 17,018,870 82% 16% Debt Service 25,511,672 17,967,932 70% 99% Transfers Out 2,466,991 2,466,991 100% 100% $ 53,662,099 77% 56% (14,573,941) $ 1,152,287 Total Expenses Net Rev / Exp POSITIVE $ $ 69,435,772 WASTEWATER FUND ANALYSIS Revenues Expenses 80 Dollars in Millions FY 16 Adjusted Budget 70 60 50 40 30 20 10 0 FY15 Actual FY16 Actual 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 $14.6M 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 are 107% of budget compared to 87% for the prior fiscal year, while Operating Expenses are 78% of budget as compared to 88% for the prior fiscal year. As shown in revenues above, a land sale budgeted in FY 2014-15 has closed escrow in FY 2015-16; this delayed receipt is the reason that the percentage of revenue received in FY 2014-15 shows 87%. If the land sale budget is removed from the FY 2014-15 calculcation, the FY 2014-15 year-to-date operating revenues would have been 101% of budget. Debt Service includes the early payoff of a water and sewer revenue bond, which will generate interest savings, with the reduced level of percentage of budget expended due to a reduction in the amount of the 2015 bond sale versus what had been initially planned and budgeted. \ 15 9/6/2016 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 15,047,913 101% 101% 998,280 170% 0% Total Revenues $ 15,491,004 $ 16,046,193 104% 101% Operating Expenses $ 13,631,926 $ 12,661,034 93% 95% 946,276 242,142 26% 67% 1,017,133 1,017,133 100% 100% 13,920,309 89% 95% Major Capital Expenses Transfers Out Total Expenses $ 15,595,335 $ Revenues 15 12 9 6 3 FY15 Actual Net Rev / Exp POSITIVE $ (104,331) $ Expenses 18 Dollars in Millions FY 16 Adjusted Budget FY16 Actual FY16 Budget 2,125,884 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 are 101% of budget compared to 101% for the prior fiscal year, while Operating Expenses are 93% of budget as compared to 95% for the prior fiscal 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 964,463 89% 98% 340,040 35% 27% Total Revenues $ 2,060,265 $ 1,304,503 63% 64% Operating Expenses $ 1,089,576 $ 982,417 90% 89% 837,996 261,274 31% 30% Debt Service 27,313 27,313 100% 100% Transfers Out 105,380 105,380 100% 100% 1,376,384 67% 65% 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 FY16 Actual FY16 Budget (71,881) 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 are 89% of budget compared to 98% for the prior fiscal year. Operating Expenses are 90% of budget as compared to 89% for the prior fiscal year. The net revenue/expense amount of ($71,881) is due to encumbered funds that will be spent in the next fiscal year as part of the planned General Fund Subsidy. 16 9/6/2016 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 $ % of Budget Rec'd to Date 11,978,680 136% Reclaimed Water 1,287,000 1,942,118 151% Wastewater 8,241,500 12,207,178 148% 26,127,976 143% Total SDF Revenue $ 18,310,700 $ FY 15 Actual FY 15 Adjusted Budget FY 16 Actual FY 16 Adjusted Budget 14 12 Dollars in Millions SYSTEM DEVELOPMENT FEE (SDF) FUNDS 10 8 6 4 2 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 as compared to the FY 2014-15 budget and year-to-date collections. Collections for FY 2015-16 were 143% of the budget as compared to the prior year's collections of 183% of the budget. IMPACT FEE FUNDS ANALYSIS FY 2015-16 COMPARISON IMPACT FEE FUNDS Arterial Streets $ 6,514,059 306% 81,200 131,107 161% Public Buildings 253,500 306,067 121% Police 665,000 806,479 121% 1,006,800 1,206,487 120% 3,000 16,712,880 193% 2,000 Total Impact Revenue $ 8,657,800 $ FY 15 Adjusted Budget FY 16 Actual FY 16 Adjusted Budget 7,000 2,129,800 Fire FY 15 Actual 8,000 171% Parks $ % of Budget Rec'd to Date 7,748,681 Library 4,521,500 FY 16 Actual Revenue Dollars in Thousands FY 16 Adjusted Budget 6,000 5,000 4,000 1,000 0 Note: Budget and Actual amounts reflect Impact Fee revenues and the interest earned on fund balances, and excludes loan transfers in/out or proceeds from bond sales. POSITIVE Impact fees are based on development and fluctuate quarterly as well as from year to year. The graph shows the FY 2015-16 budget and year-to-date collections as compared to FY 2014-15 budget and year-to-date collections. Collections for FY 2015-16 were 193% of the budget as compared to the prior year's collections of 146% of the budget. 17 9/6/2016 OTHER FUNDS OTHER FUNDS ANALYSIS (continued): HIGHWAY USER FUND (HURF) ANALYSIS FY 2015-16 COMPARISON HIGHWAY USER FUND ANALYSIS Highway Users Tax $ Other 14,000,000 FY 16 Actual Revenue/ Exp+Enc $ 79,000 Total Revenues Operating Expenses $ $ 14,079,000 9,609,395 $ $ 15,303,635 109% 113% 175,427 222% 181% 15,479,062 110% 113% 9,178,553 96% 92% Major Capital Expenses 4,575,742 4,342,169 95% 58% Debt Service 3,745,650 3,745,650 100% 95% 23,708 23,708 100% 100% 17,290,080 96% 87% Transfers Out Total Expenses $ 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 FY15 Actual Net Rev / Exp $ (3,875,495) $ FY16 Actual FY16 Budget (1,811,018) 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 for the fiscal year are 109% of budget, which is 4% lower than the percentage for last fiscal year. Operating Expenses for the fiscal year are 96% of adjusted budget, which is 4% higher than the percentage for 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 FY 16 Adopted Budget 1,526,069 31% 164,601 111,339 68% 2,940,000 1,908,046 65% 12,316,554 7,860,901 64% 100,000 10,000 10% Public Safety 4,110,000 1,427,570 35% T & D - Streets 3,790,361 10,214,258 269% 23,058,183 81% Total Grant Revenue $ 28,343,722 $ FY 16 Actual Revenue 10 Dollars in Millions FY 16 Adopted 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 for FY 2015-16 were $23.0M (81% of adjusted budget) as compared to $17.4M (55% of adjusted budget) collected for FY 201415. Transportation & Development grant revenue exceeded the adopted budget due to the annual capital carryforward process as well as receipt of an accelerated $3 million surface transportation program grant through the Arterial Life Cycle Program. 18 9/6/2016