QUARTERLY
FINANCIAL

REPORT

3rd 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
WARNING
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 Services
Police
Fire, Health & Medical

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 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

5/1/2017

THE QUARTERLY FINANCIAL REPORT
Report Objectives
* Provide historical comparisons to identify trends or deviations from trends.
* Develop performance benchmarks to measure positive and negative results.
* Create an executive level report to highlight potential issues or concerns.

What is Included in the Report
The report emphasizes General Fund, with analysis of its revenue and each category of revenue, and the expenditures by department. Also
included is a summary and analysis of Enterprise Funds, System Development Fee and Impact Fee Funds, the Highway User Tax Fund, and
Grants.

How to Read the Report
* Page 1 serves as a table of contents and quick view of performance issues.
* The benchmarks are Positive (navy colored), Warning (grey colored), and Negative (maroon colored), providing an initial indicator to
determine if the category needs to be monitored closely in the upcoming period.
* Performance indicators for General Fund revenue are comparing the percent of year-to-date actuals collected to total budget AND the
budget prorated based on the historical trend (last four years) of average actual year-to-date collections.
* Performance indicators for General Fund expenditures are based on whether they are within budget for the percent of year-to-date actuals
expended plus encumbrances compared to the total budgeted expenditures.
* Performance indicators for Enterprise Funds focus on the relationship between Operating Revenues and Operating Expenses (including deb
service and indirect cost allocation) and the percentage of budget received/expended.

ECONOMIC INDICATORS
GROSS DOMESTIC PRODUCT (GDP)

INTEREST RATES

Real gross domestic product - the output of goods and services
produced by labor and property located in the US.

This table reflects the four most recent changes to the Federal Funds Rate
by the Federal Reserve Board.

The change to the GDP is an indicator of the general direction of
the economy. Slow or negative growth will likely mean lower
revenues for the City.

Lowering the Federal Funds Rate is a way for the Federal Reserve Board
to make it less expensive for banks to borrow money for loans and
investments and (in theory) pumping additional dollars into the economy.

First Quarter 2016 (revised estimate)
Second Quarter 2016 (third estimate)
Third Quarter 2016 (third estimate)
Fourth Quarter 2016 (third estimate)

December 16, 2008
December 17, 2015
December 15, 2016
March 16, 2017

0.8%
1.4%
3.5%
2.1%

Source: U.S. Department of Commerce

0% - 0.25%
0.25% - 0.50%
0.50% - 0.75%
0.75% - 1%

Source: Federal Reserve Bank

UNEMPLOYMENT

National
4.7%
4.8%
4.7%
4.5%

Dec-16
Jan-17
Feb-17
Mar-17

State of Arizona
4.8%
5.0%
5.1%
5.0%

Phoenix Metro Area
4.1%
4.5%
4.4%
4.1%

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
3rd Quarter Fiscal Year
Benchmark:
0.26%
-0.28%
Wells Capital Management:
0.29%
-0.08%
PFM:
0.37%
0.07%
Fiscal Year 2015-16 Rate of Return
3rd Quarter Fiscal Year
Benchmark:
0.67%
0.60%
Wells Capital Management:
0.71%
0.65%
PFM:
0.78%
0.90%
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; $24,176 of interest has been recorded
through the third quarter of FY 2016-17. As interest rates rise,
CDARS will become less beneficial.

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.

Oct - Nov - Dec 2015
Jan - Feb - Mar 2016
Apr - May - Jun 2016
Jul - Aug - Sep 2016
Oct - Nov - Dec 2016
Jan - Feb - Mar 2017

State of Arizona
5,289
5,814
6,955
5,869
5,606
5,600 (est.)

Chandler
261
319
398
243
205
178

Single family building permits averaged 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. The year-todate average through the third quarter of FY 2016-17 is 209 permits. The
State figure is estimated based on the January and February figures. The
March figure was not available as of April 24, 2017.

Source: Investment Advisors

2

5/1/2017

GENERAL FUND

REVENUE ANALYSIS:
OVERALL GENERAL FUND REVENUES FY 2016-17

1st Qtr

Jul - Sep 16

$

45,875,879

FY 17
Actual
Revenue
$

% of
Budget
Rec'd

* % of
Budget
Hist. Rec'd

51,155,298

24.3%

22.6%

2nd Qtr Oct - Dec 16

51,597,596

56,955,020

27.0%

25.3%

3rd Qtr

Jan - Mar 17

52,818,934

58,622,155

27.8%

28.0%

4th Qtr

Apr - Jun 17

60,528,869
$ 166,732,474

79.1%

75.9%

Total

$ 210,821,277

Actual Revenue

FY 17

Actual Revenue

Historical Trend Actual to Budget

70

Dollars in Millions

FY 17
Adopted
Budget

FY 16

60
50
40
30
20
10
-

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

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

POSITIVE

General Fund revenue collections through the third quarter of FY 2016-17 are $16.4M (10.9%) above the budget based on historical trend
and $12.5M (8.1%) higher than actual collections through the third 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

Revenue Categories
Sales Tax
Franchise Fees
Primary Property Tax
State Shared Revenue
Licenses & Permits
Charges for Services
Other Revenues
Indirect Cost Allocation
Total

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
$ 210,821,277

FY 17
Actual
Revenue
$ 88,958,241
2,019,501
4,439,000
46,729,547
4,670,504
10,024,927
4,589,305
5,301,450
$ 166,732,474

General Fund Collection History by Category %

% of
Budget
Rec'd to
Date
82.8%
61.7%
58.7%
74.3%
94.9%
89.5%
70.6%
75.0%

Indirect Costs
100%

Other Revenues
80%

28%

28%

28%

28%

Licenses & Permits

60%

State Shared
Revenue

40%
52%

52%

52%

53%

20%

79.1%

Charges for
Services

Primary Property
Taxes
Franchise Fees

0%
FY14 $201M

FY15 $209M

FY16 $216M

FY17 Q3 YTD
$167M

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 representing the largest General Fund revenue sources at over
80% combined. 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

5/1/2017

GENERAL FUND

REVENUE ANALYSIS (continued):
SALES TAX REVENUE FY 2016-17

1st Qtr

Jul - Sep 16

$

26,518,307

FY 17
Actual
Revenue
$

% of
Budget
Rec'd

* % of
Budget
Hist. Rec'd

30,080,008

28.0%

27.0%

2nd Qtr Oct - Dec 16

25,540,285

28,339,021

26.4%

26.2%

3rd Qtr

Jan - Mar 17

27,209,433

30,539,212

28.4%

27.8%

4th Qtr

Apr - Jun 17

28,122,974

Total

$ 107,391,000

$

88,958,241

82.8%

81.1%

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 third quarter of FY 2016-17 are $9.7M (12.2%) above the budget based on historical trend and
$6.2M (7.5%) higher than FY 2015-16 actual collections through the third quarter. The performance indicator is positive since the budget
received through the third quarter is more than the percentage of historical budget received through the third quarter, reflecting strong
performance overall.
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. The Arizona Department of Revenue (ADOR) began collecting for Chandler on January 1, 2017, which affects timing
of collections beginning in the second half of the fiscal year, due to the extra 3-4 weeks it takes for ADOR to close the month. License fee
collections are also impacted since the City previously licensed all businesses and the State only licenses those with taxable activity.

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
$ 39,540,975
80.4%
8,333,191
98.0%
10,570,461
70.5%
10,146,159
86.0%
8,299,363
83.8%
2,202,545
62.9%
2,709,569
90.3%
2,216,305
88.7%
137,943
55.2%

750,000
900,000
$ 105,300,000

$

% Chg
from
Prior Yr
5.0%
34.9%
-2.8%
4.2%
7.0%
-8.2%
18.5%
17.2%
-30.4%

744,122
2,292,171

99.2%
254.7%

3.1%
160.7%

87,192,803

82.8%

8.2%

The above figures reflect General Fund sales tax collections by category and exclude the related revenues of license fees, audit
assessments, penalties, and interest. Sales tax collections through the third quarter of FY 2016-17 were $9.6M (12.4%) above the budget
based on historical trend and $6.6M (8.2%) higher than FY 2015-16 actual collections through the third quarter.
Again, Sales Tax collections are lower than anticipated due to the transition to ADOR Administration, resulting in extended time to process
taxpayer detail.

4

5/1/2017

GENERAL FUND

REVENUE ANALYSIS (continued):
FRANCHISE FEE REVENUE FY 2016-17

1st Qtr

Jul - Sep 16

$

2nd Qtr Oct - Dec 16

51,699

1.7%

746,572

793,961

24.2%

24.4%

1,199,076

36.6%

38.3%

2,019,501

61.7%

64.3%

1,172,161

4th Qtr

Apr - Jun 17

1,304,568
$

*% of
Budget
Hist. Rec'd

0.8%

Jan - Mar 17

3,275,000

$

% of
Budget
Rec'd

26,465

3rd Qtr

Total

FY 17
Actual
Revenue

$

Actual Revenue

FY 17

Actual Revenue

Historical Trend Actual to Budget

Dollars in Thousands

FY 17
Adopted
Budget

FY 16

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

WARNING

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 third quarter of FY 2016-17 are $49,069 (2.5%) above the budget based on historical trend and
$85,036 (-4%) below FY 2015-16 actual collections through the third quarter. Since there is a 2.6% variance between percentage of budget
received through the third quarter and percentage of historical budget received through the third quarter, the performance indicator is a
warning (between 2% - 5%). This is the result of changes in the cable market over time.

PRIMARY PROPERTY TAX REVENUE FY 2016-17

1st Qtr

Jul - Sep 16

$

2nd Qtr Oct - Dec 16

40,652

FY 17
Actual
Revenue
$

% of
Budget
Rec'd

*% of
Budget
Hist. Rec'd

28,348

0.4%

0.6%

3,774,967

3,868,480

51.2%

51.8%

3rd Qtr

Jan - Mar 17

525,669

542,172

7.2%

7.2%

4th Qtr

Apr - Jun 17

3,215,232
4,439,000

58.7%

59.5%

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

$

* 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 $0.0192 cent decrease
from the rates adopted for FY 2015-16 to help offset, for the median value home owner, the City's assessed valuation increase of 7.3% in
FY 2016-17.
Primary property tax collections through the third quarter of FY 2016-17 are $97,712 (2.3%) higher than the budget based on historical trend
and $85,412 (2%) higher than FY 2015-16 actual collections through the third quarter. The majority of collections come in the second and
fourth quarters, as the first half of the property tax bills are due in October and the second half are due in March. The performance indicator
is positive because the difference between percentage of budget received through the third quarter and percentage of historical budget
received through the third quarter is less than 2%.

5
5/1/2017

GENERAL FUND

REVENUE ANALYSIS (continued):
STATE SHARED REVENUE FY 2016-17

1st Qtr

Jul - Sep 16

13,879,057

22.1%

21.2%

16,096,992

25.6%

24.6%

3rd Qtr

Jan - Mar 17

15,983,076

16,753,499

26.6%

25.9%

4th Qtr

Apr - Jun 17

18,705,545
46,729,547

74.3%

71.7%

62,907,000

$

*% of
Budget
Hist. Rec'd

15,151,931

$

13,066,449

% of
Budget
Rec'd

2nd Qtr Oct - Dec 16

Total

$

FY 17
Actual
Revenue

$

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 third quarter of FY 2016-17 are $339,695 (2.2%)
above the budget based on historical trend and $942,460 (6.4%) higher than FY 2015-16 actual collections through the third quarter. This
revenue category reflects a small but steady growth in Arizona's overall economy.
-- Vehicle License Tax: Cities and towns receive 25% of the net revenues collected for vehicle licensing within their county from the state, as
well as surcharges from vehicle rentals. The respective city shares are determined by the proportion of city population to total incorporated
population of the county. Collections through the third quarter of FY 2016-17 are $757,194 (11.8%) above the budget based on historical
trend and $384,342 (5.7%) higher than FY 2015-16 actual collections through the third 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 the updated census population updated annually. Collections through the third quarter of FY 2016-17 are $1.4M (6.4%)
above the budget based on historical trend and $2.6M (12.1%) higher than FY 2015-16 actual collections through the third quarter.
This overall category is performing well, validated by the percent of budget received through the third quarter exceeding the percent of budget
historically received.

LICENSES & PERMITS REVENUE FY 2016-17

1st Qtr

Jul - Sep 16

$

761,965

FY 17
Actual
Revenue
$

% of
Budget
Rec'd

*% of
Budget
Hist. Rec'd

1,456,234

29.6%

19.2%

2nd Qtr Oct - Dec 16

1,042,181

1,769,451

36.0%

26.3%

3rd Qtr

Jan - Mar 17

1,442,630

1,444,818

29.4%

36.4%

4th Qtr

Apr - Jun 17

1,674,223

Total

$

4,921,000

$

4,670,504

94.9%

82.0%

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, peddlers and solicitors,
secondhand and junk dealers, amusements, mobile food units, and other specialty licenses, as well as cable license application fees. In
addition, revenue from building, alarm, and fiber optic permits are included. License and permit collections through the third quarter of
FY 2016-17 are $1.4M (43.9%) above the budget based on historical trend and $253,365 (-5.1%) below FY 2015-16 actual collections through
the third quarter. Budgeted amounts for building permits (the largest revenue in this category) have been kept at moderate levels since it is
difficult to predict the timing of new development, but this category is performing very strong and exceeded expectations through the third
quarter, resulting in a positive performance indicator.
6
5/1/2017

GENERAL FUND

REVENUE ANALYSIS (continued):
CHARGES FOR SERVICES REVENUE FY 2016-17

1st Qtr

Jul - Sep 16

$

2,349,329

FY 17
Actual
Revenue
$

2,409,321

% of
Budget
Rec'd

*% of
Budget
Hist. Rec'd

21.5%

22.0%

2nd Qtr Oct - Dec 16

2,317,550

3,051,365

27.2%

21.7%

3rd Qtr

Jan - Mar 17

2,948,311

4,564,241

40.8%

27.6%

4th Qtr

Apr - Jun 17

3,584,416

Total

$

11,199,607

$

10,024,927

89.5%

Actual Revenue

FY 17

Actual Revenue

Historical Trend Actual to Budget

5

Dollars in Millions

FY 17
Adopted
Budget

FY 16

4
3
2

71.3%

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 third quarter of FY 2016-17 are $2.4M
(31.6%) over the budget based on historical trend and $2.7M (36%) higher than FY 2015-16 actual collections through the third quarter. The
performance of this category is very strong and has exceeded expectations through the third quarter, resulting in a positive performance
indicator.

OTHER REVENUE FY 2016-17

1st Qtr

Jul - Sep 16

$

2nd Qtr Oct - Dec 16

1,320,325

21.8%

1,256,962

1,268,600

19.5%

21.3%

1,811,990

27.9%

29.6%

4,589,305

70.6%

72.6%

Jan - Mar 17

1,320,325

Apr - Jun 17

2,604,939
$

*% of
Budget
Hist. Rec'd

23.2%

3rd Qtr

6,502,550

$

% of
Budget
Rec'd

1,508,715

4th Qtr
Total

FY 17
Actual
Revenue

Actual Revenue

FY 17

Actual Revenue

Historical Trend Actual to Budget

3

Dollars in Millions

FY 17
Adopted
Budget

FY 16

2

1

$

-

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

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

POSITIVE

Other revenue captures interest income, fines and forfeitures, sale of land and fixed assets, and other miscellaneous items. Revenue
streams in this category are not constant. Other Revenue collections through the third quarter of FY 2016-17 are $691,693 (17.7%) over the
budget based on historical trend and $3,012 (-0.1%) less than FY 2015-16 actual collections through the third quarter. The performance
indicator is positive because the difference between percentage of budget received through the third quarter and percentage of historical
budget received through the third quarter is not more than 2%.

7
5/1/2017

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

59,727,247

FY17
Actual
Exp+Enc
$

% of
Budget
Exp'd

% of
Budget
Prior Yr

41,878,254

70.1%

73.4%

18,840,260

13,259,382

70.4%

71.0%

102,817,978

76,068,598

74.0%

76.1%

20,726,452

15,411,555

74.4%

77.1%

11,508,577

2,848,217

24.7%

30.9%

Subtotal

$ 213,620,514

$ 149,466,006

70.0%

71.3%

Non-Dept. Reserves

$

$

-

0.0%

0.0%

-

0.0%

0.0%

60.5%

63.6%

Non-Dept. Contingencies
Total

3,231,422
30,345,678

$ 247,197,614

$ 149,466,006

* Excluding Interfund Transfers

6

3

16

15
Non-Dept. Pers.
& O&M
76

78

Transportation &
Dev.
Public Safety

13

13

42

42

Community
Services
General
Government

FY 16
3Q YTD
Exp+Enc

FY 17
3Q 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
contingency). 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 (excluding reserves and contingencies) through the third quarter is 70% of the adjusted budget compared to
71.3% of adjusted budget spent last fiscal year through the third quarter. As shown on the following pages, departments (excluding NonDepartmental) have expended between 66.0% and 74.8% of their General Fund adjusted budgets through the third 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

FY17
Actual
Exp+Enc

FY 16
Actual
Exp+Enc

% Change
from Prior
Yr Actual

$ 160,917,181

$ 112,491,864

$ 112,095,262

0.4%

52,703,333

36,974,142

41,662,341

-11.3%

3,231,422

-

-

0.0%

30,345,678

-

-

0.0%

$ 247,197,614

$ 149,466,006

$ 153,757,603

Operations
& Maint.
25%

-2.8%
Personnel
75%

* Excluding Interfund Transfers

Total General Fund operating expenditures and encumbrances are reflected by spending category. Operating spending through the third
quarter of FY 2016-17 is 2.8% less than spending through the third quarter of FY 2015-16, primarily due to the decrease in the Operations &
Maintenance category as compared to FY 2015-16, which included significant encumbrances for the 2015 mid-decade Special Census.
The City provides numerous services across all departments, resulting in personnel as the largest expenditure, as shown in the graph.

8

5/1/2017

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
MAYOR & COUNCIL EXPENDITURE FY 2016-17 COMPARISON

Operating Only
1st Qtr

Jul - Sep 16

$

215,406

FY 17
Actual
Exp+Enc
$

206,149

23.0%

23.2%

2nd Qtr Oct - Dec 16

215,406

220,625

24.6%

23.4%

3rd Qtr

Jan - Mar 17

233,357

234,272

26.1%

24.6%

4th Qtr

Apr - Jun 17

233,357

Total

$

897,526

$

661,046

73.7%

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

71.3%

* 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 74.5% of the FY 2016-17 adjusted budget and has historically spent 71.3% of the adjusted budget through the third
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

FY 17
Actual
Exp+Enc
$

286,052

31.8%

33.0%

2nd Qtr Oct - Dec 16

210,166

223,442

24.8%

21.1%

3rd Qtr

Jan - Mar 17

160,889

140,674

15.6%

16.2%

4th Qtr

Apr - Jun 17

201,272
650,168

72.2%

70.2%

Total

$

900,418

$

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 72.2% of the FY 2016-17 adjusted budget and has historically spent 70.2% of the adjusted budget through the third
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
5/1/2017

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
CITY MANAGER & ORGANIZATIONAL SUPPORT EXPENDITURES FY 2016-17
COMPARISON

Operating Only
1st Qtr

Jul - Sep 16

$

13,490,127

FY 17
Actual
Exp+Enc
$

12,245,687

31.1%

32.3%

2nd Qtr Oct - Dec 16

8,297,712

8,385,185

21.3%

19.9%

3rd Qtr

Jan - Mar 17

8,282,510

7,167,861

18.2%

19.8%

4th Qtr

Apr - Jun 17

9,262,321
27,798,733

70.7%

72.0%

Total

$

39,332,669

$

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
-

* 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 70.7% of the FY 2016-17 adjusted budget and have historically spent 72% of
the adjusted budget through the third quarter of the fiscal year, resulting in a positive performance indicator. The Neighborhood Resources
Division moved from the Community Services Department and the Fleet Division moved from the Fire, Health & Medical 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

$

2nd Qtr Oct - Dec 16

868,742

841,760

22.9%

22.4%

899,090

907,298

24.7%

23.2%

837,845

22.8%

24.1%

3rd Qtr

Jan - Mar 17

934,705

4th Qtr

Apr - Jun 17

967,768

Total

$

FY 17
Actual
Exp+Enc

3,670,305

$

$

2,586,903

70.5%

69.6%

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 70.5% of the FY 2016-17 adjusted budget and has historically spent 69.6% of the adjusted budget through the third quarter of the
fiscal year, resulting in a positive performance indicator.

10
5/1/2017

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
CITY MAGISTRATE EXPENDITURE FY 2016-17 COMPARISON

Operating Only
1st Qtr

Jul - Sep 16

$

1,087,687

FY 17
Actual
Exp+Enc
$

1,026,480

22.7%

21.6%

2nd Qtr Oct - Dec 16

1,107,036

1,079,626

23.9%

22.0%

3rd Qtr

Jan - Mar 17

1,134,775

972,139

21.5%

22.6%

4th Qtr

Apr - Jun 17

1,193,131

Total

$

4,522,630

$

3,078,244

68.1%

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

66.2%

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 68.1% of their FY 2016-17 adjusted budget and has historically spent 66.2% of their adjusted budget through the third
quarter of the fiscal year, resulting in a positive performance indicator.
The third quarter adjusted budget reflects a slight increase from the second quarter due to the Council approved transfer of contingency to
be used for the purchase of a firewall to improve cybersecurity.

COMMUNICATIONS & PUBLIC AFFAIRS EXPENDITURE FY 2016-17 COMPARISON

Operating Only
1st Qtr

Jul - Sep 16

$

820,530

FY 17
Actual
Exp+Enc
$

807,967

28.7%

24.2%

2nd Qtr Oct - Dec 16

709,423

455,417

16.2%

20.9%

3rd Qtr

Jan - Mar 17

725,285

595,298

21.1%

21.4%

4th Qtr

Apr - Jun 17

562,086
1,858,681

66.0%

66.5%

Total

$

2,817,324

$

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 66% of the FY 201617 adjusted budget and has historically spent 66.5% of the adjusted budget through the third quarter of the fiscal year, resulting in a positive
performance indicator.

11
5/1/2017

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
MANAGEMENT SERVICES EXPENDITURE FY 2016-17 COMPARISON

Operating Only
1st Qtr

Jul - Sep 16

$

2,193,613

FY 17
Actual
Exp+Enc
$

1,993,117

26.3%

26.7%

2nd Qtr Oct - Dec 16

1,773,089

1,728,716

22.8%

21.6%

3rd Qtr

Jan - Mar 17

1,799,856

1,522,646

20.1%

21.9%

4th Qtr

Apr - Jun 17

1,819,817

Total

$

7,586,375

$

5,244,478

69.1%

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

70.1%

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 69.1% of the FY 2016-17 adjusted budget and have historically spent 70.1% of the adjusted budget
through the third 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

$

2nd Qtr Oct - Dec 16

5,487,429

FY 17
Actual
Exp+Enc
$

1,825,350

15.9%

21.9%

2,713,629

310,467

2.7%

10.9%

3rd Qtr

Jan - Mar 17

1,706,760

712,399

6.2%

6.8%

4th Qtr

Apr - Jun 17

1,557,733
2,848,217

24.8%

39.6%

Total**

$

11,465,550

$

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
-

* 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
significantly due to changing one-time needs from year to year. Non-departmental spending through the third quarter of FY 2016-17 is
24.8% of the adjusted budget, with historical spending of 39.6% through the third quarter of the fiscal year. The historical trend was
significantly impacted 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
5/1/2017

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
TRANSPORTATION & DEVELOPMENT EXPENDITURE FY 2016-17 COMPARISON

Operating Only
1st Qtr

Jul - Sep 16

$

7,254,258

FY 17
Actual
Exp+Enc
$

7,142,476

34.5%

32.5%

2nd Qtr Oct - Dec 16

3,938,026

3,733,586

18.0%

18.1%

3rd Qtr

Jan - Mar 17

5,388,878

4,535,494

21.9%

24.2%

4th Qtr

Apr - Jun 17

4,145,290

Total

$

20,726,452

$

15,411,555

74.4%

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

74.8%

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 74.4% of the
FY 2016-17 adjusted budget and has historically spent 74.8% of the adjusted budget through the third 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

$

6,546,990

FY 17
Actual
Exp+Enc
$

6,362,459

33.8%

33.7%

2nd Qtr Oct - Dec 16

3,720,951

3,758,118

19.9%

18.8%

3rd Qtr

Jan - Mar 17

3,532,548

3,138,805

16.7%

18.1%

4th Qtr

Apr - Jun 17

5,039,770

Total

$

18,840,260

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

$

13,259,382

70.4%

2

70.6%

1
-

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

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

POSITIVE

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 70.4% of the FY 2016-17
adjusted budget and has historically spent 70.6% of the adjusted budget through the third 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
5/1/2017

GENERAL FUND

EXPENDITURE ANALYSIS (continued / department summaries):
POLICE EXPENDITURE FY 2016-17 COMPARISON

Operating Only
1st Qtr

Jul - Sep 16

$

18,546,389

FY 17
Actual
Exp+Enc
$

19,000,442

27.7%

26.8%

2nd Qtr Oct - Dec 16

17,172,582

17,130,189

24.9%

24.1%

3rd Qtr

Jan - Mar 17

15,798,776

15,231,472

22.2%

23.1%

4th Qtr

Apr - Jun 17

17,172,582
51,362,103

74.8%

73.9%

Total

$

68,690,329

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

$

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 74.8% of the FY 2016-17 adjusted budget and has historically spent 73.9% of the adjusted
budget through the third 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

$

9,555,742

FY 17
Actual
Exp+Enc
$

9,543,436

28.0%

27.3%

2nd Qtr Oct - Dec 16

8,190,636

8,091,354

23.7%

23.7%

3rd Qtr

Jan - Mar 17

7,849,359

7,071,705

20.7%

23.0%

4th Qtr

Apr - Jun 17

8,531,912

Total

$

34,127,649

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

$

24,706,495

72.4%

74.0%

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 72.4% of the FY 2016-17 adjusted budget and has historically spent 74% of the adjusted
budget throught the third 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
5/1/2017

ENTERPRISE FUNDS

ENTERPRISE FUNDS ANALYSIS:
WATER FUND ANALYSIS FY 2016-17 COMPARISON

WATER FUND
Operating Revenues

FY 17 Actual
Revenue/
Exp+Enc

$

50,114,800 $

36,371,806

73%

70%

Total Revenues

$

50,114,800 $

36,371,806

73%

70%

Operating Expenses

$

30,203,777 $

21,702,402

72%

65%

Major Capital Expenses

WATER FUND ANALYSIS

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

8,425,158

8,289,758

98%

82%

Debt Service

14,255,008

2,461,116

17%

13%

Transfers Out

3,376,446

2,566,649

76%

75%

62%

52%

Revenues

Expenses

60
Dollars in Millions

FY 17
Adjusted
Budget

50
40
30
20
10
0

Total Expenses
Net Rev / Exp
POSITIVE

$

56,260,389 $

35,019,924

$

(6,145,589) $

1,351,882

FY16 Actual Q3
YTD

FY17 Actual Q3
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
fund supports operating functions and major capital costs that can be paid without borrowing. The Net Revenue/Expense for FY 2016-17
includes a budgeted $6.1 million drawdown of fund balance (change from second quarter due to a transfer of savings from the Well
Remediation project to the Water Bond Fund). 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 SelfInsurance Trust. Year-to-date Operating Revenues are 73% of budget as compared to 70% through the third quarter of FY 2015-16 and
Operating Expenses are 72% of budget as compared to 65% through the third quarter of FY 2015-16. Beginning in FY 2016-17, a
Reclaimed Water Fund was created to separate revenues and expenses from the Water Fund. The activity in this new fund is reported
with the Wastewater Fund through the end of FY 2016-17.

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

33,507,556

77%

76%

1,969,310

87%

22%

Total Revenues

$

45,526,474 $

35,476,866

78%

73%

Operating Expenses

$

20,579,746 $

12,785,021

62%

65%

14,914,849

10,042,930

67%

82%

2,259,754

2,259,753

100%

0%

Debt Service

14,463,696

3,834,431

27%

13%

Transfers Out

2,444,782

1,847,163

76%

75%

56%

52%

Major Capital Expenses
Intel Exp/Payable

Total Expenses
Net Rev / Exp
POSITIVE

$

54,662,827 $

30,769,298

$

(9,136,353) $

4,707,568

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 Q3
YTD

FY17 Actual Q3
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 includes a budgeted $9.1M 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 are 77% of budget as compared to 76%
through the third quarter of FY 2015-16, while Operating Expenses are 62% of budget as compared to 65% through the third quarter of
FY 2015-16. During FY 2016-17, a new Reclaimed Water Fund was created to separate revenues and expenses from the Wastewater
Fund. The activity for the new Reclaimed Water Fund is reported with the Wastewater Fund through the end of FY 2016-17.

15
5/1/2017

ENTERPRISE FUNDS

ENTERPRISE FUNDS ANALYSIS (continued):
SOLID WASTE FUND ANALYSIS FY 2016-17 COMPARISON
SOLID WASTE FUND ANALYSIS

SOLID WASTE
Operating Revenues

FY 17 Actual
Revenue/
Exp+Enc

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

$

15,392,682

$

11,061,941

72%

72%

Total Revenues

$

15,392,682

$

11,061,941

72%

72%

Operating Expenses

$

13,721,132

$

12,159,892

89%

85%

Major Capital Expenses
Transfers Out

755,854

721,963

96%

64%

1,003,867

766,040

76%

76%

13,647,895

88%

84%

Revenues

Expenses

18
15
Dollars in Millions

FY 17
Adjusted
Budget

12
9
6
3

Total Expenses

$

15,480,853

$

-

Net Rev / Exp

POSITIVE

$

(88,171) $

FY16 Actual Q3
YTD

(2,585,954)

FY17 Actual Q3
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 decrease of $88,171 of 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 third quarter are 72% of budget compared
to 72% through the third quarter of FY 2015-16, while Operating Expenses through the third quarter are 89% of budget as compared to
85% through the third quarter of FY 2015-16. Operating Expenses through the third quarter include significant remaining encumbrances
($3.3M) 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
Operating Revenues

$

General Fund Subsidy

1,073,995

FY 17 Actual
Revenue/
Exp+Enc
$

949,675

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

718,957

67%

68%

112,138

12%

13%

41%

43%

Total Revenues

$

2,023,670

$

831,094

Operating Expenses

$

1,065,369

$

715,662

67%

68%

826,358

234,683

28%

29%

Debt Service

26,563

781

3%

4%

Transfers Out

105,380

80,380

76%

76%

1,031,507

51%

52%

Major Capital Expenses

Total Expenses
Net Rev / Exp
POSITIVE

$
$

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 Q3 FY17 Actual Q3
YTD
YTD

FY17 Budget

(200,412)

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 third quarter are 67% of budget compared to
68% through the third quarter of FY 2015-16. Operating Expenses through the third quarter are 67% of budget as compared to 68%
through the third quarter of FY 2015-16. Operating expenses, debt service, and indirect costs through the third quarter reflect 66% of
budgeted expenses in these categories, which is 1% less than Operating Revenues through the second quarter, resulting in a positive
indicator.

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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
8,899,324

72%

1,807,300

1,471,145

81%

12,675,600

9,196,204

73%

19,566,673

73%

26,854,000

$

% of Budget
Rec'd to
Date

$

FY 16 Actual Q3 YTD

FY 16 Adjusted Budget

FY 17 Actual Q3 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 third quarter as compared to the FY 2015-16 budget and year-to-date
collections through the third quarter. Collections through the third quarter of FY 2016-17 were 73% of the budget as compared to the
prior year's collections of 110% through the third quarter. FY 2015-16 collections include permits for two large multi-family
developments resulting in higher than normal collections in all three categories.

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

4,787,057

39%

5,528,120

85%

Library

135,400

112,391

83%

Public Buildings

387,400

238,895

62%

Police

1,020,800

628,342

62%

Fire

1,540,700

957,783

62%

12,252,590

56%

Total Impact Revenue

$

21,773,700

$

Dollars in Thousands

IMPACT FEE FUNDS ANALYSIS FY 2016-17 COMPARISON
FY 16 Actual Q3 YTD

FY 16 Adjusted Budget

FY 17 Actual Q3 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

POSITIVE

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 third quarter of FY 2016-17 were 56% of the budget as compared to the prior year's collections
through the third quarter of 160% of the budget. FY 2015-16 collections include permits for two large multi-family developments
resulting in higher than normal collections.

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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

10,811,513

69%

69%

104,674

73%

80%

Total Revenues

$

15,863,459

$

10,916,188

69%

69%

Operating Expenses

$

9,820,645

$

7,280,881

74%

76%

Major Capital Expenses

2,994,961

2,994,775

100%

90%

Debt Service

2,671,438

2,671,438

100%

100%

24,853

24,853

100%

100%

12,971,947

84%

85%

Transfers Out
Total Expenses

$

15,511,897

$

Revenues

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

Expenses

18

15
Dollars in Millions

FY 17
Adjusted
Budget

12

9

6

3

0

Net Rev / Exp

$

351,562

$

FY16 Actual Q3
YTD

(2,055,759)

FY17 Actual Q3
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 operations and related
projects. The Net Revenue/Expense for FY 2016-17 reflects a budgeted fund balance surplus of $352K. Transfers Out include a payment
of $24,853 to the Technology Replacement Fund. Operating Revenues received through the third quarter are 69% of budget, which is the
same percentage received through the third quarter of last fiscal year. Operating Expenses through the third quarter are 74% of adjusted
budget, which is 2% lower than the third quarter of last fiscal year.

GRANT FUNDS ANALYSIS FY 2016-17 COMPARISON
GRANT REVENUES

General Government*

$

Community Services
Neighborhood Res.
CDBG & HOME
HUD
Municipal Utilities

$

T & D - Streets
$

524,171

% of Budget
Rec'd to
Date

9,048

8%

10,000

3,136

31%

3,035,201

771,292

25%

12,519,442

5,671,994

45%

-

0%

4,199,148

653,277

16%

11,871,507

3,632,108

31%

11,265,027

32%

35,683,322

$

FY 16 Actual Revenue

7,000
6,000

14%

120,092

100,000

Public Safety

Total Grant Revenue

3,827,932

FY 17
Actual
Revenue

5,000
4,000
Thousands

FY 17
Adjusted
Budget

FY 17 Actual Revenue

3,000
2,000
1,000
-

* 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 third quarter of FY 2016-17 were $11.3M as compared to $13.4M collected through the third quarter of FY 2015-16.

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