QUARTERLY FINANCIAL REPORT 1st Qtr FY16-17 PERFORMANCE AT A GLANCE GENERAL FUND REVENUE Economic Indicators General Fund Revenue Quarterly Analysis General Fund Revenue Category Analysis Sales Tax (& collection detail) Franchise Fees Primary Property Tax Revenue Detail by State Shared Revenue Category Licenses & Permits Charges for Services Other Revenues GENERAL FUND EXPENDITURE YEAR TO DATE COMPARED TO HISTORICAL % REFERENCE POSITIVE Page 2 Page 3 POSITIVE Page 3 POSITIVE Page 4 POSITIVE Page 5 POSITIVE Page 5 POSITIVE Page 6 POSITIVE Page 6 POSITIVE Page 7 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 POSITIVE WARNING POSITIVE POSITIVE INFORMATIONAL REFERENCE Page 8 Page 8 Page 9 Page 9 Page 10 Page 10 Page 11 Page 11 Page 12 Page 12 Page 13 Page 13 Page 14 Page 14 REFERENCE Page 15 Page 15 Page 16 Page 16 Page 17 Page 18 Page 18 PERFORMANCE INDICATORS POSITIVE = Variance < 2% compared to historical trends or positive variance > 0% for % to budget. WARNING = Variance of 2 - 5% compared to historical trends. NEGATIVE = Variance of > 5% compared to historical trends or negative variance < 0% for % to budget. 1 10/28/2016 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 (third estimate) October 8, 2008 October 29, 2008 December 16, 2008 December 17, 2015 2.0% 0.9% 0.8% 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 4.9% 4.9% 4.9% 5.0% Jun-16 Jul-16 Aug-16 Sep-16 State of Arizona 5.8% 6.0% 5.8% 5.5% Phoenix Metro Area 5.3% 5.4% 5.0% 4.8% High unemployment rates are a reflection of a slow economy and the reduced demand for goods and services. The Phoenix Metro Area unemployment rate is typically lower than the national and state rates. Source: Arizona Department of Administration, "Arizona's Workforce" Newsletter CITY INVESTMENT PORTFOLIO 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 changed to the 1-3 year Merrill Lynch Treasury Index as of July 2016. Rate of return includes interest earnings as well as both realized and unrealized gains/(losses). Fiscal Year 2016-17 Rate of Return 1st Quarter Fiscal Year Benchmark: -0.11% -0.11% Wells Capital Management: -0.03% -0.03% PFM: 0.01% 0.01% Fiscal Year 2015-16 Rate of Return 1st Quarter Fiscal Year Benchmark: 0.24% 0.24% Wells Capital Management: 0.15% 0.15% PFM: 0.27% 0.27% 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; $9,115 of interest has been recorded through the first quarter of FY 2016-17. BUILDING PERMITS Single-family building permits are an indicator of the general economy. Higher numbers of permits indicate an active construction market and resultant home sales. State of Arizona Chandler Apr - May - Jun 2015 6,528 283 Jul - Aug - Sep 2015 6,175 328 Oct - Nov - Dec 2015 5,289 261 Jan - Feb - Mar 2016 5,814 319 Apr - May - Jun 2016 6,955 398 Jul - Aug - Sep 2016 5,869 243 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 related sales tax revenues. As shown above, 243 permits were recorded in the first quarter of FY 2016-17. Source: Investment Advisors 2 10/28/2016 GENERAL FUND REVENUE ANALYSIS: OVERALL GENERAL FUND REVENUES FY 2016-17 1st Qtr Jul - Sep 16 $ 45,875,879 2nd Qtr Oct - Dec 16 49,443,525 3rd Qtr Jan - Mar 17 54,678,838 4th Qtr Apr - Jun 17 60,823,035 Total $ 210,821,277 FY 17 Actual Revenue $ 51,155,298 % of Budget Rec'd *% of Budget Hist. Rec'd 24.3% 22.6% Actual Revenue FY 17 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 17 Adopted Budget FY 16 70 60 50 40 30 20 $ 51,155,298 24.3% 22.6% 10 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE General Fund revenue collections through the first quarter of FY 2016-17 are $5.3M (11.5%) above the budget based on historical trend and $3.6M (7.6%) higher than actual collections through the first quarter of FY 2015-16. Overall, General Fund revenue, led by continuing strong Sales Tax and License and Permit collections, are performing well due to higher consumer confidence locally and a steady stream of new development activity in Chandler. Additionally, the percentage of budget received for the fiscal year is greater than the historical percentage of budget received, resulting in a positive performance indicator. The following charts provide more detail regarding the various sources of General Fund revenues. GENERAL FUND REVENUES BY CATEGORY FY 2016-17 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 17 Adopted Budget $ 107,391,000 3,275,000 7,556,520 62,907,000 4,921,000 11,199,607 6,502,550 7,068,600 FY 17 Actual Revenue $ 30,080,008 26,465 28,348 13,879,057 1,456,234 2,409,321 1,508,715 1,767,150 Total $ 210,821,277 $ 51,155,298 % of Budget Rec'd to Date 28.0% 0.8% 0.4% 22.1% 29.6% 21.5% 23.2% 25.0% Indirect Costs 100% 4% 3% 6% 3% 4% 3% 6% 2% 3% 3% 6% 3% 28% 28% 28% 80% 60% 4% 2% 3% 3% 2% 2% 52% 52% 3% 3% 5% 3% 27% Other Revenues Charges for Services 0% 0% Licenses & Permits State Shared Revenue 40% 52% 59% Primary Property Taxes 20% 24.3% Franchise Fees 0% FY14 $201M FY15 $209M FY16 $216M FY16 Q1 YTD $51M Local Sales Taxes POSITIVE This chart summarizes General Fund revenue collections by revenue category for FY 2016-17. The graph helps us visualize what percentage each revenue category is to the total General Fund. As you can see, the percentage spread of revenue sources are relatively consistent over the years with local sales taxes and state shared revenues being the largest General Fund revenue sources. The next several pages provide an analysis of each revenue category except Indirect Cost Allocation (payments by the Water, Wastewater, Solid Waste, and Airport Enterprise Funds to the General Fund for City services provided for operations). 3 10/28/2016 GENERAL FUND REVENUE ANALYSIS (continued): SALES TAX REVENUE FY 2016-17 1st Qtr Jul - Sep 16 $ 26,518,307 2nd Qtr Oct - Dec 16 25,656,825 3rd Qtr Jan - Mar 17 27,295,995 4th Qtr Apr - Jun 17 27,919,872 Total $ 107,391,000 FY 17 Actual Revenue $ $ 30,080,008 30,080,008 % of Budget Rec'd *% of Budget Hist. Rec'd 28.0% 27.0% 28.0% 27.0% Actual Revenue FY 17 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 17 Adopted Budget FY 16 35 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 through the first quarter of FY 2016-17 are $3.6M (13.4%) above the budget based on historical trend and $2.7M (9.7%) higher than FY 2015-16 actual collections through the first quarter. The performance indicator is positive because the difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is less than 2%. It should be noted that House Bill (HB) 2111 required the State of Arizona to begin licensing and collecting transaction privilege tax (TPT), commonly referred to as sales tax, for all Cities beginning January 1, 2015. This deadline was extended until the Arizona Department of Revenue can complete the necessary technological system improvements, testing, and taxpayer education, which is now planned 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 17 Adopted Budget $ 49,200,000 8,500,000 15,000,000 11,800,000 9,900,000 3,500,000 3,000,000 2,500,000 250,000 FY 17 Actual % of Actual Revenue to Budget $ 13,080,415 26.6% 2,942,294 34.6% 4,651,609 31.0% 3,352,626 28.4% 2,626,491 26.5% 749,702 21.4% 987,975 32.9% 591,321 23.7% 45,633 18.3% 750,000 900,000 $ 105,300,000 $ % Chg from Prior Yr 10.3% 34.8% -2.5% 6.3% 7.6% -5.2% 31.0% 27.7% -30.4% 241,263 426,758 32.2% 47.4% 4.3% 66.4% 29,696,088 28.2% 10.1% The above figures reflect General Fund sales tax collections by category and exclude the related revenues of license fees, audit assessments, penalties, and interest. Sales tax collections through the first quarter of FY 2016-17 were $3.6M (14.0%) above the budget based on historical trend and $2.7M (10.1%) higher than FY 2015-16 actual collections through the first quarter. 4 10/28/2016 GENERAL FUND REVENUE ANALYSIS (continued): FRANCHISE FEE REVENUE FY 2016-17 1st Qtr Jul - Sep 16 $ 2nd Qtr Oct - Dec 16 51,699 $ 26,465 % of Budget Rec'd *% of Budget Hist. Rec'd 0.8% 1.7% 746,572 3rd Qtr Jan - Mar 17 1,172,161 4th Qtr Apr - Jun 17 1,304,568 Total FY 17 Actual Revenue $ 3,275,000 $ 26,465 0.8% Actual Revenue FY 17 Actual Revenue Historical Trend Actual to Budget Dollars in Thousands FY 17 Adopted Budget FY 16 1.7% 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). Franchise fee collections through the first quarter of FY 2016-17 are $25,234 (-48.8%) below the budget based on historical trend and $33,941 (-56.2%) less than FY 2015-16 actual collections through the first quarter. The performance indicator is positive because the difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is less than 2%. PRIMARY PROPERTY TAX REVENUE FY 2016-17 1st Qtr Jul - Sep 16 $ 2nd Qtr Oct - Dec 16 40,652 FY 17 Actual Revenue $ 28,348 % of Budget Rec'd *% of Budget Hist. Rec'd 0.4% 0.6% 3,774,967 3rd Qtr Jan - Mar 17 525,669 4th Qtr Apr - Jun 17 3,215,232 Actual Revenue FY 17 Actual Revenue Historical Trend Actual to Budget 4 Dollars in Millions FY 17 Adopted Budget FY 16 3 2 1 Total $ 7,556,520 $ 28,348 0.4% 0.6% - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE This presentation only includes primary property taxes (supporting General Fund operations) and does not include secondary property taxes (supporting debt service on capital projects and recorded in the General Obligation Debt Service Fund). Property tax collections are due starting October 1st and March 1st each year. For FY 2016-17, Chandler will collect a primary tax rate of $0.29 per $100 of assessed valuation and a secondary tax rate of $0.87 per $100 of assessed valuation for a total rate of $1.16, representing a 1.92 cent decrease from the rates adopted for FY 2015-16 to help offset the City's assessed valuation increase of 7.3% in FY 2016-17. This resulted in only a small net increase for the median home value. Primary property tax collections through the first quarter of FY 2016-17 are $12,304 (-30.3%) below the budget based on historical trend and $6,629 (30.5%) higher than FY 2015-16 actual collections through the first quarter. The majority of collections come in the second and fourth quarters since the first half of the property tax bills are due in October and the second half is due in March. The performance indicator is positive because the difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is less than 2%. 5 10/28/2016 GENERAL FUND REVENUE ANALYSIS (continued): STATE SHARED REVENUE FY 2016-17 1st Qtr Jul - Sep 16 $ 13,066,449 2nd Qtr Oct - Dec 16 15,142,336 3rd Qtr Jan - Mar 17 15,983,517 4th Qtr Apr - Jun 17 18,714,698 Total $ 62,907,000 FY 17 Actual Revenue % of Budget Rec'd *% of Budget Hist. Rec'd $ 13,879,057 22.1% 21.2% $ 13,879,057 22.1% 21.2% Actual Revenue FY 17 Actual Revenue Historical Trend Actual to Budget Dollars in Millions FY 17 Adopted Budget FY 16 * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 20 18 16 14 12 10 8 6 4 2 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE -- State Shared Sales Tax: The state sales tax rate is currently 5.6%, of which a portion of the various categories of sales tax are distributed to cities and towns based on population as state shared sales tax. Collections through the first quarter of FY 2016-17 are $147,016 (4.0%) above the budget based on historical trend and $261,553 (7.3%) higher than FY 2015-16 actual collections through the first quarter. This revenue category reflects a small but steady growth in Arizona's overall economy. -- Vehicle License Tax: Cities and towns receive 25% of the net revenues collected for vehicle licensing within their county from the state, as well as surcharges from vehicle rentals. The respective city shares are determined by the proportion of city population to total incorporated population of the county. Collections through the first quarter of FY 2016-17 are $180,303 (9.5%) above the budget based on historical trend and $86,142 (4.3%) higher than FY 2015-16 actual collections through the first quarter. -- Urban Revenue Sharing: Fifteen percent (15%) of the 2014 State income tax collection is distributed to cities and towns as urban revenue sharing based upon population and is known for budget purposes since there is a two year lag in distribution. Collections through the first quarter of FY 2016-17 are $485,289 (6.5%) above the budget based on historical trend and $869,301 (12.2%) higher than FY 201516 actual collections through the first quarter. The overall state shared revenue performance indicator is positive because the difference between the percentage of budget received through the first quarter and the percentage of historical budget received through the first quarter is less than 2%. LICENSES & PERMITS REVENUE FY 2016-17 1st Qtr Jul - Sep 16 $ 761,965 2nd Qtr Oct - Dec 16 1,042,181 3rd Qtr Jan - Mar 17 1,442,630 4th Qtr Apr - Jun 17 1,674,223 Total $ 4,921,000 FY 17 Actual Revenue $ $ 1,456,234 1,456,234 % of Budget Rec'd *% of Budget Hist. Rec'd 29.6% 19.2% 29.6% 19.2% Actual Revenue FY 17 Actual Revenue Historical Trend Actual to Budget Dollars in Thousands FY 17 Adopted Budget FY 16 2,500 2,000 1,500 1,000 500 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE This category includes revenue for various licenses: transaction privilege (sales) tax, alcoholic beverages, transient merchants, peddlers and solicitors, secondhand and junk dealers, amusements, and professional/occupational licenses, as well as cable license application fees. In addition, revenue from building, alarm, and fiber optic permits are included. License and permit collections through the first quarter of FY 2016-17 are $694,269 (91.1%) above the budget based on historical trend and $350,198 (-19.4%) below FY 2015-16 actual collections through the first quarter. Budgeted amounts for building permits (the largest revenue in this category) have been kept at moderate levels since it is difficult to predict the timing of new development, but this category is performing very strong and exceeded expectations through the first quarter, resulting in a positive performance indicator. 6 10/28/2016 GENERAL FUND REVENUE ANALYSIS (continued): CHARGES FOR SERVICES REVENUE FY 2016-17 1st Qtr Jul - Sep 16 $ 2,349,329 2nd Qtr Oct - Dec 16 2,317,550 3rd Qtr Jan - Mar 17 2,948,311 4th Qtr Apr - Jun 17 3,584,416 Total $ 11,199,607 FY 17 Actual Revenue $ $ 2,409,321 2,409,321 % of Budget Rec'd *% of Budget Hist. Rec'd 21.5% 22.0% 21.5% Actual Revenue FY 17 Actual Revenue Historical Trend Actual to Budget 5 Dollars in Millions FY 17 Adopted Budget FY 16 4 3 2 22.0% 1 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Charges for Services include revenue from various engineering, recreation, and library fees, police and fire miscellaneous service reimbursements, and public school reimbursement. Charges for services collections through the first quarter of FY 2016-17 are $59,992 (2.6%) over the budget based on historical trend and $25,675 (-1.1%) lower than FY 2015-16 actual collections through the first quarter. The performance indicator is positive because the difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is less than 2%. OTHER REVENUE FY 2016-17 1st Qtr Jul - Sep 16 $ 1,320,325 2nd Qtr Oct - Dec 16 1,256,000 3rd Qtr Jan - Mar 17 1,752,458 4th Qtr Apr - Jun 17 2,173,767 Total $ 6,502,550 FY 17 Actual Revenue $ 1,508,715 % of Budget Rec'd *% of Budget Hist. Rec'd 23.2% 21.8% Actual Revenue FY 17 Actual Revenue Historical Trend Actual to Budget 3 Dollars in Millions FY 17 Adopted Budget FY 16 2 1 $ 1,508,715 23.2% 21.8% - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Other revenue captures interest income, fines and forfeitures, sale of land and fixed assets, and other miscellaneous items. Revenue streams in this category are not constant. Other revenue collections through the first quarter of FY 2016-17 are $188,390 (14.3%) over the budget based on historical trend and $155,485 (11.5%) higher than FY 2015-16 actual collections through the first quarter. The performance indicator is positive because the difference between percentage of budget received through the first quarter and percentage of historical budget received through the first quarter is less than 2%. 7 10/28/2016 GENERAL FUND EXPENDITURE ANALYSIS: GENERAL FUND EXPENDITURES + ENCUMBRANCES for FY 2016-17 by FUNCTION Dollars in Millions FY 17 Adjusted Budget * Dept. Operating General Government $ Community Services 58,989,041 FY17 Actual Exp+Enc $ 18,816,179 Public Safety Transportation & Dev. Non-Dept. Pers. & O&M 17,407,212 29.5% 29.8% 6,362,459 33.8% 33.7% 28,543,878 27.8% 23.9% 20,656,452 7,142,476 34.6% 37.8% 1,825,350 16.3% 30.5% 61,281,375 28.9% 28.1% - 0.0% 0.0% - 0.0% 0.0% 24.8% 25.5% 11,215,067 $ 212,252,122 $ Non-Dept. Reserves $ $ Total % of Budget Prior Yr 102,575,383 Subtotal Non-Dept. Contingencies % of Budget Exp'd 3,326,492 31,634,000 $ 247,212,614 $ 61,281,375 * Excluding Interfund Transfers 2 7 5 8 Non-Dept. Pers. & O&M 29 25 Transportation & Dev. Public Safety 6 6 Community Services 17 17 General Government FY 16 1Q YTD Exp+Enc FY 17 1Q YTD Exp+Enc Total General Fund operating expenditures and encumbrances are reflected by City function, along with budgeted non-departmental reserves (encumbrance and unencumbered carryforward, utility, fuel, and downtown redevelopment) and contingencies (15% of revenues and Council). Since General Obligation debt and General Fund capital expenditures are reflected in the General Obligation Debt and General Capital Projects Funds, this presentation only includes General Fund operating expenditures to more clearly reflect the results of operations. FY 2016-17 operating spending through the first quarter is 28.9% of the adjusted budget compared to 28.1% of adjusted budget spent last fiscal year through the first quarter. As shown on the following pages, departments have expended between 22.9% and 34.6% of their General Fund adjusted budgets through the first quarter of FY 2016-17. GENERAL FUND EXPENDITURES + ENCUMBRANCES for FY 2016-17 by CATEGORY FY 2016-17 General Fund Actual Expenditures + Encumbrances *Dept. Operating Personnel Operations & Maint. Reserves Contingencies Total FY 17 Adjusted Budget $ 160,792,484 FY17 Actual Exp+Enc $ 51,459,638 36,206,227 FY 16 Actual Exp+Enc $ 25,075,148 % Change from Prior Operations Yr Actual & Maint. 35,190,435 2.9% 25,373,521 -1.2% 3,326,492 - - 0.0% 31,634,000 - - 0.0% $ 247,212,614 $ 61,281,375 $ 60,563,956 1.2% 41% Personnel 59% * Excluding Interfund Transfers Total General Fund operating expenditures and encumbrances are reflected by spending category. Operating spending through the first quarter of FY 2016-17 is 1.2% higher than spending through the first quarter of FY 2015-16 mainly due to increases from labor negotiations and benefit changes in Personnel. The Operations & Maintenance category reflects a decrease as compared to FY 2015-16 primarily because FY 2015-16 included significant encumbrances for the 2015 mid-decade Special Census. 8 10/28/2016 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MAYOR & COUNCIL EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 214,206 2nd Qtr Oct - Dec 16 214,206 3rd Qtr Jan - Mar 17 232,057 4th Qtr Apr - Jun 17 232,057 Total $ 892,526 FY 17 Actual Exp+Enc $ $ 206,149 206,149 23.1% 23.4% 23.1% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 17 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 250 200 150 100 50 23.4% * 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 23.1% of their FY 2016-17 adjusted budget and has historically spent 23.4% of their adjusted budget through the first quarter of the fiscal year, resulting in a postive performance indicator. CITY CLERK EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 328,090 2nd Qtr Oct - Dec 16 210,166 3rd Qtr Jan - Mar 17 160,889 4th Qtr Apr - Jun 17 201,272 Total $ 900,418 FY 17 Actual Exp+Enc $ $ 286,052 286,052 31.8% 33.0% 31.8% 33.0% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 17 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 31.8% of their FY 2016-17 adjusted budget and has historically spent 33.0% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. Spending in FY 2016-17 includes one-time expenditures for the primary and general elections being held in the fall of 2016 that did not occur in FY 2015-16. 9 10/28/2016 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): CITY MANAGER & ORGANIZATIONAL SUPPORT EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 13,344,250 2nd Qtr Oct - Dec 16 8,207,984 3rd Qtr Jan - Mar 17 8,192,946 4th Qtr Apr - Jun 17 9,162,162 Total $ 38,907,341 FY 17 Actual Exp+Enc $ $ 12,245,687 12,245,687 31.5% 32.7% 31.5% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Millions FY 17 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 15 12 9 6 3 32.7% - * 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, Fleet, Human Resources, Information Technology, Neighborhood Resources, and Planning. Combined, these divisions spent 31.5% of their FY 2016-17 adjusted budget and have historically spent 32.7% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. The Neighborhood Resources Division moved from the Community & Neighborhood Services Department and the Fleet Division moved from the Fire Department to City Manager, Organizational Support at the beginning of FY 2016-17. The historical comparisons have been updated to reflect the transfers. LAW EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 868,742 2nd Qtr Oct - Dec 16 899,090 3rd Qtr Jan - Mar 17 934,705 4th Qtr Apr - Jun 17 967,768 Total $ 3,670,305 FY 17 Actual Exp+Enc $ $ 841,760 841,760 22.9% 22.4% 22.9% 22.4% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 17 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 22.9% of their FY 2016-17 adjusted budget and has historically spent 22.4% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. 10 10/28/2016 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): CITY MAGISTRATE EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 1,069,987 2nd Qtr Oct - Dec 16 1,089,021 3rd Qtr Jan - Mar 17 1,116,309 4th Qtr Apr - Jun 17 1,173,715 Total $ 4,449,032 FY 17 Actual Exp+Enc $ $ 1,026,480 1,026,480 23.1% 22.0% 23.1% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 17 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 1,200 1,000 800 600 400 200 22.0% 1st Qtr * Historical Trend represents the average of the past 4 years % of actual to budget 2nd Qtr 3rd Qtr 4th Qtr POSITIVE City Magistrate spent 23.1% of their FY 2016-17 adjusted budget and has historically spent 22.0% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. COMMUNICATIONS & PUBLIC AFFAIRS EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 764,567 2nd Qtr Oct - Dec 16 661,038 3rd Qtr Jan - Mar 17 675,818 4th Qtr Apr - Jun 17 523,750 Total $ 2,625,172 FY 17 Actual Exp+Enc $ $ 807,967 807,967 30.8% 26.0% 30.8% 26.0% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 17 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 Communications and Public Affairs (CAPA) also includes Video Production and Print, Mail, & Graphics. CAPA spent 30.8% of their FY 2016-17 adjusted budget and has historically spent 26.0% of their adjusted budget through the first quarter of the fiscal year. The first quarter reflects a significantly higher percentage of budget expended as compared to the historical trend due to a one-time expenditure for consultant services to build a new City website. 11 10/28/2016 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MANAGEMENT SERVICES EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 2,181,432 2nd Qtr Oct - Dec 16 1,763,243 3rd Qtr Jan - Mar 17 1,789,861 4th Qtr Apr - Jun 17 1,809,711 Total $ 7,544,247 FY 17 Actual Exp+Enc $ $ 1,993,117 1,993,117 26.4% 26.8% 26.4% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Thousands FY 17 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 26.8% 2,400 2,100 1,800 1,500 1,200 900 600 300 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Management Services Department includes the following divisions budgeted in the General Fund: Administration, Budget, Accounting, Purchasing, Central Supply, Tax & License, and Utility Services (reimbursed by the Municipal Utilities Department through the Indirect Cost Allocation). These divisions spent 26.4% of their FY 2016-17 adjusted budget and have historically spent 26.8% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. NON-DEPARTMENTAL EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 5,367,548 2nd Qtr Oct - Dec 16 2,654,345 3rd Qtr Jan - Mar 17 1,669,473 4th Qtr Apr - Jun 17 1,523,702 Total** $ 11,215,067 FY 17 Actual Exp+Enc $ $ 1,825,350 1,825,350 16.3% 22.4% 16.3% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget 5 Dollars in Millions FY 17 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 4 3 2 1 22.4% - * 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 opportunities, and miscellaneous downtown redevelopment expenses). Spending in this category fluctuates due to changing one-time needs from year to year. Non-departmental spending through the first quarter of FY 2016-17 is 16.3% of the adjusted budget, with historical spending of 22.4% through the first quarter of the fiscal year, resulting in a positive performance indicator. The historical trend for the first quarter increased in FY 2015-16 due to the approval of 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. 12 10/28/2016 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): TRANSPORTATION & DEVELOPMENT EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 7,229,758 2nd Qtr Oct - Dec 16 3,924,726 3rd Qtr Jan - Mar 17 5,370,678 4th Qtr Apr - Jun 17 4,131,290 Total $ 20,656,452 FY 17 Actual Exp+Enc $ $ 7,142,476 7,142,476 34.6% 32.6% 34.6% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget 9 8 Dollars in Millions FY 17 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 7 6 5 4 3 2 32.6% 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 34.6% of their FY 2016-17 adjusted budget and has historically spent 32.6% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. COMMUNITY SERVICES EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 6,585,663 2nd Qtr Oct - Dec 16 3,575,074 3rd Qtr Jan - Mar 17 4,892,207 4th Qtr Apr - Jun 17 3,763,236 Total $ 18,816,179 FY 17 Actual Exp+Enc $ 6,362,459 33.8% 35.7% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget 9 Dollars in Millions FY 17 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 8 7 6 5 4 3 $ 6,362,459 33.8% 2 35.7% 1 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Community Services includes the following divisions budgeted in the General Fund: Administration, Aquatics, Parks Development & Operations, Recreation, Sports & Fitness Facilities, and Nature & Recreation Facilities. The department spent 33.8% of their FY 2016-17 adjusted budget and has historically spent 35.7% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. At the beginning of FY 2016-17, the Neighborhood Resources cost centers (Neighborhood Resources, Housing and Redevelopment, and Code Enforcement) moved from the Community & Neighborhood Services Department to City Manager, Organizational Support (and the Department was renamed Community Services). The historical comparisons have been updated to reflect the transfer. 13 10/28/2016 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): POLICE EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 18,534,146 2nd Qtr Oct - Dec 16 17,161,246 3rd Qtr Jan - Mar 17 15,788,347 4th Qtr Apr - Jun 17 17,161,246 Total $ 68,644,985 FY 17 Actual Exp+Enc $ 19,000,442 27.7% 26.8% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Millions FY 17 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 21 18 15 12 9 6 $ 19,000,442 27.7% 26.8% 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 27.7% of the FY 2016-17 adjusted budget and has historically spent 26.8% of their adjusted budget through the first quarter of the fiscal year, resulting in a positive performance indicator. FIRE, HEALTH & MEDICAL EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 9,500,511 2nd Qtr Oct - Dec 16 8,143,296 3rd Qtr Jan - Mar 17 7,803,992 4th Qtr Apr - Jun 17 8,482,600 Total $ 33,930,398 FY 17 Actual Exp+Enc $ 9,543,436 28.1% 27.4% FY 16 Actual Exp+Enc FY 17 Actual Exp+Enc Historical Trend Actual to Budget Dollars in Millions FY 17 Adjusted Budget % of Budget *Hist. Expended Trend % of by Qtr Budget 12 10 8 6 4 $ 9,543,436 28.1% 27.4% 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. The Department spent 28.1% of their FY 2016-17 adjusted budget and has historically spent 27.4% of their adjusted budget throught the first quarter of the fiscal year, resulting in a positive performance indicator. The Fleet Services Division was managed by Fire, Health & Medical prior to FY 2016-17, at which time it was moved to City Manager, Organizational Support. The historical comparisons have been updated to reflect the transfer. 14 10/28/2016 ENTERPRISE FUNDS ENTERPRISE FUNDS ANALYSIS: WATER FUND ANALYSIS FY 2016-17 COMPARISON WATER FUND Revenues FY 17 Actual Revenue/ Exp+Enc $ 50,114,800 $ 14,571,169 29% 27% Total Revenues $ 50,114,800 $ 14,571,169 29% 27% Operating Expenses $ 29,990,120 $ 12,040,336 40% 37% 8,101,352 95% 1% 0% 0% 947,054 28% 24% 38% 19% Major Capital Expenses 8,549,758 Debt Service 14,255,008 Transfers Out 3,376,446 - WATER FUND ANALYSIS % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr Revenues Expenses 60 Dollars in Millions FY 17 Adjusted Budget 50 40 30 20 10 0 Total Expenses Net Rev / Exp POSITIVE $ 56,171,332 $ 21,088,742 $ (6,056,532) $ (6,517,572) FY16 Actual Q1 YTD FY17 Actual Q1 YTD FY17 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 2016-17 reflects a budgeted $6.1 million drawdown of fund balance. The budgeted Transfers Out include indirect cost allocation to the General Fund of $3,216,800, payment of $137,256 to the Technology Replacement Fund, and payment of $22,390 to the Workers Compensation Self-Insurance Trust. Year-to-date Operating Revenues through the first quarter are 29% of budget compared to 27% through the first quarter of FY 2015-16, while Operating Expenses through the first quarter are 37% of budget as compared to 37% through the first quarter of FY 2015-16. Beginning in FY 2016-17, a new fund was created for Reclaimed Water revenues and expenditures, separating expenditures from the Water Fund. WASTEWATER FUND ANALYSIS FY 2016-17 COMPARISON WASTEWATER FUND Revenues $ Intel Rev/Receivable FY 17 Actual Revenue/ Exp+Enc 43,266,720 $ 2,259,754 10,666,354 25% 23% 1,022,489 45% 0% Total Revenues $ 45,526,474 $ 11,688,843 26% 20% Operating Expenses $ 19,915,403 $ 6,380,419 32% 32% 14,914,849 9,497,486 64% 80% 2,259,754 2,259,753 100% 0% Major Capital Expenses Intel Exp/Payable Debt Service 14,463,696 Transfers Out 2,444,782 Total Expenses Net Rev / Exp POSITIVE - 0% 0% 651,926 27% 25% 35% 35% $ 53,998,484 $ 18,789,584 $ (8,472,010) $ (7,100,741) WASTEWATER FUND ANALYSIS % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr Revenues Expenses 60 Dollars in Millions FY 17 Adjusted Budget 50 40 30 20 10 0 FY16 Actual Q1 FY17 Actual Q1 YTD YTD FY17 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 2016-17 reflects a budgeted $8.5M drawdown of fund balance. The budgeted Transfers Out include indirect cost allocation to the General Fund of $2,374,900, payment of $54,307 to the Technology Replacement Fund, and payment of $15,575 to the Workers Compensation Self-Insurance Trust. Year-to-date Operating Revenues through the first quarter are 25% of budget compared to 23% through the first quarter of FY 2015-16, while Operating Expenses through the first quarter are 31% of budget as compared to 32% through the first quarter of FY 2015-16. Beginning in FY 2016-17, a new fund was created for Reclaimed Water revenues and expenditures, separating revenues and expenditures from the Wastewater Fund. 15 10/28/2016 ENTERPRISE FUNDS ENTERPRISE FUNDS ANALYSIS (continued): SOLID WASTE FUND ANALYSIS FY 2016-17 COMPARISON SOLID WASTE FUND ANALYSIS SOLID WASTE Revenues FY 17 Actual Revenue/ Exp+Enc % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr $ 15,392,682 $ 3,520,016 23% 21% Total Revenues $ 15,392,682 $ 3,520,016 23% 20% Operating Expenses $ 13,611,132 $ 10,825,297 80% 78% 755,854 398,652 53% 11% 1,003,867 290,386 29% 24% 75% 70% Major Capital Expenses Transfers Out Revenues Expenses 18 15 Dollars in Millions FY 17 Adjusted Budget 12 9 6 3 Total Expenses $ 15,370,853 $ 11,514,334 $ 21,829 $ (7,994,318) - Net Rev / Exp POSITIVE FY16 Actual Q1 YTD FY17 Actual Q1 YTD FY17 Budget The performance indicator for Enterprise Funds focuses on the relationship between Operating Revenues and Operating Expenses (including debt service and indirect cost allocation) and the percentage of budget received/expended. The Solid Waste Operating Fund supports operating functions and major capital costs that can be paid without borrowing. The Net Revenue/Expense for FY 2016-17 reflects a budgeted increase of $21,829 to fund balance. Transfers Out include an indirect cost allocation to the General Fund of $940,600, payment of $52,559 to the Technology Replacement Fund, and payment of $10,708 to the Workers Compensation Self-Insurance Trust. Year-to-date Operating Revenues through the first quarter are 23% of budget compared to 21% through the first quarter of FY 2015-16, while Operating Expenses through the first quarter are 80% of budget as compared to 78% through the first quarter of FY 2015-16. The first quarter reflects large encumbrances ($8.2M) that are 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. By adjusting for those encumbrances, the resulting fund indicator is positive. AIRPORT FUND ANALYSIS FY 2016-17 COMPARISON AIRPORT FUND ANALYSIS AIRPORT FUND Revenues $ General Fund Subsidy 1,073,995 FY 17 Actual Revenue/ Exp+Enc $ 949,675 231,091 - % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 22% 24% 0% 0% Total Revenues $ 2,023,670 $ 231,090 11% 13% Operating Expenses $ 1,065,369 $ 272,976 26% 26% Major Capital Expenses 826,358 64,141 8% 24% Debt Service 26,563 - 0% 0% Transfers Out 105,380 30,380 29% 29% $ 367,497 18% 25% $ (136,407) Total Expenses Net Rev / Exp WARNING $ $ 2,023,670 - Revenues Expenses 2,100 1,800 Dollars in Thousands FY 17 Adjusted Budget 1,500 1,200 900 600 300 FY16 Actual Q1 FY17 Actual Q1 YTD YTD FY17 Budget The performance indicator for Enterprise Funds focuses on the relationship between Operating Revenues and Operating Expenses (including debt service and indirect cost allocation) and the percentage of budget received/expended. The Airport Fund supports operating functions and major capital costs that can be paid without borrowing. The Net Revenue/Expense for FY 2016-17 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. The budgeted Transfers Out include indirect cost allocation to the General Fund of $100,000 and payment of $5,380 to the Technology Replacement Fund. The Debt Service expense will be paid off by July 1, 2018. Year-to-date Operating Revenues through the first quarter are 22% of budget compared to 24% through the first quarter of FY 2015-16. Operating Expenses through the first quarter are 26% of budget as compared to 26% through the first quarter of FY 2015-16. Operating expenditures, Debt Service and indirect costs through the first quarter reflect 25% of budgeted expenditures in these categories, which is 3% higher than Operating Revenues through the first quarter, resulting in a warning indicator. 16 10/28/2016 OTHER FUNDS OTHER FUNDS ANALYSIS (continued): SYSTEM DEVELOPMENT FEE FUNDS ANALYSIS FY 2016-17 COMPARISON Water FY 17 Adjusted Budget $ Reclaimed Water Wastewater Total SDF Revenue $ 12,371,100 FY 17 Actual Revenue 3,425,589 28% 1,807,300 500,924 28% 12,675,600 3,754,166 30% 7,680,679 29% 26,854,000 $ % of Budget Rec'd to Date $ FY 16 Actual Q1 YTD FY 16 Adjusted Budget FY 17 Actual Q1 YTD FY 17 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 2016-17 budget and year-to-date collections through the first quarter as compared to the FY 2015-16 budget and year-to-date collections through the first quarter. Collections through the first quarter of FY 2016-17 were 29% of the budget as compared to the prior year's collections of 52% through the first quarter. FY 2015-16 collections reflected two large multi-family developments that pulled permits sooner than anticipated, resulting in higher than normal collections in the first quarter. FY 17 Adjusted Budget IMPACT FEE FUNDS Arterial Streets $ Parks 12,169,200 FY 17 Actual Revenue $ 6,520,200 % of Budget Rec'd to Date 1,661,874 14% 1,611,369 25% Library 135,400 35,022 26% Public Buildings 387,400 81,032 21% Police 1,020,800 214,307 21% Fire 1,540,700 324,716 21% 3,928,320 18% Total Impact Revenue $ 21,773,700 $ Dollars in Thousands IMPACT FEE FUNDS ANALYSIS FY 2016-17 COMPARISON FY 16 Actual Q1 YTD FY 16 Adjusted Budget FY 17 Actual Q1 YTD FY 17 Adjusted Budget 12,000 10,000 8,000 6,000 4,000 2,000 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. 0 WARNING Impact fees are based on development and fluctuate quarterly as well as from year to year. The graph shows the FY 2016-17 budget and year-to-date collections through the first quarter as compared to FY 2015-16 budget and year-to-date collections through the first quarter. Collections through the first quarter of FY 2016-17 were 18% of the budget as compared to the prior year's collections through the first quarter of 94% of the budget. FY 2015-16 collections reflected two large multi-family developments that pulled permits sooner than anticipated, resulting in higher than normal collections in the first quarter. The warning indicator is the result of that impact on the comparison to FY 2015-16. 17 10/28/2016 OTHER FUNDS OTHER FUNDS ANALYSIS (continued): HIGHWAY USER FUND (HURF) ANALYSIS FY 2016-17 COMPARISON HIGHWAY USER FUND ANALYSIS Highway Users Tax $ Other 15,720,459 FY 17 Actual Revenue/ Exp+Enc $ 143,000 2,514,458 16% 17% 127,604 89% 19% Total Revenues $ 15,863,459 $ 2,642,062 17% 17% Operating Expenses $ 9,820,645 $ 2,888,372 29% 30% 743,512 25% 21% 0% 0% Major Capital Expenses 2,994,961 Debt Service 2,671,438 Transfers Out Total Expenses - 24,853 $ 15,511,897 $ Revenues % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 24,853 100% 0% 3,656,737 24% 21% Expenses 18 15 Dollars in Millions FY 17 Adjusted Budget 12 9 6 3 0 Net Rev / Exp $ 351,562 $ FY16 Actual Q1 YTD (1,014,676) FY17 Actual Q1 YTD FY17 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 2016-17 reflects a budgeted fund balance surplus of $352K. Transfers Out include payment of $24,853 to the Technology Replacement Fund. Operating Revenues received through the first quarter are 16% of budget, which is 1% lower than the percentage through the first quarter of last fiscal year. Operating Expenses through the first quarter are 29% of adjusted budget, which is 1% lower than the percentage through the first quarter of last fiscal year. GRANT FUNDS ANALYSIS FY 2016-17 COMPARISON GRANT REVENUES FY 17 Adjusted Budget $ 3,827,932 $ 116,713 % of Budget Rec'd to Date 3% Community Services 120,092 - 0% Neighborhood Res. Neighborhood Res. CDBG & HOME 10,000 3,136 31% 3,035,201 187,629 6% 12,519,442 1,913,766 15% 1,600 1,200 Neighborhood Res. - HUD Municipal Utilities 100,000 Public Safety - 4,199,148 T & D - Streets Total Grant Revenue FY 16 Actual Revenue 2,000 11,871,507 $ 35,683,322 $ 0% 162,450 4% 538,205 5% 2,921,899 8% Thousands General Government* FY 17 Actual Revenue FY 17 Actual Revenue 800 400 - * Includes Airport, CAPA, City Manager, Cultural Affairs, Economic Development, Law, 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 first quarter of FY 2016-17 were $2.9M (8% of adjusted budget) as compared to $4M (14% of adjusted budget) collected through the first quarter of FY 2015-16. 18 10/28/2016