QUARTERLY FINANCIAL REPORT 4th 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 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 10/6/2017 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. Second Quarter 2016 (third estimate) Third Quarter 2016 (third estimate) Fourth Quarter 2016 (third estimate) First Quarter 2017 (third estimate) December 17, 2015 December 15, 2016 March 16, 2017 June 15, 2017 1.4% 3.5% 2.1% 1.4% Source: U.S. Department of Commerce 0.25% - 0.50% 0.50% - 0.75% 0.75% - 1% 1% - 1.25% Source: Federal Reserve Bank UNEMPLOYMENT National 4.5% 4.4% 4.3% 4.4% Mar-17 Apr-17 May-17 Jun-17 State of Arizona 5.0% 5.0% 5.1% 5.1% Phoenix Metro Area 4.1% 3.9% 4.3% 4.5% High unemployment rates are a reflection of a slow economy and the reduced demand for goods and services. The Phoenix Metro Area unemployment rate is typically lower than the national and state rates. Source: Arizona Department of Administration, "Arizona's Workforce" Newsletter CITY INVESTMENT PORTFOLIO 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 4th Quarter Fiscal Year Benchmark: 0.17% -0.11% Wells Capital Management: 0.27% 0.19% PFM: 0.34% 0.41% Fiscal Year 2015-16 Rate of Return 4th Quarter Fiscal Year Benchmark: 0.41% 1.01% Wells Capital Management: 0.52% 1.17% PFM: 0.55% 1.46% 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; $24,177 of interest has been recorded through the end 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. Jan - Feb - Mar 2016 Apr - May - Jun 2016 Jul - Aug - Sep 2016 Oct - Nov - Dec 2016 Jan - Feb - Mar 2017 Apr - May - Jun 2017 State of Arizona 5,814 6,955 5,869 5,606 6,361 7,617 Chandler 319 398 243 205 178 176 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. An average of 201 permits were issued each quarter during FY 2016-17. As reflected in the table above, single family permit issuance is showing a slow, but steady decline. Source: Investment Advisors 2 10/6/2017 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 64,292,801 30.5% 31.1% $ 210,821,277 $ 231,025,274 109.6% 107.0% Total 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 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 for FY 2016-17 are $20.2M (9.6%) above budget and $15.1M (7%) higher than actual collections for FY 2015-16. Although the fiscal year ended $20.2M over the adopted budget, when preparing the FY 2017-18 budget, revenues were updated based on actual collections and additional information available at that time. This is done for the purpose of estimating the fiscal year end General Fund balance to determine available one-time funds for the FY 2017-18 budget preparation. Through this process, $16.7M of the $20.2M surplus was anticipated and has been incorporated into the FY 2017-18 budget. The final net impact of additional one-time funds, taking into account not only revenues, but expenditures and carryforward as well, is now being calculated. 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 100%, resulting in a positive performance indicator. The following charts provide more detail regarding the various sources of General Fund revenues. GENERAL FUND REVENUES BY CATEGORY FY 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 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 $ 120,200,625 3,274,294 7,454,709 65,924,228 7,075,996 12,949,668 7,077,155 7,068,600 $ 231,025,275 % of Budget Rec'd to Date 111.9% 100.0% 98.7% 104.8% 143.8% 115.6% 108.8% 100.0% Indirect Costs 100% Other Revenues 80% 28% 28% 28% 29% 52% 52% 52% 52% FY14 $201M FY15 $209M FY16 $216M FY17 $231M 60% 40% 20% 109.6% Charges for Services Licenses & Permits State Shared Revenue Primary Property Taxes Franchise Fees 0% 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 81% 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 10/6/2017 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 30,539,212 29.1% 28.5% $ 107,391,000 $ 120,200,625 111.9% 109.5% Total 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 for FY 2016-17 are $12.8M (11.9%) above budget and $7.9M (7.1%) higher than FY 2015-16 actual collections. The performance indicator is positive since the budget received is more than 100%, 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 can affect the timing of collections. 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 $ 53,126,487 108.0% 11,496,791 135.3% 13,391,857 89.3% 13,647,156 115.7% 11,341,714 114.6% 2,796,065 79.9% 3,611,180 120.4% 3,424,279 137.0% 186,862 74.7% % Chg from Prior Yr 3.8% 29.8% -2.9% 3.3% 5.5% -13.6% 15.5% 15.8% -24.8% 750,000 900,000 1,019,938 3,619,340 136.0% 402.1% 0.0% 221.1% $ 105,300,000 $ 117,661,670 111.7% 7.4% The above figures reflect General Fund sales tax collections by category and exclude the related revenues of license fees, audit assessments, penalties, and interest. Sales tax collections for FY 2016-17 were $12.4M (11.7%) above budget and $8.2M (7.4%) higher than FY 2015-16 actual collections. It should be noted that many of the categories are positive, including Retail, Restaurants & Bars, and Hotels/Motels, reflecting strong consumer confidence and healthy tourism. The increases in Contracting, Personal Property Rentals, and Use Tax collections reflect better than expected development performance during the year. Telecommunication collections continue to decline due to the replacement of landlines with cellular phones. 4 10/6/2017 GENERAL FUND REVENUE ANALYSIS (continued): FRANCHISE FEE REVENUE FY 2016-17 1st Qtr Jul - Sep 16 $ 2nd Qtr Oct - Dec 16 51,699 FY 17 Actual Revenue $ % of Budget Rec'd *% of Budget Hist. Rec'd 26,465 0.8% 1.7% 746,572 793,961 24.2% 24.4% 3rd Qtr Jan - Mar 17 1,172,161 1,199,076 36.6% 38.3% 4th Qtr Apr - Jun 17 1,304,568 1,254,792 38.3% 42.6% 3,274,294 100.0% 106.9% Total $ 3,275,000 $ 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 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 for FY 2016-17 are $706 (0%) less than budget and $59,645 (-1.8%) below FY 2015-16 actual collections. Since FY 2016-17 collections are 100%, the performance indicator is positive. 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 3,015,709 39.9% 44.1% 7,454,709 98.7% 103.6% 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 collected 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 for FY 2016-17 are $101,811 (-1.3%) lower than budget and $43,971 (0.6%) higher than FY 2015-16 actual collections. 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 actual revenue received for FY 2016-17 is less than 2% from the adopted budget. 5 10/6/2017 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 19,194,680 30.5% 30.4% 65,924,228 104.8% 102.1% 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 for FY 2016-17 are $361,564 (1.5%) above budget and $1.3M (5.8%) higher than FY 2015-16 actual collections. This revenue category reflects a small but steady growth in Arizona's overall economy. -- Vehicle License Tax: Cities and towns receive 25% of the net revenues collected for vehicle licensing within their county from the state, as well as surcharges from vehicle rentals. The respective city shares are determined by the proportion of city population to total incorporated population of the county. Collections for FY 2016-17 are $745,238 (7.8%) above budget and $457,547 (4.7%) higher than FY 2015-16 actual collections. -- 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 for FY 2016-17 are $1.9M (6.4%) above budget and $3.5M (12.1%) higher than FY 2015-16 actual collections. This overall category is performing well, validated by the percent of budget received exceeding 100% and 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 2,405,492 48.9% 42.3% 7,075,996 143.8% 124.2% Total $ 4,921,000 $ 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 for FY 2016-17 are $2.2M (43.8%) above budget and $441,836 (6.7%) above FY 2015-16 actual collections. Budgeted amounts for building permits (the largest revenue in this category) have been kept at moderate levels since it is difficult to predict the timing of new development, but this category is performing very strong and exceeded expectations for the year, resulting in a positive performance indicator. 6 10/6/2017 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 2,924,741 26.1% 33.6% 12,949,668 115.6% 104.9% Total $ 11,199,607 $ Actual Revenue FY 17 Actual Revenue Historical Trend Actual to Budget 5 Dollars in Millions FY 17 Adopted Budget FY 16 4 3 2 1 - * Pro-rated based upon a four year Historical Trend of Actual Year-to-date Collections 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Charges for Services include revenue from various engineering, recreation, and library fees, police and fire miscellaneous service reimbursements, and public school reimbursement. Charges for services collections for FY 2016-17 are $1.75M (15.6%) over budget and $1.06M (8.9%) higher than FY 2015-16 actual collections. The performance of this category is very strong and has exceeded expectations for the fiscal year, resulting in a positive performance indicator. OTHER REVENUE FY 2016-17 1st Qtr Jul - Sep 16 $ 2nd Qtr Oct - Dec 16 1,320,325 FY 17 Actual Revenue $ 1,256,962 % of Budget Rec'd *% of Budget Hist. Rec'd 1,508,715 23.2% 21.8% 1,268,600 19.5% 21.3% 3rd Qtr Jan - Mar 17 1,320,325 1,811,990 27.9% 29.6% 4th Qtr Apr - Jun 17 2,604,939 2,487,851 38.3% 36.7% 7,077,155 108.8% 109.3% Total $ 6,502,550 $ 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 for FY 2016-17 are $574,606 (8.8%) over budget and $540,495 (8.3%) more than FY 2015-16 actual collections. The performance indicator is positive because FY 2016-17 collections are greater than 100%. 7 10/6/2017 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 59,830,050 FY17 Actual Exp+Enc $ % of Budget Exp'd % of Budget Prior Yr 55,147,868 92.2% 94.8% 18,820,570 18,044,803 95.9% 97.0% 104,111,181 102,560,481 98.5% 99.5% 20,726,452 19,464,203 93.9% 95.4% 10,150,968 5,737,579 56.5% 39.3% Subtotal $ 213,639,221 $ 200,954,934 94.1% 93.5% Non-Dept. Reserves $ $ - 0.0% 0.0% - 0.0% 0.0% 84.1% 83.4% Non-Dept. Contingencies Total 3,231,422 22,058,064 $ 238,928,707 $ 200,954,934 6 6 20 19 104 103 Non-Dept. Pers. & O&M Transportation & Dev. Public Safety 17 18 55 55 FY 16 Exp+Enc Community Services General Government FY 17 Exp+Enc * Excluding Interfund Transfers 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) is 94.1% of the adjusted budget compared to 93.5% of the adjusted budget spent last fiscal year. As shown on the following pages, departments (excluding Non-Departmental) have expended between 81.7% and 99.0% of their General Fund adjusted budgets for 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 $ 161,814,709 $ 156,520,787 $ 153,188,337 2.2% 51,824,512 44,434,147 48,271,598 -7.9% 3,231,422 - - 0.0% 22,058,064 - - 0.0% $ 238,928,707 $ 200,954,934 $ 201,459,935 Operations & Maint. 22% -0.3% Personnel 78% * Excluding Interfund Transfers Total General Fund operating expenditures and encumbrances are reflected by spending category. Operating spending for FY 2016-17 is 0.3% less than spending for FY 2015-16, primarily due to the decrease in the Operations & Maintenance category 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 10/6/2017 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MAYOR & COUNCIL EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 217,223 FY 17 Actual Exp+Enc $ 206,149 22.8% 23.0% 2nd Qtr Oct - Dec 16 217,223 220,625 24.4% 23.2% 3rd Qtr Jan - Mar 17 235,324 234,272 25.9% 24.4% 4th Qtr Apr - Jun 17 235,324 235,213 26.0% 24.2% 896,259 99.0% 94.9% Total $ 905,094 $ 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 - * 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 99% of the FY 2016-17 adjusted budget and has historically spent 94.9% of the adjusted budget for the fiscal year, resulting in a postive performance indicator. CITY CLERK EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 333,636 FY 17 Actual Exp+Enc $ 286,052 31.2% 32.4% 2nd Qtr Oct - Dec 16 213,719 223,442 24.4% 20.8% 3rd Qtr Jan - Mar 17 163,608 140,674 15.4% 15.9% 4th Qtr Apr - Jun 17 204,674 159,464 17.4% 19.9% 809,632 88.4% 89.0% Total $ 915,637 $ 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 88.4% of the FY 2016-17 adjusted budget and has historically spent 89% of the adjusted budget for 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 10/6/2017 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): CITY MANAGER & ORGANIZATIONAL SUPPORT EXPENDITURES FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 13,453,369 FY 17 Actual Exp+Enc $ 12,245,687 31.2% 32.4% 2nd Qtr Oct - Dec 16 8,275,102 8,385,185 21.4% 19.9% 3rd Qtr Jan - Mar 17 8,259,942 7,167,861 18.3% 19.9% 4th Qtr Apr - Jun 17 9,237,083 8,531,893 21.8% 22.2% 36,330,626 92.6% 94.4% Total $ 39,225,496 $ 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 92.6% of the FY 2016-17 adjusted budget and have historically spent 94.4% of the adjusted budget for 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 16 870,420 FY 17 Actual Exp+Enc $ 900,827 841,760 22.9% 22.3% 907,298 24.7% 23.1% 3rd Qtr Jan - Mar 17 936,511 837,845 22.8% 24.0% 4th Qtr Apr - Jun 17 969,638 942,476 25.6% 24.9% 3,529,379 96.0% 94.4% Total $ 3,677,397 $ 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 96% of the FY 2016-17 adjusted budget and has historically spent 94.4% of the adjusted budget for the fiscal year, resulting in a positive performance indicator. 10 10/6/2017 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 1,096,704 24.2% 23.7% 4,174,948 92.3% 89.9% Total $ 4,522,630 $ 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 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 92.3% of their FY 2016-17 adjusted budget and has historically spent 89.9% of their adjusted budget for the fiscal year, resulting in a positive performance indicator. COMMUNICATIONS & PUBLIC AFFAIRS EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 872,259 FY 17 Actual Exp+Enc $ 807,967 27.0% 22.8% 2nd Qtr Oct - Dec 16 754,148 455,417 15.2% 19.7% 3rd Qtr Jan - Mar 17 771,009 595,298 19.9% 20.1% 4th Qtr Apr - Jun 17 597,522 588,654 19.7% 15.6% 2,447,335 81.7% 78.1% Total $ 2,994,938 $ 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 81.7% of the FY 2016-17 adjusted budget and has historically spent 78.1% of the adjusted budget for the fiscal year, resulting in a positive performance indicator. 11 10/6/2017 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): MANAGEMENT SERVICES EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 2,194,331 FY 17 Actual Exp+Enc $ 1,993,117 26.3% 26.7% 2nd Qtr Oct - Dec 16 1,773,669 1,728,716 22.8% 21.5% 3rd Qtr Jan - Mar 17 1,800,445 1,522,646 20.1% 21.9% 4th Qtr Apr - Jun 17 1,820,412 1,715,210 22.6% 22.1% 6,959,689 91.7% 92.2% Total $ 7,588,858 $ 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 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 91.7% of the FY 2016-17 adjusted budget and have historically spent 92.2% of the adjusted budget, 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 4,858,268 FY 17 Actual Exp+Enc $ 2,402,498 1,825,350 18.0% 24.8% 310,467 3.1% 12.3% 3rd Qtr Jan - Mar 17 1,511,071 712,399 7.0% 7.7% 4th Qtr Apr - Jun 17 1,379,131 2,889,362 28.5% 7.0% 5,737,579 56.5% 51.8% Total** $ 10,150,968 $ 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 for FY 2016-17 is 56.5% of the adjusted budget, with historical spending of 51.8% for 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 nondepartmental in order to conduct a 2015 mid-decade Special Census. 12 10/6/2017 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 4,052,648 19.6% 18.8% 19,464,203 93.9% 93.6% Total $ 20,726,452 $ 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 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 93.9% of the FY 2016-17 adjusted budget and has historically spent 93.6% of the adjusted budget for the fiscal year, resulting in a positive performance indicator. COMMUNITY SERVICES EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 $ 6,540,099 FY 17 Actual Exp+Enc $ 6,362,459 33.8% 33.7% 2nd Qtr Oct - Dec 16 3,717,013 3,758,118 20.0% 18.9% 3rd Qtr Jan - Mar 17 3,528,807 3,138,805 16.7% 18.1% 4th Qtr Apr - Jun 17 5,034,651 4,785,421 25.4% 25.8% 18,044,803 95.9% 96.5% Total $ 18,820,570 $ 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 2 1 - * Historical Trend represents the average of the past 4 years % of actual to budget 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr POSITIVE Community 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 95.9% of the FY 2016-17 adjusted budget and has historically spent 96.5% of the adjusted budget for 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 10/6/2017 GENERAL FUND EXPENDITURE ANALYSIS (continued / department summaries): POLICE EXPENDITURE FY 2016-17 COMPARISON Operating Only 1st Qtr Jul - Sep 16 18,895,554 $ 19,000,442 27.1% 26.3% 2nd Qtr Oct - Dec 16 17,495,883 17,130,189 24.5% 23.6% 3rd Qtr Jan - Mar 17 16,096,212 15,231,472 21.8% 22.6% 4th Qtr Apr - Jun 17 17,495,883 17,488,782 25.0% 23.8% 69,983,532 $ 68,850,885 98.4% 96.3% Total $ FY 17 Actual Exp+Enc $ 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 98.4% of the FY 2016-17 adjusted budget and has historically spent 96.3% of the adjusted budget for the fiscal year, resulting in a positive performance indicator. For the second year, the Police Department's Adjusted Budget reflects additional budget appropriation transferred from both NonDepartmental personnel and Police Department restricted funds to cover overtime expenses incurred in excess of budget. 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 9,003,101 26.4% 24.2% 34,127,649 $ 33,709,596 98.8% 98.2% Total $ 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 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 98.8% of the FY 2016-17 adjusted budget and has historically spent 98.2% of the adjusted budget for 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 9/27/2017 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 $ 53,750,660 107% 99% Total Revenues $ 50,114,800 $ 53,750,660 107% 99% Operating Expenses $ 30,197,570 $ 27,143,168 90% 86% Major Capital Expenses 8,425,158 8,289,855 98% 3% Debt Service 14,255,008 14,255,008 100% 87% Transfers Out 3,376,446 3,376,446 100% 100% 94% 76% Total Expenses Net Rev / Exp POSITIVE $ 56,254,182 $ 53,064,477 $ (6,139,382) $ 686,182 WATER FUND ANALYSIS % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr Revenues Dollars in Millions FY 17 Adjusted Budget Expenses 57 56 55 54 53 52 51 50 49 48 47 FY16 Actual FY17 Actual 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. 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-end Operating Revenues are 107% of budget compared to 99% through for the prior fiscal year and Operating Expenses are 94% of budget compared to 76% for the prior fiscal year. 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. Year end results reflect a positive performance indicator. 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 48,216,851 111% 107% 2,181,588 97% 50% Total Revenues $ 45,526,474 $ 50,398,439 111% 100% Operating Expenses $ 20,585,953 $ 16,166,342 79% 78% 14,914,849 10,323,938 69% 82% 2,259,754 2,259,754 100% 0% Debt Service 14,463,696 14,463,695 100% 70% Transfers Out 2,444,782 2,444,782 100% 100% 84% 77% Major Capital Expenses Intel Exp/Payable WASTEWATER FUND ANALYSIS % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr Revenues 50 40 30 20 10 0 FY16 Actual Total Expenses Net Rev / Exp POSITIVE $ 54,669,034 $ 45,658,511 $ (9,142,560) $ 4,739,928 Expenses 60 Dollars in Millions FY 17 Adjusted Budget FY17 Actual 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-end Operating Revenues are 111% of budget compared to 100% for the prior year, while Operating Expenses are 84% of budget compared to 77% for the prior year. 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 this fund through the end of FY 2016-17. Year end results reflect a positive performance indicator. 15 10/6/2017 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 $ 15,803,065 103% 101% Total Revenues $ 15,392,682 $ 15,803,065 103% 101% Operating Expenses $ 13,721,132 $ 13,568,967 99% 93% Major Capital Expenses Transfers Out 755,854 724,785 96% 26% 1,003,867 1,003,867 100% 100% $ 15,297,619 99% 89% (88,171) $ 505,445 Revenues Expenses 18 15 Dollars in Millions FY 17 Adjusted Budget 12 9 6 3 Total Expenses $ 15,480,853 - Net Rev / Exp POSITIVE $ FY16 Actual FY17 Actual 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-end Operating Revenues are 103% of budget compared to 101% for the prior year, while Operating Expenses are 99% of budget compared to 89% for the prior year. Year end results reflect a positive performance indicator. 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 $ 951,904 % of Budget Rec'd/Exp'd % of Budget to Date Prior Yr 969,944 90% 89% 339,821 36% 37% 65% 65% Total Revenues $ 2,025,899 $ 1,309,764 Operating Expenses $ 1,067,598 $ 970,782 91% 90% 826,358 574,724 70% 31% Debt Service 26,563 26,563 100% 100% Transfers Out 105,380 105,380 100% 100% 1,677,449 83% 67% Major Capital Expenses Total Expenses Net Rev / Exp POSITIVE $ $ 2,025,899 - $ $ Revenues Expenses 2,100 1,800 Dollars in Thousands FY 17 Adjusted Budget 1,500 1,200 900 600 300 FY16 Actual FY17 Actual FY17 Budget (367,685) 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 Actual Net Revenue/Expenses of ($367,685) represents encumbrances being carried forward to FY 2017-18. 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-end Operating Revenues are 90% of budget compared to 89% for the prior year. Operating Expenses are 83% of budget compared to 67% for the prior year. Year-end operating expenses, debt service, and indirect costs reflect 92% of budgeted expenses in these categories, which is 2% more than Operating Revenues, resulting in a positive indicator. 16 10/6/2017 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 11,167,728 90% 1,807,300 1,798,080 99% 12,675,600 11,085,814 87% 24,051,622 90% 26,854,000 $ % of Budget Rec'd to Date $ FY 16 Actual FY 16 Adjusted Budget FY 17 Actual 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-end collections as compared to the FY 2015-16 budget and year-end collections. Collections for FY 2016-17 were 90% of the budget compared to the prior year's collections of 143% of budget. 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 6,319,174 52% 6,514,187 100% Library 135,400 132,590 98% Public Buildings 387,400 321,909 83% Police 1,020,800 862,935 85% Fire 1,540,700 1,316,145 85% 15,466,940 71% Total Impact Revenue $ 21,773,700 $ Dollars in Thousands IMPACT FEE FUNDS ANALYSIS FY 2016-17 COMPARISON FY 16 Actual FY 16 Adjusted Budget FY 17 Actual 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-end collections were 71% of the budget as compared to the prior year's collections of 193% of the budget. FY 2015-16 collections include permits for two large multi-family developments resulting in higher than normal collections. The FY 2016-17 Arterial Streets adjusted budget was inadvertently overestimated as a result of the spike in FY 2015-16, resulting in a signficantly lower percentage of budget received. 17 10/6/2017 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 16,683,743 106% 109% 163,081 114% 222% Total Revenues $ 15,863,459 $ 16,846,824 106% 110% Operating Expenses $ 9,820,645 $ 9,216,848 94% 96% Major Capital Expenses 2,994,961 2,994,775 100% 95% Debt Service 2,671,438 2,671,438 100% 100% 24,853 24,853 100% 100% 14,907,914 96% 96% 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 FY16 Actual Net Rev / Exp $ 351,562 $ FY17 Actual FY17 Budget 1,938,911 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. Year-end operating Revenues received are 106% of budget as compared to the prior year's collections of 110% of budget. Operating Expenses for FY 2016-17 are 96% of adjusted budget, the same percentage of operating expenses for FY 2015-16. Year end results reflect a positive performance indicator. GRANT FUNDS ANALYSIS FY 2016-17 COMPARISON GRANT REVENUES General Government* $ Community Services Neighborhood Res. CDBG & HOME HUD Municipal Utilities $ T & D - Streets $ % of Budget Rec'd to Date 1,185,027 31% 120,092 34,351 29% 10,000 17,236 172% 3,035,201 1,796,755 59% 12,519,442 7,723,979 62% 100,000 Public Safety Total Grant Revenue 3,827,932 FY 17 Actual Revenue - 0% 8,000 7,000 6,000 5,000 4,000 3,000 4,199,148 1,075,535 26% 2,000 11,871,507 7,583,816 64% 1,000 19,416,699 54% - 35,683,322 $ FY 16 Actual Revenue 9,000 Thousands FY 17 Adjusted Budget FY 17 Actual Revenue * 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 for FY 2016-17 were $19.4M as compared to $23.1M collected for FY 2015-16. 18 10/6/2017