1. General Fund Update Joe Lopez, Deputy City Manager Steve Christensen, Budget Manager Strategic Commitments

2. Strategic Commitments Slide 2 Agenda Fiscal Year End 2014-15Breakdown of Fund BalanceMajor Revenue Trends2014-15 Budget vs Actuals2015-16 Budget vs ActualsEmployer Contribution RatesRetiree Medical LiabilityBenefit Payment ProjectionsQuestions

3. Strategic Commitments Fiscal Year End 2014-15 Slide 3 Fiscal Year 2015 Beginning Fund Balance$19,914,847 Revenues$116,923,400 Capital Leases$1,070,472 Transfers In$1,009,392 Sale of Assets$53,339 Total Revenues$119,056,603 Expenditures$(107,035,589) Transfers Out$(7,004,745) Total Expenses$(114,040,334) Excess of Revenues Over (Under) Expenses $5,016,269 Prior Period Adjustment$(111,616) Ending Fund Balance$24,819,500

4. Strategic Commitments Slide 4 General Fund Balance Breakdown Fiscal Year 2015 Ending Fund Balance$24,819,500 Non-Spendable$(2,770,884) Restricted$(1,341,972) Committed (Emergency Reserves)$(3,000,000) Assigned$(3,119,753) Unavailable Fund Balance$(10,232,569) Starting Unassigned Fund Balance$14,586,931 Reserved for Bank of America Letter of Credit $(7,000,000) Unassigned Fund Balance $7,586,931

5. Strategic Commitments Slide 5 Unassigned Fund Balance – Major Appropriations to Date Amount Unassigned Fund Balance$7,586,931 Appropriations in FY 2015-16: Police Radios$1,755,316 MPMA MOU Agreement (One-Time)$242,338 10 th Street Improvements$190,714 Anti-Tagging Cameras$500,000 Remaining Unassigned Fund Balance$4,898,563

6. Strategic Commitments Slide 6 Total General Fund Revenues (CAFR)

7. Strategic Commitments Slide 7 Trends in Major Revenue Sources

8. Strategic Commitments Slide 8 Trends in Sales and Use Tax Sales Tax receipts through November 2016, are down $413k from the same time period in FY 2015.

9. Strategic Commitments Slide 9 FY 2014-15 Budget vs Actual Revenues

10. Strategic Commitments Slide 10 FY 2014-15 Budget vs Actual Expenses

11. Slide 11 FY 2015-16 Budget vs Actual Revenues *Actuals are as of 3.21.16 Revenue CategoryFY 2015-16 BudgetFY 2015-16 ActualsPercent Taxes: Property Tax - Property$13,515,210$8,260,10361.1% Property Tax - VLF Swap$14,083,984$7,155,43450.8% Sales Tax$30,047,332$12,317,49741.0% Utility Users Tax$20,056,157$12,075,44360.2% Transient Occupancy Tax$1,868,500$1,375,03173.6% Business License/Mill Tax$11,256,000$6,643,19359.0% Fees: Franchise Fees$4,206,884$2,538,26560.3% Motor Vehicle Fees$143,000$165,550115.8% Construction Revenues$2,042,000$1,256,73261.5% Departmental Revenues$15,783,088$10,211,06364.7% One-Time Revenues$1,600,000 100% Total General Fund Operating Revenues$114,602,155$63,598,31155.5% Strategic Commitments

12. Slide 12 FY 2015-16 Budget vs Actual Expenses *Actuals are as of 3.21.16 Department ExpensesFY 2015-16 BudgetFY 2015-16 ActualsPercent Police Department$57,658,616$37,153,83464.4% Fire Department$27,394,249$19,129,14069.8% Parks, Recreation and Neighborhoods$3,483,268$2,018,34057.9% Community and Economic Development$6,790,985$4,444,42665.4% Public Works$6,864,967$4,051,86259.0% City Council$413,137$288,09269.7% City Manager’s Office$1,728,609$1,328,19176.8% Human Resources$1,469,925$990,70167.4% City Attorney’s Office$1,777,558$1,237,36269.6% City Clerk’s Office$832,275$769,20592.4% Office of the City Auditor$220,399$62,12028.2% Finance Department$5,287,996$3,406,72564.4% Non-Departmental$616,001$161,71626.3% Total General Fund Operating Expenses$114,537,985$75,041,71465.5% Strategic Commitments To date, approximately 9 months have gone by or about 75% of the fiscal year.

13. Strategic Commitments Slide 13 General Fund Financial Forecast

14. Strategic Commitments Slide 14 Projected Employer Contribution Rate Increases (based on PERS actuarial valuation) MISC EmployeesNew RateProjected Future Employer Contribution Rates FY15/16FY16/17FY17/18FY18/19FY19/20FY20/21 Contribution Rates ‘1315.21%16.6%17.7%18.8%19.9%19.7% Contribution Rates ‘1417.29%19.0%20.8%22.5%22.9% Variance.691.32.02.63.2 SAFETY EmployeesNew RateProjected Future Employer Contribution Rates FY15/16FY16/17FY17/18FY18/19FY19/20FY20/21 Contribution Rates ‘1337.32%40.9%43.4%45.9%48.5%48.4% Contribution Rates ‘1441.22%44.8%48.3%51.8%52.7% Variance.321.42.42.34.3

15. Strategic Commitments Slide 15 Retiree Medical Liability 2011 Actuarial $104 million in unfunded liability in future retirement costs Annual Required Contribution to start funding this liability = $12 million 2013 Actuarial $78.2 million in unfunded liability in future retirement costs Annual Required Contribution to start funding this liability = $8.6 million 2015 Actuarial $31.7 million in unfunded liability in future retirement costs Annual Required Contribution to start funding this liability = $3.2 million

16. Strategic Commitments Slide 16 Change in Projected Benefits Payments

17. Strategic Commitments Slide 17 Questions?