EXECUTIVE Budget Plan

FISCAL YEAR 2017-2018 MESA, Executive Budget Plan

City of Mesa, Arizona for the Fiscal Year 2017/2018

Mayor John Giles

Councilmembers David Luna– Vice Mayor Mark Freeman District 5 District 1

Jeremy Whittaker Ryan Winkle District 2 District 3

Christopher Glover Kevin Thompson District 4 District 6

City Manager Christopher J. Brady

City of Mesa, Arizona Executive Budget Plan 2017/18 i Executive Budget Plan Tabl e of Cont ent s

Letter from the City Manager ------vi Letter from the Mayor ------viii Government Finance Officers Association Distinguished Budget Presentation Award ----- ix

City Leadership & Demographics City Organizational Chart ------1 City Council Strategic Initiatives ------2 Mayor and City Council ------4 City of Mesa Council Districts Map ------12 Welcome to Mesa, AZ ------13 Mesa By the Numbers ------17

Budget & Financial Summaries Introduction ------23 The Total City Budget: A Closer Look ------24 The Budget Cycle ------26 Fund Details ------29 Revenue Trends ------42 Expenditure Trends ------55 Bonds and Debt Service ------65 Budget Requirements and Limitations ------78 Table of Figures ------81

Project & Capital Budget Capital Budget Overview ------83 Capital Budget Categories ------84 Impact on Operating Budget ------90 General Government Projects ------97 Parks and Culture Projects ------99 Public Safety Projects ------104 Transportation Projects------107 Utilities Projects ------116 2017/18 Capital Budget by Funding Source ------127 2017/18 Capital Improvement Program Comparison by Funding Source ------129

City of Mesa, Arizona Executive Budget Plan 2017/18 ii Executive Budget Plan Tabl e of Cont ent s

Department Operational Plans

Department Operational Plans Overview ------131 City Expenditure Budget by Department and Fund ------133 City Expenditure Budget by Department and Category ------134 Arts and Culture ------135 Business Services ------149 Centralized Appropriations ------160 City Attorney ------165 City Auditor ------170 City Clerk ------174 City Manager ------178 Communications ------181 Community Services ------1 85 Contingency ------199 Development Services ------202 Economic Development ------208 Energy Resources ------213 Engineering ------225 Environmental Management and Sustainability ------230 Falcon Field Airport ------242 Financial Services ------246 Fire and Medical ------250 Fleet Services ------259 Human Resources ------264 Information Technology ------277 Library Services ------281 Mayor and Council ------285 Municipal Court ------289 Office of Enterprise Resource Planning (ERP) Management ------293 Office of Management and Budget ------296 Parks, Recreation and Community Facilities ------300 Police ------308 Project Management Program ------316 Public Information and Communications ------322 Transit Services------326 Transportation ------331 Water Resources ------336

City of Mesa, Arizona Executive Budget Plan 2017/18 iii Executive Budget Plan Table of Contents

Financial Schedules Fund Types ------347 Budget Basis of Accounting ------352 Summary of Estimated Revenues and Expenditures ------353 Summary of Tax Levy and Tax Rate Information ------354 Summary of Resources by Source ------355 Summary of Resources by Fund ------356 Summary of Revenues by Fund and Source ------358 Summary of Expenditures by Department ------370 Summary of Expenditures by Fund ------371 Summary of Expenditures by Fund and Department ------372 Summary of Expenditures by Department and Fund ------384 Other Financing Sources and Interfund Transfers ------403 Summary of Changes in Fund Balance ------404 Summary of Bond and Reserve Expenditures by Fund and Sub-Fund------406 Full-Time Employees and Personnel Compensation ------407 Personal Services Overview ------412 Summary of Expenditures by Object ------416 Transfers In and Transfers Out ------418

Outstanding Debt Service by Annual Period:

General Obligation Bonds ------419 Streets and Highway ------420 Utility Revenue ------421 Water Infrastructure Finance Authority Loans ------422 Excise Tax Revenue Obligations ------423

Financial Policies ------424

Resolution No. 10981 - Budget ------429 Resolution No. 10974 - Five-Year Capital Program ------437

Glossary of Terms ------440 Acronyms ------448

City of Mesa, Arizona Executive Budget Plan 2017/18 iv Fiscal Year 2017/18 Executive Budget Plan How to Use This Document

This Executive Budget Plan is meant to be a comprehensive, detailed source of information on City of Mesa departments and activi ties, and important financial information. The intended audience of this book are policy makers, City of Mesa employees and man agers, and, of course, the residents and businesses of Mesa. The summaries below will guide the reader through the various sections of the FY 2017/18 Executive Budget Plan. Table of Contents The table of contents allows the user to pinpoint the page of a part of the City’s Executive Budget Plan.

City Leadership & Demographics The City of Mesa takes pride in its economy, attractions and those who represent its citizens and business. In the City Leadership & Demographics section, you’ll find the Mesa’s social, economic, and demographic highpoints of the City. You’ll also find links to the various social and digital media pages highlighting City departments and services. Stay up to the minute on what the Mayor is Tweeting, or see what’s new at the Arizona Museum of Natural History.

Budget & Financial Summaries How does the city’s budget work? This section will answer that question, from the budget development and adoption process, to bonds and debts owned by the City, to sales tax forecasts. Descriptions of the City’s federal, state and local sources and revenues are described. Expenditure trends on personal services and citywide costs of staffing are shown. Expenditure and revenue highlights, bottlenecks, and forecasts are listed in this section.

Projects & Capital Budget The City of Mesa recognizes the need for public infrastructure to keep pace with the growth of the community and the needs of the City’s residents. Accordingly, the Capital Budget is designed to identify the most pressing public facility and infrastructure needs of the City. A comprehensive list of the City’s building and infrastructure projects, as well as descriptions of the City’s Capital Improvement Program is listed in this section. See if there’s improvements and developments near you!

Department & Operational Plans The City is made up of several different departments that work with the public, city leaders and each other to provide services. There are 30 departments with roughly 300 different operational activities that are a part of the overall service portfolio that the City offers its residents and businesses. In this section, performance measures, service details, and how they fit into the larger division of the City are featured by department. In addition to tracking performance, detailed financial information is logged such as fiscal year expenses and revenues, current budgets, and future budgets are also highlighted.

Financial Schedules This section includes details of where revenues to fund City activities come from (sources) and what the City does with those funds (uses). City of Mesa fund types and descriptions, and the budget basis of accounting used by the City. Schedules include revenues by source and fund, expenditures by fund, department, and object, fund transfers in and transfers out, and outstanding debt service by annual periods. The Final Budget as adopted by the Mayor and Council and City of Mesa Financial Policies is also includ ed in this section.

Glossary of Terms & Acronyms A glossary of terms is included to define frequently used financial and budget terms as they relate to the City operations. Fre quently used acronyms are also explicated.

City of Mesa, Arizona Executive Budget Plan 2017/18 v

v ii ii City of Mesa, Arizona vi Executive Budget Plan 2017/18 City of Mesa, Arizona vii Executive Budget Plan 2017/18 Dear Mesa Residents,

Looking to our next budget cycle and beyond, I’m pleased to report that Mesa remains in a time of explosive growth. With nearly five hundred thousand residents who now call Mesa home, we recently moved from 38th to 36th largest city in the country, eclipsing the likes of Atlanta and Kansas City. As a testament to that growth, Mesa has consistently been issuing more housing permits than any other city in the Valley, including Phoenix. These new residents and families strengthen our community and help to ensure Mesa remains one of the most dynamic cities to live and visit.

As Mesa continues to grow, it’s vital that our new and existing residents have what they need to prosper, including access to a good job and quality education. To that end, the City Council and I will continue to work to bring more great companies like recent additions Dexcom, Niagara Bottling, and Constant Aviation to Mesa. On the education front we remain committed to supporting institutions of higher education like the thriving Benedictine University in downtown Mesa, and I will redouble my efforts to work with the City Council, City staff, and the greater education community to provide additional options for Mesa’s youngest learners.

None of these efforts are truly successful without the input and support of residents like you. This year we are making it easier than ever to tell us what you think can be done to keep Mesa amazing. Called ‘Imagine Mesa,’ the citywide engagement campaign will provide Mesa residents with an opportunity to discuss, share, and promote ideas that take our community to the next level. Whether you want to see a new park, additional light rail, more places to hang out, or any other idea under the sun, I encourage you to take part in this campaign and let your voice be heard.

Whether we are welcoming new residents, adding world class businesses or creating more places to have fun, Mesa is on the move and will continue to be for the foreseeable future. I’m honored to be helping to guide our city on this path as your Mayor and now more than ever I’m excited for all the great things to come!

Sincerely,

John Giles Mayor

City of Mesa, Arizona viii Executive Budget Plan 2017/18 _ ... ., -�,

GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished J Budget Presentation Award PRESENTED TO City of Mesa Arizona For the Fiscal Year Beginning July 1, 2016

Executive Director

City of Mesa, Arizona ix Executive Budget Plan 2017/18 City of Mesa, Arizona x Executive Budget Plan 2017/18 & DEMOGRAPHIC City Leadership & CITY LEADERSHIP

Demographics S

BUDGET & FINANCIAL SUMMARIES

PROJECTS & CAPIT BUDGET

AL

OPERA DEP TIONAL PLANS ARTMENT

SCHEDULES FINANCIAL FISCAL YEAR 2017-2018 MESA, ARIZONA An Introduction to Mesa Leadership and Strategic Initiatives

About City Leadership The Mesa City Council believes its people are what Mesa operates under a charter form of government where citizens elect a non-partisan mayor and six make this City great, and actively work to encourage councilmembers to set policy for the City. Mesa's citizen participation in the decision-making process. councilmembers serve overlapping, four-year terms, Whether it’s through neighborhood meetings, adviso and the mayor is elected at-large every four years. The ry boards and committees, telephone calls, letters or e Council elects its own vice mayor, who oversees the -mail, the Mesa City Council sets policies based on the Council in their duties of approving programs, en input and needs of its citizens. City Council meetings acting laws, setting policy, and serving the citizens at large. are typically held on Mondays in the Council Cham bers on 57 E. First Street in Downtown Mesa.

1 Council Strategic Initiatives

A city as large and complex as Mesa makes it a practice to clearly articulate its strategic direction as well as utilize a system atic approach to translate long-range intent into actions. As such, the City Council has developed a series of “Strategic Initia tives,” or broad statements that serve as a key tool in guiding the City’s decision making. The City Council meets annually to discuss and refine their Strategic Initiatives. This year, the City Council has initiated a process to refresh the Strategic Initia tives to more accurately reflect the city’s desired outcomes. By the time of printing, this process has not yet been complet ed. Therefore, the following Strategic Priorities provide the framework for ongoing City Council discussions.

COMMUNITY SAFETY builds communities that are safe, healthy, and welcoming.

WORKFORCE DEVELOPMENT AND ENTREPRENEURSHIP encourages continuous learning, the attainment of job related skills, and pursuit of business crea tion.

SUSTAINABLE ECONOMY attracts and retains a diverse mix of business sectors that bring high quality jobs to Mesa.

STRONGER NEIGHBORHOODS, PLACEMAKING, AND DIVERSITY cultivates connections between neighbors to build resilient, welcoming, unique neighborhoods and gathering places.

WELL-MANAGED AND INNOVATIVE GOVERNMENT delivers outstanding government services to Mesa’s residents and businesses through a di verse, customer-driven organization that is responsive to City Council/community needs and priorities, and is responsible, innovative, and efficient. Meeting Citizen Need Through Council Priorities

The H.E.A.T. Initiative

One initiative that was built to meet the needs of the citizens is H.E.A.T.; an innovative and aggressive approach designed to attract high-paying jobs to the City of Mesa. H.E.A.T. is an economic development strategy that is designed to focus on attracting targeted industries to expand, relocate, or start a business in the City of Mesa.

The five targeted industries outlined in the H.E.A.T. initiative are:

During the past several years, the City of Mesa’s achievements through the H.E.A.T. initiative include attracting Santander Consum er USA, Dexcom, National General Lender Services, Apple’s Global Command Center, Dupont Fabros Technology, EuroContempo Cabinetry, Infineon, and Autoline Industries. The City has also assisted in the expansion of Special Devices, Inc. (SDI) and FUJIFILM Electronic Materials. Mesa’s enhanced efforts to revitalize the Fiesta District have resulted in the redevelopment and/or repositioning of more than 500,000 square feet of previously vacant space to high-end commercial property. Mesa continues to emphasize entrepreneurship, as Launchpoint, the City’s technology accelerator in downtown Mesa, is now home to 12 participating companies.

Other Notable 16/17 Accomplishments

Fire Station 203 Fiesta Sports Park and Dobson Ranch Playground

Mesa’s newest Fire Station, 203, is located at 324 S Fiesta Sports Park, located at 936 S. Extension Road, opened in November Alma School Rd. and replaces the original station at 2016 and features 4 new ballfields for youth baseball and softball, and a 1340 W University Drive. The project was funded from multi-use field with bleachers. The 17-acre park also includes a new the 2008 and 2013 Public Safety Bonds approved by playground with shade covering and enlarged parking lot. The Chicago Mesa voters. Cubs Charities and the Mesa Hohokam Foundation donated $100,000 to sponsor Fiesta Sports Park. The replacement station is approximately 12,000 sq. feet and contains 3 apparatus bays, 6 dormitory Dobson Ranch Playground, located at 2359 S. Dobson Road, opened after rooms for firefighters, 2 dormitory rooms for captains, renovations in December 2016 and is equipped with universally inclusive a Fire/EMS training/community room, and onsite fuel play structures designed to allow all children the opportunity to station. experience the park. Dobson Ranch playground is 10,000 square feet and includes ADA family restrooms, toddler expression swings, play areas for Fire Station 203 is the fifth fire station built in Mesa children who need quiet space, a 50-foot zipline, and shade structures. since 2009 using voter-approved bond money. Mayor and City Council

John Giles, Mayor TERM OF OFFICE: August 2014 - January 2020 MAYOR’S OFFICE: Phone: (480) 644-4002 Fax: (480) 644-2175 P.O. Box 1466 Mesa, AZ 85211-1466 E-Mail: [email protected]

John Giles was elected the 40th Mayor of Mesa, Arizona in August, 2014. He was re-elected in August 2016 and began his first full four-year term in January 2017. Mayor Giles is committed to taking Mesa to the next level with his NextMesa vision. Mayor Giles has overseen a growing economy that added thousands of new jobs, new employers like Apple, Textron Aviation and Dexcom and over $1.5 billion in new capital investment. He is bringing renewed focus and attention to Mesa’s downtown resulting in a budding creative economy with new businesses and entertainment options. Mayor Giles believes education is one of Mesa’s core values and remains committed to expanding higher education and pre kindergarten options in the city. Recognizing these efforts and more, Money.com, a subsidiary of Time Magazine, named Mesa the best big city in the Southwest. Born and raised in Mesa, Mayor Giles earned degrees from Brigham Young University in Political Science and Arizona State University’s Sandra Day O’Connor College of Law and has managed his own law firm in downtown Mesa for more than 20 years. Mayor Giles is an active marathoner and triathlete who has completed two full Ironman competitions, 20 marathons and four Boston Marathons. Mayor Giles and his wife Dawn have been married for more than thirty years. They have five children and five grandchildren. Mayor and City Council

Mark Freeman, Councilmember District 1

TERM OF OFFICE: June 2, 2017 - January 2021 COUNCIL OFFICE: Phone: (480) 644-4002 Fax: (480) 644-2175 P.O. Box 1466 Mesa, AZ 85211-1466 E-Mail: [email protected]

Elected to the Mesa City Council in August 2016, Councilmember Mark Freeman began his first term representing District 1 in January of 2017. His term on the Council runs until January of 2021.

Freeman’s Mesa roots run deep, as his ancestor, Charles Crismon, was one of the founding fathers of Mesa. His family has farmed in the Val ley since 1878 and Freeman continues that tradition today, growing alfalfa and sweet corn and running a summer farmer’s market at Brown and Center Street. In addition to farming, he spent 31 years with the Mesa Fire and Medical Department as a Captain Paramedic before retiring in 2011.

Mark has always been active in the community, serving on the Mesa Board of Adjustment as well as serving as the Lehi area Board President for 12 years. In addition, he has been involved with the Maricopa County and Arizona Farm Bureau organizations for many years.

Mark has lived in Mesa for 61 years. He and his wife, LeeAnn, have been married for 38 years and have a strong family value, with great love for their 3 children and 8 grandchildren. His oldest son is currently serving in the U.S. Air Force as a Captain. Their other children reside in Mesa.

Council Committees Audit, Finance and Enterprise- Chair Public Safety Self Insurance Board of Trustees- Council Representative

Arizona Boards and Committees Mesa Board of Adjustment Lehi Area Board of Directors- President Maricopa County Farm Bureau Arizona Farm Bureau

5 Mayor and City Council

Jeremy Whittaker, Councilmember District 2

TERM OF OFFICE: January 2017 – January 2021 COUNCIL OFFICE: Phone: (480) 644-5295 Fax: (480) 644-2175 P.O. Box 1466 Mesa, AZ 85211-1466 E-Mail: [email protected]

Elected to the Mesa City Council in November of 2016, Councilmember Jeremy Whittaker began his first term representing District 2 in January of 2017. His term on the Council runs until January of 2021. Whittaker is the founder and president of Velocity Technologies, a technology solutions company for small to medium size businesses. He has worked in the IT consulting and technology industry for more than 15 years, owning his own firm since 2004. For the past five years Whittaker has been a member of the Vista Villages II Home Owners Association Board of Directors, including four years as the Vice President. He also has served as an Adjunct Faculty member for South Mountain Community College, teaching a course on creating profitable strategies for trading the currency market on a fully automated basis. Whittaker’s family moved to Arizona more than 20 years ago, and he and his wife Roshana have lived in Mesa since 2005.

Council Committees Economic Development- Chair Sustainability and Transportation Arizona Museum of Natural History- Council Representative Mesa Arts Center Foundation Board- Council Representative Mayor and City Council

Ryan Winkle, Councilmember District 3

TERM OF OFFICE: June 2, 2008 - January 2020 COUNCIL OFFICE: Phone: (480) 644-3003 Fax: (480) 644-2175 P.O. Box 1466 Mesa, AZ 85211-1466 E-Mail: [email protected]

Elected to the Mesa City Council in August 2016, Councilmember Ryan Winkle began his first term representing District 3 in January of 2017. His term on the Council runs until January of 2021.

Winkle is one of the co-founders of the Mesa Urban Garden, a community organization that provides fresh produce directly to the community and local food banks. He was a key voice behind turning an empty dirt lot into a point of pride for Downtown Mesa. He is also a co-founder of RAILMesa, a registered neighborhood group that advocates for increased citizen participation, responsible development of housing, transit options and the creation of quality jobs along Mesa’s Light Rail Corridor.

Winkle works as a Community Economic Development Consultant, dealing with underserved communities around the East Valley in the are as of housing options, workforce development, neighborhood revitalization, public outreach and transit-oriented development.

Winkle holds both a Bachelor of Arts in Sustainable Urban Dynamics and a Bachelor of Sciences in Urban Planning from Arizona State University and a Masters of Business Administration from Wilkes University Mesa. Raised in Mesa, Ryan and his wife Ericka have one son, Rian Erick. Council Committees Community and Cultural Development- Chair Economic Development MAG Human Services Coordinating Committee- Council Representative City Benefits Advisory Committee- Council Representative Mesa Sister Cities- Council Representative Mesa United Way- Council Representative

Arizona Boards and Committees Maricopa Integrated Health Services Governing Council East Valley Filipino American Business Chamber of Commerce - President Former member and Chair - Mesa Historical Museum Board of Directors AAED Tribal Economic Development Committee ABAKA Foundation Advisory Board

7 Mayor and City Council

Christopher Glover, Councilmember District 4

TERM OF OFFICE: January 24, 2011 - January 2019 COUNCIL OFFICE: Phone: (480) 644-3004 Fax: (480) 644-2175 P.O. Box 1466 Mesa, AZ 85211-1466 E-Mail: [email protected]

In 2011 at age 23, Chris Glover became the youngest person ever elected to the Mesa City Council. He served as Vice Mayor from April 2014 to January 2015 and is serving his second term as District 4 Councilmember. His term runs through January of 2019.

He is currently serving his sixth term on the National League of Cities’ Finance, Administration and Intergovernmental Relations Steering Committee and is in his sixth term on the National League of Cities’ Council on Youth, Education and Families. He is also a member of the National League of Cities Board of Directors. He is the youngest member of the board and is one of only three representatives from Mesa to serve on the NLC Board of Directors. Councilmember Glover is very active in the community, serving on the Board of Directors for the Barry and Peggy Goldwater Center for Democracy, the Child Crisis Arizona, the Downtown Mesa Association and A New Leaf, among others. He is the City of Mesa Public Safety Committee Chair and sits on the Audit, Finance and Enterprise Committee.

Councilmember Glover holds a Master of Science in Management from the W.P. Carey School of Business at Arizona State University. While completing his B.S. in Political Science at Arizona State University, Glover earned degrees in History and Spanish, certificates in Latin American Studies and International Studies, and was a Capitol Scholar and Junior Fellow. He also served as an intern in Washington, D.C. for Senator John Ensign (R-Nevada). Glover also studied at Universidad de Torcuato di Tella in Buenos Aires, Argentina.

He currently serves as an Adjunct Professor in the Business Department at Mesa Community College, served as the assistant program director of the EU Study Abroad program for Maricopa Community Colleges, an Associate Professor at Arizona State University and an Associate Professor at Northern Arizona University. Past Board and Committee Memberships Council Committees Arizona Museum for Youth Public Safety- Chair Arizona State Citizen Corp Council Audit, Finance and Enterprise Mesa YMCA Paz de Cristo National Boards and Committees Arizona Boards and Committees National League of Cities Board of Directors Valley Metro Regional Public Transit Authority- National League of Cities Council on Youth, Education and Families Council Representative National League of Cities Finance, Administration and Intergovernmental Relations Metro Rail- Council Representative Com mittee Visit Mesa Board - Council Representative Downtown Mesa Association - Council Repre sentative Community Bridges, Inc. Board Child Crisis Center Mesa Community Action Network Benedictine University at Mesa Academic Board Mayor and City Council

David Luna, Vice Mayor District 5

TERM OF OFFICE: September 2013 - January 2019 COUNCIL OFFICE: Phone: (480) 644-3771 Fax: (480) 644-2175 P.O. Box 1466 Mesa, AZ 85211-1466 E-Mail: [email protected]

The first Hispanic to serve on the Mesa City Council, David Luna was appointed to fill the vacant District 5 seat in September of 2013 before winning election for a full term in August of 2014. He was named the Vice Mayor on January 23, 2017. His term on the Mesa City Council runs until January of 2019.

Vice Mayor Luna is an active member of numerous boards and committees not only locally, but nationwide. He has been an active member of the National League of Cities since taking office. He was named chair of the Information Technology and Communication Committee for 2017 after serving as Vice Chair of the committee in 2016. He serves with Councilmember Chris Glover on the NLC Board of Directors and is also a member of the NLC Hispanic Elected Local Officials Board of Directors. Locally, Luna is the chair of the Mesa Community College at Red Mountain Community Advisory Committee and was the past chair of the City of Mesa Human Relation Advisory Board.

Luna works as a Community Outreach Specialist for Mesa Public Schools. Luna spent 27 years as the Director of Education Television for Mesa Public Schools, directing and managing channel 99 and edtv99.org. He also spent time as an adjunct professor for both Arizona State University and Mesa Community College.

Luna has also been recognized for his community involvement with numerous awards, including the Mesa United Way Volunteer of the Year Award in 2006, the City of Mesa National Emergency Preparedness Recognition in 2007, the National Academy of Television Arts and Sciences Silver Circle Society, the NAACP East Valley Chapter Humanitarian Award in 2008, Arizona Hispanic School Administration's Outstanding Administrator Award in 2008, the Valle del Sol Hall of Fame Award in 2011 and the Mesa United Way Spirit of Mesa Award in 2012. He was also named the City of Mesa's Citizen of the Year in 2012.

Luna began his career in broadcasting in Tucson, working as a camera operator and floor director for KVOA Channel 4 and with the Tucson Unified School District as a video/media specialist before joining Mesa Public Schools. He earned his Bachelor of Arts in Radio/ Television from the University of Arizona in 1979, a Master of Mass Communication from Arizona State University in 1999 and his Doctorate in Educational Leadership from Northern Arizona University in 2012. He is also a 2002 graduate of the Mesa Leadership Training and Develop ment program.

David is married to Hilda Luna, Director of Nursing Services at University of Arizona Cancer Center at Dignity Health. They have two adult daughters, Melina Smith and Marissa Luna, and two grandchildren, Sophia and Henry Smith. Mayor and City Council

David Luna, Vice Mayor

Council Committees Audit, Finance and Enterprise Community and Cultural Development Sustainability and Transportation

National Boards or Committees National League of Cities Information Technology and Communications Committee - Chair National League of Cities Hispanic Elected Local Officials Board of Directors National Association of Latino Elected & Appointed Officials

Arizona Boards and Committees Arizona Museum for Youth Friends - Council Representative Maricopa Association of Governments Economic Development Committee City of Mesa Benefits Advisory Committee - Council Representative i.d.e.a. Museum Board of Directors - Council Representative Mesa Association of School Administrators Mesa Senior Services Mesa United Way A New Leaf United Food Bank Mesa Community Action Network Mesa Association of Hispanic Citizens Mesa Community College Commission on Excellence Mesa Counts on College Mesa Rotary International Latino Town Hall (Past Co-Chair) City of Mesa Day Labor Task Force City of Mesa Human Relation Advisory Board (Charter Member and Past Chair) Mesa Community College at Red Mountain Community Advisory Committee (Chair) Mayor and City Council

Kevin Thompson, Councilmember District 6

TERM OF OFFICE: January 2015- January 2019 COUNCIL OFFICE: Phone: (480) 644-3771 Fax: (480) 644-2175 P.O. Box 1466 Mesa, AZ 85211-1466 E-Mail: [email protected]

Elected to the Mesa City Council in August 2014, Councilmember Kevin Thompson began his first term representing District 6 in January of 2015. His term on the Council runs until January of 2019.

Thompson serves as the Chair of the Council Sustainability and Transportation committee and also sits on the Council Economic Development committee. He is very active in the community, serving on the Board of Directors for the Mesa Chamber of Commerce and the Centers for Habilitation. He was a member of the Military and Veterans Affairs Committee at the Arizona Chamber of Commerce, is the past chair of the Government Affairs Committee for the American Public Works Association and the chair of the National Utility Contractors Association. He is also the secretary of the Tonto Recreation Alliance.

A veteran of the , Thompson spent eight years in the service, including serving in Operation Desert Storm. He earned a bachelor's degree in Mechanical Engineering from the University of Nevada-Las Vegas and is a 2012 graduate of the Mesa Leadership Training and Development program. Thompson is the principle owner of his own consulting firm. Kevin and his wife Donna have two children. Council Committees Past Board and Committee Memberships Sustainability and Transportation - Chair Arizona Chamber of Commerce Military and Veterans Public Safety Affairs Community and Cultural Development American Public Works Association Government National Boards and Committees Affairs Committee - Chair National League of Cities Community & Economic Development Arizona Utility Contractors Association - Chair Committee American Public Gas Association's Public Gas Policy Council

Arizona Boards and Committees United Food Bank Mesa Chamber of Commerce Centers for Habilitation Mesa Arts Center Self Insurance Board of Trustees - Chair Tonto Recreation Alliance - Secretary Arizona Municipal Water Users Association AZ League Budget, Finance and Economic Development Policy Committee

11 City Council Representative Population Est. District 1: Mark Freeman 79,234 District 2: Jeremy Whittaker 76,712 District 3: Ryan Winkle 77,309 District 4: Christopher Glover 78,438 District 5: David Luna 82,851 Figure 1: Mesa Council Districts District 6: Kevin Thompson 77,279

City of Mesa, Arizona 12 Executive Budget Plan 2017/18 Welcome to Mesa, Arizona

Located in the Phoenix Metropolitan Area and boasting nearly half a million residents, Mesa stands-out as a truly unique place to live, work, and play. Residents choose Mesa due to the high quality of life, exciting economic development opportunities, and unique cultural amenities.

Incorporated in 1883, Mesa has grown from a small, farming community to the 36th largest city in the United States (larger than Atlanta, Miami, and St. Louis). Mesa is the second largest city in the Phoenix Metropolitan Area, but truly stands on its own. In 2015, Money Magazine declared Mesa the “Best City in the Southwest”. Mesa is home to nearly five dozen community parks, four libraries, and several colleges. In August 2015, light rail was extended to Downtown Mesa, enhancing transportation options of residents and encouraging economic development in the downtown region. Mesa is also home to the award-winning Mesa Arts Center, which hosts over 400,000 visitors per year.

The economy of Mesa is thriving, with many companies recently relocating or expanding existing operations. In the last year, American Traffic Solutions, Santander Consumer USA, and Dexcom each announced major expansions that are projected to create over 500 jobs. Connect to Mesa

Watch Mesa at Work

City Council Meetings and Study Sessions, Board and Committee Meetings, and other formal assemblies are the essence of policy- making at the City. Because these meetings are so significant to the citizens and businesses of Mesa, we make every effort to have public meetings accessible in both live and archived formats on the City’s own YouTube Channel – Mesa 11. For a schedule of important items on upcoming agendas, visit our meeting calendar on the City’s Legistar page.

Like, Friend, and Share Mesa!

As more people and businesses move online, so too have the service providers at the City of Mesa. From City Council members to the Arizona Museum of Natural History, citizens can connect to the City via any one of the dozens of Social & Digital Media pages that various City departments and elected officials have on Facebook, Twitter, YouTube, and others.

Want to preview the next art Always late for work? Get traffic Stay well-read by following the exhibit? Check out the Mesa updates via Facebook from the Mesa Library on Twitter. Arts Center on Instagram. City’s Transportation Depart ment. Mesa History

Figure 2: Mesa History

City of Mesa, Arizona 14 Executive Budget Plan 2017/18 Mesa Today: A Great Place to Live, Work, and Play

Education– Advancing into the Future

Operating under the mission of “developing a highly educated and productive community, one student at a time”, Mesa Public Schools is the largest school district in Arizona and the 59th largest in the country with nearly 65,000 students. In 2016, 40 Arizona schools were named A+ Schools of Excellence, including a record-tying nine schools from Mesa. This was the second year in a row that Mesa Public Schools had nine A+ schools recognized.

There are currently more than 40,000 students enrolled in higher education in Mesa at schools including: Arizona State University (ASU) Polytechnic, Mesa Community College, Northern Arizona University Mesa Campus, A.T. Still University, Benedictine Universi ty, Wilkes University, and Upper Iowa University. Getting students to college is a top priority for the City. Mesa now has a free full-service college access center for students and their families called Mesa Counts on College, with a mission to double the num ber of students in Mesa who complete their post-secondary credentials.

Tourism– A Desert Retreat

With 325 sunny days a year and a picturesque desert landscape, it is easy to see why Mesa is a top tourist destination. In 2014, 40.7 million people visited Arizona and collectively spent $20.9 billion in the State, which equates to approximately $57.3 million a day.

Mesa is surrounded by the Superstition Mountains and the Tonto National Forest, which provide a multitude of outdoor recreation opportunities.

Mesa is also home to two major league baseball spring training facilities. The Oakland A’s averaged 6,700 fans this past season in their 10,000 capacity Hohokam Stadium. Newly established Sloan Park, the World Series Champion Chicago Cubs’ spring training facility, boats a capacity of 15,000, the largest in the Cactus League, and was filled to capacity the entirety of this spring training season. The Chicago Cubs, who continue to be the most popular team by attendance in the Cactus League, will be a permanent fixture in Mesa for the next 30 years.

In addition to baseball, Mesa is a world-renowned destination for golf. Mesa boasts more than 40 courses, including one municipal course, Dobson Ranch Golf Course, but the options are endless for golfers of all experience levels to enjoy. Courses include designed layouts from Jack Nicklaus, Peter Dye and Robert Trent Jones, Jr. Arizona attracts nearly 12 million rounds of golf each year, and the industry took in nearly $4 billion in revenue in 2016.

15 Mesa Today: A Great Place to Live, Work, and Play

Art and Music: Imagination and Creativity

Mesa has a number of cultural amenities, including the internationally-acclaimed Mesa Arts Center in downtown Mesa, the i.d.e.a. Museum, and the Arizona Museum of Natural History. The Mesa Arts Center is the largest arts center in Arizona, and includes three buildings, a 5,500 square foot exhibition space, four theaters including a 1,600 seat theater, and an area for 14 visual and performing art studios. With an annual attendance of more than 450,000 people, the Mesa Arts Center’s unique and captivating space draws a variety of artistic talent from local aspiring artists to world-class professional touring entertainment. For concert goers who want an outdoor environment, the Mesa Amphitheatre is just minutes away. The Mesa Amphitheatre is a tiered lawn venue with enough space for big acts but still intimate enough for everyone to have a great view of the stage.

In addition, Mesa has a number of other sites and sounds for residents and tourists alike. Airbase Arizona of the , which is located at Falcon Field, displays a multitude of aircrafts from World War I to the War, and the organization even gives patrons an opportunity to fly in a restored B-17 bomber. Kids and adults can visit the Arizona Museum of Natural History to uncover the origins of dinosaurs or they can discover their inner Picasso at the i.d.e.a. (imagination, design, expe rience and art) Museum. At night, visitors can stroll through the Mesa Arizona Temple Gardens and experience breathtaking dis plays light displays during the winter holidays.

Transportation: Choose Your Path Light Rail: Always on the Move The 2015 completion of the 3.1 mile extension of Valley Metro Light Rail down Main Street, which added four new stations throughout Central Mesa, has beat initial projections and currently averages over 6,000 riders a day, which equates to over 1.1 mil lion riders for the first six months of 2016. Due to the high volume of riders in the Mesa area, future extensions to Gilbert Road, including a park-and-ride lot and transit center at Gilbert Road, and a roundabout at Horne Drive and Main, are in the planning stages and currently scheduled to be completed in 2018.

Airports: Easy Getaways Mesa features two airports: Falcon Field and Phoenix-Mesa Gateway. The airports contribute to Mesa’s diverse industrial portfolio in aerospace, defense, aviation and other high tech industries while giving residents flexibility in their travel options. The Phoenix- Mesa Getaway airport enables travelers to fly to and from more than 38 destinations. Estimates state that the Phoenix-Mesa Gateway Airport generates more than $1.3 billion in total economic benefits and supports over 10,000 jobs in the region.

16 Mesa by the Numbers A Demographic Summary Figure 3 Growth Over Time (Square Mileage)

119.23 128.14 138.36138.36

66.22

20.36 14.19 6.39 Figure 4 2.33 Top 5 Mesa Land Use 1

Figure 5 Selected Mesa Statistics Sources: 2010 US Census, Maricopa Association of Governments 17 Mesa’s Residents Figure 6 Population Growth from 1990-2016 484,587 458,860 439,041 455,310 397,760

288,091

Figure 7 Population by Council

District 1990 2000 2010 Est. 2014 Est 2015 Est 2016

20 to 44 154,139

45 to 64 Figure 8 108,704 5 to 19 Educational Attainment 92,994 65 and over 71,455 Figure 9 Under 5 Population by Age 31,568 (2015)

Sources: 2010 US Census, Maricopa Association of Governments

18 Awarded a $3.4B U.S Army contract Mesa Employment in March 2017 to construct and mod ernize Apache helicopters

Figure 10 Top 10 Mesa Employers

Retail 18,835

Figure 11 Education Top 10 Largest Employment 13,090 Sectors (by # of Employees)

Construction 8,883 Transportation & Distribution 6,649 Hospitality, Tourism & Recreation 3,252

Health Care Services Consumer Services Government, Social & Business Services Finance, Insurance 18,894 14,049 Advocacy Services 8,425 & Real Estate 19 10,094 5,084 663 City of Mesa Community Profile Aircrafts As of July 1, 2016 (Numbers collected on an annual basis) 270,702 Annual Flights 49,743 1,053 Rescues or Emergencies Total Fires 4 Library Facilities 404 20 Sworn Firefighters– FTE’s Fire Stations 122,810 4 Registered Borrowers Recreation Centers 3,475,006 Materials in Circulation 65 Parks 9 27,476,313 Pools Water Sales (Thousands of Gallons) 1,901 Developed Park Acres

1,311 437 Miles of Natural Gas Civilian Staff– FTE’s 8 Lines 16,854 Police Stations Electric Bills 1,781 Miles of Wastewater Lines 751 302,825 Sworn Police– FTE’s Calls for Service 236,849 Refuse Collected (tons) 20,602 Green Waste Recycla- 423 bles (tons) 35,499 Miles of Storm Drains Recyclables Collected 1,427 (tons) Miles of Paved Roads Table of Figures

Figure 1: Mesa Council Districts ...... 20 Figure 2: Mesa History ...... 22 Figure 3: Growth Over Time (Square Mileage) ...... 25 Figure 4: Top 5 Mesa Land Use ...... 25 Figure 5: Selected Mesa Statistics ...... 25 Figure 6: Population Growth from 1990-2016 ...... 26 Figure 7: Population by Council District ...... 26 Figure 8: Educational Attainment ...... 26 Figure 9: Population by Age (2015) ...... 26 Figure 10: Top 10 Mesa Employers ...... 27 Figure 11: Top 10 Largest Employment Sectors (by # of Employees) ...... 27

City of Mesa, Arizona 21 Executive Budget Plan 2017/18 City of Mesa, Arizona Executive Budget Plan 2017/18 & DEMOGRAPHIC Budget & Financial CITY LEADERSHIP

Summaries S

BUDGET & FINANCIAL SUMMARIES

PROJECTS & CAPIT BUDGET

AL

OPERA DEP TIONAL PLANS ARTMENT

SCHEDULES FINANCIAL FISCAL YEAR 2017-2018 MESA, ARIZONA Budget & Financial Summaries

Introduction The Budget & Financial Summaries section is divided into four subsections:

1. The Total City Budget: A Closer Look: provides a summary of the Fiscal Year 2017/18 Adopted Budget, the Budget Process and a closer look at the funds that comprise the budget.

2. Expenditure & Revenue Trends: provides expenditure trends the City has encountered in recent years, as well as revenue trends that support the City’s operating costs.

3. Bonds and Debt Service: provides a summary of the different bond types and their limits as well as debt policy and debt service information.

4. Budget Requirements and Limitations: provides an overview of the budget requirements and limitations, City financial policies, and legal deadlines.

City of Mesa, Arizona 23 Executive Budget Plan 2017/18 Budget & Financial Summaries

Total City Budget: A Closer Look

Fiscal Year 2017/18 Budget

This section provides a broad overview of the funds, resources, and expenditures that comprise the Fiscal Year (FY) 2017/18 Adopted Budget. Special attention is focused on General Governmental Funds, as these funds contain many of the core services on which Mesa residents depend, including public safety, libraries, and parks. Additionally, expenditures and revenue trends are highlighted to show the challenges and opportunities facing Mesa.

Using historical information and current state and local economic climates, the Office of Management and Budget and City Manager’s Office developed and proposed a comprehensive, citywide annual budget. This budget aligns with the Mayor and Council’s Strategic Initiatives and continues the City’s commitment to providing quality services to residents in a fiscally responsible manner.

As is described in detail in The Budget Cycle section in following pages, City Council Study Sessions are held to discuss the proposed budget and for various City departments to present their FY 17/18 budgets, and respond to budget and financial questions from the City Council.

FY 17/18 Highlights Based upon the thorough work of the Office of Management & Budget, detailed City Manager and Department Meetings, and numerous City Council Study Sessions, the specific areas of emphasis in the FY 2017/18 budget are: • Continuing Search for Cost Containment – The City has set a goal to align ongoing expenses with ongoing revenues to ensure that quality services and programs can be continued in the future. The FY16/17 budget was set without specific department reductions. Departments were asked to operate with targeted savings of 2%. This allowed for flexibility over the year to take advantage of operational savings opportunities rather than specifying reductions up front. Due to forces outside the City’s control, the widened funding gap for FY17/18 requires City action to ensure sustainability of services. The City formulated a plan that reduced the FY17/18 projected gap by about 50%. • Public Safety – The City of Mesa Fire & Medical Department and Police Department sworn employees contribute to the Arizona Public Safety Retirement System (PSPRS), to which the City is obligated to contribute employees’ retirement and to reduce the unfunded liability. For various reasons, the City’s contribution amount will increase by an estimated $12 million dollars in FY 17/18. • Personnel – Nearly three quarters of the City’s operational costs in the General Governmental Funds fund employees to provide services to City of Mesa residents and businesses. To work towards and maintain the financial stability of the City, there are several measures that the City has taken as it relates to personnel: o Limiting “Step Pay” Increases – Pay ranges for positions within the City operate with minimum and maximum amounts. Movement through the pay ranges are progressive

City of Mesa, Arizona 24 Executive Budget Plan 2017/18 Budget & Financial Summaries

involving “Steps” and are reviewed on an annual basis during an employee’s performance review. Funding availability is determined on an annual basis, and since FY 12/13, the City has funded up to a 5% step increase for employees. The FY17/18 budget, includes a 3% step increase. o Public Safety Civilianization – Sworn public safety personnel costs, as with most municipalities in the state, continue to rise. 15 Police Department full-time equivalents (FTE) and one Fire & Medical Department FTE were identified as eligible to transition to civilian rather than sworn positions. These conversions will equate to roughly $1.0 million in cost avoidance for FY 17/18. Currently sworn employees performing these duties will be reassigned to other budgeted positions. o Repurposing Staff to Core Services – Existing resources are continuously evaluated and repurposed to maintain the City’s core services. The Fire & Medical Department has identified six sworn personnel that will repurposed from support duties to first responder duties. o Elimination of Positions – A total of 16.5 FTE have been identified for reduction in FY 17/18. Twelve positions are in the Police Department, three and a half FTE are in the Information Technology Department, and one is in Business Services. Six Police Department FTE are sworn, while six are civilian positions. • Fees & Utility Rate Adjustments – Several fees for City services have been marginally increased to adjust for costs of service delivery. In FY 17/18, the Municipal Court increased revenue estimates by $750k through Fines/Fees and Restitution Enforcement (FARE) Program collections and increased photo enforcement filings. The Arts & Culture department are expected to increase revenues $259k higher than last year, due in part to slightly increased rental rates. Parks, Recreation and Community Facilities is also expected to have increased revenues of $100k in FY 17/18. • Infrastructure Investment – The City is committed to providing the infrastructure necessary to serve residents and businesses in our community and encourage further economic development. The Adopted Budget, including carryover requests from FY 16/17 to FY 17/18, includes a capital improvement budget of approximately $339.4 million.

The Budget Cycle For Mesa, the budget process is a continuous process that requires planning, maintenance, and review. Figure 1 outlines the steps in the budget cycle starting with forecasting revenues and expenditures. Below Figure 1 is a description of the steps in the annual Budget Cycle in more detail.

City of Mesa, Arizona 25 Executive Budget Plan 2017/18 Budget & Financial Summaries

12. Departments 1. Forecast 2. City Council Review Progress Revenues and Reviews Strategic Toward Achieving Expenditures Priorities and Plan Desired Establishes Budget Outcomes Priorities

3. Base 11. City Budget Council Adopts Guidelines Final Budget Operational Planning is Established

4. Departments 10. City embedded throughout the Prepare Council Seeks Operational Public Input budget process and continues Plans during the year 5. Departments 9. City Council Submit Base Establishes Budget and Tentative Funding Budget Requests 6. OMB/City 7. City Council Manager Review 8. City Manager Reviews Submits Department Department Budgets and Budget to City Budgets and Council Performance Signficant Plans Issues Figure 1: The Budget Cycle

1. Forecast Revenues and Expenditures Annually, prior to the start of the budget process, the Office of Management and Budget (OMB) prepares a preliminary multi-year forecast of revenues and expenditures. The forecast process is the City’s best effort to understand and predict its financial future. Historical trends, current events, and predictions of future economic indicators are incorporated into the forecast. An accurate and comprehensive forecast process helps prepare for potential adverse events and circumstances. It provides a framework that assists Mesa’s elected officials and executive team in making important decisions about the direction of the City.

Analyzing historical financial data allows for the identification of seasonal patterns. The data provides context to the City’s current financial state. Historical data helps the City anticipate when, and to what extent, to expect different revenues and expenditures during the fiscal year. Once identified, these patterns are considered in relation to current events on the national, state, and local levels. Federal fiscal policy, state budget decisions, and local housing permit levels are all examples of factors that impact the City’s budget.

In addition, data predicting future economic trends is incorporated into the City’s forecast model. Through a partnership with the University of Arizona’s Eller College of Management, the City analyzes a variety of economic factors predicted for the next thirty years. These long-term factors, along with an understanding of current and past conditions, provide a framework for the forecast.

City of Mesa, Arizona 26 Executive Budget Plan 2017/18 Budget & Financial Summaries

While preparing a forecast generally follows an annual schedule, it is also a continuous process. Forecasting models and the information on which they are based are constantly updated to provide the best forecast possible. City staff works to supply the Council and City Manager with accurate information from which the best decisions can be made.

The forecast of revenues and expenditures will be discussed further in the Revenue and Expenditure trends portion of this section.

2. City Council Reviews Strategic Priorities and Establishes Budget Priorities An updated forecast is presented at a strategic planning workshop held with the City Council, City Manager, and the City’s Executive team. The purpose of the workshop is to review the City’s long-term strategic priorities, provide updates to Council on the status of the current fiscal year’s initiatives, and receive direction from Council on priorities for the upcoming budget cycle.

3. Base Budget Guidelines Established Based on forecasted City resources, departments are allocated a portion of those resources to fund their operations. Typically, a department is allocated an amount equal to the previous year’s ongoing budgeted expenditures plus any change in personnel costs.

4. Departments Prepare Operational Plans Departments develop annual operational plans that identify the planned work (action plan), and the personnel, materials, and capital items needed to conduct that work for one year. The operational plan identifies who will do what and with what resources. These plans identify a means to evaluate progress and achievement of desired outcomes. The plans are presented in the Department Operational Plans section of this document.

5. Departments Submit Base Budget and Funding Requests A department allocates its base budget to core business processes based on the resources apportioned to the department each year. Departments submit to the City Manager, through OMB, requests for additional resources. The requests can be for one-time or on-going budget increases. Based on available funding and Council priorities, the City Manager may recommend additional funding in base budgets.

6. OMB/City Manager Review Department Budgets and Performance Plans OMB and the City Manager review the budget submissions to ensure that Council priorities are followed, legal regulations are adhered to and City functions are properly supported. Budget submissions are reviewed for alignment with available resources.

7. City Council Reviews Department Budgets and Significant Issues OMB provides preliminary budget information to the City Council through a combination of reports and presentations. The City Council receives additional information from departments as needed. The City Council provides direction on issues and projects included in the upcoming budget.

City of Mesa, Arizona 27 Executive Budget Plan 2017/18 Budget & Financial Summaries

8. City Manager Submits Budget to City Council Based on feedback received from the City Council, the City Manager submits a balanced budget to the City Council for consideration.

9. City Council Establishes Tentative Budget Per State statute, the City Council tentatively adopts a budget. The tentative budget sets a legal ceiling or maximum dollar amount for the Final budget.

10. City Council Seeks Public Input The City Council requests public input, including during one or more public hearings.

11. City Council Adopts Final Budget Feedback may be incorporated into the budget and the City Council adopts a Final budget.

12. Departments Review Progress Toward Achieving Plan Desired Outcomes Departments review progress towards achieving desired outcomes. They evaluate what allowed them to exceed performance targets or what prevented them from achieving departmental goals. They decide on actions to build on success or to correct steps in the process to meet future goals.

Final Budget Document On June 5th 2017, the City Council passed and adopted the City of Mesa budget for the fiscal year ending June 30, 2018, meeting the state requirement mandating the adoption of a balanced budget. The Adopted Budget is found in the Financial Schedules section of this book.

Budget Maintenance Once the budget has been adopted, the City of Mesa continually monitors budget-to-actual revenues and expenses through a variety of methods including budget to actual reports, “MesaStat” meetings with City management in which financial and operational performance is discussed, and budget amendments as needed.

Budget to Actual Review

The Office of Management and Budget and the Financial Services Department monitor budget to actual spending and provide monthly reports to City management.

MesaStat Meetings

The City Manager meets with each department on a regular basis to review financial information, progress on performance indicators, and to receive a general status update.

City of Mesa, Arizona 28 Executive Budget Plan 2017/18 Budget & Financial Summaries

Budget Amendments

To achieve the desired results identified in Department Operational Plans, department directors have the authority to realign resources within their departments. Budget adjustments between departments or between funds must be presented to the Office of Management and Budget (OMB) for verification of budget capacity and the appropriateness of the funding source.

The annual budget includes contingency funding to provide spending authority for unexpected events or other unforeseen needs that arise during the fiscal year. Examples include natural disasters, new unfunded mandates, or the receipt of unanticipated grant funding. If unable to cover an unexpected cost within their department budget, managers may submit a request for contingency funding to OMB for review. The City Manager’s Office considers the request in the context of all City priorities and needs.

When departments anticipate overextending of their budget capacity, budget contingency funding is supported by unrestricted fund balance reserves. Budget Contingency requests are developed by departments outlining the need for the supplemental budget, the amount, and how the request supports the core business activities of the department, and are sent to the City Manager, via the OMB. The needs of the City are balanced with the needs of maintaining adequate reserves.

New FTE and additions to the City’s fleet result in ongoing financial obligations. Therefore, requests for new positions or vehicles are required to be approved by the City Manager’s Office regardless of the requesting department’s ability to cover the costs in the current year’s budget. Fund Details The City of Mesa uses funds to track revenues and expenses. A fund is a grouping of related accounts used to maintain control over resources that have been separated for specific activities or objectives. Fund accounting also allows the City to ensure and demonstrate compliance with finance-related legal requirements and provides managerial control over various responsibilities of the City. The budget consists of different funds according to the source of resources and restrictions on expenditures. Different types of funds the City uses include General Governmental Funds, Enterprise Related Funds, Restricted Funds, Trust Funds, and Grant Funds. The breakdown of funds by budgeted expenditures in the FY 2017/18 Adopted Budget are shown in Figure 2. Please note that Figure 2 does not include transfers between funds and includes the Quality of Life Fund in the Restricted Funds category.

City of Mesa, Arizona 29 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 2: Total City Budget by Fund

General Governmental Funds The General Fund Budget contains resources and expenses that are discretionary in nature and can be allocated based on the needs of the City. For administrative purposes, Mesa reports on the General Governmental Funds, which combines the General Fund with the restricted Quality of Life Fund. Figure 3 shows the breakdown of budgeted expenses by department in the General Governmental Funds.

City of Mesa, Arizona 30 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 3 General Governmental Funds Budget by Department

In FY 2017/18 Adopted Budget, 61.9% of budget expenditures in the General Governmental Funds are for Public Safety (Police, Municipal Court, Fire and Medical). Another large portion of the General Governmental Funds is dedicated to the departments that support those efforts and associated infrastructure, like Information Technology, Human Resources, City Manager’s Office, Financial Services, Facility Maintenance, and Business Services. The General Governmental Funds subsidize other City services, like Arts and Culture and Transit, through a fund transfer, which have their operations budgeted in restricted funds due to restrictions on the revenues associated with those services.

Most of the expenditures in the General Governmental Funds are Personal Services. Figure 4 shows the breakdown of the General Governmental Funds by expenditure category.

City of Mesa, Arizona 31 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 4: General Governmental Funds Budget by Expenditure Categories

In FY 2017/18, 72.7% of the budgeted expenditures in the General Governmental Funds consists of Personal Services. Personal Services consists of the salaries and benefits necessary to pay the staff of the City. The City forecasts these expenditures in its long-range forecast. The City is facing challenges in the General Governmental Funds as Personal Services costs grow due to higher pension contribution and health care costs. The Expenditure Trends Section discusses these issues in further detail.

Revenues for the General Governmental Funds come from three primary sources: City Sales and Use Tax, State Shared Revenues, and a transfer from the Enterprise-Related Funds. Figure 5 shows the breakdown of available resources in the General Governmental Funds.

City of Mesa, Arizona 32 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 5: General Governmental Funds Available Resources

Sales and Use Tax and Intergovernmental revenues is discussed further in the Revenue Trends Section. Sales and Use Tax and Intergovernmental revenues are dependent on local and national economic trends. As the economy improves, as it has in recent years, these revenues will continue to grow. If there is a downturn in the local or national economy, these revenues will likely decrease. The past few years, the City has seen modest growth in sales and use tax and state shared revenues. This trend is forecasted to continue in FY 2017/18. A more detailed discussion of these revenues can be found in the Revenue Trend Section of this chapter.

The General Governmental Funds are also dependent on a transfer from the Enterprise Fund. Mesa uses the transfer in-lieu of a primary property tax. The total amount of the transfer is set by the City Council as part of the budget process.

The City currently has a gap between the level of on-going revenues and the level of on-going expenses in the General Governmental Funds. The result is reliance on reserve balances and savings experienced during the year. The Adopted Budget shows a $10.7 million planned draw down of existing fund balance. This use of fund balance will be lessened if departments realize savings in their budgets or if actual revenues are higher than budgeted.

City of Mesa, Arizona 33 Executive Budget Plan 2017/18 Budget & Financial Summaries

Enterprise-Related Funds The Enterprise Fund is used for certain municipal services for which a fee is charged in exchange for goods and services. In principal, enterprise funds operate like a business, with revenues for a certain service covering most, if not all, the costs associated with providing that service. In Mesa, the Enterprise Fund consists of the utilities (Electric, Natural Gas, Water, Wastewater, Solid Waste and District Cooling), and certain community facilities (the Dobson Rank Golf Course, the Mesa Convention Center, the Hohokam Stadium, and the Cubs Spring Training Facility). The departments that operate in these funds are the utility departments (Energy Resources, Water Resources, and Environmental Management and Sustainability) and the Parks, Recreation, and Community Facilities Department, which manage the City’s convention center, municipal golf course, district cooling, and baseball spring training facilities. Other departments directly or indirectly allocate costs to the Enterprise Fund based on the support they provide to enterprise services.

Each utility is operated as a separate business center. As such, rate schedules are adjusted annually in a manner consistent with costs of capital, as well as the fixed and variable costs of operation and maintenance within each utility. Each utility’s net sources and uses are combined in the Enterprise Fund and are managed to maintain an ending reserve balance of at least 8-10% of the following year’s estimated expenditures. The reserve balance allows for the smoothing of rate adjustments. This smoothing avoids large rate increases and minimizes the impact to customers in any single year. Figure 6 shows the ending reserve balance dollar amount percent for the Enterprise Fund by fiscal year.

Figure 6 Enterprise Fund - Ending Reserve Balance

Most of the revenue for the Enterprise Fund is from utility rates paid by Mesa residents and businesses. As part of the budget process, Mesa forecasts utility revenues and proposes adjustments as necessary, to

City of Mesa, Arizona 34 Executive Budget Plan 2017/18 Budget & Financial Summaries

ensure an adequate reserve balance. In the FY 17/18 Adopted Budget, the Water, Wastewater, Solid Waste, Natural Gas, and Electric Utilities are projected to generate over 98% of the revenues for the Enterprise Fund. The remaining revenue is generated by community facilities maintained by the City and the small District Cooling Utility located in Downtown Mesa. Utility revenues are discussed in further detail in the Revenue Trends Section. Figure 7 shows the breakdown of revenues by enterprise area.

Figure 7 Enterprise Fund - Revenues by Enterprise Area

Compared to the General Governmental Funds, there is a wider diversity of expenses in the Enterprise Fund. Figure 8 shows the FY 2017/18 Adopted Budget for the Enterprise Fund by expenditure category.

City of Mesa, Arizona 35 Executive Budget Plan 2017/18 Budget & Financial Summaries

Fiscal Year 2017/18 Enterprise Fund by Expenditure Categories $366.6M

Transfer to Other Funds $4.6 1.3% Personal Services $63.2 Transfer to General 17.2% Fund $106.5 29.0%

Other Services $54.6 14.9% Commodities $50.1 Transfer to Debt 13.7% Service $76.3 Capital/Infrastructure 20.8% Transfers $11.3 Dollars in Millions 3.1%

Figure 8: Enterprise Fund by Expenditure Categories

In the Enterprise Fund, the Personal Services, Other Services, and Commodities costs relate mostly to the operating costs of the utilities. In addition to the inflationary pressures related to Personal Services, each utility has unique expenditure pressures. The Water Utility is sensitive to increases in the cost to purchase water from the Central Arizona Project (CAP) and the cost of electricity and chemicals necessary to treat water. The Wastewater Utility is sensitive to the cost of electricity and chemicals necessary to treat wastewater and the costs from the City’s participation in joint ventures with other local municipalities. The Solid Waste Utility is sensitive to disposal, fuel and other vehicle-related costs. The Electric and Natural Gas Utilities are sensitive to the costs to purchase electricity and natural gas on the open market. Each of these variables are individually forecasted in the City’s long-range forecast.

Maintaining and improving the utility capital and infrastructure is essential to providing high-quality, reliable service to Mesa residents and businesses. Mesa continuously invests in capital and infrastructure to support these utility services. Many of the capital improvements necessary to ensure reliable service and to adequately serve new customers are funded with revenue bonds, which are backed by utility revenues. The Enterprise Fund transfers to the Utility Debt Service funds to pay for this debt. Current and future bond issuances and the associated debt service are included in the City’s long range forecast. Utility systems revenue debt service is covered in more detail in the Bonds and Debt Service section.

City of Mesa, Arizona 36 Executive Budget Plan 2017/18 Budget & Financial Summaries

Another significant pressure on the Enterprise Fund is the fund transfer to the General Fund. The total amount of the transfer is set by the City Council as part of the budget process. The amount is usually adjusted annually to follow the Consumer Price Index (CPI). This is the inflation factor used in most cases to determine the rate of increasing costs.

Restricted Funds For budgeting purposes, restricted funds are legally or administratively restricted to be used for a specific purpose as defined by federal, state or local governments.

Transportation-Related Restricted Funds Transportation funds come from two revenue sources. First, the State of Arizona collects fuel tax and distributes a portion to incorporated cities and towns in the form of Highway User Revenue Funds (HURF). As one of the three Arizona cities with a population greater than 300,000, Mesa also receives an additional allocation of the fuel tax revenues, referred to as HURF 3%. Second, 0.3% of Mesa’s sales tax is dedicated to transportation; this portion of sales tax is referred to as Local Street Sales Tax (LSST).

HURF and LSST are managed together, as both funds are restricted to street-related expenditures. During the Great Recession, the State of Arizona diverted a portion of HURF revenues originally designated for cities and towns. Much of the State diversion of HURF revenues from cities has been restored, but it is still short of original levels. As part of the FY 2017/18 Adopted Budget, the State of Arizona allocated a one- time HURF revenue to municipalities, in lieu of a full restoration of HURF revenues. For Mesa, this allocation is estimated to be approximately $1.4 million.

The City’s street maintenance program outlines the highest priorities for allocation of the available resources and is managed to remain within available resources. Expenses in the Transportation Related Restricted Funds include both on-going street maintenance and one-time street improvements. In the FY 2017/18 Adopted Budget, $98 million in uses and $68 million in sources are budgeted in Transportation- Related Restricted Funds. Mesa has a projected beginning fund balance of $53 million in FY 2017/18 in these funds and is planning to use existing fund balance to cover the additional expenditures.

Falcon Field Airport Fund The Falcon Field Airport Fund operates similarly to an Enterprise Fund, with charges for sales and charges for service and intergovernmental revenues covering the expenditures related to the operation of the airport. The Falcon Field Airport Fund is managed separately from other funds due to restrictions on airport funding. Although Falcon Field revenue cannot be used to support other Mesa governmental operations, Falcon Field indirectly benefits the City by allowing customers from around the country to connect to businesses in Mesa.

The FY17/18 operational budget is $700k higher than the previous year at $3.4 million. In FY 17/18, the airport will fund half of the cost of a Real Estate (Engineering) position to assist with the airport’s ground lease management. Included in the Capital Improvement Plan is the completion of the Falcon Field master

City of Mesa, Arizona 37 Executive Budget Plan 2017/18 Budget & Financial Summaries

plan update which provides direction for future development of the airport. The expected year-end fund balance for the Falcon Field Airport Fund is $4.4 million.

Environmental Compliance Fee Fund The Environmental Compliance Fee is a monthly, specified fee applied to each utility account to meet the projected costs of Federal and State environmental mandates. Neither the Federal nor the State government provides funding for these environmental mandates.

The current $7.32 monthly Environmental Compliance Fee is anticipated to generate $15.7 million in revenue in FY 2017/18. The fee funds the City’s environmental activities such as air quality, storm water quality, hazardous waste management, and asbestos management. Budgeted ongoing operational expenses are $15.5 million. Savings experienced each year are accumulated and applied to one-time expenditure needs. In FY17/18, the Environmental Compliance Fee Fund will fund one-time expenses related to storm drain pump stations and the new household hazardous waste facility.

Economic Investment Fund The Economic Investment Fund is used to pursue a variety of Healthcare, Education, Aerospace, Tourism/Technology (HEAT) and other dynamic, citywide economic development opportunities. It is used to seek entrepreneurial solutions, business and industry partnerships, and to deliver new jobs to propel Mesa’s economic growth, prosperity, and innovative spirit forward in the global marketplace. The Economic Investment Fund is subsidized by the Enterprise-Related funds. In the FY 2017/18 Adopted Budget, the subsidy is projected at $4.6 million.

Arts and Culture Fund The Arts and Culture Department manages the Mesa Arts Center, the i.d.e.a. Museum, and the Museum of Natural History. The City tracks the operational expenses and revenues related to the operation of the venues in the Arts and Culture Fund. Additionally, to ensure the City maintains high quality cultural amenities, this fund is subsidized by the General Fund. The General Fund contribution is set at a fixed amount each fiscal year and transferred to the fund. The amount of the General Fund contribution in the FY 2016/17 Adopted Budget was $9.8 million and will be $9.3 in FY 2017/18. See Arts & Culture’s section in the Department Operational Plan for details on expenses in this fund.

Transit Fund The City contracts with the Regional Public Transportation Authority (RPTA) to provide fixed bus route, paratransit, and light rail services. The expenditures and revenues associated with operating these services are tracked in the Transit Fund. Certain revenues the City receives for the City’s mass transit programs are restricted, like the City’s portion of the Arizona Lottery Fund (ALF) revenue. The General Fund contributes to this fund. The amount of the General Fund contribution in the FY 2017/18 Adopted Budget is $12.4 million.

The costs of transit services in FY17/18 are increasing. The FY 2017/18 Adopted Budget is $1.5 million higher than the FY 2016/17 Adopted Budget mainly due to costs mandated by the RPTA for two off-duty

City of Mesa, Arizona 38 Executive Budget Plan 2017/18 Budget & Financial Summaries

uniformed officers to patrol Mesa’s light rail stations, increased maintenance costs on aging light rail cars and backfilling light rail and bus revenues that have come under estimates. An additional $450,000 is also included in the FY 2017/18 Adopted Budget to perform an analysis of extending light rail south from Main Street towards downtown Chandler as well as a feasibility study to extend Tempe’s future streetcar to Riverview Park. Transit remains a priority of the City and with the Gilbert Light Rail extension scheduled to open in 2018.

Joint Venture Funds For certain areas of service delivery, local governments establish intergovernmental agreements to deliver services jointly to leverage economies of scale. These agreements between local governments are known as joint ventures. The City currently participates in five joint ventures. The Greenfield Water Reclamation Plant (GWRP) and TOPAZ Regional Wireless Cooperative (TRWC) are managed by the City of Mesa, while the Sub-Regional Operating Group, the Val Vista Water Treatment Plant, and Valley Metro Rail are managed externally. GWRP and TRWC are managed in respective funds, and the expenses in those funds are balanced with contributions from member governments, including the City of Mesa.

Impact Fee Funds Impact fees are imposed on new developments to help build the capital and infrastructure necessary to service the development. In accordance with state statute, Mesa currently charges five impact fees on new developments: Police, Fire, Storm Sewer, Water and Wastewater. The revenue from these impact fees are tracked in individual funds and support the debt service associated with previously completed capital improvement projects that serviced rapidly growing areas in Mesa. When enough impact fee revenue is collected to cover the eligible debt service, the fee is discontinued. In the FY 2017/18 Adopted Budget, the City budgeted $9.1 million in impact fee revenue.

Trust Funds The City of Mesa uses trust funds to self-insure all departments for areas of liability. The trust funds track revenues and expenses related to employee health benefits, worker’s compensation claims, and public property and liability legal claims.

Employee Benefit Trust Fund

The Employee Benefit Trust (EBT) Fund is used to fund employee health benefits and other employee benefit programs that the City sponsors. The EBT is funded through medical and dental premiums that are paid partially by the employee and partially by the City. A fund balance is maintained in the fund to cover large increases in claims and smooth contribution increases for employees and the City. In FY 2016/17, expenditures are estimated at $82.7 million, comprised of $73.5 million for medical insurance and claims and $9.2 million for administration of medical benefits. Contributions are estimated at $77.5 million, consisting of $56.9 million from the City and $19.9 million from employees and retirees. Although the City takes advantage of all cost containment opportunities, medical costs are increasing 8.0% resulting in an increased employee and City contribution for six months of FY16/17.

City of Mesa, Arizona 39 Executive Budget Plan 2017/18 Budget & Financial Summaries

The total EBT budget for FY 17/18 is $90.5 million with revenues budgeted at $85.4 million. There is an anticipated EBT fund utilization of $5.1 million.

Worker’s Compensation Fund

The Worker’s Compensation Fund is used to fund claims and insurance premiums related to employee work-related injuries. FY 2016/17 total estimated expenses are $5.6 million, comprised of $5.2 million in insurance premiums and claims, and $1.3 million in administration. Total budgeted expenses for FY 2017/18 are $6.5 million. The City’s Worker’s Compensation fund balance policy is to plan enough revenue (from General Fund) to equal the estimated total annual cost estimate for the following year. With the estimated FY 17/18 beginning balance at $9.9 million, FY 2017/18’s estimated revenue will be $3.8 million.

Property and Public Liability Fund (PPL)

The Property and Public Liability (PPL) Fund is used to pay claims related to lawsuits against the City. The value of claims paid vary significantly by year. The length of time from the submission of a claim to its final resolution can take years, which causes fluctuations in annual cost. The estimated expenditures for FY 2016/17 are $5.0 million. Budgeted expenses in FY 2017/18 are $6.9 million. The fund balance policy for PPL is to have a fund balance of $10.0 million. The City will conduct quarterly transfers into the PLL to align the fund balance to $10.0 million.

Grant Funds The City pursues grants to fund projects, implement or enhance programs, and fund the acquisition of new equipment. While the application for grant funding requires preparation time by City staff as well as subsequent tracking of grant expenditures, grant awards provide the City with the means to fund services that would not otherwise be funded in the City’s budget. Not all grants applied for are awarded to the City. The City includes grants currently being applied for in the Adopted Budget to allow for budget capacity.

As part of the FY 2017/18 Adopted Budget, the City budgeted a total of $52.6 million in total grants. The largest portion of grant revenue, $17.0 million, supports the City’s affordable housing programs. The Police and Fire & Medical Departments also receive a significant amount of grant revenue, supporting programs and the purchase of equipment that the City would not be able to fund otherwise. Grants also fund numerous capital improvements in the City, including improvements at Falcon Field airport and the Light Rail extension to Gilbert Road.

Bond and Debt Service Funds The City issues debt, in the form of bonds, to provide the resources necessary to complete certain capital improvements. The bond resources, and the expenses associated with completing capital improvements occur in the Bond Funds. The repayment of the debt associated with the bonds occurs in the Debt Service Funds. Bonds and debt are discussed further in the Bonds and Debt Service section.

City of Mesa, Arizona 40 Executive Budget Plan 2017/18 Budget & Financial Summaries

Carryover Funds and Contingency Funds Carryovers funds are for items that were budgeted in one fiscal year but are not received until the next fiscal year. For example, if Solid Waste purchases a new garbage truck that does not arrive until the next fiscal year, funding would be carried over from the current fiscal year to the next to pay for the vehicle when it arrives. Contingency funds are included in the budget for unexpected events or other unforeseen needs that arise during the fiscal year. Examples include natural disasters, new unfunded mandates, or the receipt of unanticipated grant funding.

Fund Balance Fund balance is the net of assets and liabilities in a particular fund. Maintaining adequate fund balance mitigates current and future risks, such as a revenue shortfall or unanticipated expenditures. The beginning fund balance shows the position of the fund at the beginning of the fiscal year. The ending fund balance is calculated by taking the beginning fund balance and adding the net sources and uses of that fund in a given fiscal year. The ending fund balance for one fiscal year is the beginning fund balance for the next fiscal year. City fund balance is made up of restricted and unrestricted resources. For example, $63.4 million of the FY 2015/16 projected ending fund balance is contained in Trust Funds is restricted to use for expenses in the Trust Funds. Figure 9 summarizes the estimated FY 2016/17 ending fund balance of the General Governmental and Enterprise Funds.

Summary of Changes in Fund Balance for General Governmental and Enterprise Funds FY 2017/18 Projected Projected Beginning Projected Net Fund Budgeted Ending Fund Fund Fund Balance + Sources + Transfers - Expenditures = Balance

General Governmental $92,718,175 $301,907,929 $77,725,916 $388,766,733 $83,585,287 Enterprise $87,305,389 $364,264,335 ($198,655,704) $169,805,766 $83,108,254 Total $180,023,564 $666,172,264 ($120,929,788) $558,572,499 $166,693,541

Figure 9 General Governmental and Enterprise Fund Balances

City of Mesa, Arizona 41 Executive Budget Plan 2017/18 Budget & Financial Summaries

Revenues & Expenditures

Revenue Trends To pay for the services and infrastructure items Mesa residents depend on, the City relies on several revenues and other resource sources. The City of Mesa receives revenue from many different sources. The three main sources are taxes, intergovernmental revenues, and sales and charges for service. These three categories constitute approximately 50% of the resources budgeted in FY 2017/18. Bond proceeds are a type of financing and are not revenues. Some of the resources or portions of resources are restricted, they can only be used for certain types of expenditures. Other resources or portions of resources are not restricted; they are available for general operations. Some revenue sources are relatively stable over time while others fluctuate up and down with the economy. Therefore, the City strives for a diversity of revenue sources to ensure the continuation of City services during economic cycles. Figure 10 shows the total City available resources.

Figure 10 Total City Available Resources

City of Mesa, Arizona 42 Executive Budget Plan 2017/18 Budget & Financial Summaries

Taxes

Sales and Use Tax Arizona’s cities and towns have authority granted by the State to establish certain taxes for revenue purposes. The local transaction privilege tax, also known as sales tax, is one such means for funding municipal services. The City of Mesa Charter (Article VI, §602(A)) authorizes the City to levy a local sales tax, requiring voter approval for a local rate more than 1%. The City of Mesa’s current local sales tax rate is 1.75% and consists of three parts: the City General Fund sales tax portion of 1.20%; the City Quality of Life Sales Tax portion of 0.25%, (which together make up the tax portion of the General Governmental revenues); and the Local Street Sales Tax portion of 0.30%, which is restricted for use only on local transportation needs.

Sales Tax Rate Allocation

Figure 11 City Sales Tax Rates

When combined with the State and County sales tax rates, the total sales tax rate Mesa businesses pay is 8.05%. Figure 11 shows the allocation of the sales tax rate by percent. With a transaction privilege (sales) tax of 8.05%, when a person buys $100 worth of taxable items, the vendor is responsible for remitting $8.05 to the taxing entity (City, County, State). Of that $8.05, $1.75 goes to maintain City services; of which $1.45 supports police, fire, parks, arts and culture, and business operations, and the remaining $0.30 goes toward maintaining and repairing City streets. Mesa does not have a local sales tax on food meant to be consumed at home.

City of Mesa, Arizona 43 Executive Budget Plan 2017/18 Budget & Financial Summaries

Mesa also receives a portion of the sales tax collected by the State. The sharing of State sales tax is discussed in the Intergovernmental Resources section of this document. Use tax is levied on items acquired from a retailer and stored or used within the City that have not been charged Transaction Privilege Tax equal to at least the Mesa tax rate of 1.75%.

Sales and Use Tax Trends

Sales and use tax are important sources for the City’s General Fund, Quality of Life Fund, and Local Street Sales Tax Fund. Trends in the economy significantly impact sales and use tax collections. Sales and use tax revenue have grown in recent years, as the economy has recovered from the depths of the Great Recession. Figure 12 shows the trends in local sales and use tax revenue over the past eleven years.

Local Sales Tax Revenue $180 $159 $163 $160 $149 $146 $152 $137 $141 $140 $131 $123 $122 $127 $120 $100 $80 Millions $60 $40 $20 $- 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 Actual Actual Actual Actual Actual Actual Actual Actual Actual Projected Budget Fiscal Year City Sales Tax Quality of Life Sales Tax City Streets Sales Tax

Figure 12: Local Sales Tax Revenue

At the start of budget process, sales and use taxes are forecasted. Forecasting sales and use tax revenues is essential for setting the direction of the annual budget, since these revenues are cyclical, increasing or decreasing based on the local or national economy. Additionally, forecasting sales tax long term allows the City to plan operating and one-time expenditures based on trends in sales tax revenues, ensuring financial stability. The sales and use tax budgeted in the FY 2017/18 Adopted Budget are based on previous year actual expenditures and trends in the local, state, and national economy. Mesa partners with the University of Arizona to access forecast data on several economic indicators. Mesa uses this data to correlate the sales and use tax forecast to larger economic trends related to personal income, employment, retail sales, population growth, and new home construction. Figure 13 shows the FY 2016/17 sales and use tax estimate and the forecast for the next five years that was the basis of the FY 2017/18 Adopted Budget.

City of Mesa, Arizona 44 Executive Budget Plan 2017/18 Budget & Financial Summaries

Sales and Use Tax Revenue Forecast $210 $190 $190 $176 $183 $169 $170 $159 $163 $150

Millions $130 $110 $90 $70 $50 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 Projected Budget Forecast Forecast Forecast Forecast

Fiscal Year

Figure 13: Sales and Use Tax Revenue Forecast

The sales and use tax revenue forecast calls for slow, steady growth for the next five years. Year over year growth is the forecasted between 3% and 4%. This forecast is in line with the growth in sales tax the City has experienced during the recovery from the Great Recession. Mesa is vigilant for the possibility of an economic downturn and the impact that would have on revenues.

In many ways, Mesa revenues have not recovered from the Great Recession. Sales tax revenues are forecasted to return to pre-recession highs, but adjusted for inflation, sales and use tax are still below the recession peak. Normal inflation of prices over time impacts the buying power of a dollar. Figure 14 outlines taxable sales activity in the City by fiscal year, adjusted for inflation.

City of Mesa, Arizona 45 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 14: Taxable Sales Activity

After declining during the Great Recession, anticipated activity in FY 2016/17 is higher than the level experienced in FY 2007/08. However, when adjusted for inflation, fewer goods and services are expected to be purchased in FY 2016/17 than were purchased in FY 2007/08. During the Great Recession, fewer high dollar ticket items like new cars were purchased. Fewer homes were built, and fewer appliances and furniture were purchased for those new homes. When home construction essentially stopped, construction and associated trades jobs left the area and the number of people shopping in Mesa declined. The recovery from the Great Recession has been slow and steady, and the City continues to forecast slow and steady growth for the next few years.

Property Tax State law (A.R.S. §42-17151(A)) allows a municipality to levy a property tax. There are two types of property tax in the State of Arizona, primary and secondary.

Primary property tax can be used for any general City operations. Since 1946, the City of Mesa has not levied a primary property tax. As established at that time, the City uses utility rate revenue to fund some City operations, including but not limited to services such as police, fire and municipal court.

A secondary property tax may be levied for payment of principal and interest from debt associated with General Obligation bonds. Therefore, the City’s secondary property tax is restricted to that use. Property valuations are known in advance, so the amount of revenue raised by the secondary property tax levy is known as well. The City Council sets the secondary property tax levy and associated rate annually. The FY 2017/18 secondary property tax rate is $1.0968 per $100 of net assessed value with a corresponding levy of $33.4 million.

Further information is outlined in the Bonds and Debt Service section of this document.

City of Mesa, Arizona 46 Executive Budget Plan 2017/18 Budget & Financial Summaries

Transient Occupancy Tax State law (A.R.S. §42-6002) allows a municipality to levy a Transient Occupancy Tax, also known as bed tax, on hotel/motel stays. The current Transient Occupancy Tax is assessed at a rate of 5.0%. Transient Occupancy Tax revenue is dedicated to programs that encourage additional tourism: the Visit Mesa program, capital improvements at the convention center and Hohokam Stadium, and spring training facilities construction and renovation projects. Transient Occupancy Tax is a restricted revenue source.

Intergovernmental Resources Most of the intergovernmental revenues Mesa receives come in the form of state shared revenues, which the State of Arizona is obligated by state statute to collect on the behalf of local governments. Mesa also receives a significant amount of grant revenues, from the federal, state, and county governments.

State Shared Revenues State shared revenues are revenues collected by the State of Arizona on behalf of local governments and distributed to cities and towns based on population and a formula in state statute. In Arizona, the state distributes a portion of state income tax collections (urban revenue sharing), state transaction privilege tax (state shared sales tax), state gasoline tax (Highway User Revenue Fund (HURF)), Vehicle License Tax (VLT), and state lottery funds (Arizona Lottery Funds (ALF)) with incorporated cities and towns. HURF revenues are restricted to transportation expenditures and ALF revenues are restricted to transit services. The remaining state shared revenues are not restricted in use.

State Shared Revenue Trends

Urban Revenue Sharing revenue received from the State is based on personal and corporate income tax collections. There is a two-year lag between when the income is reported and the receipt of revenues by the City. Therefore, the amount for FY 2017/18 is a known amount rather than a forecast. Urban Revenue Sharing is budgeted at $59.3 million in FY 2017/18. For other state shared revenues, the distribution Mesa receives is based on the monthly collections by the State. HURF revenues are restricted; a municipality must continue to fund transportation expenses with local revenue sources equal to the amount of local funding that was provided in FY 1979/80. For Mesa, this amount is approximately $5.1 million each year and is funded with the local streets portion of City Sales Tax. During the Great Recession, the State diverted a portion of HURF revenues previously sent to cities and towns. The State has partially restored HURF revenues, but continues to divert a portion of them. The Great Recession impacted these revenues sources. Total state shared revenues received can be seen in Figure 15.

City of Mesa, Arizona 47 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 15: State Shared Revenues

At the start of the annual budget process, each type of state shared revenue is forecasted. Forecasting these revenues is important because, like sales and use tax, collections are highly impacted by economic conditions. Additionally, revenues from Urban Revenues Sharing, State Shared Sales Tax, and Vehicle License Tax (VLT ) fund General Governmental operations. Mesa partners with the University of Arizona to access forecast data on local economic indicators which have historically correlated with these revenue sources. Mesa uses this data to correlate the forecast to larger economic trends related to personal income, employment, retail sales, population growth, and new home construction. Figure 16 shows the forecast for Urban Revenue Sharing, State Shared Sales Tax, and VLT for the next five years.

City of Mesa, Arizona 48 Executive Budget Plan 2017/18 Budget & Financial Summaries

State Shared Revenue Forecast $160 $141 $147 $136 $140 $130 $125 $120 $120 $100 $80

Millions $60 $40 $20 $- FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 Projected Budget Forecast Forecast Forecast Forecast Fiscal Year Urban Revenue Sharing State Shared Sales Tax VLT

Figure 16: State Shared Revenue Forecast

The forecast calls for modest growth among state shared revenue sources for the next few years. With regards to Urban Revenue Sharing, the majority of collections consist of personal income tax collection. A smaller portion consists of corporate income tax collections. The Arizona legislature passed a reduction to the Corporate Income Tax rate, which is being phased in over four years. The resulting reduction in corporate income tax collections reduces the amount of growth in Urban Revenue Sharing. State Shared Sales Tax and VLT are forecasted to follow the same trends as local sales and use tax. As with local sales and use tax, these revenue sources are cyclical and are highly affected by the overall health of the economy.

Grants The top three City departments to receive grant funding are Police, Fire and Medical, and Community Services. Grants help these departments expand services and purchase equipment they would not otherwise be able to. Grant funding must be applied for each year unless a multi-year grant is awarded. Grant funding is restricted to the use designated in each grant and has reporting requirements. The City determines if the value of a grant is worth the additional requirements and staff time before accepting the grant.

Reimbursements and Grants Carried Over This category of revenue is for grants and reimbursements that were awarded one fiscal year but the revenue will not be received until this fiscal year. Many of the grants the City receives are reimbursements, which means the City first must make eligible expenses and then is reimbursed by the grantor organization.

City of Mesa, Arizona 49 Executive Budget Plan 2017/18 Budget & Financial Summaries

Additionally, this category also holds any grant revenues received for programs in a previous year that are budgeted to be spent in FY 2017/18.

Sales and Charges for Service Sales and charges for service revenues are revenues from customers in the exchange for services. Over 90% of the revenues in this category are attributable to the various City enterprises. Enterprises are business-like service areas tracked individually in order to determine net income. Utility rate revenues make up the bulk of the enterprise resources. The City provides water and wastewater services to all residential and commercial customers. The Environmental Management and Sustainability Department provides solid waste services for residential customers and is available to commercial customers if they choose to use the City service. The City supplies natural gas to a portion of the City for both residential and commercial use as well as a large service area outside of the City limits. The City also provides electric service and district cooling for portions of the downtown area.

The remaining sales and charges are for entrance to venues including the Arizona Natural History Museum, the i.d.e.a. Museum, events at the Mesa Art Center, and enrollment into classes offered through various departments and at various locations around Mesa.

Utility Revenues Utility rates are adjusted to keep up with the increased cost of existing services and to meet demand for new or expanded services. Customer growth contributes to the need for additional infrastructure and operational funding. Environmental regulations result in both one-time and on-going compliance costs. Utility rate adjustments are enacted by the City Council during the annual budget process, after public notification and hearings are held. The current rate adjustments included in the FY 2017/18 Adopted Budget as well as the past average rate adjustments are shown in Figure 17.

Utility Historical Homeowner Rate Adjustments Electric Natural Gas Water* Wastewater Solid Waste FY 17/18 Adjustment 1.36% 2.33% 3.50% 4.00% 3.50% 10 Year Average 0.53% 2.58% 4.22% 4.73% 2.59% 20 Year Average 0.37% 3.41% 4.28% 4.57% 3.43% * A four-year restructuring to the water rate tier system was introduced in FY 15/16 and continued in the FY 17/18 Adopted Budget. Typical water consumers experienced a 3.5% rate adjustment, consumers with higher volume usage likely experienced a higher adjustment.

Figure 17: Historical Utility Rate Adjustments

Capital improvements and the associated debt service are considered before rate adjustments are proposed. For the Water and Wastewater utilities, the building of the new Signal Butte Water Plant and expansion of the existing Greenfield Wastewater Plant have been included in long-range forecast. Because of anticipated growth, primarily in southeast Mesa, these plants are now under construction. The added operating and debt service costs associated with the construction of these critical facilities have been

City of Mesa, Arizona 50 Executive Budget Plan 2017/18 Budget & Financial Summaries

considered in the proposed 3.5% rate adjustment for water services and the 4.0% rate adjustment for wastewater services.

The City’s solid waste utility is incurring additional vehicle fleet costs as the City continues to grow faster in the eastern part of Mesa. The 3.5% rate adjustment for residential services in FY 2017/18 takes this added cost into account. The Electric and Gas rate adjustments are intended to stabilize the fixed portion of the rate component tied to maintaining and improving existing infrastructure.

While utility rates are less affected by the economy than sales tax, the Great Recession did contribute to suppressed growth of utility revenues. With the exception of Solid Waste, the utilities rely on a fixed base/service charge applied to each account and a variable charge applied to the consumption of the utility itself. Solid Waste only has the fixed component. The increase of foreclosures and the resulting vacant homes reduced utility consumption and therefore utility revenues. Figure 18 shows the utility revenues over the past ten years.

Figure 18: Historic Utility Revenues

As economic conditions have improved in recent years, Mesa has experienced an increase in the number of utility customers. However, usage per account in several of the City’s utilities has decreased because of factors such as low economic confidence, increased efficiency in homes and appliances, and mild winter conditions. These effects have mostly balanced each other and produced steady revenue.

City of Mesa, Arizona 51 Executive Budget Plan 2017/18 Budget & Financial Summaries

Average Homeowner’s Cost Comparison One key analytical tool used by the City Council and City staff is a comparison of the average costs incurred by homeowners in several cities throughout the Phoenix Metropolitan Area. The average costs for the current fiscal year for various cities are compared with the average costs for the current fiscal year in the City of Mesa. While some neighboring municipalities have a different resource mix than Mesa, bringing them all together allows for comparison to ensure that Mesa remains an affordable place to live, work and play.

In FY 2016/17, the total annual municipal cost to the average household in Mesa was $1,828, which is less than three of the six comparison cities in the Valley. Figure 19 shows the total annual cost by city as of July 2016.

Figure 19: Average Homeowner's Annual Cost Comparison

City of Mesa, Arizona 52 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 20 summarizes the average costs by revenue category for each city.

Figure 20: Average Homeowner's Cost Comparison by Revenue Category

In the Average Homeowner’s Annual Cost Comparison:

• The City of Mesa and the Town of Gilbert are the only municipalities that do not have a primary property tax. • Estimated city sales taxes paid is based on average household expenditures from the Bureau of Labor and Statistics Consumer Expenditure Survey applied to each city’s sales tax rate. Some cities have different rates for different taxable items. Mesa does not collect sales tax on the sale of food for consumption at home. • Comparisons of utility costs are determined using a standard service level for all cities. • Standard solid waste charges are for biweekly garbage (and recyclables where applicable) collection using 90 gallon barrels. Solid Waste residential charges include a Green and Clean fee for Mesa. Other city’s environmental fees are included as applicable. • Water charges are based on an average consumption per month.

• Wastewater charges are based on the average consumption of water during the winter months.

City of Mesa, Arizona 53 Executive Budget Plan 2017/18 Budget & Financial Summaries

Self-Insurance Trust Funds Self-insurance trust fund revenues come from internal sources like department and City contributions and in the case of employee benefits, from City employees and retirees. The City operates three self-insurance areas. They are discussed in detail in the Fund Details section under Trust Funds.

Other Revenues/Resources These remaining revenues pertain to areas such as Municipal Court fines and fees, fees for permits and licenses, sale of City property and other financing sources besides bonds.

Potential Bond Refunding Municipal bonds are a tool used by the City to finance capital improvement projects. The City may occasionally refund (refinance) bonds in order to take advantage of lower interest rates, similar to a homeowner refinancing a home mortgage. Municipal bonds are discussed further in the Bonds and Debt portion of this document.

New Bond Proceeds Municipal bonds are a tool used by the City to finance capital improvement projects. Bond proceeds are resources available for use on capital expenditures. However, the issuance of bonds results in a liability for the City. The City must pay back the bondholders with interest over the term of the loan. Municipal bonds are discussed further in the Bonds and Debt portion of this document.

Funds Carried Forward If resources are greater than expenditures in a given year, the result is an increase in available resources. This can be due to many things: timing of expenditures, lead-time of an acquisition, overall savings or resource amounts greater than projected. The City can also set aside funds over multiple years in order to pay for large projects or items. These funds have already been received by the City. Some of the funds are allocated to items that are already contracted for and encumbered. Some of the funds remain unallocated and are available for expenditure in the upcoming fiscal year. Funds carried forward are sometimes referred to as reserves or fund balance.

Expenditure Trends The City purchases goods and services and employs staff to provide services, programs and activities to meet the municipal needs of the residents of Mesa. Figure 21 shows the FY 2017/18 Adopted Budget by expenditure categories.

City of Mesa, Arizona 54 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 21: Total City Budget by Expenditure Category

Expenditures are classified into different categories to allow for year-to-year comparison. Personal Services consists of the salaries and benefits for Mesa employees. Other Services consists of the non- Personal Services operating expenditures where a service, and not a good are provided. Examples of Other Services are insurance, contractual services, temporary services, and the City’s portion of Joint Ventures services. Commodities are goods the City purchases to operate the City, like utilities and office supplies. Purchase Capital are assets (vehicles, computer equipment, traffic signals) that the City purchases that are outside of a Capital Improvement project. The payment of this debt is reflected in the Debt Service category. The City issues debt in the form of bonds to pay for capital improvement projects.

The City may refinance debt, if it is financially advantageous. The expenses related to refinancing are labeled “Debt Service Contingency”, and are not considered an operating expenditure since refunding may or may not occur, based on external factors. Expenses related to the Capital Improvement Program (CIP) can vary greatly year-to-year. They are managed separately and are presented in their own category. Expenses related to items that were budgeted last year but were not received in time to be recorded last fiscal year have also been separated and labeled as Carryover. These types of expenditures can vary from year to year based on the lead-time for various purchases. Also separated out is the Contingency budget authorization. The Contingency budget allows reserve dollars to be spent on unplanned expenses such as emergencies or unforeseen federal or state mandates.

City of Mesa, Arizona 55 Executive Budget Plan 2017/18 Budget & Financial Summaries

Joint Ventures managed by the City, Community Facilities Districts (CFDs), and Trust Funds are separate from the operating budget. These areas are partially funded through contributions from City departments and are managed in separate funds. Excluding them from the annual operating budget avoids the City of Mesa contributions being included twice as expenses. Further discussion on Joint Ventures and Trust Funds is included in the Fund Details section of this chapter. In Figure 22, the Personal Services, Other Services, Commodities, Capital and Debt Service expenditure categories represent the annual operating needs of the City of Mesa. As shown in Figure 22, the FY 2017/18 operating expenditures total of $862.2 million is $21.9 million less than the previous fiscal year of $877.9 million.

Fiscal Year 2016/17 Fiscal Year 2017/18 Total City Operating Budget by Total City Operating Budget by Expenditure Categories - $877.9M Expenditure Categories - $862.2M

Debt, $142.0 Debt, $180.1 Capital, $17.3 Capital, Personal Personal $20.0 Services, Commodities Services, $397.9 $93.7 $414.2 Commodities $89.3 Other Other Services, Services, $190.6 $195.0

Annual Operating Needs Personal Other Services Commodities Capital Debt Total Services 2016/17 $397.9 $190.6 $89.3 $20.0 $180.1 $877.9 2017/18 $414.2 $195.0 $93.7 $17.3 $142.0 $862.2 Difference (+/-) $16.3 $4.4 $4.4 -$2.7 -$38.1 -$15.7

Figure 22: Comparison of Total Operating Budget from FY 2015/16 to FY 2017/18

The significant changes between the FY 2016/17 Budget and the FY 2017/18 Budget are that Personal Services increased by $16.3 million and Debt Service decreased by $38.1 million. The inflationary pressures related to Personal Services are discussed in more detail in the next section. In FY 2016/17, the City budgeted $46.8 million for the option to call the excise tax debt service related to the construction of a spring training facility for the Chicago Cubs. Since this is planned for FY 2016/17, this caused the debt service portion of the budget to decrease in FY 2017/18. More detail about Debt Service can be found in the Bonds and Debt Service portion of this chapter.

Personal Services Personal Services consists of all employer costs related to the compensation of City employees. This includes full-time, part-time and seasonal positions as well as pay categories such as overtime, benefits, and the benefits for retired employees. Figure 23 shows the increase in Personal Services expenditures

City of Mesa, Arizona 56 Executive Budget Plan 2017/18 Budget & Financial Summaries

over the past ten years (Note: Figure 23 includes non-operating Personal Services related to Trust Fund administration and construction of Capital Improvement Projects).

Figure 23: Total Personal Services Expenditures and FTEs

Personal Services expenditures are approximately $98 million higher than 10 years ago. This is despite the total Full Time Equivalent (FTE) employees is 210 less than it was 10 years ago. While the City has recently adjusted some salary ranges to be competitive in the job market and has given step increases to eligible employees the past few years, the increase in Personal Services is mostly driven by benefit costs. The City is facing rising pension and health care costs, which have made employees more expensive. Figure 24 shows how the benefit costs for various positions have increased since FY 2005/06.

City of Mesa, Arizona 57 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 24: Benefit Costs of a $50,000 Position

Figure 24 shows the increase in the cost of benefits provided to civilian and sworn positions since FY 2005/06. Since FY 2005/06, the cost of benefits for sworn employees has more than doubled over the period. Healthcare premium costs have increased significantly for both sworn and civilian personnel. Police and Fire sworn pay into a separate pension plan from civilian employees, and the contribution rate for sworn pensions have increased significantly since FY 2005/06. The benefit costs for sworn employees are over 80% of the salary for a $50,000 salary position. The next section will discuss salaries, pension, and health care costs in further detail.

Salaries The salaries paid to employees are the largest portion of the City’s Personal Services budget. When the first impacts of the Great Recession were felt, the City reduced salaries citywide by 2% and reduced over 500 Full Time Equivalent (FTE) positions. Additionally, the City placed the citywide step-pay program on hold from FY 2009/10 through FY 2011/12. As the economy improved, the prior 2% salary reduction was restored to employees in January 2012 and the step-pay program was reinstated with a year-by-year review effective in FY 2012/13. The FY 2017/18 Budget includes a 3% step increase for employees that have successfully completed their performance evaluation.

Salary range adjustments are implemented on occasion to keep the City competitive in the local job market. The FY 16/17 budget included a market salary adjustment for most positions within the City and, in accordance with the City’s compensation plan, many of these positions were eligible for merit salary increase in the FY 17/18 Budget. Although salary is an important component to attracting and retaining a quality workforce, City benefits, such as pension and health care, also play a crucial role.

City of Mesa, Arizona 58 Executive Budget Plan 2017/18 Budget & Financial Summaries

Pension Costs Most City of Mesa employees are members of the Arizona State Retirement System (ASRS). Sworn police and fire personnel are members of the Public Safety Personnel Retirement System (PSPRS), there are distinct City plans for Police and Fire sworn employees. Some City elected officials are included in the Elected Official Retirement System (EORP), though new elected officials are not eligible for this plan. The current annual increases in the ASRS and PRPRS contribution rates are shown in Figure 25, with the history of rate increases shown in Figure 26.

Note: The annual costs for Figure 25 include the net effect of the rate change and other personal services adjustments. Although the ASRS rate remained steady, the amount budgeted increased due to higher salary costs as shown in

FY16/17 FY17/18 Rate Contribution Change Retirement Plan FTE Rate Rate Change (All Funds)

Arizona State Retirement System (ASRS) 2,646 11.34% 11.34% 0.00% +$ 231,967

Elected Official Retirement System (EORP) 4 95.56% 106.55% 10.99% - $111,012

Public Safety Personnel Retirement System 366 41.24% 51.89% 10.65% + $ 3,596,716 (PSPRS) – Fire Public Safety Personnel Retirement System 701 42.38% 53.69% 11.31% + $ 8,083,424 (PSPRS) – Police Total 3,717 $11,801,095

Figure 25 - Retirement Employer Contribution Rates

City of Mesa, Arizona 59 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 26: History of Employer Contribution Rates

Public Safety Personnel Retirement System (PSPRS)

Public Safety Personnel Retirement System rates increased significantly in FY17/18. These rate increases were caused by several factors including: Benefit changes from Statewide reforms, past investment earnings less than assumed, a lowering of the future investment return assumption, and differences from other actuarial assumptions. The State of Arizona, recognizing a decline in the funded status of PSPRS plans, approved several reforms in 2011 (in Senate Bill 1609). However, the 2011 reforms,while valid for new employees, in 2014 were found to be unconstitutional for existing retirees (Fields vs. Elected Officials Retirement Plan case).

In 2016, the State approved another round of reforms for new employees (Senate Bill 1428). In 2016, Arizona voters also approved a State constitutional amendment adjusting future benefit increases for all PSPRS retirees and employees (Proposition 124). The 2016 reforms and constitutional amendment, while resulting in savings from the original (pre-2011) benefit structure, created less savings than the 2011 reforms. This reduction in savings (from the 2011 reforms to the 2016 reforms) resulted in lower funding levels in the plans and higher contribution rates in FY17/18. The 2016 reforms also included a new defined contribution benefit for employees of participants (like Mesa) that don’t contribute to Social Security for sworn personnel.

The additional cost of the 2016 reforms has pre-empted much of the future cost of the 2011 reforms being overturned for existing employees (Hall v. Elected Officials Retirement Plan case). The impact of the Hall case, while lessened by the 2016 reforms, is expected to be included in the next fiscal year (FY18/19) rates. An additional $6 million increase in PSPRS contributions has been included in the City’s forecast in FY18/19 for the impact of the Hall case.

The PSPRS is one of the most significant expenditure pressures for the City. The City plans to have large unfunded liabilities, and Mesa is experiencing large contribution increases to pay down that unfunded liability. For every $100 in salaries Mesa pays to sworn Police and Fire employees, the City now must pay $53.69 in pension contribution for police personnel and $51.89 in pension contribution for fire personnel. In February 2014, the Arizona Supreme Court ruled that some cost-saving reforms made in 2011 to State- run public pension plans were unconstitutional for retirees. Because of the ruling, the City’s police and fire plans were required to pay out benefits to retirees that would have been received had the reforms not been implemented. This additional cost resulted in a significant decline in the funded status of the plans.

Because of the decline in the funded status of the plans, contribution rates increased substantially. To ease the burden on participants, PSPRS allowed for a three-year phase-in of the contribution increase. In FY 2015/16, the City elected to contribute $5.0 million more than in the prior fiscal year, which was more than the three-year phase-in amount but less than the full contribution amount. In the FY 2016/17 Adopted Budget, the full contribution amount of $8.7 million is budgeted.

In addition to the Arizona Supreme Court ruling that certain aspects of 2011 pension reforms were unconstitutional, increases to contribution rates are due to:

City of Mesa, Arizona 60 Executive Budget Plan 2017/18 Budget & Financial Summaries

– Continued recognition of investment losses during 2008-2009 economic recession (smoothed over seven years) – Adjustment of actuarial assumptions to account for anticipated permanent benefit increases/cost of living adjustments In 2016, Arizona voters approved Proposition 124, which made several reforms to PSPRS. Cost of living increases for current retirees were capped at 2% a year and employees enrolled in PSPRS after the changes cannot retire until they are 55. Additionally, new employees in PSPRS will need to make a higher pension contribution. Since most of the changes are for new employees, the changes have a small impact on the short-term forecast.

Elected Officials Retirement Plan (EORP)

During FY 2012/13, the State closed the Elected Officials Retirement (EORP) defined benefit plan to newly- elected officials. After January 1, 2014, newly-elected officials may elect to participate in the Arizona State Retirement System (ASRS) or the new Elected Officials Defined Contribution Retirement System (EODCRS). The closing of the EORP plan caused a sharp increase in rates from as the costs of current and future EORP retirees is dependent on the employer and employee contributions of the dwindling number of active EORP members (future retirees). But since there are very few Mesa employees that participate in EORP, the dollar impact to the City is relatively small.

Health Care Costs Mesa considers having a competitive benefit package paramount to attracting and retaining a high-quality workforce. To remain competitive, Mesa offers medical, dental, and vision health plans for employees and their families. These plans are funded through contributions from both the City and employees. The City is self-insured; contributions are deposited into and health care-related costs are paid from the Employee Benefit Trust (EBT) fund. The City maintains a fund balance in the EBT fund to smooth contribution rate increases from year to year. Figure 27 shows the escalation of health care benefit claims the past 10 years.

City of Mesa, Arizona 61 Executive Budget Plan 2017/18 Budget & Financial Summaries

Cost of Health Care Benefit Claims $90 $78 $80 $74 $69 $70

$60 $57 $49 $51 $50 $51 $50 $46 $46

$40

Millions $30

$20

$10

$- 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 Actual Actual Actual Actual Actual Actual Actual Actual Projection Budget Fiscal Year

Figure 27: Cost of Health Care Benefit Claims

The City has experienced a large increase in health costs the past few years. The increase in costs is driven by several variables including nation-wide increases in the costs of care and prescription medication, Affordable Care Act fees and taxes, and an increase in severe claims from benefit plan participants. To help cover these increased costs, in calendar year 2017, contribution rates for both employees and the City will increase 8%. The long-range forecast includes continued escalation of health care costs and increases to City and employer/employee contribution rates.

Positions The cost of personnel accounts for the largest portion of operating expenditures in the City. Labor is tracked by full-time equivalents (FTE) for a 40-hour workweek. For example, two part-time employees who each work 20 hours a week (or 50%) would equal one full-time equivalent. The budgeted personnel FTEs for each fiscal year are shown in Figure 28.

City of Mesa, Arizona 62 Executive Budget Plan 2017/18 Budget & Financial Summaries

Budgeted Personnel Full-time Equivalents (FTE)

4,200 9.50 4,100 9.00 4,000 3,900 8.50

3,800 8.00

Total FTE Total 3,700 7.50 3,600 FTE FTE per1,000Residents 3,500 7.00 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18

Fiscal Year Total FTE FTE per 1,000 residents

Figure 28: Budgeted Personnel Full-time Equivalents (FTE)

During the Great Recession, the City was forced to reduce labor costs to maintain a balanced budget. To reduce labor costs, more than 500 positions were eliminated. With the recent slow increase in revenues, a small number of critical positions have been added in subsequent years. To more closely match ongoing expenditures with ongoing resources, the City implemented reductions again in FY 2015/16.

The changes from the FY 2016/17 Budgeted FTEs to the FY 2017/18 Budgeted FTEs is shown in Figure 29. During FY 2016/17, a net of 33.2 FTEs were added mid-year. Most of these positions were conversions of contract workers into part-time, non-benefited positions. The change from temporary services to part- time, non-benefited positions had no effect on the overall City budget, as the increase in FTEs is offset by a decrease in contracted, temporary services. The City also added positions in support of grants the City was awarded. These positions are funded by grants, and if the City no longer has grant funding available, these positions will be eliminated.

City of Mesa, Arizona 63 Executive Budget Plan 2017/18 Budget & Financial Summaries

During the FY 2017/18 Budget Cycle, Departments were asked to put forth budget reductions to help the City deal with a structural deficit. Since Personal Services are 72% of costs in the General Fund, positions were affected by the cuts. Both the Police Department and the Fire and Medical Department identified sworn positons that could be converted to civilian positions. In Figure 29, the sworn to civilian changes can be seen in decrease of Protective Service Worker category and the increase in the Technician, Paraprofessional, and Administrative Support categories.

The City added positions to the Development Services Department to help process the higher workload of permits and positions necessary to operate in-progress and recently completed Capital Improvement Projects. More detail on the individual position changes can be found in the Financial Schedules section of this book, under the schedule Personal Services Overview.

Full-Time Equivalent (FTE) Changes By Employee Category FY 2016/17 Mid -Year Net Percentage Net FY 2017/18 Category Reductions Additions FTE Changes Change Change FTE Elected Officials 7.0 0.0 0.0 0.0 0.0 0.00% 7.0 Officials & Administrators 130.0 0.5 (1.0) 0.0 (0.5) (0.38%) 129.5 Professional 707.0 10.3 (4.0) 2.0 8.3 1.17% 715.3 Paraprofessionals 186.2 4.5 (3.0) 8.0 9.5 5.10% 195.7 Protective Service Workers 1,058.0 (3.0) (22.0) 0.0 (25.0) (2.36%) 1,033.0 Administrative Support 539.5 4.5 (2.5) 3.3 5.3 0.97% 544.8 Technicians 386.0 3.0 (0.4) 15.0 17.6 4.56% 403.6 Skilled Craft Workers 339.4 4.9 0.0 0.0 4.9 1.44% 344.3 Service Maintenance 452.5 8.5 (1.0) 0.8 8.3 1.82% 460.8 Total FTE 3,805.6 33.2 (33.9) 29.0 28.3 0.74% 3,833.9

Figure 29: Full-Time Equivalent (FTE) Changes

City of Mesa, Arizona 64 Executive Budget Plan 2017/18 Budget & Financial Summaries

Bonds and Debt Service Bonds and Debt Service

Bonds The City issues debt in the form of bonds in order to finance long-term capital improvements such as streets, buildings, utility systems, etc. Because municipal bonds are typically tax-exempt, they usually carry a lower interest rate than other types of funding, and are therefore an attractive source of financing. Bond funds are not used to fund ongoing operating costs. It is a “best practice” that municipal bonds have at least the same useful life as the length of the bond repayment schedule. For example, if the City issues a 20-year bond, the funded projects should have at least a 20-year expected useful life (e.g., a building would qualify, but a vehicle would not). This allows the City to meet infrastructure needs while paying for the assets (via debt service payments on the bonds) as they are used. A competitive bidding process is generally used to sell bonds in order to ensure the lowest possible cost.

Bond financing allows the City to continue to place a high priority on infrastructure investment to attract and service future development. The FY 2017/18 budget includes $189.9 in bond spending in order to finance capital projects, which is 10.9% of total budgeted expenditures. The City will utilize remaining bond proceeds from prior issuances, and issue new bonds during the fiscal year, to pay for the projects.

FY 2017/18 Bonds by Project Category $189.9M Gas Electric $13.8 $7.5 Water Solid Waste $80.8 $3.4 Transportation/ Streets $17.4 Public Safety $0.2 Parks $21.6 Wastewater $45.3 Dollars in Millions

Figure 30: Bonds by Project Category

Funding has been included in the FY 2017/18 budget to expand the Greenfield Wastewater Treatment Plant and to construct a new water treatment plant, including the associated distribution infrastructure. The financing of these projects is available through utility revenue bonds authorized by Mesa voters in

City of Mesa, Arizona 65 Executive Budget Plan 2017/18 Budget & Financial Summaries

November 2014. Repayment of the bonds is funded through rates paid by utility customers. The customers served by these plants will help to pay the new debt service related to the projects.

Funding is also included for the continuation of citizen initiated and approved parks projects, as well as recently approved public safety and transportation projects. Planned park improvements include the development of Eagles Park on the former Mesa Junior High School site. Scheduled street improvements include the secondary phases for initial projects on Mesa Drive.

Bond Rating A significant factor in determining the interest rate that the City pays on bonds is the perceived ability of the City to pay interest and repay principal on the bonds. This ability is assessed by private ratings companies that assign each of the City’s bond issuances a rating. Figure 31 illustrates the bond ratings that the City received during the Series 2017 bond sale process.

Series 2017 Bond Ratings Type of Bond Standard & Poor’s Moody’s General Obligation Bonds AA- Aa2

Utility Systems Revenue Bonds AA- Aa2

Figure 31: Series 2017 Bond Ratings

Types of Bonds The City uses two main types of bond funding: general obligation bonds and utility systems revenue bonds. As shown in Figure 32, utility systems revenue bonds fund the majority of City projects in the FY 2017/18 budget. In comparison, only about 21% of projects are funded by general obligation bonds.

City of Mesa, Arizona 66 Executive Budget Plan 2017/18 Budget & Financial Summaries

FY17/18 Budget - Bonds by Type

$189.9 General Obligation Bonds $39.2 20.6%

Utility Revenue Bonds $150.7 79.4% Dollars in Millions

Figure 32: Bonds by Type

General Obligation Bonds General obligation bonds are used to finance public infrastructure such as parks, streets, police, and fire facilities. General obligation bonds are backed by the “full faith and credit” of the City, meaning that the City pledges to take whatever action is necessary to raise the revenue to repay the loan. Principal and interest payments on the bonds are funded by a secondary property tax, development impact fees, and a court construction fee. If these revenue sources are not sufficient, the General Fund (sales tax revenue) is used to fund the remaining portion of the payment.

In November 2008, voters authorized general obligation bonds with ballot language stating that the debt service for the projects would be paid by a secondary property tax (rather than from the General Fund). Budgeted secondary property tax revenue in FY 2017/18 is $33.4 million. This revenue offsets debt service costs to the General Fund.

The Arizona Constitution (Article 9, Section 8, Paragraph 1) imposes two distinct limits on the city’s issuance of general obligation bonds. The limits are based on the aggregate net assessed value of property used for the levy of secondary property taxes (ARS 35-503). i. 6% Limit – For general municipal purposes up to 6% of net assessed value. ii. 20% Limit (in addition to the 6% limit) – For purposes of water, artificial light, or sewers, open space preserves, parks, playgrounds and recreational facilities, public safety, law

City of Mesa, Arizona 67 Executive Budget Plan 2017/18 Budget & Financial Summaries

enforcement, fire and emergency services facilities and streets and transportation facilities up to 20% of net assessed value. The debt limit calculations are included in Figure 33 below. The City is well within the statutory general obligation debt limit.

FY 2017-18 General Obligation Bond Capacity 20% Limit 6% Limit Total Legal Bond Limit $ 609,778,672 $ 182,933,602 $ 792,712,273 Outstanding Bond Debt $ 373,908,604 $ 846,397 $ 374,755,000 Remaining Bond Capacity $ 235,870,068 $ 182,087,205 $ 417,957,273 Percent of Debt Limit Used 61.3% 0.5% 47.3%

Figure 33: FY 2017-18 General Obligation Bond Capacity

Property Tax

The City does not levy a primary property tax.

Secondary property taxes are restricted to repayment of general obligation bond debt. Accordingly, the City’s property tax levy is used to pay principal and interest on general obligation (G.O.) bonds issued to finance capital infrastructure in the City.

Since FY 2009-10, the City of Mesa has levied a secondary property tax to pay for debt service on General Obligation bonds. In General Obligation bond authorizations approved by Mesa voters in 2008, 2012, and 2013 elections, ballot language stated that the issuance of the bonds would result in a property tax increase sufficient to pay the annual debt service on the bonds.

The City uses the tax levy (not the tax rate) to manage the secondary property tax. Unless new General Obligation bonds are authorized by voters, or the Council provides specific direction to alter the levy, the tax rate is adjusted to maintain the same levy from one fiscal year to the next. The amount of the levy is intended to fund the annual cost of debt service over the life of the authorized bonds. State law (A.R.S. §35-458(A)) limits the amount of a secondary property tax levy to the projected General Obligation principal and interest due, plus a reasonable delinquency factor.

The FY 2017-18 property tax is levied to pay debt service payments for:

• Streets and Public Safety bonds approved by Mesa voters in 2008 and 2013 • Parks bonds approved by Mesa voters in 2012 • Court, Public Safety, Library, Parks, and Streets bonds issued before 2008. By paying for this debt with secondary property tax, the General Fund is freed up to pay the operating costs for two new fire stations (which opened in FY 2009-10 and FY 2012-13) as well as other City operations.

City of Mesa, Arizona 68 Executive Budget Plan 2017/18 Budget & Financial Summaries

A flat amount has been levied in FY 2017/18 and the three years prior, as seen in Figure 34 below.

Figure 34: Secondary Property Tax Levy by Purpose

The FY 2017/18 secondary property tax levy is $33.4 million; the corresponding rate is $1.0968 per $100 of net assessed value.

Property Value

Arizona property owners pay property tax based on the value (ad valorem) of the property. The value of each property in the City is determined annually by either Maricopa County or the State of Arizona.

This property value used in one fiscal year is based on market values from two to three years prior to allow time for the State Department of Revenue to review the values and for valuation appeals by property owners to be processed. For example, the assessed value used in FY 2017-18 is based on property valuations from mid-2014 to mid-2015.

Each parcel of property in the State of Arizona is assigned a full cash value (FCV), which is based on market value, and a limited property value (LPV), which is used for property tax purposes. An increase in limited property value is restricted to a maximum of 5% each year; full cash value does not have an annual increase restriction. A property’s limited property value cannot exceed its full cash value.

City of Mesa, Arizona 69 Executive Budget Plan 2017/18 Budget & Financial Summaries

The use of limited property value for property tax purposes moderates the short-term impact of rapid property value increases. Figure 36 below shows both the full cash value and limited property values in Mesa for the past 10 years.

Mesa Property Value by Fiscal Year $50 $45 $40 $35 $30 $25

Billions $20 $15 $10 $5 $0 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18

Full Cash Value Limited Property Value

Figure 35: Property Value by Fiscal Year

Although the full cash value of all City property increased by 6% in FY 2017-18, property valuation changes vary by classification of property, as shown in Figure 36.

Full Cash Value by Property Classification: FY16-17 to FY17-18 Class Description FY16-17 FY17-18 $ Change % Change 1 Commercial $ 6.2 B $ 6.7 B +$0.5 B 8% 2 Land/Agriculture $ 5.3 B $ 5.4 B +$0.1 B 1% 3 Primary Residential $17.4 B $18.4 B +$1.0 B 6% 4 Rental $ 8.6 B $ 9.3 B +$0.7 B 9% Other Miscellaneous $ 0.1 B $ 0.2 B +$0.1 B 35% TOTAL $37.6 B $40.0 B +$2.4 B 6%

Source: Maricopa County Assessor Preliminary (February) Tax Year 2016 and 2017 Property Value Abstracts

Figure 36: Full Cash Value by Property Classification: FY16-17 to FY17-18

Taxable Property

Historically, limited property value (LPV) has been used to levy primary property tax and full cash value has been used to levy secondary property tax. In November 2012, Arizona voters approved an amendment to

City of Mesa, Arizona 70 Executive Budget Plan 2017/18 Budget & Financial Summaries

the state constitution regarding property valuation. As a result, beginning in FY 2015/16, all property tax is based on limited property value, which is the lesser of full cash value or the prior year’s limited property value increased by 5%.

An assessment ratio is applied to the LPV based on property classification to determine a property’s “assessed value”. For example, the assessment ratio is 10% for residential property, 18% for commercial property, and 15% for vacant land.

Exempt property (not-for-profit, governmental, etc.) is netted (subtracted) out of the assessed value, resulting in a property’s “net assessed value” (NAV). Net assessed value is the value of the property that is subject to taxation. In FY 2017-18, the net assessed (taxable) value of property in the City of Mesa increased by 5.6% (3.0% due to appreciation of existing property, 2.6% from new construction).

City of Mesa secondary net assessed value for recent fiscal years is shown in Figure 37.

Net Assessed Value $6.0

$5.0 4.79 4.75 4.09 $4.0 3.16 3.05 2.77 2.82 2.76 2.89 $3.0 2.56

Billions $2.0

$1.0

$0.0 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16* 16/17 17/18 Fiscal Year * Property Valuation Methodology Change

Figure 37: Net Assessed Value

Since the value of taxable property in the City increased by 5.6% for FY2017/18, the recommended secondary property tax rate is reduced by 5.3% to maintain the same $33.4 million total levy (see Figure 38).

City of Mesa, Arizona 71 Executive Budget Plan 2017/18 Budget & Financial Summaries

Property Value, Rate, and Levy - FY 16/17 vs. FY17/18 FY16-17 FY17-18 $ Change % Change Net Assessed Value (taxable amount - based on Limited Property $2.89 Billion $3.05 Billion +$0.16 Billion +5.6% Value) Secondary Property Tax Rate (per $1.1578 $1.0968 -$0.0610 -5.3% $100 of Net Assessed Value) Secondary Property Tax Levy (Net $33.4 Million $33.4 Million $0 0.0% Assessed Value * Tax Rate)

Source: Maricopa County Assessor Preliminary (February) Tax Year 2016 and 2017 Property Value Abstracts Figure 38: Property Value, Rate, and Levy: FY16-17 to FY17-18

The secondary property tax levy is determined by applying the secondary property tax rate to the net assessed value of property in the City.

Impact to Property Owners

The combined impact of higher property values and a lower property tax rate in FY 2017-18 would result in at least a small decrease in the amount of City property tax owed by existing property owners. The owner of a median-valued residential property in Mesa would pay $131 in City property tax. For additional detail on property valuation and property tax, see:

Maricopa County Assessor http://mcassessor.maricopa.gov/category/frequently-asked-questions/property-tax/

Arizona Tax Research Association http://www.arizonatax.org/publications/books

Utility Systems Revenue Bonds The second main type of bonds the City uses are utility systems revenue bonds.

Utility Systems Revenue Bonds

Utility systems revenue bonds have no statutory limitations as to the amount that may be issued. Projects that fall into this category are gas, water, wastewater, electric, and solid waste projects. Bonds used for these projects are repaid from revenues received from the customers of that particular utility. Utility system charges and development impact fees fund the repayment of utility revenue bonds.

The City’s revenue bond ordinances require that net revenues equal at least a ratio of 1.2 of the principal and interest requirement in each fiscal year for Utility Systems Revenue Bonds. These bonds include electric, gas, solid waste, water and wastewater bonds. The ratio is a comparison of net revenues to debt service expenses (Coverage Ratio = Net Revenue/Debt Service) as published in the official statement for the 2017 utility revenue bond issuance.

City of Mesa, Arizona 72 Executive Budget Plan 2017/18 Budget & Financial Summaries

Utility System Revenue Bonds Debt Coverage (in millions) Net Revenue Debt Fiscal Operating Operating Debt Available for Coverage Year Revenues Expenses Service Debt Service Ratio 2011/12 $302.8 $131.6 $171.2 $64.8 2.64 2012/13 $302.7 $134.4 $168.3 $68.0 2.48 2013/14 $335.0 $138.7 $196.3 $67.3 2.92 2014/15 $322.8 $137.9 $184.9 $67.6 2.74 2015/16 $342.0 $135.9 $206.1 $70.6 2.92

Figure 39: Utility Systems Revenue Bonds Debt Coverage

Other Revenue Bonds In the past, the City has issued excise tax bonds, which are another type of revenue bond.

Excise Tax Bonds

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise tax bonds are repaid from revenues derived from taxation of a particular good or activity. The bonds are backed by the City’s excise tax revenue (city sales and use tax; state shared revenues; licenses, fees, and permits; fines and forfeitures; etc.). For example, Highway User Revenue Fund (HURF) bonds are secured by gasoline tax revenues received from the State of Arizona.

Excise tax bonds were issued by the City in 2013 to finance the construction and renovation of Spring Training facilities. In November 2010, Mesa voters approved a resolution for the City to expend public funds to construct a City-owned Spring Training baseball facility. The City issued $104.5 million of excise tax bonds to support the construction and renovation of Spring Training facilities at Riverview (Chicago Cubs) and Hohokam (Oakland Athletics) Parks. The City is in the process of selling land owned in Pinal County in order to retire the Excise Tax bond principal.

Bonds per Capita Ratio After the City receives voter authorization and is ready to proceed with approved capital projects, the City issues (sells) bonds and outstanding bond debt increases. Each year, the City also retires (pays off) a portion of existing debt. As of June 30, 2016, the City’s total outstanding bond debt is $1.6 billion. To put this number in perspective, the City’s total bond debt per capita (per resident) is $3,483.

An Arizona Department of Revenue comparison of different cities’ bond debt per resident is shown in

Figure 40. The outstanding debt for each city or town as of June 30, 2016 is compared to the population of each city or town as of July 1, 2015. Note the nearly one-year lag between outstanding debt and population dates.

City of Mesa, Arizona 73 Executive Budget Plan 2017/18 Budget & Financial Summaries

Total Debt Per Capita Comparison June 30, 2016 $6,000

$5,000 $4,806 $4,002 $3,743 $4,000 $3,483 $3,583

Dollars $3,000 $2,082 $2,000 $1,559

$1,000

$0 MESA GILBERT CHANDLER TEMPE GLENDALE PHOENIX SCOTTSDALE Municipality

Figure 40: Total Bond Debt per Capita Comparison

Bond Authorization At the beginning of FY 2017/18, the City has $504.4 million in unissued bond authorization remaining. The following bond authorization summary (Figure 41) outlines the City’s prior available bond authorizations, the 2017 bond sale amounts, and the authorization remaining.

City of Mesa, Arizona 74 Executive Budget Plan 2017/18 Budget & Financial Summaries

Remaining Bond Authorization Summary Statutory Bond Prior Available Remaining Program Type Authorization 2017 Bond Sale Authorization General Obligation Bonds Public Safety 20% $ 23,215,000 $ (15,070,000) $ 8,145,000 Fire and Medical 20% $ 2,514,000 $ - $ 2,514,000 Library 6% $ 7,944,000 $ - $ 7,944,000 Park and Recreation 20% $ 43,435,000 $ (10,035,000) $ 33,400,000 Storm Sewer 20% $ 7,003,000 $ - $ 7,003,000 Transportation/Streets 20% $ 56,920,000 $ (22,075,000) $ 34,845,000 Utility Reveneue Bonds Natural Gas Utility $ 67,495,000 $ (6,520,000) $ 60,975,000 Water Utility $ 231,845,402 $ (75,225,000) $ 156,620,402 Wastewater Utility $ 202,382,788 $ (40,120,000) $ 162,262,788 Solid Waste Utility $ 3,570,000 $ - $ 3,570,000 Electric Utility $ 26,200,000 $ (2,010,000) $ 24,190,000 Highway User Revenue Bonds Streets HURF $ 2,960,000 $ - $ 2,960,000

Total Bonds $ 675,484,190 $ (171,055,000) $ 504,429,190

Figure 41: Remaining Bond Authorization Summary

Proceeds received from the sale of bonds are used to pay for the design, construction, acquisition and land purchase components of certain capital projects that the City will begin or continue during FY 2017/18. The remaining bond authorizations listed above represent portions of bond authorizations approved by the City electorate at bond elections held in the years 1987, 1994, 1996, 2004, 2010, 2012, 2013, 2014.

City of Mesa, Arizona 75 Executive Budget Plan 2017/18 Budget & Financial Summaries

Debt Service Debt service requirements impact the City’s financial condition and can limit flexibility in responding to changing circumstances or priorities. When debt is issued, it obligates the City to make regular payments for periods of up to 30 years. The outstanding bond debt balance is paid back over time through annual principal and interest payments (debt service payments). The City’s goal is to have a consistent level of debt service obligations and to have future general obligation debt service funded through the secondary property tax levy, creating a stable financial environment for providing consistent services.

The FY 2017/18 budget for existing debt service is $140.1 million, representing 10.0% of the City’s operating budget. The budget also includes contingency of $285.1 million for potential bond refundings (refinancings).

Debt service schedules for Mesa’s two primary bond types (General Obligation and Utility Systems Revenue) are shown in Figure 42 and Figure 43.

General Obligation Debt Service The scheduled debt service payments for General Obligation bonds are shown in Figure 42. All debt service schedules are included in the Financial Schedules section of this book.

General Obligation Bonds Scheduled Debt Service Payments $45 $40 $35 $30 $25 $20 Millions $15 $10 $5 $0

Fiscal Year Interest Principal

Figure 42: G. O. Bonds Scheduled Payments

City of Mesa, Arizona 76 Executive Budget Plan 2017/18 Budget & Financial Summaries

Utility Systems Revenue Debt Service Debt service payments for utility revenue bonds are funded by rate charges paid by utility customers. Utility systems revenue bonds scheduled debt service payments by fiscal year can be seen in Figure 43. All debt service schedules are included in the Financial Schedules section of this book. Utility System Revenue Bonds Scheduled Debt Service Payments $90 $80 $70 $60 $50 Millions $40 $30 $20 $10 $0

Fiscal Year Interest Principal

Figure 43 Utility System Revenue Bonds & Payments

City of Mesa, Arizona 77 Executive Budget Plan 2017/18 Budget & Financial Summaries

The Budget Requirements and Limitations

Budget Requirements and Limitations The City of Mesa is bound by the requirements of the City financial policies, Arizona Constitution, various State statutes, the Mesa City Charter, and Generally Accepted Accounting Principles (GAAP) including limitations on the amount of annual expenditure appropriation, as well as limitations on actual expenditures. There are also requirements for the issuance, type and amount of debt; budget calendar dates; and the number and type of public notices that must be made as part of the budget process.

The Arizona Constitution requires the adoption of a balanced budget, which is “all-inclusive” (Title 42 Arizona Revised Statutes (ARS)). This means that budgeted revenues and other resources must be equal to budgeted expenditures and that no expenditure may be made without appropriation. Because of this, it is incumbent upon the City to ensure that the budget includes sufficient appropriation for unanticipated revenues (e.g., unanticipated grant awards) that may become available during the fiscal year, as well as other unanticipated expenses.

The Arizona Constitution and State statutes also establish an expenditure limitation for all cities and towns. Unless the City Council and the voters of a city approve an expenditure limitation alternative, the State- imposed limitation applies for the fiscal year in question. The State expenditure limitation is based on the City’s budget as of FY 1979/80 adjusted for inflation and population. As a result of this regulation, even if the City were to have revenues in excess of the expenditure limitation, it would not be able to appropriate or spend these monies. In November 2014, City voters passed the Locally Controlled Alternative Expenditure Limitation, also known as the “Home Rule” Option. The Home Rule Option allows the City to determine its own expenditure limitation, within available resources. The Home Rule Option remains in effect for the four fiscal years following its passage by the voters. In the case of Mesa’s 2014 Home Rule option, this includes FY 2015/16 through FY 2018/19.

Arizona’s property tax system utilizes a statutorily-defined Limited Property Value (ARS §42-13301) and a legislatively-adopted property tax rate to establish the tax due.

The amount of primary property tax that a county, city, town or community college district may levy is limited by the Arizona Constitution. Each taxing entity's “levy limit” was established in 1980, and that limit can increase by up to 2% each year, plus the value of any new construction. The City of Mesa does not currently levy a primary property tax.

Secondary property taxes in Arizona may only be levied for voter-approved budget overrides, special districts, or to pay for bonded indebtedness. The City instituted a secondary property tax for the repayment of bond debt associated with a 2008 General Obligation bond election. Subsequently, the first levy and receipt of secondary property tax took place in FY 2009/10.

City of Mesa, Arizona 78 Executive Budget Plan 2017/18 Budget & Financial Summaries

Financial Policies Beyond the requirements set by the State of Arizona, the City of Mesa has also adopted a set of financial policies. These policies identify and outline the financial aspirations of the City. They are intended to serve as guidelines for the City Council and City staff alike in the decision-making processes related to the City’s financial operations and the development of financial forecasts, the annual budget, and capital improvement plans.

Below are highlights of the financial policies of the City of Mesa. The policies identify guidelines applicable to ten specific areas that support fiscal responsibility.

Financial Policy 1 – The Annual Budget: the adopted budget needs to be balanced, monitored and include performance measures.

Financial Policy 2 – Fund Balances and Contingency Fund Targets: the adopted budget will maintain an unrestricted fund balance of 8-10% per fiscal year in key funds.

Financial Policy 3 – Fees and Charges: policies to provide a consistent, stable, fair and appropriate means to fund public services.

Financial Policy 4 – Debt Issuance and Management: policies and guidelines to appropriately issue debt according to state and federal guidelines.

Financial Policy 5 – Capital Improvement Program (CIP) and Asset Replacement: the provision for a rolling five-year projection of the City’s capital projects to identify future financial requirements as part of the overall financial forecast.

Financial Policy 6 – Investments and Cash Equivalents: policies for the investment of City resources to balance risk and return while preserving sufficient liquidity.

Financial Policy 7 – Financial Reporting: policies to report the City’s finances in a way to satisfy both management and the need for government transparency.

Financial Policy 8 – Long Range Planning and Forecasting: policies used to accurately assess future finances to allow for resource allocation adjustments as necessary.

Financial Policy 9 – Risk Management: policies designed to protect against losses that would affect the ability to provide ongoing services and to reduce risk overall.

Financial Policy 10 – Amending and Updating Financial Policies: these financial policies are subject to regular review and will be revised as needed.

A full version of these policies is included in the Financial Schedules section of this book.

City of Mesa, Arizona 79 Executive Budget Plan 2017/18 Budget & Financial Summaries

Legal Requirements Arizona law and the Mesa City Charter include a litany of legal requirements for adoption of the budget and the levy of property tax. Figure 44 includes the major steps and legal deadlines in the budget process, including the date that each step was completed during the FY 2017/18 budget process.

Summary of Major Steps and Legal Deadlines in the FY 2017/18 Budget Process Arizona State Action Required City Charter Deadlines Date Completed Statute Deadlines Operational Budget Process City Council adopts tentative budget None On or before the third Monday in May 22, 2017 July Publish summary of tentatively adopted None Once a week for two consecutive May 27, 2017 budget and notice of public hearing which weeks following tentative adoption June 3, 2017 must precede final adoption. and before final adoption. City Council holds public hearing and adopts None On or before the 14th day before a June 5, 2017 final budget tax levy is adopted City Council adopts secondary property tax None On or before the 3rd Monday in June 26, 2017 levy. August.

Capital Improvement Program Process Publish summary of the Five Year Capital One publication at least two None Improvement Program and notice of public weeks prior to public hearing. May 8, 2017 hearing which must precede final adoption City Council holds public hearing and adopts Not less than 2 weeks after None the Five Year Capital Improvement Program the publication May 22, 2017

Utility Rate Process City Council adopts a Notice of Intention to None At a regular Council Meeting at least adjust utility rates and sets a public hearing March 20, 2017 30 days prior to public hearing Utility Rate Adjustment written report None 30 days prior to the public hearing March 22, 2017 submitted to the City Clerk's office Publish Notice of Intention and notice of None One publication at least 20 days April 22, 2017 public hearing for utility rate adjustments before the public hearing City Council introduces utility rate adjustment Ordinance is required for all Only water and wastewater are ordinances utility rate adjustments and included in state statute and may May 8, 2017 must be introduced at a use either an ordinance or resolution regular Council Meeting City Council holds public hearing on utility At least 6 days after the Not less than 30 days after the May 22, 2017 rate adjustments publication adoption of the notice of intent City Council adopts utility rate adjustment After the public hearing After the public hearing May 22, 2017 ordinances and resolutions Utility rate adjustments become effective 30 days after adoption of ordinance or any later date 30 days after adoption of ordinance July 1, 2017 specified in the ordinance

Figure 44: Summary of Major Steps and Deadlines in FY 17/18 Budget Process

City of Mesa, Arizona 80 Executive Budget Plan 2017/18 Budget & Financial Summaries

Figure 1: The Budget Cycle ...... 26 Figure 2: Total City Budget by Fund ...... 30 Figure 3 General Governmental Funds Budget by Department ...... 31 Figure 4: General Governmental Funds Budget by Expenditure Categories ...... 32 Figure 5: General Governmental Funds Available Resources ...... 33 Figure 6 Enterprise Fund - Ending Reserve Balance ...... 34 Figure 7 Enterprise Fund - Revenues by Enterprise Area ...... 35 Figure 8: Enterprise Fund by Expenditure Categories ...... 36 Figure 9 General Governmental and Enterprise Fund Balances ...... 41 Figure 10 Total City Available Resources ...... 42 Figure 11 City Sales Tax Rates ...... 43 Figure 12: Local Sales Tax Revenue ...... 44 Figure 13: Sales and Use Tax Revenue Forecast ...... 45 Figure 14: Taxable Sales Activity ...... 46 Figure 15: State Shared Revenues ...... 48 Figure 16: State Shared Revenue Forecast ...... 49 Figure 17: Historical Utility Rate Adjustments ...... 50 Figure 18: Historic Utility Revenues ...... 51 Figure 19: Average Homeowner's Annual Cost Comparison...... 52 Figure 20: Average Homeowner's Cost Comparison by Revenue Category ...... 53 Figure 21: Total City Budget by Expenditure Category ...... 55 Figure 22: Comparison of Total Operating Budget from FY 2015/16 to FY 2017/18 ...... 56 Figure 23: Total Personal Services Expenditures and FTEs ...... 57 Figure 24: Benefit Costs of a $50,000 Position ...... 58 Figure 25 - Retirement Employer Contribution Rates ...... 59 Figure 26: History of Employer Contribution Rates ...... 60 Figure 27: Cost of Health Care Benefit Claims ...... 62 Figure 28: Budgeted Personnel Full-time Equivalents (FTE) ...... 63 Figure 29: Full-Time Equivalent (FTE) Changes ...... 64 Figure 30: Bonds by Project Category...... 65 Figure 31: Series 2017 Bond Ratings ...... 66 Figure 32: Bonds by Type ...... 67 Figure 33: FY 2017-18 General Obligation Bond Capacity ...... 68 Figure 34: Secondary Property Tax Levy by Purpose ...... 69 Figure 35: Property Value by Fiscal Year ...... 70 Figure 36: Full Cash Value by Property Classification: FY16-17 to FY17-18 ...... 70 Figure 37: Net Assessed Value ...... 71 Figure 38: Property Value, Rate, and Levy: FY16-17 to FY17-18 ...... 72 Figure 39: Utility Systems Revenue Bonds Debt Coverage ...... 73 Figure 40: Total Bond Debt per Capita Comparison...... 74 Figure 41: Remaining Bond Authorization Summary ...... 75 Figure 42: G. O. Bonds Scheduled Payments ...... 76 Figure 43 Utility System Revenue Bonds & Payments ...... 77 Figure 44: Summary of Major Steps and Deadlines in FY 17/18 Budget Process ...... 80

City of Mesa, Arizona 81 Executive Budget Plan 2017/18 Budget & Financial Summaries

City of Mesa, Arizona Executive Budget Plan 2017/18 & DEMOGRAPHIC Projects & Capital CITY LEADERSHIP

Budget S

BUDGET & FINANCIAL SUMMARIES

PROJECTS & CAPIT BUDGET

AL

OPERA DEP TIONAL PLANS ARTMENT

SCHEDULES FINANCIAL FISCAL YEAR 2017-2018 MESA, ARIZONA Projects & Capital Budget

FY 2017/18 Capital Budget Overview

The City of Mesa recognizes the need for public infrastructure to keep pace with the growth of the community and the needs of the City’s residents. Accordingly, the Capital Budget is designed to identify the most pressing public facility and infrastructure needs of the City.

Capital expenditures are purchases that meet the following requirements:

1) Have an estimated useful life of more than one year 2) Have a unit cost of $5,000 or more 3) Considered a betterment or improvement of a capital asset (if it is an existing capital asset)

The largest component of the capital budget includes the five-year Capital Improvement Program (CIP). This five-year plan includes improvements to existing facilities, the acquisition of land and buildings, construction of new facilities, and major equipment purchases. The City also maintains a regular replacement schedule for equipment such as vehicles and computer hardware. Proposed capital purchases are included in the budget plan which is reviewed and adopted by City Council as a part of the annual budgeting process.

The Fiscal Year 2017/18 Capital Budget is comprised of four categories. Below is a summary of the budget in each category. A schedule showing the funding sources for each of the categories can be found at the end of this section.

FY 2017/18 Capital Budget Category Total Budget Operating Capital – General $25,686,207 Vehicle Replacement Program $9,396,586 Operating Capital – Vehicles $10,039,552 Capital Improvement Program (CIP) $339,383,000 Total Capital Budget $384,505,345

Due to limited resources, not all projects identified during the budget process are included in the adopted budget. Projects are prioritized based on how each project:

• Meets the needs of the City—considering factors such as financial feasibility, public health, and safety • Fulfills the City’s legal commitment to provide safe and adequate facilities and services • Creates efficiencies in existing facilities • Prevents or reduces future improvement cost • Provides services to developed areas lacking full-service • Promotes infill development

City of Mesa, Arizona 83 Executive Budget Plan 2017/18 Projects & Capital Budget

Capital Budget Categories Operating Capital - General Operating capital expenditures include acquisitions or upgrades to physical assets such as property, buildings, or equipment.

Operating capital expenditures are included in the operating budgets of City departments.

Also included in the operating capital category are the City’s infrastructure lifecycle programs for facility maintenance, information technology infrastructure, desktop computer replacement and parks facility maintenance.

Below is a table describing some of the notable capital purchases using operating funds budgeted in FY 2017/18.

FY 2017/18 Operating Capital - General Description Total Budget* Eastmark Development Agreement Improvements* $10,432,000 Police Radios $6,000,000 Computer Equipment $4,699,497 Signal Butte Water Treatment Plant Office Equipment $590,150 Miscellaneous $3,964,560 Total $25,686,207 *Eastmark capital expenditures are paid for by the Eastmark Community Facility District (CFD).

Vehicle Replacement Program The Vehicle Replacement Program allows the City’s fleet replacements to be reviewed in a global manner and resources to be applied to the greatest need. Proper fleet management allows for greater efficiency in operations.

The vehicle replacement program is funded using money from the vehicle replacement fund and the replacement extension reserve fund.

Vehicle Replacement Fund: The Vehicle Replacement Fund is funded through proceeds from the sale of vehicles, interest on the fund balance, and fund transfers from each of the various general governmental city funds.

Replacement Extension Reserve (RER): Mesa’s bond covenants require that two percent of all utility revenue is used to continue to improve utility system infrastructure. Mesa has used RER revenue to purchase the vehicles necessary to adequately maintain the infrastructure.

City of Mesa, Arizona 84 Executive Budget Plan 2017/18 Projects & Capital Budget

FY 2017/18 Vehicle Replacement Program* Funding Source Total Budget Vehicle Replacement Fund $5,862,660 Replacement Extension Reserve $3,533,926 Total $9,396,586 *Purchase and preparation of replacement vehicles is centralized in Fleet Services. Operating and maintenance expenses are included in the budgets of departments using the vehicles.

Operating Capital - Vehicles Each fiscal year, some vehicles are not included in the City’s vehicle replacement program. These vehicles are categorized as either a fleet addition or unscheduled replacement.

Fleet Additions – new vehicles to the City which increase the size of the City’s fleet. These additions are typically the result of new programs, services or positions. An example of an addition to the fleet would be a new service truck for maintenance workers to travel to new City parks to complete daily maintenance activities.

Unscheduled replacements – replacement of fleet vehicles due to unique circumstances which fall outside of the vehicle replacement program. The most common reasons a vehicle is not included in the VRP schedule are: vehicles purchased with grant dollars, vehicles changed to a different type or size (e.g., a ½ ton truck being replaced with a ¾ ton truck), or vehicles replaced ahead of schedule based on service needs. Purchase of these vehicles is considered on an individual basis during the budget process.

The City receives grant dollars for a variety of purposes. Vehicles may be purchased with these grants to provide an enhanced level of services. Since grant-funded vehicles are not automatically replaced at the end of service life, these vehicles are not a part of the replacement program. Rather the service is evaluated in its entirety and prioritized by City management.

As the City seeks operational efficiencies, staff may determine that a larger vehicle would mean better service to the community. Purchasing a larger dump truck than the truck currently in service could mean fewer trips to the landfill, resulting in better service.

City of Mesa, Arizona 85 Executive Budget Plan 2017/18 Projects & Capital Budget

New and replacement vehicles funded outside of the Vehicle Replacement Program are outlined below.

FY 2017/18 Operating Capital - Vehicles Department Total Budget Unscheduled Replacements Fire and Medical $507,784 Transportation $1,567,901 Environmental and Sustainability $5,551,972 Total Replacement Vehicles $7,627,657 Fleet Additions Police $485,366 Parks, Recreation and Commercial Facilities $302,000 Water Resources $392,089 Transportation $845,440 Environmental and Sustainability $387,000 Total Fleet Additions $2,411,895 Total $10,039,552

Capital Improvement Program Major capital improvements and purchases are planned and tracked on a longer-term basis than annual capital purchases. Departments plan and develop capital projects in cooperation with the Engineering Department. City staff analyzes and prioritizes the projects. This allows the City to apply limited funding and staff resources to the highest-priority projects. Based on the resources projected to be available for the various types of projects, a multi-year plan is developed.

An eight-year Capital Improvement Program (CIP) assists in development of the City’s forecast. This plan includes project costs as well as all resulting operational and maintenance costs. The first five years of the plan is published in the Five-Year Capital Improvement Program document. The first year of the plan is adopted by City Council as part of the annual budget. An overview of the planning process is shown on the next page.

City of Mesa, Arizona 86 Executive Budget Plan 2017/18 Projects & Capital Budget

• Departments work with Engineering to update the September eight-year CIP October-November • Projects are prioritized and funding is identified

• Eight-year CIP reviewed by Office of Management December and Budget & Engineering January - February • CIP is reviewed with City Manager

March - April • CIP is presented to the City Council; • City Council provides direction regarding CIP

• Five-year CIP is published; May • Public hearing and adoption by City Council

Funding Sources Capital improvements are funded by two primary sources: (1) operating revenues and (2) bonds. The following is a summary of the funding sources:

Operating Revenues – These revenues range from general and special sources (Local Street Sales Tax, Highway User Revenue, State shared revenue, Federal and State aid, fines, etc.) to enterprise revenues (electric, gas, water, solid waste, etc.). For purposes of the Capital Improvement Program, reimbursements of expenses from other governmental entities are included in this category. While not considered revenue, their inclusion assists in ascertaining the City’s net cost for a project.

Highway User Revenue – funds received through the State of Arizona collection of gasoline tax and a number of additional transportation related fees. Revenues from these taxes and fees are deposited into the Arizona Highway User Revenue Fund (HURF), of which the City of Mesa receives a portion of the total. Funds in this category can only be used for Transportation-related activities.

Local Streets Sales Tax – funds received from a May 2006 voter-approved increase of the City’s Transaction Privilege (Sales Tax) by 0.5%, of which 0.3% has been dedicated to Transportation. This funding can only be used for streets-related activities and provides a local revenue source as well as the matching requirement to obtain Maricopa Association of Governments (MAG) Proposition 400 monies.

City of Mesa, Arizona 87 Executive Budget Plan 2017/18 Projects & Capital Budget

Federal Grant – funds obtained through federal grantors such as the Community Development Block Grant Program (CDBG) and the Federal Transit Administration. CIP AT A GLANCE

State Grant– funds obtained through state grantors such as the Arizona Department of Transportation. $339,383,000 Bonds - Issuing bonds is a common practice among cities. It is the Total Capital Improvement primary and most widely accepted method for municipalities to fund Program 2017/18 budget. large capital projects. There are two types of bond fund projects in the Capital Improvement Program:

General Obligation (GO) Bonds - GO bonds are used to finance Capital improvements are public infrastructure such as parks, streets, and police and fire funded by two primary facilities. GO bonds are backed by the “full faith and credit” of sources: the City, meaning that the City pledges to take whatever action Operating Revenues is necessary to raise the revenue to repay the loan. Principal Bonds and interest payments on Mesa’s GO bonds are funded by a secondary property tax, development impact fees, and a court construction fee. If these revenue sources are not sufficient, All capital improvement the General Fund is used to fund the remaining portion of the projects are assigned to one of payment. five categories: General Government Utility Systems Revenue Bonds - Utility revenue bonds have no Parks & Culture statutory limitations on the amount which may be issued. Public Safety Projects that fall into this category are Electric, Gas, Solid Waste, Water, and Wastewater projects. Bonds used for these Transportation projects are repaid from payments made by each utility Utilities customer.

The FY 2017/18 CIP Budget includes funds for 163 projects.

FY 2017/18 funding for one- time start-up purchases and ongoing operations and maintenance is $5,321,759

City of Mesa, Arizona 88 Executive Budget Plan 2017/18 Projects & Capital Budget

The total Capital Improvement Program budget for FY 2017/18 is $339,383,000. The table below presents a high-level overview of the prior year FY 2016/17 CIP budget compared to FY 2017/18. A more detailed CIP schedule can be found at the end of this section.

Comparison of Prior Year CIP Budget Funding Source FY 2016/17 FY 2017/18 Operating Funds Unrestricted $5,243,521 $1,989,039 Restricted $48,095,479 $113,441,961 Operating Funds Subtotal $53,339,000 $115,431,000 Bond Funds General Obligation $47,320,397 $25,699,409 Utility Revenue $211,260,603 $150,721,591 Bond Funds Subtotal $258,581,000 $176,421,000 Total Budget (without carryover) $311,920,000 $291,852,000 Carryover Operating Funds Carryover - $34,048,000 Bond Fund Carryover - $13,483,000 Carryover Subtotal - $47,531,000 Total CIP Budget $311,920,000 $339,383,000

Notable differences in the CIP budget between FY 2016/17 and FY 2017/18 include the following:

Operating Funds- In FY 2017/18, there will be streets & storm sewer projects including the Elliot Road Tech Corridor that will utilize funds from the Transportation Fund and the Highway User Revenue Fund. The Greenfield Wastewater Reclamation Plant Expansion will utilize funds from the Greenfield WRP Joint Venture Fund.

General Obligation Bonds – The existing authorization for public safety and parks is nearing exhaustion. FY 2017/18 includes completing Pioneer Park and Eagles Park using Park bonds authorized by voters in 2012 and street improvements to the Elliot Road Technology Corridor and Mesa Drive from 8th Avenue to Main Street.

Utility Revenue Bonds – FY 2017/18 includes the construction of the new Signal Butte Water Treatment Plant and the Greenfield Wastewater Reclamation Plant Expansion. Both projects are multi-year and will continue in FY 2017/18. The total cost of the Signal Butte Water Treatment Plant is $128.2 million over the life of the project.

Carryover – Carryover is the process of taking the unused budget appropriation of a project from one fiscal year and adding or ‘carrying’ it over to the budget appropriation for the next fiscal year. In 2016/17 the City did not use a budget carryover process in developing the proposed five-year CIP. The City instead attempted to manage the total project budget to ensure a project has sufficient funding to take it from design to completion. Not using the carryover process excluded remaining project budget from the

City of Mesa, Arizona 89 Executive Budget Plan 2017/18 Projects & Capital Budget forecast and prevented the City from being able to properly forecast expenditures to the various funds budgeted in the CIP. To help with the forecast, the adopted CIP includes $47.5 million in carryover for projects to be completed in FY 2017/18.

Impact on Operating Budget

The completion of capital improvement projects may result in the need for additional funding for one-time start-up purchases as well as ongoing operations and maintenance (O&M) funding (e.g., a new fire station requires one-time funding for items such as furniture, fixtures and equipment and ongoing funding for expenditures such as personnel, utilities and maintenance). O&M needs are identified during the project planning process.

O&M costs budgeted in FY 2017/18 usually result from projects completed in the prior fiscal year. Major capital projects typically have design and construction schedules that last throughout the year; therefore, O&M usually begins the following fiscal year. However, some projects may be scheduled for completion early in FY 2017/18 and therefore require O&M funding. Operations and maintenance costs are included in the operating budgets of the applicable department.

CIP Impact on Operating Budget Funding Source 2017/18 2018/19 2019/20 2020/21 2021/22 General Fund $556,280 $1,174,264 $1,205,122 $1,236,131 $1,269,438 Cemetery Fund $11,000 $11,264 $11,543 $11,840 $12,159 Local Street Sales Tax $103,051 $203,575 $216,532 $222,104 $246,931 Environmental Compliance Fund $588,814 $620,504 $519,367 $550,061 $579,357 Enterprise Fund $3,155,205 $2,720,729 $3,852,205 $4,023,377 $4,189,397 Capital - Enterprise Fund $591,675 - - - - Greenfield WRP Joint Venture $277,999 $274,942 $2,911,993 $3,076,532 $3,159,427 Fund Highway User Revenue Fund $37,735 $141,144 $153,023 $224,248 $261,137 Transit Fund - $938,496 $3,846,734 $3,945,716 $4,052,030 Total Operational Impact $5,321,759 $6,084,918 $12,716,519 $13,290,009 $13,769,876

The following pages include examples of capital projects in the FY 2017/18 CIP that will have an impact on the operating budget. These projects require funding in FY 2017/18 and in future years for operations and maintenance. The descriptions below include the estimated annual operating impact of each project and a description of the operating costs.

City of Mesa, Arizona 90 Executive Budget Plan 2017/18 Projects & Capital Budget

Stadium Connector Shared Use Path

Project Description: Construct a combination of shared use pathways and cycle tracks that will connect Mesa’s spring training stadiums (Hohokam Stadium to the east and Sloan Park to the west). It will also include signalized pedestrian crossings at Center Street and the canal, and Country Club Drive and the canal.

Annual Operating Impact: ~$17,000 Upon completion, the annual operating and maintenance budget of the Stadium Connector Shared Use Path will be approximately $17,000.

Southeast Mesa Bike and Pedestrian Path

Project Description: Create a pedestrian and bike trail connection in southeast Mesa with a shared use paved pathway. The first phase is from Baseline to Elliot Road, in the 202 ADOT right of way.

Annual Operating Impact: ~$20,000 Upon completion, the Southeast Mesa Bike and Pedestrian Path will have an annual operating and maintenance budget of $20,000.

City of Mesa, Arizona 91 Executive Budget Plan 2017/18 Projects & Capital Budget

Eagles Park

Project Description: The grounds of the former Mesa Junior High School property will be converted into Eagles Park, a new City park and community center. The new park will include lighted multi-purpose fields, playground, a youth ninja-style exercise course, ADA compliant walkway with exercise stations for adults, picnic facilities, a community center, and new parking.

Annual Operating Impact: ~$682,000 The annual operations and maintenance costs will be $682,000. The funding is expected to cover maintenance staffing cost and the upkeep of the park and its facilities. Specific costs could include landscaping and field maintenance.

City of Mesa, Arizona 92 Executive Budget Plan 2017/18 Projects & Capital Budget

Signal Butte Water Treatment Plant Project Description: Construction is currently underway on the first phase of the Signal Butte Water Treatment Plant that will service southeast Mesa. Signal Butte, utilizing the latest technology for maximum operational flexibility, will have the capacity to treat 24 million gallons of water per day. The plant will incorporate safe and reliable water treatment technology with automation and quality monitoring systems to protect the public health.

Annual Operating Impact: ~$2,312,000 The annual operations and maintenance costs will be $2,312,000. The funding is expected to cover maintenance staffing costs and the upkeep of the plant.

City of Mesa, Arizona 93 Executive Budget Plan 2017/18 Projects & Capital Budget

CAPITAL IMPROVEMENT PROGRAM CATEGORIES

All capital improvement projects are assigned to one of five categories.

General Government – projects are defined as any improvements or land acquisition associated with City Facilities, Town Center, and economic development.

Parks and Culture - projects are defined as new neighborhood, community or district parks and associated amenities; park offices; retention basin improvements; golf course improvements; athletic field lighting; community recreation centers; skate parks; park projects; and aquatic facilities. Other projects in this category include improvements to the City’s arts centers, museums, and public libraries.

Public Safety - projects are defined as new buildings or existing buildings/facilities that are planned to be remodeled, renovated, or expanded such as: Police substations; Fire stations; courtrooms; training facilities; or parking garages associated with public safety. This also includes land acquisition for public safety improvements. New equipment purchases or existing equipment upgrades, and environmental mitigation improvements are also included in this category.

Transportation - projects are defined as improvements to the existing arterial street system; intersection improvements; new roadways; landscaping within public right-of-way; street lighting and traffic signal system improvements; shared use paths; storm sewer drainage improvements; floodway improvements; bus purchases; bus pullouts/bus shelters; park-n-ride lots; transit facilities; light rail studies; and infrastructure improvements to Falcon Field and Phoenix-Mesa Gateway airports.

Utilities - projects are defined as water reclamation plants; water treatment plants; well sites; water lines; wastewater lines; gas lines; storm sewer lines; lift stations; new or expanded pump stations; sulfide stations; storage or recharge sites; electrical substation expansions; and solid waste facility improvements.

City of Mesa, Arizona 94 Executive Budget Plan 2017/18 Projects & Capital Budget

Utilities Transportation Parks & General Public Safety Culture Government $193,656,162 $107,578,095 $26,514,794 $4,792,452 $6,841,497

FY 2017-18 CIP Funding by Program

The 2017/18 CIP shows the City’s continued commitment to reliable utility and transportation systems. Below is a chart showing the percent of the total CIP represented by each category.

First Year (FY 17/18) CIP by Category

General Parks and Culture Gove rnment 8% 1% Public Safety 2%

Tra ns portation Utilities 32% 57%

City of Mesa, Arizona 95 Executive Budget Plan 2017/18 Projects & Capital Budget

The following pages contain a list of capital projects planned for FY 2017/18, grouped by CIP category. Each project description shows only the budget for FY 2017/18. More detailed descriptions and total project costs can be found in the separate document “Capital Improvement Program FY 2018-2022.”

City of Mesa, Arizona 96 Executive Budget Plan 2017/18 Projects & Capital Budget General Government Projects

City Facilities FY 17/18

East Valley Adult Resources Building - CP0568 Renovate the Mesa Active Adult Center. Work will include: interior flooring, fire alarm system upgrades and ADA 1250CDBG - Community Development accessibility improvements. Block Grant $962,003 1301A - Capital - General Fund $833 $962,836

East Mesa Service Center Fleet Bay Cooler - CP0572 Replace and relocate the evaporative coolers to make the units more accessible for maintenance needs. The units have also exceeded their useful life and are not maintainable at the existing locations. 1301A - Capital - General Fund $485,000 $485,000

AZ Lab Utility Service Entrance Section - CP0580 Replace aged electric service entrance section (SES) and meter equipment with current standard utility equipment. 1104A - Economic Investment Fund $442,862 $442,862 Convention Center Walkway Lighting - CP0584 Replace the walkway lighting at the Mesa Convention Center. 3101CC - Convention Center $202,489 $202,489

Police Central Division Drain Lines - CP0679 Replace aging drain pipes throughout the PD Central building. The piping is beyond its life expectancy and leaking has occurred in several areas. Replacement will prevent service disruption. 1301A - Capital - General Fund $210,000 $210,000

Red Mountain Multi-Generational Center Flooring - CP0687 Replace flooring that has been damaged due to adjacent grading of the site around the property. Water has infiltrated below the foundation causing concrete to heave and damaging the building structure. 1301A - Capital - General Fund $524,961 $524,961 Gene Autry Clubhouse Septic System - CP0688 Abandon the clubhouse septic system. Install wastewater collection lines and connect the facility to the City's wastewater utility system. 1301A - Capital - General Fund $511,269 $511,269

Mesa Family Advocacy HVAC System & Roofing - CP0770

City of Mesa, Arizona 97 Executive Budget Plan 2017/18 Projects & Capital Budget

Replace roof mounted HVAC equipment of existing two 2- story buildings. The buildings house City of Mesa Police and Family Advocacy Center. 1301A - Capital - General Fund $438,125 $438,125

Downtown Facade Improvement - CP0781 Construct commercial facades between 1st Street and 1st Avenue, Country Club and Sirrine/Centennial as well as colonnade removal for properties. 1220A - Grants - Gen. Gov. $150,000 $150,000

Police Headquarters Generator - CP0785 Replace the generator in Police Headquarters building that will provide backup power as well as correct issues to meet city code. 1301A - Capital - General Fund $614,910 $614,910

South Center Campus Improvements - CP0791 Construct various improvements to Building 2 at South Center Campus. 1301A - Capital - General Fund $250,000 $250,000

Total for City Facilities $4,792,452

City of Mesa, Arizona 98 Executive Budget Plan 2017/18 ParksProjects & &Culture Capital Projects Budget

Arts and Culture FY 17/18

Museum & Cultural Resource Renovation - CP0213 Renovate the old Federal Building in downtown Mesa to allow for expansion of museum exhibit space, offices, and museum collection processing and storage. 13082012 - 2012 Park Bond $2,000,000 $2,000,000 Total for Arts and Culture $2,000,000

Cemetery FY 17/18

Cemetery North Expansion - CP0583 Expand the City cemetery to increase inventory. The planned expansion will be completed in 2 phases. 1260A - Cemetery Reserve $983,850 $983,850 Total for Cemetery $983,850

Hohokam Stadium / Fitch Park FY 17/18

Hohokam Stadium Capital Improvements - CP0717 Complete capital improvements needed at Hohokam Park 3101HHK - Hohokam/Fitch Sports and/or the Fitch practice facility. Complex $25,000 $25,000 Total for Hohokam Stadium / Fitch $25,000 Park

Library FY 17/18

Main Library Improvements - CP0678 Construct 2 rooms at the main library using grant money from the Salt River Pima-Maricopa Indian Community (SRPMIC). 1220A - Grants - Gen. Gov. $30,628 1250CDBG - Community Development $100,000 Block Grant 1299A - Restricted Programs Fund $130,000 $260,628 Total for Library $260,628

City of Mesa, Arizona 99 Executive Budget Plan 2017/18 Projects & Capital Budget

Museum FY 17/18

Arizona Museum of Natural History Security System - CP0561 Upgrade the security system at the museum to help ensure the safety of the museum staff and patrons. 1109A - Arts & Culture Fund $1,139 1301A - Capital - General Fund $77,149 $78,288 Arizona Museum of Natural History Dinosaur Facade - CP0783 Construct a full-scale dinosaur replica simulating breaking out of the second story of the museum at the corner of Pepper Place and Macdonald Street. 1109A - Arts & Culture Fund $133,000 $133,000

Total for Museum $211,288

Parks & Recreation FY 17/18

Parks Irrigation Controllers - CN0009 Upgrade existing irrigation controllers throughout the City's park system which are reaching the end of their service life. Installation of the new controllers will take place in phases. 1301A - Capital - General Fund $100,000 13082012 - 2012 Park Bond $250,000 $350,000

Greenfield Park Urban Fishing Lake - CP0010 Expand the lake to create a five-acre urban fishing lake and upgrade the playground at the existing Greenfield Park. Improvements will lower irrigation costs for the park landscaping while increasing the recreational opportunities. 13082012 - 2012 Park Bond $2,900,000 $2,900,000

Pioneer Park Renovations - CP0015 Construct improvements to Pioneer Park to create a unique destination. It will include relocation of the playground, improved picnic facilities, and a splash pad with focus on the central corridor of the park. 13082012 - 2012 Park Bond $6,999,992 $6,999,992

Signal Butte & Elliot Park Development - CP0121

City of Mesa, Arizona 100 Executive Budget Plan 2017/18 Projects & Capital Budget

Construct a metro park on land surrounding the water treatment plant at Elliot Road and Signal Butte. Initial phase includes trails and interpretive opportunities explaining the story of water in the desert along with parking. 13082012 - 2012 Park Bond $1,202,111 $1,202,111

Eagles Park - CP0211 Construct a community park on the former Mesa Junior High property with lighted multi-use/soccer fields, picnic ramadas, exercise stations, and a playground. The former gym is proposed for renovation into a community recreation center. 1205A - Local Streets Sales Tax $2,558,811 1250CDBG - Community Development $400,000 Block Grant 1250NSP1 - Neighborhood $2,600,000 Stabilization Program 1 13082012 - 2012 Park Bond $3,000,000 $8,558,811

Playground Upgrades - CP0300 Replace aging park playgrounds with upgraded equipment meeting current safety/accessibility requirements. Playground designs will be chosen to stimulate activity. Approximately 8 sites are targeted for full renovation, others for minor improvements. 1301A - Capital - General Fund $17,555 $17,555

Engineering Park Irrigation Projects - CP0485 Upgrade existing irrigation systems/components at various park sites. Replacement systems and pumps are more efficient, and use less energy in shorter watering windows. Seven sites are targeted for major renovations, many others for minor improvements. 1301A - Capital - General Fund $120,000 $120,000

Playground Improvements - CP0486 Replace aging park playgrounds with upgraded equipment meeting current safety/accessibility requirements. Playground designs will be chosen to stimulate activity. Approximately 8 sites are targeted for full renovation and others for minor improvements. 1301A - Capital - General Fund $250,000 $250,000

Pool Improvements - CP0487

City of Mesa, Arizona 101 Executive Budget Plan 2017/18 Projects & Capital Budget

Complete planned pool improvements to existing facilities such as filter replacements and pool replastering. Minor upgrades to existing pools include deck drain improvements and shade replacements. 1301A - Capital - General Fund $179,985 $179,985

Recreation Facility Improvements - CP0488 Improve existing sports complexes and recreation centers throughout Mesa. Fitness equipment will be upgraded, scoreboards will be replaced, gym and court surfaces will be upgraded as existing equipment reaches the end of service life. 1301A - Capital - General Fund $651,294 $651,294

Kleinman Park - CP0553 Improve existing amenities at Kleinman Park to address aging equipment and systems. 13082012 - 2012 Park Bond $1,100,000 $1,100,000 Gene Autry Park Improvements - CP0559 Update the existing playground to meet current safety and accessibility requirements, improve accessibility in the baseball complex restrooms, and modify the baseball field irrigation system to improve efficiency. 1301A - Capital - General Fund $8,000 13082012 - 2012 Park Bond $150,000 $158,000

Sloan Park Capital Improvements - CP0716 Complete capital improvements needed at Sloan park and 3101CUB - Cubs Spring Training adjacent practice facilities. Facility $25,000 $25,000

Cubs Facility Improvements - CP0723 The City and the Chicago Cubs organization have agreed to periodically improve or upgrade Sloan Park and/or the Under Armor Performance Training Center for monument 3112A - Spring Training Bond and directional signage around the site. Construction $324,090 $324,090

Riverview Irrigation Filter Upgrade - CP0784 Install properly sized filters at Riverview Park that will work 3101CUB - Cubs Spring Training with the irrigation components. Facility $197,190

City of Mesa, Arizona 102 Executive Budget Plan 2017/18 Projects & Capital Budget

$197,190

Total for Parks & Recreation $23,034,028

City of Mesa, Arizona 103 Executive Budget Plan 2017/18 Projects & Capital Budget Public Safety Projects

Communications FY 17/18

VHF Radio System - Mesa Share - CN0021 Complete the infrastructure buildout to make the VHF Radio System operational for the regional wireless public safety communications network. 1301A - Capital - General Fund $452,272 $452,272

TOPAZ Radio Network Upgrade - CN0022 Upgrade the public safety radio system network. The current system is no longer supported by the manufacturer and need to be upgrade. The upgrade will ensure system reliability for the Topaz Regional Wireless Cooperative.

1120PROG - Topaz Capital Programs $433,828 $433,828

TOPAZ Radio Network Upgrade - Mesa Share - CN0023 Upgrade the public safety radio system network. The current system is no longer supported by the manufacturer and needs to be upgrade. The upgrade will ensure system reliability for the TWRC. 1301A - Capital - General Fund $325,371 $325,371

Wireless Backhaul Microwaves - Mesa Share - CN0034

Replace the backbone microwave radios for the public safety communications network. These radios are no longer supported by the manufacturer. 1301A - Capital - General Fund $285,001 $285,001

TOPAZ Wireless Backhaul Microwaves - CP0093 Replace the point-to-point microwave radio infrastructure, which provides voice and data services to the regional public safety communications network, fire stations, and other City facilities. 1120PROG - Topaz Capital Programs $240,000 1301A - Capital - General Fund $13,335 $253,335

TOPAZ - VHF Radio System - CP0305 Complete the infrastructure buildout to make the VHF Radio System operational for the regional wireless public safety communications network. 1120PROG - Topaz Capital Programs $675,976 $675,976

Total for Communications $2,425,783

Environment and Sustainability FY 17/18

City of Mesa, Arizona 104 Executive Budget Plan 2017/18 Projects & Capital Budget

Household Hazardous Waste Facility - CP0588 Construct a permanent HHW Facility to better serve city 1207A - Environmental Compliance residents. Fee $136,760 31111994 - 1994 Solid Waste Bond $3,368,000 $3,504,760

Total for Environment and $3,504,760 Sustainability

Fire FY 17/18

Mesa Regional Dispatch and Emergency Operations Center - CP0340 Construct the new Mesa Fire and Medical Regional Dispatch Center and Emergency Operations center. 1220A - Grants - Gen. Gov. $453,152 $453,152

Total for Fire $453,152

Police FY 17/18

Aviation Unit Hangar Remodel - CP0216 Remodel the hangar in addition to the main office spaces to allow for future growth. Expansion of the hangar will increase the available area for maintenance and aircraft storage. 1301A - Capital - General Fund $9,275 13042013 - 2013 Public Safety Bond $185,494 $194,769

Central Community Media Room - CP0542 Install audio visual presentation equipment including camera, monitors, and sound systems to allow for news conferences. 1301A - Capital - General Fund $29,600 $29,600

Superstition Investigations Area Renovation - CP0596 Renovate the Police Department's Superstition District's Investigations area. In addition to improving existing offices, improvements include new work areas and updated flooring and paint. 1301A - Capital - General Fund $83,433 $83,433

Advocacy Center Interview Suite Sound Attenuation Upgrades - CP0747

City of Mesa, Arizona 105 Executive Budget Plan 2017/18 Projects & Capital Budget

Renovate four existing interview rooms to provide sound proofing. This will assist in maintaining confidentiality throughout the adjacent rooms. 1301A - Capital - General Fund $150,000 $150,000

Total for Police $457,802

City of Mesa, Arizona 106 Executive Budget Plan 2017/18 ProjectsTransportation & Capital ProjectsBudget

Falcon Field Airport FY 17/18

Wash Rack Shade Structure - C07039 Construct a shade structure over the existing aircraft wash rack. This project is part of a continuing effort to enhance the utility and quality of Falcon Field. 3004FF - Falcon Field Airport $626,849 $626,849

Blast Pads for Runway 4L-22R - C07044 Construct blast pads for Runway 4L-22R to reduce the erosive effects of jet blast and propeller wash. 3004FF - Falcon Field Airport $39,918 3010FF - Falcon Field Grants $230,936 $270,854

Airport Historic Zone Improvements - C09036 Construct improvements to the landscaping and airport signage as part of the continuing efforts to enhance the quality and appearance of Falcon Field Airport. 3004FF - Falcon Field Airport $1,646,441 $1,646,441

Automated Surface Observing System (ASOS) - C10470 Construct a concrete pad and electrical lines for an Automated Surface Observing System (ASOS) that is being installed by the Federal Aviation Administration (FAA) to improve the weather reporting capabilities at the airport. 3004FF - Falcon Field Airport $4,975 $4,975

Airfield Lighting and Signage Upgrade - CP0114 Replace runway and taxiway lighting with newer light- emitting diode (LED) lights to reduce electrical and maintenance costs. 3004FF - Falcon Field Airport $667,515 3010FF - Falcon Field Grants $2,674,840 $3,342,355

Falcon Field Master Plan - CP0256 Update the master plan document used to identify the ultimate development of the airport for a twenty-year period. 3004FF - Falcon Field Airport $89,615 3010FF - Falcon Field Grants $716,475 $806,090

Safety Area Improvements - CP0397 Install rock for erosion control and construct various improvements to reduce wildlife activity. 3004FF - Falcon Field Airport $75,000 3010FF - Falcon Field Grants $450,000 $525,000

Acute Angle Taxiways - CP0416

City of Mesa, Arizona 107 Executive Budget Plan 2017/18 Projects & Capital Budget

Construct High-Speed Exits on runway 4L/22R to provide increased safety and operational flexibility. 3004FF - Falcon Field Airport $9,405 3010FF - Falcon Field Grants $66,091 $75,496

Taxiway C and Runway 4R Run-Up Area - CP0719 Realign and construct taxiway C and runway 4R run-up area. 3004FF - Falcon Field Airport $54,961 3010FF - Falcon Field Grants $173,060 $228,021

Falcon Tech Center - CP0746 Complete environmental assessment for the removal of orange grove trees west of the airport to allow for economic development opportunities. 3004FF - Falcon Field Airport $101,249 $101,249

Waste Container Enclosures - CP0762 Install a walled structure with gates around trash containers to provide a visual barrier between public areas and trash containers. 3004FF - Falcon Field Airport $157,500 $157,500

City Owned Buildings and Property Improvements - CP0763 Construct needed improvements to City-owned buildings and property at Falcon Field. 3004FF - Falcon Field Airport $157,500 $157,500

Total for Falcon Field Airport $7,942,330

Intelligent Transportation System FY 17/18

MAG Projects Local Match - CP0109 Fund the local match for transportation projects that are eligible for regional funding. 1205A - Local Streets Sales Tax $416,850 $416,850

ITS - East Valley Arterial Congestion Monitoring - CP0419 Install a congestion monitoring and travel time system for deployment within the jurisdictions participating in this project to include Mesa, Tempe, and Gilbert. The project includes sensors installed at approximately one-mile increments. 1205A - Local Streets Sales Tax $128,011 1220A - Grants - Gen. Gov. $731,719 $859,730

Traffic Signals - New and Upgrade - CP0586 Install new signals and upgrade existing signals. 1205A - Local Streets Sales Tax $2,155,111

City of Mesa, Arizona 108 Executive Budget Plan 2017/18 Projects & Capital Budget

$2,155,111

Traffic Signal Cabinet & Controllers Upgrade in East Mesa - CP0653 Install citywide new traffic signal cabinets and controllers at 50 locations to more effectively manage traffic. 1205A - Local Streets Sales Tax $682,546 1220A - Grants - Gen. Gov. $780,000 $1,462,546

Traffic Signals - Public Safety Opticom - CP0702 Install public safety opticom technology on traffic signals. 1205A - Local Streets Sales Tax $640,000 $640,000

Total for Intelligent Transportation $5,534,237 System

Shared Use Paths FY 17/18

West Mesa Connector Shared Use Path - CP0108 Construct a 10-foot wide paved, shared use pathway with landscaping, rest areas and lighting from Country Club Drive to Dobson Road. 13082012 - 2012 Park Bond $2,258,119 $2,258,119

Southeast Mesa Bike & Pedestrian Path - CP0198 Create a pedestrian and bike trail connection in southeast Mesa with a concrete path, landscaping, and lighting.

13082012 - 2012 Park Bond $1,439,228 $1,439,228

Lighting on Consolidated Canal, Adobe to Lindsay - CP0274 Construct and install lighting along the consolidated canal from 8th Street to Lindsay Road. All of the underground work was completed as part of a previous project.

1205A - Local Streets Sales Tax $742,350 $742,350

Bike and Ped Pilot projects - CP0531 Improve the City's multi-model transportation system. 1205A - Local Streets Sales Tax $745,200 $745,200

South Canal Shared Use Path: Consolidated Canal to McDowell - CP0671 Construct shared-use path resolving a missing link in the regional non-motorized system. 1205A - Local Streets Sales Tax $298,900 $298,900

Southeast Mesa Shared Use Path - Guadalupe to Baseline - CP0734 Construct pathway in ADOT's San Tan L202 Freeway within the right-of-way. 1205A - Local Streets Sales Tax $10,500 $10,500

City of Mesa, Arizona 109 Executive Budget Plan 2017/18 Projects & Capital Budget

Total for Shared Use Paths $5,494,297

Storm Sewer FY 17/18

Storm Drain Pump Stations - CP0491 Rehabilitate aging storm drain pump stations. 1207A - Environmental Compliance Fee $2,714,376 $2,714,376

Royal Palms Drainage - CP0556 Construct flap gates on manholes and a relief line to Candlelight Park. Flooding caused by retention in the golf course backing up into the cul de sac and flooding homes.

1205A - Local Streets Sales Tax $169,079 $169,079

Horne Storm Drain System - CP0557 Construct a new storm drain system in Horne Rd that will connect to an existing storm drain in Southern Ave. Improvements will be done over three phases to provide better drainage to the neighborhoods surrounding Horne. 1205A - Local Streets Sales Tax $181,437 1206A - Highway User Revenue Fund $2,631,578 $2,813,015

10th Ave and Sirrine Drainage - CP0558 Construct storm drainage improvements to prevent neighborhood flooding. Flat streets lack capacity, conveyance, and tops over sidewalks and floods homes that are built at grade finished floors. 1206A - Highway User Revenue Fund $697,620 $697,620

Lehi Area Drainage Master Plan - CP0567 Perform a drainage study of Lehi Area to compare, contrast and recommend various alternatives for addressing drainage issues. 1205A - Local Streets Sales Tax $172,725 1206A - Highway User Revenue Fund $338,651 1207A - Environmental Compliance Fee $262,500 $773,876

Sloan Park Drainage Structure - CP0576 Develop all-weather access for maintenance equipment 1207A - Environmental Compliance and personnel. Fee $389,781 $389,781

2nd Avenue and Extension Drainage - CP0611 Construct a new storm drain system to drain flows north to the Main Street storm system drain. This will alleviate flooding and drainage issues. 1205A - Local Streets Sales Tax $412,715 1220A - Grants - Gen. Gov. $250,000 $662,715

City of Mesa, Arizona 110 Executive Budget Plan 2017/18 Projects & Capital Budget

Summer and Bates Drainage - CP0612 Construct a storm drain network with catch basins to remove runoff and direct it to the regional retention basin on Lehi Road. 1206A - Highway User Revenue Fund $144,546 $144,546

63rd and Broadway Drainage - CP0613 Construct an improved outfall and junction structure in the Broadway Road storm drain system. Improvements will include additional drainage infrastructure in 63rd St for improved storm water conveyance. 1205A - Local Streets Sales Tax $389,380 1220A - Grants - Gen. Gov. $250,000 $639,380

Solomon and Southern Drainage - CP0614 Construct storm drain infrastructure to handle storm water runoff. Improvements may include the construction of a new storm drain system with catch basins.

1205A - Local Streets Sales Tax $337,247 1220A - Grants - Gen. Gov. $250,000 $587,247

Firefly Avenue Drainage - CP0726 Construct wall openings to improve drainage to the City right of way and openings to an adjacent regional box culvert to help clear additional storm water. 1206A - Highway User Revenue Fund $222,500 1207A - Environmental Compliance $13,499 Fee 1220A - Grants - Gen. Gov. $250,000 $485,999

39 N Maple Drainage - CP0741 Extend a storm drain pipe with catch basins along Sulley and Maple Street to capture overflow from an adjacent basin that overflows during storm events. 1206A - Highway User Revenue Fund $163,096 1220A - Grants - Gen. Gov. $250,000 $413,096

328 S Lazona Drainage - CP0743 Install storm drain pipes in Broadway Road and Lazona Street to capture flows that otherwise create drainage issues for the neighborhood and ultimately flood the intersection of Broadway and Stapley. 1206A - Highway User Revenue Fund $695,069 1220A - Grants - Gen. Gov. $250,000 $945,069

1441 N Gilbert Drainage - CP0744

City of Mesa, Arizona 111 Executive Budget Plan 2017/18 Projects & Capital Budget

Add storm drain pipes in Gilbert Road and Hackamore Circle to capture flows that otherwise create drainage issues for the neighborhood. 1206A - Highway User Revenue Fund $153,963 1220A - Grants - Gen. Gov. $250,000 $403,963

Skyview Drainage - CP0745 Install a storm drain network to capture flows that currently flood neighborhood streets. The flows will be directed to a City of Mesa owned basin that will be expanded to handle additional capacity. 1206A - Highway User Revenue Fund $867,550 1220A - Grants - Gen. Gov. $250,000 $1,117,550

Sossaman and Main Drainage Ditch Issue - CP0790 Rehabilitate a drainage channel located on the east side of Sossaman Road south of Main Street. The existing concrete lining is in poor condition and is cracked, broken 1207A - Environmental Compliance or missing in several locations. Fee $272,487 $272,487

Total for Storm Sewer $13,229,799

Streets FY 17/18

Mesa Drive Phase II - C01400 Construct an additional through lane in all directions as well as fully-protected dual left turn lanes. Construct bus pullouts at all corners connected by detached sidewalks and new street lighting to help mitigate traffic congestion and enhance safety. 13072013 - 2013 Street Bond $10,951,500 31052014 - 2014 Electric Bond $3,930,483 31062010 - 2010 Gas Bond $468,266 31072010 - 2010 Water Bond $1,706,250 31092014 - 2014 Wastewater Bond $288,829 $17,345,328

Southern Avenue and Stapley Drive Intersection – CP0800 Mitigate traffic delay and congestion and to enhance safety at this intersection. Improvements include construction of dual left turn lanes and additional through lanes. In addition, this project will improve the aging gas and storm sewer infrastructure. 1205A - Local Streets Sales Tax $821,370 $821,370

2013 Streets Cityshare - CN0003

City of Mesa, Arizona 112 Executive Budget Plan 2017/18 Projects & Capital Budget

Fund the City's participation in the cost share of widening of streets and the installation of new street lights that are built in conjunction with development projects. 13072013 - 2013 Street Bond $1,535,625 $1,535,625

Val Vista Drive: Baseline Road to US60 - CP0105 Construct roadway and safety improvements to include bicycle lanes, sidewalks and ADA compliant ramps. The existing traffic signals will be replaced. 31062010 - 2010 Gas Bond $319,000 $319,000

1st Avenue Improvements - CP0279 Install landscaping and street improvements in areas along downtown at both 1st Avenue and Hibbert. 1205A - Local Streets Sales Tax $1,000,000 31062014 - 2014 Gas Bond $1,505,319 31072014 - 2014 Water Bond $1,074,749 31092014 - 2014 Wastewater Bond $225,361 $3,805,429

Streetlight Spot Improvement - CP0294 Install streetlights in various locations citywide. To fulfill requests from residents and the Police Department for additional street lights and new street lights in areas where there are no street lights as funds allow. 13072013 - 2013 Street Bond $250,000 $250,000

East Mesa Service Center Wash Rack - CP0348 Expand the wash area to include the addition of four wash bays for sweepers and vactor trucks. In addition, the existing pre-treatment equipment will be removed and not 1207A - Environmental Compliance replaced as it is no longer needed. Fee $493,500 $493,500

Railroad Quiet Zone - CP0426 Install raised medians and other infrastructure as required by the Federal Railroad Administration to convert the Union Pacific Railroad route through Mesa into a quiet zone. 1205A - Local Streets Sales Tax $261,948 $261,948

Rusted Streetlight Pole Replacement - CP0432 Replace existing direct burial and older base mounted streetlight poles which have begun to rust and have become safety concerns. 1205A - Local Streets Sales Tax $1,654,650 $1,654,650

Roosevelt Road Improvements from Broadway to 8th - CP0528 Widen Roosevelt Road between Broadway Road and 8th Avenue from the current half street (east side only improved) to a collector street. 1205A - Local Streets Sales Tax $858,759 $858,759

City of Mesa, Arizona 113 Executive Budget Plan 2017/18 Projects & Capital Budget

Transportation Neighborhood Improvement Projects - CP0532 Install ADA Ramps and missing sidewalks citywide to improve accessibility. 1205A - Local Streets Sales Tax $684,402 $684,402

Elliot Road Tech Corridor - CP0571 Construct improvements to Elliot Road in support of the concept of it being a technology corridor. 1220A - Grants - Gen. Gov. $1,325,130 13072013 - 2013 Street Bond $4,636,250 1314A - Transportation $13,263,750 $19,225,130

Rail Road ROW Improvements - CP0660 Complete sidewalk improvements along the rail road tracks within the public right of way where either sidewalks are missing or are not ADA compliant. 1205A - Local Streets Sales Tax $73,949 $73,949

Main Street Tree Revitalization - CP0668 Replace Palo Brea trees along Main Street. Analysis will include public involvement process to select a new tree species. 1205A - Local Streets Sales Tax $238,193 $238,193

Southern Avenue, Greenfield to Higley - CP0700 Improve Southern Avenue from Greenfield to Higley, including required pedestrian ramp upgrades, street light relocation, and right of way acquisitions. These improvements will help mitigate traffic delays and address safety needs. 1314A - Transportation $5,545,085 31062010 - 2010 Gas Bond $546,597 $6,091,682

Broadway Road Streetscape: Tempe City Limits to Gilbert Road - CP0710 Improve the Broadway Road streetscape from the Tempe City limits to Gilbert Road. 1205A - Local Streets Sales Tax $1,326,597 $1,326,597

City of Mesa, Arizona 114 Executive Budget Plan 2017/18 Projects & Capital Budget

Country Club Underpass - CP0736 Remove the barrier at Country Club underpass south of Main Street and replace with sidewalk, curb and gutter. 1205A - Local Streets Sales Tax $369,161 $369,161

McDowell Underpass Erosion - CP0776 Correct erosion issue on retaining wall at the McDowell underpass. 1205A - Local Streets Sales Tax $926,665 $926,665

Bridge Safety Rehabilitation - CP0780 Address maintenance items and rehabilitation work needing to be performed on numerous existing bridges through the City as identified during bridge inspections performed by ADOT. 1205A - Local Streets Sales Tax $179,918 $179,918

Total for Streets $56,461,306

Transit FY 17/18

Gilbert Road LRT Extension - CP0296 Construct approximately 2 miles of double track alignment extending along Main Street from Edgemont to a new end of line station at Gilbert Road. 1103A - Transit Fund $18,916,126 $18,916,126

Total for Transit $18,916,126

City of Mesa, Arizona 115 Executive Budget Plan 2017/18 ProjectsUtilities & Capital Projects Budget

District Cooling FY 17/18

Chiller Redundancy Connections - CP0724 Equip buildings connected to the district cooling system with temporary chiller hook-ups in the event the district cooling system is unavailable. 1301A - Capital - General Fund $40,000 $40,000

Total for District Cooling $40,000

Electric FY 17/18

Electric Distribution - Overhead - C09019 Install system enhancements to ensure electric system reliability. Improvements may include replacement of electrical overhead conductors, transformers, distribution poles and devices to increase reliability and reduce operating costs. 31052014 - 2014 Electric Bond $568,037 $568,037

Electric Distribution - Underground - C09020 Provide various system improvements to include underground conductor installation, cable replacement, vault lid replacement and replacement of miscellaneous devices. These improvements are planned over several fiscal years. 31052014 - 2014 Electric Bond $630,039 $630,039

Electric Transmission - C09021 Rebuild the 69kv transmission system. Install new conductors and poles throughout the system over a three- year period. This project will also install fiber optics that will allow for monitoring, control and site security for substation locations. 31052014 - 2014 Electric Bond $113,113 $113,113

Electric Substation Improvements - C09022 Construct improvements at electric substations to ensure long-term system reliability. These improvements will meet safety standards and improve security at the facilities. 31052014 - 2014 Electric Bond $1,329,078 $1,329,078

Electric New Services - C09023 Install new electrical service wires for new customers and provide for system expansion. It will also replace existing electrical service wires to increase reliability. These improvements are planned over several fiscal years.

31052014 - 2014 Electric Bond $400,461 $400,461

Electric Metering - C09024

City of Mesa, Arizona 116 Executive Budget Plan 2017/18 Projects & Capital Budget

Replace electric service meters based on 20-year lifecycle criteria. In addition, replace meters based on known issues, such as potential coils that improperly register 3113ELC - Utility Replacement energy consumption. Extension and Renewal - ELC $433,768 $433,768

Electric Smart Grid - CP0081 Replace obsolete technology to improve system reliability and improve the ability to identify problems quickly and respond efficiently. 31052014 - 2014 Electric Bond $265,816 $265,816

Electric Generation - CP0082 Identify power supply resources, including solar power, that can be owned in whole or in part by the City of Mesa. Alternatives are being explored to improve the reliability and/or efficiency of the electric utility service. 31052014 - 2014 Electric Bond $282,783 $282,783

Electric Systems Retirements - CP0193 Retire elements of the City's electric systems that have reached the end of their support lifecycle throughout the City. 3101ELC - Electric $113,406 $113,406

Substation to Park Conversion - CP0522 Construct pocket park and solar generation at the former Extension Substation Site 3101ELC - Electric $204,342 $204,342

Total for Electric $4,340,843

Natural Gas Aging Infrastructure FY 17/18

Gas Line Retirements - C01454 Remove gas mains and services that are no longer needed to support the natural gas system. Inclusion of this project will ensure operational integrity of the natural gas pipeline system and the reliability of a safe energy resource to our customers. 3101GAS - Natural Gas $110,110 $110,110

SCADA System for the Natural Gas Distribution System - C01886

City of Mesa, Arizona 117 Executive Budget Plan 2017/18 Projects & Capital Budget

Install a Supervisory Control & Data Acquisition (SCADA) system to control and monitor all natural gas remote facilities. Natural gas remote facilities are currently monitored manually, which leads to inefficiencies and safety hazards. 31062014 - 2014 Gas Bond $132,132 $132,132

Utility Line Replacement Quarter Sections 13C, 21A, & 20D - C10380 Replace aging main and service lines in plat quarter section 13C, 21A and 20D. 31062010 - 2010 Gas Bond $1,325,746 $1,325,746

Utility Line Replacement in Quarter Sections 29A, 29B, & 29D - C10384 Replace aging main and service lines in plat quarter section 29A, 29B and 29D. 31062010 - 2010 Gas Bond $431,414 $431,414

Mesa Drive: Main to University Drive - C10561 Replace aging sewer and gas lines from Main to University to avoid service disruption. 31062014 - 2014 Gas Bond $410,424 31092014 - 2014 Wastewater Bond $239,423 $649,847

Gas Main Replacements - Magma Service Area - CP0153 Upgrade the existing Magma system to reduce maintenance problems and ensure operational integrity of the natural gas pipeline system. These improvements are planned over several fiscal years. 31062014 - 2014 Gas Bond $509,873 $509,873

Gas System: Aging Infrastructure Replacement - CP0155 Replace necessary gas system infrastructure identified during the annual leak survey and corrosion control program to ensure operational integrity of the natural gas pipeline system. These improvements are planned over several fiscal years. 31062014 - 2014 Gas Bond $1,965,203 $1,965,203

Total for Natural Gas Aging $5,124,325 Infrastructure

Natural Gas Growth FY 17/18

Gas System: New Services - CP0151

City of Mesa, Arizona 118 Executive Budget Plan 2017/18 Projects & Capital Budget

Install gas lines in new subdivision developments throughout the City and Magma area. These improvements are planned over several fiscal years. 31062014 - 2014 Gas Bond $2,333,767 $2,333,767

Gas System: New Mains - CP0152 Extend mains and services to new subdivisions. These improvements are planned over several fiscal years. 31062014 - 2014 Gas Bond $2,578,060 $2,578,060

High Pressure Gas Main Installations - CP0154 Install high pressure gas main to meet anticipated growth of the City. These improvements are planned over several fiscal years. 31062014 - 2014 Gas Bond $738,712 $738,712

Gas Meters: New and Replacement - CP0156 Install residential and commercial/industrial size gas meters to ensure accurate measurement of gas sold. 31062014 - 2014 Gas Bond $384,827 3113GAS - Utility Replacement $384,827 Extension and Renewal - GAS $769,654

Total for Natural Gas Growth $6,420,193

Natural Gas System Reinforcement FY 17/18

Regulator Station Security - C10388 Install on-site security systems to monitor and deter theft and sabotage of regulator station equipment. 31062014 - 2014 Gas Bond $110,110 $110,110

Total for Natural Gas System $110,110 Reinforcement

Wastewater Contractual Obligations FY 17/18

91st Avenue Wastewater Treatment Plant - CN0027

City of Mesa, Arizona 119 Executive Budget Plan 2017/18 Projects & Capital Budget

Fund the City of Mesa's portion of operational and facility upgrades to the 91st Avenue Plant. Mesa is a member of the Sub-Regional Operating Group (SROG). Per an Intergovernmental Agreement with SROG, Mesa shares in the cost of improvements. 31092014 - 2014 Wastewater Bond $4,009,846 $4,009,846

Total for Wastewater Contractual $4,009,846 Obligations

Wastewater Customer Demand - Southeast Mesa FY 17/18

Williams Field Road Sewer: Ellsworth to Mountain - C10425 Install sewer line along State Route 24 and Williams Field Road from Mountain Road to Ellsworth Road to serve future development. 31092014 - 2014 Wastewater Bond $1,375,231 $1,375,231

Greenfield Water Reclamation Plant Expansion - Mesa Share - CN0015 Construct additional treatment capacity to meet the increasing wastewater flows to the Greenfield Water Reclamation Plant. The Towns of Gilbert and Queen Creek will share in the cost of the plant expansion. 31092014 - 2014 Wastewater Bond $28,371,208 $28,371,208

Greenfield Water Reclamation Plant Expansion - CP0067 Construct additional treatment capacity to meet the increasing wastewater flows to the Greenfield Water Reclamation Plant. The towns of Gilbert and Queen Creek are sharing in the cost of the plant expansion. 3020A - Greenfield WRP Joint Venture $46,297,067 $46,297,067

WASTEWATER OVERSIZE & EXTENSIONS (City Share for Oversizing) - CP0475 Construct new wastewater extensions and oversized mains due to development. 31092014 - 2014 Wastewater Bond $159,000 $159,000

City of Mesa, Arizona 120 Executive Budget Plan 2017/18 Projects & Capital Budget

NEW SEWER LINES - Southeast Mesa - CP0618 Construct new sewer lines in the area bounded by Elliot, Power, Germann, and Meridian Roads to serve development in southeast Mesa. 31092010 - 2010 Wastewater Bond $245,065 $245,065

Total for Wastewater Customer $76,447,571 Demand in Southeast Mesa

Wastewater Lifecycle FY 17/18

Greenfield Water Reclamation Plant Headworks/Solids Upgrade - CP0263 Mesa Share - CN0014 Replace the bus duct systems at both the solids and headworks buildings with conduit and wire systems to eliminate the possibility of future failures due to water intrusion. 31092014 - 2014 Wastewater Bond $37,731 $37,731

GWRP SLUDGE LINE REPLACEMENT - CP0590 Mesa Share - CN0026 Replace piping in the Solids Handling Building that has deteriorated due to corrosion and is subject to failure. 31092010 - 2010 Wastewater Bond $1,029,788 $1,029,788

GWRP MISC PLANT IMPROVEMENTS - CP0626 Mesa Share - CN0036 Modify and/or rehabilitate existing systems, install new systems, and replace equipment that has reached it's useful life at the Greenfield Water Reclamation Plant. Improve plant operations and reliability. 31092014 - 2014 Wastewater Bond $1,287,630 $1,287,630

GWRP Headworks/Solids Upgrade - CP0263 Replace the bus duct systems at both the solids and headworks buildings with conduit and wire systems to eliminate the possibility of future failures due to water intrusion. 3020A - Greenfield WRP Joint Venture $1,011,262 $1,011,262

GWRP SLUDGE LINE REPLACEMENT - CP0590 Replace piping in the Solids Handling Building that has deteriorated due to corrosion and is subject to failure. 3020A - Greenfield WRP Joint Venture $2,463,607 $2,463,607

LIFT STATION REHABILITATION AND EQUIPMENT REPLACEMENT - CP0599 Replace existing equipment that is no longer functional or has reached it's useful life to maintain adequate levels of service and bring the facilities into conformance with current design standards and specifications. 31092014 - 2014 Wastewater Bond $28,620 $28,620

City of Mesa, Arizona 121 Executive Budget Plan 2017/18 Projects & Capital Budget

MANHOLE REHABILITATION - CP0600 Rehabilitate manholes that have deteriorated, due to the corrosive environment of the wastewater system, to 3113WW - Utility Replacement extend their useful life and prevent structural failures. Extension and Renewal - WW $1,458,581 $1,458,581

METERING STATION REHABILITATION AND EQUIPMENT REPLACEMENT - CP0616 Rehabilitate deteriorated structures and replace existing equipment that is no longer functional or has reached its useful life to maintain adequate levels of service and bring the facilities into conformance with current design standards and specifications. 31092014 - 2014 Wastewater Bond $14,310 $14,310

ODOR CONTROL STATION REHABILITATION/EQUIPMENT REPLACEMENT - CP0621 Replace existing equipment that no longer functions and/or has reached its useful life to maintain adequate levels of service and bring the facilities into conformance with current design standards and specifications. 31092014 - 2014 Wastewater Bond $267,120 $267,120

SEWER LINE CONDITION ASSESSMENT AND REHABILITATION - CP0622 Collect & evaluate data on the wastewater collection system to determine the condition of the existing facilities, identify problems, & develop an ongoing program for rehabilitation/ replacement to minimize service disruptions. 31092014 - 2014 Wastewater Bond $425,590 $425,590

SEWER LINE REHABILITATION - CP0623 Rehabilitate and/or replace defective pipe in the wastewater collection system, identified through the wastewater asset management program, to prevent catastrophic failures and maintain a high level of service. 31092014 - 2014 Wastewater Bond $948,540 $948,540

GWRP MISC PLANT IMPRVMNTS & EQUIP REPLMNT - CP0626 Modify and/or rehabilitate existing systems, install new systems, and replace equipment that has reached its useful life at the Greenfield Water Reclamation Plant. This work will improve plant operations and reliability. 3020A - Greenfield WRP Joint Venture $3,080,455 $3,080,455

Northwest Water Reclamation Plant Major Plant Improvements - CP0627

City of Mesa, Arizona 122 Executive Budget Plan 2017/18 Projects & Capital Budget

Replace and/or modify major equipment or systems to improve plant performance and ensure compliance with regulatory requirements. 31092014 - 2014 Wastewater Bond $212,000 $212,000

NWWRP MISC PLANT IMPROVEMENTS & EQUIPMENT REPLACEMENT - CP0628 Modify and/or rehabilitate existing systems, install new systems, and replace equipment that has reached its useful life at the Northeast Water Reclamation Plant. This work will improve plant operations and reliability. 31092014 - 2014 Wastewater Bond $2,422,602 $2,422,602

Southeast Water Reclamation Plant Misc Plant Improvements & Equipment Replacement - CP0630 Modify and/or rehabilitate existing systems, install new systems, and replace equipment that has reached its useful life at the Southeast Water Reclamation Plant. This work will improve plant operations and reliability. 31092014 - 2014 Wastewater Bond $1,358,725 $1,358,725

Total for Wastewater Lifecycle $16,046,561

Water Contractual Obligations FY 17/18

Val Vista Water Treatment Plant (Mesa Share) - CN0010 Fund the City's portion of the operations and maintenance cost of the Val Vista Water Treatment Plant per the Intergovernmental Agreement with the City of Phoenix.

31072014 - 2014 Water Bond $1,440,349 $1,440,349

Total for Water Contractual $1,440,349 Obligations

Water Customer Demand - Southeast Mesa FY 17/18

Signal Butte Water Treatment Plant - C01600 Construct the first phase of a plant with a water treatment capacity of 24 million gallons per day to serve Southeast Mesa. Treated water will flow into an existing finished water reservoir and pump station. 31072014 - 2014 Water Bond $68,501,976 $68,501,976

Well Site Acquisition - C04048

City of Mesa, Arizona 123 Executive Budget Plan 2017/18 Projects & Capital Budget

Acquire land for additional well sites needed in the Desert Wells service zone. 31072014 - 2014 Water Bond $262,500 $262,500

Water and Wastewater Improvements for ASU Polytechnic - C06010 Provide necessary water and wastewater infrastructure improvements to handle project flows from the ASU Polytechnic Campus and to maintain service reliability in the area. 31092010 - 2010 Wastewater Bond $2,280,304 $2,280,304

NEW PUMP STATION - CP0639 Construct new pump stations to meet the growing water demand. The Water Master Plan identified the need for additional pumping capacity. 31072014 - 2014 Water Bond $2,874,857 $2,874,857

WATER EXTENSIONS AND OVERSIZED MAINS - CP0652 Fund the City Share program working with developers to install waterlines that meet the City's needs. When the City needs larger waterlines than required by developers, they can request for City Share to fund the difference in oversizing. 31072014 - 2014 Water Bond $212,100 $212,100

Total for Water Customer Demand $74,131,737 Southeast Mesa

Water Lifecycle FY 17/18

WATER METERS - CN0029 Purchase new water meters in sizes 3/4-inch through 2- inch in response to projected customer growth or replacement water meters to ensure accurate 3113WTR - Utility Replacement measurement of water usage by customers. Extension and Renewal - WTR $770,000 $770,000

Brown Road Water Treatment Plant Equipment Replacement - CP0024 Replace the aging finished water filter underdrain system at the Brown Road Water Treatment Plant. 31072014 - 2014 Water Bond $157,500 $157,500

Fire Hydrant Meters - CP0320 Purchase fire hydrant meters to ensure accurate measurement of construction water usage is captured to maintain water revenues. These improvements are planned over several fiscal years. This funds the purchase of Meters only. 31072014 - 2014 Water Bond $10,500 $10,500

City of Mesa, Arizona 124 Executive Budget Plan 2017/18 Projects & Capital Budget

Waterline Replacement Horne from Marilyn Ave to Southern Ave - CP0366 Install new water mains, and abandon aging water line. New water mains will extend along Horne Road between Marilyn Avenue to Southern Avenue. Work includes related appurtenances such as valves, hydrants and service lines. 31072014 - 2014 Water Bond $901,425 $901,425

Water Aging Main Replacement - CP0464 Replace aging infrastructure to avoid service disruption. 31072014 - 2014 Water Bond $429,975 $429,975

Water Meter Vault Rehabilitation - CP0468 Perform upgrades necessary for OSHA compliance & to reduce safety hazards for personnel & equip. Improvements are planned over several fiscal yrs. Purchase of meters is administered through Water Resources and Engineering oversees installation of meters. 31072014 - 2014 Water Bond $949,725 $949,725

Falcon Field Airport Improvements - CP0505 Coordinate replacement of aging water mains with street reconstruction at the Falcon Field Airport. Install water mains, and abandon in place aging ACP water mains. 31092014 - 2014 Wastewater Bond $61,177 $61,177

REPLACE FIRE HYDRANTS - CP0636 Replace fire hydrants that are beyond their useful life to ensure hydrants are operational when needed. These improvements are planned over several fiscal years. 31072014 - 2014 Water Bond $371,175 $371,175

RESERVOIRS REHABILITATION - CP0641 Replace failing equipment at 19 reservoirs in the water system. Equipment planned for replacement include cathodic protection equipment, EPDM liners, interior & exterior coatings & mixer equipment. 31072014 - 2014 Water Bond $99,750 $99,750

WATER SERVICES EXTENSION AND REPLACEMENT - CP0650 Replace water services that have reached the end of their support lifecycle. Timely replacement will prevent service disruptions. 31072014 - 2014 Water Bond $212,100 $212,100

REPLACE WATER VALVES - CP0651

City of Mesa, Arizona 125 Executive Budget Plan 2017/18 Projects & Capital Budget

Replace water valves that have reached the end of their support lifecycle. This work will prevent service disruptions. 31072014 - 2014 Water Bond $404,250 $404,250

Waterline Inspection and Repairs - CP0722 Inspect and repair waterlines citywide. 31072014 - 2014 Water Bond $1,177,050 $1,177,050

Total for Water Lifecycle $5,544,627

City of Mesa, Arizona 126 Executive Budget Plan 2017/18 Projects & Capital Budget

FY 2017/18 Capital Budget by Funding Source

Vehicle Capital Operating Capital Total Capital Replacement Improvement Budget Program Program General Vehicle Operating Funds Unrestricted General Fund $10,745,686 $955,150 - $5,827,368 $17,528,204 Enterprise Fund $1,423,069 $5,813,061 - $877,537 $8,113,667 Fleet Internal Services $503,000 - - - $503,000 Total Unrestricted Funds $12,671,755 $6,768,211 - $6,704,905 $26,144,871 Restricted Arts & Culture Fund $146,000 - - $134,139 $280,139 Cemetery Fund $169,000 - - $773,850 $942,850 Cemetery Reserve Fund - - - $210,000 $210,000 Community Development Block Grant - - - $4,062,003 $4,062,003 Community Facilities District - Capital $10,432,000 - - - $10,432,000 Economic Investment Fund - - - $442,862 $442,862 Environmental Compliance Fund $547,802 $268,848 - $4,282,903 $5,099,553 Falcon Field Airport $3,500 - - $3,630,928 $3,634,428 Grants - General Government $473,147 $742,592 - $5,470,629 $6,686,368 Grants - Enterprise - - - $4,311,402 $4,311,402 Greenfield WRP Joint Venture $340,000 $55,000 - $52,852,391 $53,247,391 Highway User Revenue Fund - - - $5,914,573 $5,914,573 Mesa Arts Center Restoration Fund $500,000 - - - $500,000 Replacement Extension Reserve - - $3,533,926 - $3,533,926 Restricted Programs Fund $353,003 - - $130,000 $483,003 Solid Waste Development - $387,000 - - $387,000 Special Programs Fund $50,000 - - - $50,000 Street Sales Tax - $1,817,901 - $18,436,474 $20,254,375 TOPAZ Joint Venture Fund - - - $1,349,804 $1,349,804 Transit Fund - - - $18,916,126 $18,916,126 Transportation Fund - - - $18,808,835 $18,808,835 Utility Reserve Extension Replacement - - - $3,047,176 $3,047,176 Vehicle Replacement Fund - - $5,862,660 - $5,862,660 Total Restricted Funds $13,014,452 $3,271,341 $9,396,586 $142,774,095 $168,456,474 Total Operating Funds $25,686,207 $10,039,552 $9,396,586 $149,479,000 $194,601,345 Bond Funds General Obligation Bonds - - - $39,182,409 $39,182,409 Utility Revenue Bonds - - - $150,721,591 $150,721,591 Total Bond Funds - - - $189,904,000 $189,904,000 Total All Funds $25,686,207 $10,039,552 $9,396,586 $339,383,000 $384,505,345

FY 2016/17 to FY 2017/18 Capital Improvement Program Comparison by Funding Source

City of Mesa, Arizona 127 Executive Budget Plan 2017/18 Projects & Capital Budget

FY 2016/17 FY 2017/18

Operating Funds Unrestricted General Fund $4,524,057 $1,715,523 Enterprise Fund $719,464 $273,516 Total Unrestricted Funds $5,243,521 $1,989,039

Restricted Arts & Culture Fund - $133,000 Cemetery Reserve Fund $953,000 $210,000 Environmental Compliance Fund $3,129,750 - Falcon Field Airport $543,605 $2,137,239 Grants - General Government $750,000 $3,180,000 Grants - Enterprise $2,788,178 $3,841,315 Greenfield WRP Joint Venture $13,668,860 $51,931,394 Highway User Revenue Fund - $5,914,573 Restricted Programs Fund $23,667 - Street Sales Tax $9,512,788 $11,461,299 TOPAZ Joint Venture Fund $1,633,828 $954,804 Transit Fund $11,969,822 $11,822,326 Transportation Fund - $18,808,835 Utility Reserve Extension Replacement $3,121,981 $3,047,176 Total Restricted Funds $48,095,479 $113,441,961 Total Operating Funds (excludes Carryover) $53,339,000 $115,431,000

Bond Funds General Obligation Bonds $47,320,397 $25,699,409 Utility Revenue Bonds $211,260,603 $150,721,591 Excise Tax Bonds - - Total Bond Funds (Excludes Carryover) $258,581,000 $176,421,000

Prior Year Carryover Capital Improvement Carryover - $34,048,000 Bond Capital Improvement Carryover - $13,483,000 Total Carryover - $47,531,000 Total All Funds $311,920,000 $339,383,000

FY 2016/17 to FY 2017/18 Capital Improvement Program Comparison by Funding Source

FY 2016/17 FY 2017/18

Operating Funds Unrestricted General Fund $4,524,057 $1,715,523

City of Mesa, Arizona 128 Executive Budget Plan 2017/18 Projects & Capital Budget

Enterprise Fund $719,464 $273,516 Total Unrestricted Funds $5,243,521 $1,989,039

Restricted Arts & Culture Fund - $133,000 Cemetery Reserve Fund $953,000 $210,000 Environmental Compliance Fund $3,129,750 - Falcon Field Airport $543,605 $2,137,239 Grants - General Government $750,000 $3,180,000 Grants - Enterprise $2,788,178 $3,841,315 Greenfield WRP Joint Venture $13,668,860 $51,931,394 Highway User Revenue Fund - $5,914,573 Restricted Programs Fund $23,667 - Street Sales Tax $9,512,788 $11,461,299 TOPAZ Joint Venture Fund $1,633,828 $954,804 Transit Fund $11,969,822 $11,822,326 Transportation Fund - $18,808,835 Utility Reserve Extension Replacement $3,121,981 $3,047,176 Total Restricted Funds $48,095,479 $113,441,961 Total Operating Funds (excludes Carryover) $53,339,000 $115,431,000

Bond Funds General Obligation Bonds $47,320,397 $25,699,409 Utility Revenue Bonds $211,260,603 $150,721,591 Excise Tax Bonds - - Total Bond Funds (Excludes Carryover) $258,581,000 $176,421,000

Prior Year Carryover Capital Improvement Carryover - $34,048,000 Bond Capital Improvement Carryover - $13,483,000 Total Carryover - $47,531,000 Total All Funds $311,920,000 $339,383,000

City of Mesa, Arizona 129 Executive Budget Plan 2017/18 Projects & Capital Budget

City of Mesa, Arizona 130 Executive Budget Plan 2017/18 & DEMOGRAPHIC Department CITY LEADERSHIP

Operational Plans S

BUDGET & FINANCIAL SUMMARIES

PROJECTS & CAPIT BUDGET

AL

OPERA DEP TIONAL PLANS ARTMENT

SCHEDULES FINANCIAL FISCAL YEAR 2017-2018 MESA, ARIZONA Department Operational Plans

Department Operational Plan Overview The City Council articulates its long-range strategic direction through five Strategic Initiatives that encapsulate their long-term direction for the City (insert page reference). City departments then utilize a systematic approach to translate the high-level strategic direction of the City Council into specific operational performance plans for day-to-day operations, service delivery, and desired outcomes.

The City of Mesa practices “activity-based budgeting” which allocates resources to core business processes. Department operational plans have the following structure:

Business Objective – A major line of business that aligns with one or more Strategic Initiative and defines where the City allocates its resources. Business Objectives include a mission statement, desired outcomes, and performance measures.

Business Service – A group of Core Business Processes related by a common purpose (mission, outcomes, and expected performance). This level of structure is optional depending on departmental needs.

Core Business Process – Main or essential business activities with a common mission and desired outcomes.

Business • Core Business Process Service

Business Objective

Business Service • Core Business Process

These operational plans include performance measures to evaluate progress toward, and achievement of, the desired outcomes of work conducted and services delivered. Departments determine the mix of measures (output, efficiency, quality, outcomes) that would give them the best available evidence about performance. Measurement data is entered in a centralized tracking system (part of the budget system) and reported via a live 24/7 online dashboard.

In the City of Mesa, performance budgeting is the practice of developing and implementing budgets based on the relationship between funding level, services provided, and the achievement of desired outcomes. Performance budgeting in this way allows citizens to understand clearly what a given core business process aims to accomplish, how much it costs, and what citizens are getting in terms of services and outcomes.

During the budget development and implementation process, departments use information on previous and current performance in tandem with budget/financial information to identify the resources needed to deliver targeted service levels and outcomes in the upcoming fiscal year.

City of Mesa, Arizona 131 Executive Budget Plan 2017/18 Department Operational Plans

With access to the most recent performance and financial information, departments also use the information to conduct regular (monthly or quarterly) performance reviews throughout the fiscal year. This gives them the flexibility to deploy resources in a timely manner to address performance issues based on current and reliable performance intelligence.

Additionally, the City Manager’s Office meets with each department on a periodic basis to review financial and performance information, check on progress of performance improvements, and to receive a general status update.

Department Operational Plans Design All 32 Department Operational Plans are laid out to give the reader both the written descriptions and data tables for each department. Each department operational plan contains a written overview of the department’s business objectives or business services, a description of core competencies, how their operations are linked to the City’s strategic initiatives, FY 17/18 budgetary highlights, and performance measurements by which the department tracks desired outcomes.

In addition to written descriptions of departments and activities, comprehensive datasets are presented to detail: (a) FY 15/16 actual expenditures and revenues (b) FY 16/17 budgets (c) FY 16/17 department-provided year-end estimates (d) FY 17/18 budgets

Departments with a singular business objective will have six data tables that detail operational history and budgets by funds, expenditure categories, and funding source. Because the City practice activity based budgeting, each department with multiple business objectives or service levels will have its own subset of data tables for each of their business objectives or service levels.

For further information on any department, please find the department’s website or contact information in the Department Description section.

City of Mesa, Arizona 132 Executive Budget Plan 2017/18 Department Operational Plans

FY 17/18 City Expenditure Budget by Department and Fund

General Grant Other FY 17/18 Department Fund Enterprise Fund Restricted Funds Funds Funds Budget

Arts and Culture - - $14,548,076 $259,921 - $14,807,997 Business Services $11,398,937 $180,000 $1,821,063 - - $13,400,000 Centralized Appropriations $(8,924,526) $23,687,556 $18,770,970 - $412,521,000 $446,055,000 City Attorney $5,576,587 $167,980 $79,695 $520,592 $6,860,146 $13,205,000 City Auditor $747,000 - - - - $747,000 City Clerk $877,356 - $5,644 - - $883,000 City Manager $5,813,000 - $20,000 $159,135 - $5,992,135 Communications $1,960,833 - $1,797,167 - - $3,758,000 Community Services $2,888,667 - $248,915 $28,268,996 - $31,406,578 Contingency - - - - $91,174,000 $91,174,000 Development Services $7,237,647 $154,341 $662,679 - - $8,054,667 Economic Development $4,017,995 - $5,551,710 - - $9,569,705 Energy Resources $56,738 $40,797,777 $432,485 - - $41,287,000 Engineering $7,161,269 $201,673 $111,699 - - $7,474,641 Environmental Management & Sustainability - $29,661,452 $2,446,548 $242,074 - $32,350,074 Falcon Field Airport - - $1,959,000 - - $1,959,000 Financial Services $3,618,271 $696 $95,033 - - $3,714,000 Fire and Medical $66,636,550 - $8,416,966 $3,854,061 - $78,907,577 Fleet Services $447,373 $5,813,061 $28,723,983 - - $34,984,417 Human Resources $3,648,376 - - - $94,569,624 $98,218,000 Information Technology $35,158,432 $196,000 $104,896 - - $35,459,328 Library Services $7,188,474 - $350,526 $34,363 - $7,573,363 Mayor and Council $889,000 - - - - $889,000 Municipal Court $7,755,997 - $2,509,385 - - $10,265,382 Office of ERP Management $855,557 - - - - $855,557 Office of Management and Budget $2,682,910 - $14,000 - - $2,696,910 Parks, Recreation and Community Facilities $31,607,219 $9,078,342 $8,364,379 - - $49,049,940 Police $162,146,519 $769,143 $17,925,025 $5,007,807 $47,867 $185,896,361 Project Management Program $23,321,120 $1,549,543 $144,437,612 $14,779,725 $189,904,000 $373,992,000 Public Information and Communications $1,551,000 - - - - $1,551,000 Transit Services - - $15,348,000 - - $15,348,000 Transportation $196,029 $443,735 $43,413,530 - - $44,053,294 Water Resources $99,011 $66,271,119 $8,051,944 - - $74,422,074 Total $ 386,613,341 $ 178,972,418 $ 326,210,930 $ 53,126,674 $ 795,076,637 $ 1,740,000,000

City of Mesa, Arizona 133 Executive Budget Plan 2017/18 Department Operational Plans

FY 17/18 City Expenditure Budget by Department and Category

Personal Other Capital Debt FY 17/18 Department FTE Commoditites Other Services Services Outlay Service Budget

Arts and Culture 88.8 $6,719,386 $7,316,825 $625,786 $146,000 - - $14,807,997

Business Services 137.0 $10,818,857 $1,998,020 $583,123 - - - $13,400,000

Centralized Appropriations - $17,273,187 $17,796,601 $6,177,359 $10,432,000 $145,789,716 $248,586,137 $446,055,000

City Attorney 64.5 $6,756,427 $6,400,124 $48,449 - - - $13,205,000

City Auditor 5.0 $711,158 $31,084 $4,758 - - - $747,000

City Clerk 8.0 $799,328 $74,472 $9,200 - - - $883,000

City Manager 29.5 $4,082,551 $1,710,460 $199,124 - - - $5,992,135

Communications 20.0 $2,001,820 $492,021 $1,264,159 - - - $3,758,000

Community Development 44.0 $3,658,965 $27,650,722 $95,579 $1,312 - - $31,406,578

Contingency ------$91,174,000 $91,174,000

Development Services 69.0 $6,732,824 $975,926 $47,914 $298,003 - - $8,054,667

Economic Development 14.0 $1,675,054 $7,862,951 $31,700 - - - $9,569,705

Energy Resources 122.0 $11,272,441 $2,550,488 $27,463,611 $460 - - $41,287,000

Engineering 103.0 $5,339,677 $1,653,767 $370,915 $110,282 - - $7,474,641

Environmental Management & Sustainability 151.0 $12,450,506 $18,167,860 $1,677,458 $54,250 - - $32,350,074

Falcon Field Airport 11.0 $993,694 $899,476 $62,330 $3,500 - - $1,959,000

Financial Services 37.0 $3,281,113 $415,387 $17,500 - - - $3,714,000

Fire and Medical 516.3 $69,812,021 $5,123,664 $3,310,452 $661,440 - - $78,907,577

Fleet Services 79.0 $6,807,232 $1,450,247 $7,857,472 $18,869,466 - - $34,984,417

Human Resources 56.5 $5,111,941 $92,954,162 $151,897 - - - $98,218,000

Information Technology 137.5 $17,267,844 $9,337,989 $4,405,975 $4,447,520 - - $35,459,328

Library Services 77.2 $5,444,630 $1,039,355 $1,089,378 - - - $7,573,363

Mayor and Council 7.0 $634,908 $225,172 $28,920 - - - $889,000

Municipal Court 80.0 $6,975,720 $2,861,504 $371,158 $57,000 - - $10,265,382

Office of ERP Management 5.0 $544,657 $303,650 $3,250 $4,000 - - $855,557

Office of Management and Budget 24.0 $2,599,612 $82,163 $14,135 $1,000 - - $2,696,910

Parks, Recreation and CommunityFacilities 310.7 19,614,880.0 24,771,830.0 3,903,296.0 759,934.0 - - 49,049,940.0

Police 1,187.5 $155,291,701 $22,142,808 $8,031,156 $430,696 - - $185,896,361

Project Management Program - $8,903,863 $340,062,437 $5,411,068 $7,913,807 - $11,700,825 $373,992,000

Public Information and Communications 8.5 $1,115,485 $309,624 $125,891 - - - $1,551,000

Transit Services 3.0 $313,297 $14,996,923 $37,780 - - - $15,348,000

Transportation 158.0 $13,567,935 $23,812,815 $7,179,853 - - $(507,309) $44,053,294

Water Resources 280.0 $23,345,466 $29,875,488 $20,269,445 $931,675 - - $74,422,074

Total City Expenditures 3,833.9 $ 431,918,180 $ 665,346,015 $ 100,870,091 $ 45,122,345 $ 145,789,716 $ 350,953,653 $ 1,740,000,000

City of Mesa, Arizona 134 Executive Budget Plan 2017/18 Department Operational Plans

Arts & Culture

Arts & Culture Contact Information:

Department Phone Number: 480-644-6607 Department Address: City of Mesa, Arts & Culture Department 1 E. Main St. Mesa, AZ 85201 Website: http://www.mesaaz.gov/things-to-do/arts-culture

Department Description

The Arts and Culture Department of the City of Mesa serves as a cultural liaison and ambassador for the City. This department is the chief advocate for the importance of arts and culture to community life, education and economic development. The Arts and Culture Department also serves as the oversight body for the three City-owned arts and culture venues/programs: the i.d.e.a. Museum (formerly the Arizona Museum for Youth), the Arizona Museum of Natural History (AZMNH), and the Mesa Arts Center.

The Department seeks to engage with businesses, educational institutions, community members, volunteers, City staff, and other cultural and government entities to further the vision, mission and goals of the Department’s Strategic Plan and support the Strategic Initiatives of the Mesa City Council. The Department believes that arts and culture are essential to a healthy and civically- engaged society, and that the creativity and discovery they help to engender promote and support innovation, human progress and well-being.

City Council Strategic Initiatives: Stronger Neighborhoods, Placemaking & Diversity

Department Business Objective Core Business Process

• Adult and Youth Studio Classes • Education and Engagement Mesa Arts • Fund Development Center • Mesa Arts Center Operations • Performing Live • Volunteer Recruitment and Management

Arts and i.d.e.a. • Education - i.d.e.a. Museum Museum Culture • Exhibitions - i.d.e.a. Museum • Operations - i.d.e.a. Museum

Arizona • Audience and Donor Museum of Development - AZMNH Natural • Cultural Programming - History AZMNH • Operations - AZMNH

City of Mesa, Arizona 135 Executive Budget Plan 2017/18 Department Operational Plans

Budgetary Highlights

The Mesa Arts Center schedules shows and events prior to the time of the event and the budget provides an estimate of the expenses and related revenues. The level of Performing Live expenses and associated revenues can vary from year to year based on the number and size of shows that are scheduled. FY17/18 budget is $300,000 higher in the Performing Live area than it was in FY16/17.

During FY16/17, 5.2 FTEs were added. One FTE is funded through a contribution from the Virginia G. Piper Charitable Trust, while the others are funded through the conversion of temporary services budget and increased revenue generated from having the capacity to assist additional patrons.

The FY17/18 budget reduces $360,000 from their general fund subsidy amount. To compensate for this reduction, Arts & Culture will both raise revenues and reduce costs. Reductions in costs include reducing administrative and operational costs, aggressive sponsorship solicitation for festival costs, and reduction of 0.5 FTE. Increased revenue efforts include increased rental rates and services fees, expanded hours for the i.d.e.a. Museum, and a reduction in discounts and fee assistance.

City of Mesa, Arizona 136 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund -$3,158 - - -

Grant Funds $114,510 $96,852 $89,973 $259,921

Restricted Funds $14,856,514 $14,342,350 $13,606,740 $14,548,076

Sum: $14,967,866 $14,439,202 $13,696,713 $14,807,997

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 84.5 88.8

Capital Outlay $5,650 $250,000 72,585 $146,000

Commodities $706,126 $635,141 2,222,635 $625,786

Other Services $8,136,573 $7,180,194 8,627,995 $7,316,825

Personal Services $6,119,518 $6,373,867 2,773,498 $6,719,386

Sum: $14,967,866 $14,439,202 13,696,713 $14,807,997

City of Mesa, Arizona 137 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Arizona Museum of Natural History - - $154,471 - $1,618,066 $1,772,537

i.d.e.a. Museum - - - - $1,416,433 $1,416,433

Mesa Arts Center - - $105,450 - $11,513,577 $11,619,027

Expenditure Total - - $259,921 - $14,548,076 $14,807,997

Revenue Arizona Museum of Natural History - - $114,924 - $718,000 $832,924

i.d.e.a. Museum - - - - $659,496 $659,496

Mesa Arts Center - - $33,000 - $5,745,124 $5,778,124

Revenue Total - - $147,924 - $7,122,620 $7,270,544

Expenditures Net of Revenues - - $111,997 - $7,425,456 $7,537,453

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

Grant Funds Grants - Gen. Gov. $259,921 $147,924 $111,997

Restricted Funds Arts & Culture Fund $13,919,482 $6,095,806 $7,823,676

Mesa Arts Center Restoration Fee - $300,000 -$300,000

Restricted Programs Fund $628,594 $726,814 -$98,220

Totals $14,807,997 $7,270,544 $7,537,453

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Arizona Museum of Natural History 16.6 - $100,579 $417,917 $1,254,041 $1,772,537 i.d.e.a. Museum 17.9 - $74,415 $151,333 $1,190,685 $1,416,433

Mesa Arts Center 54.3 $146,000 $450,792 $6,747,575 $4,274,660 $11,619,027

Sum: 88.8 $146,000 $625,786 $7,316,825 $6,719,386 $14,807,997 City of Mesa, Arizona 138 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture

Arizona Museum of Natural History Business Objective

Mission

Inspire wonder, understanding and respect for the natural and cultural history of the Southwest.

Desired Outcomes

- Provide extraordinary Arts & Culture experiences through learning, discovery & creativity - Increase public participation & support

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

CP Participants AZMNH # CP Participants 0 118,911 137,000

City of Mesa, Arizona 139 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture

Arizona Museum of Natural History Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Grant Funds $29,510 $63,852 $89,973 $154,471

Restricted Funds $1,505,101 $1,557,786 $13,606,740 $1,618,066

Sum: $1,534,611 $1,621,638 13,696,713 $1,772,537

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 14.1 16.6

Personal Services $1,129,554 $1,127,425 $2,773,498 $1,254,041

Other Services $291,919 $411,096 $8,627,995 $417,917

Commodities $107,489 $83,117 $2,222,635 $100,579

Capital Outlay $5,650 - $72,585 -

Sum: $1,534,611 $1,621,638 $13,696,713 $1,772,537

City of Mesa, Arizona 140 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture

Arizona Museum of Natural History Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Audience and Donor Expenditure Development - AZMNH - - $7,500 - $139,864 $147,364

Cultural Programming - AZMNH - - $146,171 - $856,797 $1,002,968

Operations-AZMNH - - $800 - $621,405 $622,205

Expenditure Total - - $154,471 - $1,618,066 1,772,537

Cultural Programming - Revenue AZMNH - - $114,924 - - $114,924

Operations-AZMNH - - - - $718,000 $718,000

Revenue Total - - $114,924 - $718,000 832,924

Expenditures Net of Revenues - - $39,547 - $900,066 $939,613

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Grant Funds Grants - Gen. Gov. $154,471 $114,924 $39,547

Restricted Funds Arts & Culture Fund $1,618,066 $718,000 $900,066

Totals $1,772,537 $832,924 $939,613

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Audience and Donor Development - AZMNH .7 - $1,200 $65,500 $80,664 $147,364

Cultural Programming - AZMNH 10.2 - $80,679 $102,275 $820,014 $1,002,968

Operations-AZMNH 5.8 - $18,700 $250,142 $353,363 $622,205

Sum: 16.6 - $100,579 $417,917 $1,254,041 $1,772,537

City of Mesa, Arizona 141 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture i.d.e.a. Museum Business Objective

Mission

Inspire children of all ages to experience their world differently through art, creativity, and imagination.

Desired Outcomes

- Provide extraordinary Arts and Culture experiences through learning, discovery and creativity - Increase public participation and support

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target i.d.e.a. Participation i.d.e.a. # Participants 102,558 0 0

City of Mesa, Arizona 142 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture i.d.e.a. Museum Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Restricted Funds $1,183,655 $1,335,734 $13,606,740 $1,416,433

Sum: $1,183,655 $1,335,734 13,606,740 $1,416,433

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 16.6 17.9

Personal Services $961,367 $1,109,986 $2,773,498 $1,190,685

Other Services $155,073 $151,333 $8,627,995 $151,333

Commodities $67,215 $74,415 $2,222,635 $74,415

Sum: $1,183,655 $1,335,734 $13,696,713 $1,416,433

City of Mesa, Arizona 143 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture i.d.e.a. Museum Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Education-i.d.e.a. - - - - $402,335 $402,335

Exhibitions-i.d.e.a. - - - - $427,542 $427,542

Operations-i.d.e.a. - - - - $586,556 $586,556

Expenditure Total - - - - $1,416,433 1,416,433

Revenue Education-i.d.e.a. - - - - $130,000 $130,000

Exhibitions-i.d.e.a. - - - - $52,962 $52,962

Operations-i.d.e.a. - - - - $476,534 $476,534

Revenue Total - - - - $659,496 659,496

Expenditures Net of Revenues - - - - $756,937 $756,937

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Restricted Funds Arts & Culture Fund $1,211,656 $307,682 -$147,037

Restricted Programs Fund $204,777 $351,814 $903,974

Totals $1,416,433 $659,496 $756,937

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Education-i.d.e.a. 6.8 - $30,300 $10,350 $361,685 $402,335

Exhibitions-i.d.e.a. 4.3 - $36,465 $28,195 $362,882 $427,542

Operations-i.d.e.a. 6.9 - $7,650 $112,788 $466,118 $586,556

Sum: 17.9 - $74,415 $151,333 $1,190,685 $1,416,433 City of Mesa, Arizona 144 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture

Mesa Arts Center Business Objective

Mission

Inspire people through engaging arts experiences that are diverse, accessible, and relevant.

Desired Outcomes

- Provide extraordinary Arts & Culture experiences through learning, discovery & creativity - Increase public participation & support

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

MAC Participation MAC # of Participants (all) 420,000 371,734 441,000

Participation targets are based on previous years participation for Performing Live Shows, programs, classes, speaking engagements, etc.

City of Mesa, Arizona 145 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture

Mesa Arts Center Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund -$3,158 - - -

Grant Funds $85,000 $33,000 $89,973 $105,450

Restricted Funds $12,167,758 $11,448,830 $13,606,740 $11,513,577

Sum: $12,249,600 $11,481,830 13,696,713 $11,619,027

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 53.8 54.3

Personal Services $4,028,598 $4,136,456 $2,773,498 $4,274,660

Other Services $7,689,581 $6,617,765 $8,627,995 $6,747,575

Commodities $531,421 $477,609 $2,222,635 $450,792

Capital Outlay - $250,000 $72,585 $146,000

Sum: $12,249,600 $11,481,830 $13,696,713 $11,619,027

City of Mesa, Arizona 146 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture

Mesa Arts Center Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Adult and Youth Studio Expenditure Classes - - - - $780,350 $780,350

Education and Engagement - - $33,000 - $303,272 $336,272

Fund Development - - - - $1,269,012 $1,269,012

Mesa Arts Center Operations - - $72,450 - $5,757,128 $5,829,578

Performing Live - - - - $3,346,730 $3,346,730

Volunteer Recruitment and Management - - - - $57,085 $57,085

Expenditure Total - - $105,450 - $11,513,577 11,619,027

Adult and Youth Studio Revenue Classes - - - - $737,000 $737,000

Education and Engagement - - $33,000 - $147,275 $180,275

Fund Development - - - - $5,000 $5,000

Mesa Arts Center Operations - - - - $1,342,158 $1,342,158

Performing Live - - - - $3,513,691 $3,513,691

Revenue Total - - $33,000 - $5,745,124 5,778,124

Expenditures Net of Revenues - - $72,450 - $5,768,453 $5,840,903

City of Mesa, Arizona 147 Executive Budget Plan 2017/18 Department Operational Plans

Arts and Culture

Mesa Arts Center Business Objective

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Grant Funds Grants - Gen. Gov. $105,450 $33,000 $72,450

Restricted Funds Arts & Culture Fund $11,089,760 $5,070,124 -$300,000

Mesa Arts Center Restoration Fee - $300,000 $48,817

Restricted Programs Fund $423,817 $375,000 $6,019,636

Totals $11,619,027 $5,778,124 $5,840,903

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Adult and Youth Studio Classes 3.1 - $68,400 $435,200 $276,750 $780,350

Education and Engagement 2.2 - $19,000 $120,700 $196,572 $336,272

Fund Development 6.3 - $15,264 $732,325 $521,423 $1,269,012

Mesa Arts Center Operations 41.4 $146,000 $334,528 $2,232,411 $3,116,639 $5,829,578

Performing Live 1 - $8,100 $3,216,430 $122,200 $3,346,730

Volunteer Recruitment and Management .4 - $5,500 $10,509 $41,076 $57,085

Sum: 54.3 $146,000 $450,792 $6,747,575 $4,274,660 $11,619,027

City of Mesa, Arizona 148 Executive Budget Plan 2017/18 Department Operational Plans

Business Services

Business Services Contact Information:

Department Phone Number: 480-644-2221 Department Email: [email protected] Department Address: City of Mesa, Business Services MS3399 P.O. Box 1466 Mesa, AZ 85211-1466 Website: http://mesaaz.gov/business/

Department Description

The Business Services Department takes on multiple responsibilities throughout the City. These responsibilities include: customer service business office, contact center and website; utility billing; revenue processing operations, tax audit and delinquent collections; business licensing; print and mail services; warehousing and procurement and contract management.

City Council Strategic Initiatives: Sustainable Economy Well-Managed and Innovative Government

City of Mesa, Arizona 149 Executive Budget Plan 2017/18 Department Operational Plans

Department Business Service Core Business Process/Business Objective

Procurement • Purchasing Services

Mail, Print • Materials and Supply Inventory • Mail Services and Materials • Print Services • Surplus Property

• Business Office Revenue • Contact Center Operations • Payment Processing • Special Regulatory Licenses • Utility Account Credit Services

Business Services Customer Information • CIS Technical Support and Training and Billing • Billing and Account Maintenance Operations • Alarm Permit Processing

Tax Compliance • Citywide Collections and Collections • Tax Audit

Business Services Administration • Business Services Administration • Space Planning

Budgetary Highlights

For FY17/18, Business Services proposed eliminating one FTE for a Mail Services Supervisor. The responsibilities of the position will be covered through a reallocation of two positions allocated to the Print Shop Internal Services Fund. Estimated savings will be $33k for the General Fund and $34k for Print Shop Internal Services Fund. Other reductions proposed will be in ongoing savings for the warehouse for print service charges for $56k for the Warehouse Internal Services Fund.

City of Mesa, Arizona 150 Executive Budget Plan 2017/18 Department Operational Plans

For FY17/18, Business Services will have a one-time budget adjustment of $30k for the Customer Web Access (CWA) system replacement. The additional budget will cover the enhancements needed for the system replacement.

In January 2018, Business Services will implement a credit card service fee. The City currently pays the fees associated with utility account customers using credits cards to pay utility bills. The new process will pass the handling and payment of this to a third party, and they will charge customers directly. This will reduce Business Services’ budget $600k for FY17/18 and $1.2 million thereafter.

City of Mesa, Arizona 151 Executive Budget Plan 2017/18 Department Operational Plans

Business Services

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund - $150,000 - $180,000

General Fund $11,131,160 $11,930,644 $11,747,354 $11,398,937

Restricted Funds $822,238 $1,715,526 $1,761,168 $1,821,063

Sum: $11,953,398 $13,796,170 $13,508,522 $13,400,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 138 137

Commodities $318,471 $557,398 410,327 $583,123

Offsets and Credits -$898,994 - -

Other Services $2,289,498 $2,453,651 2,578,595 $1,998,020

Personal Services $10,244,423 $10,785,121 10,519,600 $10,818,857

Sum: $11,953,398 $13,796,170 13,508,522 $13,400,000

City of Mesa, Arizona 152 Executive Budget Plan 2017/18 Department Operational Plans

Business Services

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Business Services $180,000 $11,398,937 - - $1,821,063 $13,400,000

Expenditure Total $180,000 $11,398,937 - - $1,821,063 $13,400,000

Revenue Business Services - $1,399,650 - - $150,000 $1,549,650

Revenue Total - $1,399,650 - - $150,000 $1,549,650

Expenditures Net of Revenues $180,000 $9,999,287 - - $1,671,063 $11,850,350

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

Enterprise Fund Enterprise Fund $180,000 - $180,000

General Fund General Fund $11,398,937 $1,399,650 $9,999,287

Restricted Funds Print Shop Internal Service $761,355 - $761,355

Warehouse Internal Service $1,059,708 $150,000 $909,708

Totals $13,400,000 $1,549,650 $11,850,350

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Business Services 137 - $583,123 $1,998,020 $10,818,857 $13,400,000

Sum: 137 - $583,123 $1,998,020 $10,818,857 $13,400,000

City of Mesa, Arizona 153 Executive Budget Plan 2017/18 Department Operational Plans

Business Services

Business Services Business Objective

Mission

Provide services that support Mesa businesses and citizens, City departments and the divisions of the Business Services Department.

Desired Outcomes

- Mesa's utility customers, taxpayers, bidders and vendors are provided with the highest quality customer service with fair and professional treatment - Mesa's customers are provided with an accurate billing for their utility services - City receipts are collected and posted accurately and in a timely manner - Delinquent amounts due to the City are aggressively pursued - City departments are provided the services needed to support their missions

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Minutes to Answer Utility Customer Calls # minutes to answer calls 1 1.45 1

Desired results based on industry standards.

Utility Customer Calls Abandoned % Util. calls abandoned 5 5.7 5

Target based on desired results and comparisons to industry standards.

Number of E-Bill Customers # of e-bill customers 60,246 57,454 66,271

Target based on historical data. 10% annual increase.

City of Mesa, Arizona 154 Executive Budget Plan 2017/18 Department Operational Plans

Business Services Business Services Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 Projected FY 17/18 Funding Source Actual Budget Expenditures Budget

Enterprise Fund - $150,000 - $180,000

General Fund $11,131,160 $11,930,644 $11,747,354 $11,398,937

Restricted Funds $822,238 $1,715,526 $1,761,168 $1,821,063

Sum: $11,953,398 $13,796,170 $13,508,522 $13,400,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 Projected FY 17/18 Category Actual Budget Expenditures Budget

FTE 138 137

Personal Services $10,244,423 $10,785,121 $10,519,600 $10,818,857

Other Services $2,289,498 $2,453,651 $2,578,595 $1,998,020

Commodities $318,471 $557,398 $410,327 $583,123

Offsets and Credits -$898,994 - - -

$11,953,398 $13,796,170 $13,508,522 $13,400,000

City of Mesa, Arizona 155 Executive Budget Plan 2017/18 Department Operational Plans

Business Services Business Services Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure

Business Business Services Services Administration Administration - $548,070 - - - 548,070

Space Planning - $99,156 - - - 99,156

Customer Information and Alarm Permit Billing Processing Operations - $140,794 - - - 140,794

Billing and Account Maintenance - $815,602 - - - 815,602

CIS Technical Support and Training $180,000 $430,223 - - - 610,223

Mail, Print and Mail Services Materials - $355,675 - - - 355,675

Materials and Supply Inventory - - - - $913,550 913,550

Print Services - - - - $761,355 761,355

Surplus Property - - - - $146,158 146,158

Purchasing Services Procurement (Contract & PO mgmt, P-Card Program) - $1,405,147 - - - 1,405,147

Revenue Business Office Operations - $1,613,964 - - - 1,613,964

Contact Center - $1,989,688 - - - 1,989,688

Payment Processing - $433,275 - - - 433,275

Special Regulatory Licenses - $888,921 - - - 888,921

City of Mesa, Arizona 156 Executive Budget Plan 2017/18 Department Operational Plans

Business Services Business Services Business Objective

FY 17/18 OperationalUtility Budget Account by Funding Source - Expenditures and Revenues Credit Services - $876,839 - - - 876,839 FY 17/18 Tax Compliance Citywide FY 17/18 FY 17/18 and Collections Collections - $781,942 - - Expenditures- 781,942 Funding Source Fund Name Expenditures Revenues Net of Revenues Tax Audit Enterprise Fund - $1,019,641 - - - 1,019,641 Enterprise Fund $900,000 - $900,000 Expenditure Total 180,000 11,398,937 1,821,063 13,400,000 General Fund General Fund $56,994,685 $6,998,250 $49,996,435 Revenue

Restricted Funds Business BusinessPrint Shop Internal Service $3,806,775 - $3,806,775 Services Services Administration Administration - - - - - 0 Warehouse Internal Service $5,298,540 $750,000 $4,548,540

Space Planning Totals - - $67,000,000- $7,748,250- - $59,251,7500

FYOperations 17/18 Operational Budget By Core Business- Process and- Category - - - 0

Billing and Capital Other Personal FY 17/18 Account FTE Outlay Commodities Services Services Budget Core Business ProcessMaintenance - - - - - 0

Business CIS Technical Services BusinessSupport and Administration ServicesTraining Administration 4 - - - $12,400 - $33,574 - $502,096 - $548,0700

Mail, Print and Mail Services Materials - - - - - 0

Materials and SpaceSupply Planning Inventory 1 - - - $1,110 - $1,440 - $96,606 - $99,1560

Print Services Customer - - - - - 0 Information and Billing Alarm Permit Operations Surplus Property Processing 2.1 - - - $75 - $2,675 -$138,044 $150,000 $140,794150,000

Purchasing Services Procurement Billing(Contract and & PO Accountmgmt, P-Card MaintenanceProgram) 8 - $200,250- $81,500 - $123,800 - $610,302 - $815,602200,250

Revenue Business Office Operations - - - - - 0 CIS Technical SupportContact and Center Training 4 -- $36,000 $130,000 - $58,100 - $422,123 - $610,22336,000

Payment Processing - - - - - 0

City of Mesa, Arizona 157 Executive Budget Plan 2017/18 Department Operational Plans

Business Services Business Services Business Objective

Special Regulatory Mail, Print and Licenses - $1,163,400 - - - 1,163,400 Materials MailUtility Services Account 5.7 - $8,375 $57,825 $289,475 $355,675 Credit Services - - - - - 0

Tax Compliance Citywide and Collections Collections - - - - - 0 Materials and Supply Inventory 8.9 - $138,000 $145,827 $629,723 $913,550 Tax Audit - - - - - 0

Revenue Total - $1,399,650 - - $150,000 1,549,650

Expenditures Net of Revenues 180,000 9,999,287 1,671,063 11,850,350 Print Services 3.8 - $84,313 $410,363 $266,679 $761,355

Surplus Property 1.8 - $1,700 $14,600 $129,858 $146,158

Purchasing Services Procurement (Contract & PO mgmt, P-Card Program) 15 - $4,275 $36,618 $1,364,254 $1,405,147

Revenue Operations Business Office 11.1 - $9,300 $831,850 $772,814 $1,613,964

Contact Center 27.2 - $5,000 $95,455 $1,889,233 $1,989,688

Payment Processing 5.1 - $8,000 $27,045 $398,230 $433,275

Special Regulatory Licenses 9.4 - $76,739 $63,561 $748,621 $888,921

Utility Account Credit Services 10.3 - $9,900 $45,025 $821,914 $876,839

Tax Compliance and Collections Citywide Collections 10.1 - $7,725 $11,715 $762,502 $781,942

City of Mesa, Arizona 158 Executive Budget Plan 2017/18 Department Operational Plans

Business Services Business Services Business Objective

Tax Audit 9.9 - $4,711 $38,547 $976,383 $1,019,641

Totals 137 - $583,123 $1,998,020 $10,818,857 $13,400,000

City of Mesa, Arizona 159 Executive Budget Plan 2017/18 Department Operational Plans

Centralized Appropriations

Centralized Appropriations Contact Information:

Department Phone Number: 480-644-5799 Department Email: Office of Management & Budget Email Department Address: City of Mesa, Office of Management & Budget 20 E Main St. Suite 450, PO Box 1466 Mesa, AZ 85201

Department Description

The Centralized Appropriations department contains Citywide revenues and expenditures such as Contractual Commitments, Debt Service, Lease Payments, Post-Employment Benefits, Property and Public Liability, City Sales Tax, Secondary Property Tax, Urban Revenue Sharing, State Shared Sales Tax, Highway User Tax, Utility Revenues, etc. The Centralized Appropriations department is managed separately from any department operational plan. City Council Strategic Initiatives: Well-Managed and Innovative Government

Department Business Objective Core Business Process

• Bad Debt • Centralized Revenues • Contractual Commitments Centralized Centralized • Debt Service Appropriations • Lease Payments Appropriations • Other Centralized Appropriations • Post-Employment Benefits • Property and Public Liability

Budgetary Highlights

Detailed information related to tax collections, debt service, property and public liability and other areas within Centralized Appropriations can be found in the Budget and Financial Summaries section of the Executive Budget Plan.

City of Mesa, Arizona 160 Executive Budget Plan 2017/18 Department Operational Plans

Centralized Appropriations

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $19,206,630 $21,482,042 $21,438,826 $23,687,556

General Fund -$14,556,598 -$8,910,690 -$20,229,542 -$8,924,526

Other Funds $410,632,490 $381,476,951 $304,357,540 $412,521,000

Restricted Funds $2,704,371 $21,323,697 $1,113,946 $18,770,970

Sum: $417,986,893 $415,372,000 $306,680,770 $446,055,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

Capital Outlay $8,206,045 $20,760,000 $150,974 $10,432,000

Commodities $6,270,914 $5,107,878 $2,769,223 $6,177,359

Contingency - $3,020,000 - $268,898,000

Debt Service $411,386,064 $380,144,637 $302,617,036 $145,789,716

Offsets and Credits -$25,792,644 -$20,790,202 -$17,006,556 -$20,311,863

Other Services $6,927,960 $12,721,271 $2,552,103 $17,796,601

Personal Services $10,988,554 $14,408,416 $15,597,990 $17,273,187

Sum: $417,986,893 $415,372,000 $306,680,770 $446,055,000

City of Mesa, Arizona 161 Executive Budget Plan 2017/18 Department Operational Plans

Centralized Appropriations

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Restricted FY 17/18 Business Objective Fund Fund Grant Funds Other Funds Funds Budget

Expenditure Centralized Appropriatio $23,687,556 -$8,924,526 - $412,521,000 $18,770,970 $446,055,000

Expenditure Total $23,687,556 -$8,924,526 - $412,521,000 $18,770,970 $446,055,000 Revenue Centralized Appropriatio $359,189,618 $240,426,174 $2,409 $510,075,698 $152,096,704 $1,261,790,603

Revenue Total $359,189,618 $240,426,174 $2,409 $510,075,698 $152,096,704 $1,261,790,603

Expenditures Net of Revenues -$335,502,062 -$249,350,700 -$2,409 -$97,554,698 -$133,325,734 -$815,735,603

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Expenditures Revenues of Revenues

Enterprise Fund Capital - Enterprise $680,566 $300,000 $380,566

Enterprise Fund $23,006,990 $358,889,618 -$335,882,628

General Fund Capital - General Fund -$1,256,183 - -$1,256,183

General Fund -$7,668,343 $240,426,174 -$248,094,517

Grant Funds Grants - Gen. Gov. - $409 -$409

Section 8 - $2,000 -$2,000

Other Funds Contingency $265,068,000 $265,068,000 -

Court Construction Fee - $799,910 -$799,910

Eastmark CFD 1 - Debt $3,078,680 $3,078,404 $276

Electric Bond Construction $36,000 $7,555,810 -$7,519,810

Employee Benefit Trust $2,413,284 -$63 $2,413,347

Gas Bond Construction $71,000 $13,830,450 -$13,759,450

General Obligation Bond Redemption $38,714,956 $33,999,099 $4,715,857

Highway Project Advancement Notes - $6,000 -$6,000

Highway User Revenue Bond Redemption $12,459,513 - $12,459,513

Non Utility Bond Redemption $4,703,900 $4,867,151 -$163,251

Parks Bond Construction $256,000 $21,555,450 -$21,299,450

Property and Public Liability - $6,860,146 -$6,860,146 City of Mesa, Arizona 162 Executive Budget Plan 2017/18 Department Operational Plans

Centralized Appropriations

Public Safety Bond Construction - $185,494 -$185,494

Solid Waste Bond Construction $21,000 $3,389,000 -$3,368,000

Special Improvement District Bond Redemption $403,405 $403,405 -

Spring Training Bond Construction - $324,090 -$324,090

Streets Bond Construction $294,000 $17,667,375 -$17,373,375

Transportation Project Advancement Notes $1,000,000 $1,000,000 -

Utility Systems Bond Redemption $82,565,464 $2,239,646 $80,325,818

Utility Systems GO Bond Redemption $86,130 - $86,130

Wastewater Bond Construction $451,000 $45,738,518 -$45,287,518

Water Bond Construction $721,000 $81,507,813 -$80,786,813

WIFA Redemption $177,668 - $177,668

Restricted Funds Arts & Culture Fund $2,378,829 $4,950 $2,373,879

Cadence CFD - Operating $10,000 $94,816 -$84,816

Cemetery $196,238 - $196,238

Cemetery Reserve - $51,000 -$51,000

Community Facilities Districts - Operating $20,000 $153,403 -$133,403

Eastmark CFD 1 - Capital $15,000,000 $15,000,000 -

Economic Investment Fund $609,435 $20,000 $589,435

Environmental Compliance Fee $1,058,904 $15,662,003 -$14,603,099

Falcon Field Airport $565,655 $57,000 $508,655

Fire Impact Fee - $437,654 -$437,654

Fleet Internal Service -$15,254,329 - -$15,254,329

Greenfield WRP Joint Venture $960,521 $7,913,327 -$6,952,806

Highway User Revenue Fund $116,034 $39,660,968 -$39,544,934

Library Impact Fee - $2,000 -$2,000

Local Streets Sales Tax $5,310,802 $27,956,317 -$22,645,515

Mesa Arts Center Restoration Fee - $6,000 -$6,000

Parks Impact Fee - $20,000 -$20,000

Police Impact Fee - $657,284 -$657,284

Print Shop Internal Service -$763,399 - -$763,399

Quality of Life Sales Tax $381,513 $23,254,048 -$22,872,535

Restricted Programs Fund $2,348,475 $3,128,542 -$780,067 City of Mesa, Arizona 163 Executive Budget Plan 2017/18 Department Operational Plans

Centralized Appropriations

Solid Waste Development Fee - $481,990 -$481,990

Special Programs Fund - $61,367 -$61,367

Stormwater Drainage Impact Fee - $489,001 -$489,001

TOPAZ Joint Venture Fund - $1,805,591 -$1,805,591

Transit Fund $407,925 $1,323,533 -$915,608

Warehouse Internal Service $5,424,367 $6,336,143 -$911,776

Wastewater Impact Fee - $4,095,285 -$4,095,285

Water Impact Fees - $3,424,482 -$3,424,482

Totals $446,055,000 $1,261,790,603 -$815,735,603

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective Commodities Outlay Services Services Budget

Centralized Appropriations $10,432,000 $6,177,359 $17,796,601 $17,273,187 $446,055,000

Totals $10,432,000 $6,177,359 $17,796,601 $17,273,187 $446,055,000

City of Mesa, Arizona 164 Executive Budget Plan 2017/18 Department Operational Plans

City Attorney

City Attorney Contact Information:

Department Phone Number: 480-644-2343 Department Email: [email protected] Department Address: City of Mesa, City Attorney MS1077 P.O. Box 1466 Mesa, AZ 85211-1466 Website: http://mesaaz.gov/city-hall/city-attorney

Department Description The City Attorney’s Office provides legal advice to the Mayor and Council, the City Manager, the City departments, and the City’s boards and commissions. The Office prepares and reviews contracts, ordinances, resolutions, and other legal documents involving the City. The City Attorney’s Office also represents the City in civil litigation and represents the City and the State of Arizona in criminal misdemeanor cases and certain civil traffic cases occurring within the City limits. City Council Strategic Initiatives: Community Safety, Well-Managed and Innovative Government

Department Business Objective Core Business Process

• Administrative Legal Services Legal • Civil Litigation City Attorney • Criminal Prosecution • Victim Services

Budgetary Highlights The City Attorney’s Office oversees the Property and Public Liability (PPL) Fund. The City uses the PPL Fund to pay third party liability claims; to pay the administrative costs for the litigation team; and to purchase insurance coverage to protect the City against major losses. The estimated claims paid for FY16/17 will be approximately $2.7 million, which is $1.3 million below the FY16/17 budgeted amount. Estimated claims in FY17/18 are expected to be $4.0 million, consistent with the budgeted amount for FY16/17. The PPL insurance premiums are expected to increase 2.5% in FY17/18 due to national and local factors that affect municipal liability insurance. Pending high profile claims payouts are expected to occur in FY17/18 and/or FY18/19, but it is difficult to estimate when or if payouts may occur.

In FY17/18, the City Attorney’s Office will reduce its Outside Legal Services budget by $100k to $250k as a part of citywide cost saving efforts and has no change in FTE in FY 17/18.

City of Mesa, Arizona 165 Executive Budget Plan 2017/18 Department Operational Plans

City Attorney

Legal Business Objective

Mission

Dedicated to providing quality legal services (civil and criminal) to protect the interests of the City of Mesa and its citizens.

Desired Outcomes

To protect the interests of the city by providing thorough and accurate legal representation

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Percent of Long Form Requests Turned Down %LongFormRqstsTurned Down 90

Percent of DUI Trials Resulting in Guilty Verdict %DUI Trials w/GuiltyVerdict 90

Percent of Diversion Cases Dismissed %Diversion Cases Dismissed 80

Percent of Cases Resolved at Arraignment %Cases Resolved at Arraignment 60

Percent of Restitution Awarded %Restitution Awarded 80

City of Mesa, Arizona 166 Executive Budget Plan 2017/18 Department Operational Plans

City Attorney

Legal Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund - $163,341 $163,341 $167,980

General Fund $5,500,263 $5,666,951 $5,477,936 $5,576,587

Grant Funds $242,359 $529,102 $387,578 $520,592

Other Funds $2,892,281 $6,671,777 $3,346,753 $6,860,146

Restricted Funds $29,769 $78,829 $62,579 $79,695

Sum: $8,664,671 $13,110,000 9,438,187 $13,205,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 64.5 64.5

Personal Services $6,272,190 $6,703,817 $6,404,420 $6,756,427

Other Services $2,344,552 $6,334,134 $2,973,111 $6,400,124

Commodities $47,929 $72,049 $60,656 $48,449

Sum: $8,664,671 $13,110,000 $9,438,187 $13,205,000

City of Mesa, Arizona 167 Executive Budget Plan 2017/18 Department Operational Plans

City Attorney

Legal Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Administrative Legal Expenditure Services $167,980 $1,939,611 $24,994 - $79,695 $2,212,280

Civil Litigation - - - $6,860,146 - $6,860,146

Criminal Prosecution - $3,216,220 - - - $3,216,220

Victim Services - $420,756 $495,598 - - $916,354

Expenditure Total $167,980 $5,576,587 $520,592 $6,860,146 $79,695 13,205,000

Revenue Victim Services - - $495,598 - - $495,598

Revenue Total - - $495,598 - - 495,598

Expenditures Net of Revenues $167,980 $5,576,587 $24,994 $6,860,146 $79,695 $12,709,402

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Enterprise Fund $167,980 - $167,980

General Fund General Fund $5,576,587 - $5,576,587

Grant Funds Community Development Block Grant $13,991 - -

Grants - Gen. Gov. $495,598 $495,598 $5,004

HOME $5,004 - $5,999

Section 8 $5,999 - $13,991

Other Funds Property and Public Liability $6,860,146 - $6,860,146

Restricted Funds Cadence CFD - Operating $15,000 - $15,000

Community Facilities Districts - Operating $40,000 - $24,695

Environmental Compliance Fee $24,695 - $40,000

Totals $13,205,000 $495,598 $12,709,402

City of Mesa, Arizona 168 Executive Budget Plan 2017/18 Department Operational Plans

City Attorney

Legal Business Objective

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Administrative Legal Services 12.6 - $15,561 $439,645 $1,757,074 $2,212,280

Civil Litigation 8.3 - - $5,860,259 $999,887 $6,860,146

Criminal Prosecution 30.6 - $32,388 $90,200 $3,093,632 $3,216,220

Victim Services 13 - $500 $10,020 $905,834 $916,354

Sum: 64.5 - $48,449 $6,400,124 $6,756,427 $13,205,000

City of Mesa, Arizona 169 Executive Budget Plan 2017/18 Department Operational Plans

City Auditor

City Auditor Contact Information:

Department Phone Number: 480-644-3767 Department Email: [email protected] Department Address: City of Mesa, Auditor’s Office 20 E. Main St, Suite 820, PO Box 1466 Mesa AZ 85211-1466 Website: http://mesaaz.gov/city-hall/city-auditor

Department Description

Under the direction of the Mesa City Council, the City Auditor’s Office provides audit, consulting, and investigative services to identify and minimize risks, maximize efficiencies, and improve internal controls. These services help the City accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance processes. City Council Strategic Initiatives: Well-Managed and Innovative Government

Department Business Objective Core Business Process

City Auditor City Auditor • City Auditor Operations

Budgetary Highlights

The FY17/18 budget is consistent with the FY16/17 budget.

City of Mesa, Arizona 170 Executive Budget Plan 2017/18 Department Operational Plans

City Auditor

City Auditor Business Objective

Mission

Provides audit, consulting, and investigative services to identify and minimize risks, maximize efficiencies, improve internal controls, increase transparency and strengthen accountability to Mesa's citizens.

Desired Outcomes

- The City of Mesa provides high quality services at the lowest possible cost, and operates in compliance with all applicable statutes, rules, regulations, policies and procedures. - The risks of fraud, theft, and abuse of public resources are minimized, and Mesa's citizens have confidence in the integrity and transparency of their City government.

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Audit Recommendations % Audit Recs Accepted 0 0 95

Target is based on historical performance.

Audit Plan Completion % Audit Plans Completed 0 0 80

Target is based on available resources.

City of Mesa, Arizona 171 Executive Budget Plan 2017/18 Department Operational Plans

City Auditor

City Auditor Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $693,657 $715,000 $754,263 $747,000

Sum: $693,657 $715,000 754,263 $747,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 5 5

Personal Services $672,922 $678,737 $718,000 $711,158

Other Services $19,403 $31,505 $31,505 $31,084

Commodities $1,333 $4,758 $4,758 $4,758

Sum: $693,657 $715,000 $754,263 $747,000

City of Mesa, Arizona 172 Executive Budget Plan 2017/18 Department Operational Plans

City Auditor

City Auditor Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure City Auditor Operations - $747,000 - - - $747,000

Expenditure Total - $747,000 - - - 747,000

Expenditures Net of Revenues - $747,000 - - - $747,000

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $747,000 - $747,000

Totals $747,000 - $747,000

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

City Auditor Operations 5 - $4,758 $31,084 $711,158 $747,000

Sum: 5 - $4,758 $31,084 $711,158 $747,000

City of Mesa, Arizona 173 Executive Budget Plan 2017/18 Department Operational Plans

City Clerk

City Clerk Contact Information:

Department Phone Number: (480) 644-2099 Department Email: [email protected] Department Address: 20 E. Main Street Suite 150 P.O. Box 1466 Mesa, AZ 85211 Website: http://mesaaz.gov/city-hall/city-clerk

Department Description

To professionally and responsively promote trust between the citizens and government by providing Council support, such as compiling minutes from all Council and Council Committee meetings and processing all adopted ordinances and resolutions, managing the citywide records management program, conducting fair, open and impartial City elections, ensuring legal compliance of all official postings, public notices and related advertising, processing legal service documents, and administering the Public Safety Retirement Local Boards as well as the Judicial Advisory Board.

Department Business Objective Core Business Process

City Clerk City Clerk • City Clerk Administration • Elections

Budgetary Highlights

The budget for City Clerk’s Office is adjusted each year for the cost of elections. FY16/17 included a $442,000 baseline adjustment for estimated election costs. There are not any planned elections in FY17/18 and therefore no election costs will be included in the FY17/18 budget.

City of Mesa, Arizona 174 Executive Budget Plan 2017/18 Department Operational Plans

City Clerk

City Clerk Business Objective

Mission

Serve as professional, responsive liaisons in promoting trust between the citizens and government by managing the citywide records management program, conducting fair, open and impartial City elections, ensuring legal compliance of all official postings, public notices and related advertising and administering the Public Safety Retirement System and local boards for City of Mesa police and firefighters.

Desired Outcomes

- Voter education (outreach) is enhanced - Voter turnout is maximized - Accurate and timely City elections/results are conducted - Access to government through public records is provided - Compliance with all legal notification requirements is ensured and maintained

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Public Meeting Notices # Pub Mtg Notices Posted 528 0 550

PSPRS Retirement and DROP Participation Applications # PSPRS Ret &DROP Applications 60 0 85

City of Mesa, Arizona 175 Executive Budget Plan 2017/18 Department Operational Plans

City Clerk

City Clerk Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $835,921 $1,313,368 $1,189,442 $877,356

Restricted Funds $6,130 $5,632 $3,316 $5,644

Sum: $842,051 $1,319,000 1,192,758 $883,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 8 8

Personal Services $780,197 $793,074 $790,758 $799,328

Other Services $51,335 $481,889 $367,400 $74,472

Commodities $10,520 $44,037 $34,600 $9,200

Sum: $842,051 $1,319,000 $1,192,758 $883,000

City of Mesa, Arizona 176 Executive Budget Plan 2017/18 Department Operational Plans

City Clerk

City Clerk Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure City Clerk Administration - $876,856 - - $5,644 $882,500

Elections - $500 - - - $500

Expenditure Total - $877,356 - - $5,644 883,000

Expenditures Net of Revenues - $877,356 - - $5,644 $883,000

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $877,356 - $877,356

Restricted Funds Cadence CFD - Operating $2,816 - $2,816

Community Facilities Districts - Operating $2,828 - $2,828

Totals $883,000 - $883,000

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

City Clerk Administration 8 - $9,200 $73,972 $799,328 $882,500

Elections - - $500 - $500

Sum: 8 - $9,200 $74,472 $799,328 $883,000

City of Mesa, Arizona 177 Executive Budget Plan 2017/18 Department Operational Plans

City Manager

City Manager Contact Information:

Department Phone Number: 480-644-2066 Department Email: [email protected] Department Address: City of Mesa, City Manager PO Box 1466 Mesa, AZ 85211 Website: http://mesaaz.gov/city-hall/city-manager-s-office

Department Description

The City Manager’s Office is responsible for seeking policy direction from Council and preparing recommendations for Council action in accordance with established strategic priorities. City Council Strategic Initiatives: Well-Managed and Innovative Government

Department Business Objective Core Business Process

City Manager Executive • Executive Management

Budgetary Highlights

During FY16/17, 1 FTE was transferred from Development and Sustainability Department to the City Manager’s Office, resulting in an increase in the FY17/18 budget. Additionally, 0.5 FTE was added to oversee the Public Defender program. Other than the additions above, the proposed budget is consistent with the FY16/17 budget.

City of Mesa, Arizona 178 Executive Budget Plan 2017/18 Department Operational Plans

City Manager

Executive Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $5,112,748 $5,434,000 $5,493,580 $5,813,000

Grant Funds $97,613 $222,960 $34,107 $159,135

Restricted Funds $20,226 $20,000 $20,000 $20,000

Sum: $5,230,587 $5,676,960 5,547,687 $5,992,135

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 28 29.5

Personal Services $3,513,519 $3,703,948 $3,763,528 $4,082,551

Other Services $1,692,894 $1,853,855 $1,724,202 $1,710,460

Commodities $44,399 $119,157 $59,957 $199,124

Offsets and Credits -$20,226 - - -

Sum: $5,230,587 $5,676,960 $5,547,687 $5,992,135

City of Mesa, Arizona 179 Executive Budget Plan 2017/18 Department Operational Plans

City Manager

Executive Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Executive - $5,813,000 $159,135 - $20,000 $5,992,135

Expenditure Total - $5,813,000 $159,135 - $20,000 5,992,135

Revenue Executive - - $100,000 - - $100,000

Revenue Total - - $100,000 - - 100,000

Expenditures Net of Revenues - $5,813,000 $59,135 - $20,000 $5,892,135

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $5,813,000 - $5,813,000

Grant Funds Grants - Gen. Gov. $159,135 $100,000 $59,135

Restricted Funds Cadence CFD - Operating $10,000 - $10,000

Community Facilities Districts - Operating $10,000 - $10,000

Totals $5,992,135 $100,000 $5,892,135

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Executive 29.5 - $199,124 $1,710,460 $4,082,551 $5,992,135

Sum: 29.5 - $199,124 $1,710,460 $4,082,551 $5,992,135

City of Mesa, Arizona 180 Executive Budget Plan 2017/18 Department Operational Plans

Communications

Communications Contact Information:

Department Phone Number: 480-644-3166 Department Email: [email protected] Department Address: City of Mesa, Communications Department 161 E. 6th Place Mesa, AZ 85201 Website: http://www.mesaaz.gov/residents/police/divisions/communications Department Description The Communications Department ensures that public safety and other municipal departments have handheld and vehicle- mounted communications equipment and network infrastructure available for use when needed to perform emergency and daily work assignments. The Department also provides administrative management functions for the TOPAZ Regional Wireless Cooperative (TRWC).

City Council Strategic Initiatives: Community Safety, Well-Managed and Innovative Government

Department Business Objective Core Business Process

Communications Communications • Communications

Budgetary Highlights Communications has partnered with Mesa Public Schools to transition the non-public safety department radios off the TOPAZ network and move them to the district’s network and realize significant savings for the City. This effort also ensures the availability and reliability of the TOPAZ network for public safety needs. The FY17/18 Communications budget includes $1.1 million for lease payments to Motorola over the next three years for the TOPAZ Voice Radio Network Equipment Upgrade project. The project is included in the lifecycle replacement program and will upgrade the city’s existing communications network to ensure reliable radio service for first responders. The budget does include a reduction of $100,000 in maintenance and software needs for radios and infrastructure. This reduction is possible because of the reliability of newer equipment as well as more efficient troubleshooting of equipment issues. In FY17/18, consulting services for the TOPAZ network were included in the budget and funded design and specification development for the Fire Hazard Zone Communications (VHF) System. The FY17/18 budget includes $350,000 to complete the installation of the VHF system. The project is part of the recommended capital improvement program and so the budget is reflected in the Projects Department. The City of Mesa is responsible for about 75% of the cost with the remainder covered by the other members of the joint venture. The Communications Department will be merging with the Information Technology Department over the next few months. The FY17/18 adopted budget will still reflect two separate departments as the merger is implemented, however the two areas will be managed as one by the Chief Information Officer.

City of Mesa, Arizona 181 Executive Budget Plan 2017/18 Department Operational Plans

Communications

Communications Business Objective

Mission

Provide radio communication and associated electronic systems and services for the Public Safety and Municipal Departments of the City of Mesa and the members of the TOPAZ Regional Wireless Cooperative.

Desired Outcomes

- The TOPAZ radio communications network infrastructure is available for use by Public Safety and Municipal Departments of the City of Mesa and the members of the TOPAZ Regional Wireless Cooperative to perform their emergency and daily business functions when needed - The appropriate mobile and portable radio communications subscriber equipment and associated electronic equipment and services are available when needed - Operations and maintenance support and network planning and project implementation are proactively provided to maximize the availability of the TOPAZ radio communications network

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

COMM-Unscheduled Impairment TOPAZ Network Wide # Secs TOPAZ Unsched Impairmnt 312 29,079 316

99.999% (five-nines) is a telecommunications industry accepted benchmark. 316 seconds impairment equates to five-nines availability.

COMM-Defect-Free Radio Programming Templates % Templates Defect-Free 1,080 1,091 90

Internal goal of 90%.

COMM-Defect-Free Equipment Repairs and Installations % Repair/Instals Defect-Free 1,176 1,093 98

Internal goal of 98%.

City of Mesa, Arizona 182 Executive Budget Plan 2017/18 Department Operational Plans

Communications

Communications Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund -$5,170 - - -

General Fund $1,836,328 $2,045,268 $2,045,268 $1,960,833

Restricted Funds $1,510,714 $1,536,732 $1,536,732 $1,797,167

Sum: $3,341,872 $3,582,000 3,582,000 $3,758,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 21 20

Personal Services $1,976,139 $2,100,307 $2,100,307 $2,001,820

Other Services $432,123 $512,585 $512,585 $492,021

Commodities $891,174 $969,108 $969,108 $1,264,159

Capital Outlay $42,436 - - -

Sum: $3,341,872 $3,582,000 $3,582,000 $3,758,000

City of Mesa, Arizona 183 Executive Budget Plan 2017/18 Department Operational Plans

Communications

Communications Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Radio Communications - $1,960,833 - - $1,797,167 $3,758,000

Expenditure Total - $1,960,833 - - $1,797,167 3,758,000

Revenue Radio Communications - $33,000 - - - $33,000

Revenue Total - $33,000 - - - 33,000

Expenditures Net of Revenues - $1,927,833 - - $1,797,167 $3,725,000

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $1,960,833 $33,000 $1,927,833

Restricted Funds TOPAZ Joint Venture Fund $1,797,167 - $1,797,167

Totals $3,758,000 $33,000 $3,725,000

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Radio Communications 20 - $1,264,159 $492,021 $2,001,820 $3,758,000

Sum: 20 - $1,264,159 $492,021 $2,001,820 $3,758,000

City of Mesa, Arizona 184 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Community Services Contact Information:

Department Phone Number: 480-644-3536 Department Address: City of Mesa, Housing and Community Services 20 E. Main St. Suite 250 Mesa, AZ 85211-1466 Website: http://mesaaz.gov/residents/diversity-office http://mesaaz.gov/residents/housing-community-development

Department Description

Community Services provides a wide range of assistance such as education and resources which informs and connects residents with City of Mesa services and programs. This Department includes the Diversity Office, Neighborhood Outreach, the Citywide Volunteer Program, Animal Control, Housing & Community Development and Human Services.

City Council Strategic Initiatives: Stronger Neighborhoods, Placemaking, and Diversity

Department Business Objective Core Business Process

• Diversity Initiatives Diversity and • Neighborhood Outreach and Neighborhoo Collaboration d Outreach • Volunteer Coordination Program

Community Animal • Customer Service and Control Community Education Services • Field Response and Action

Housing and Community • Housing and Community Development Development

City of Mesa, Arizona 185 Executive Budget Plan 2017/18 Department Operational Plans

Budgetary Highlights Community Services oversees the City’s Housing, Neighborhood Outreach, Animal Control, and Diversity initiatives. Community Services receives funding from both the General Fund and various grants. The Department’s $31.4 million is funded by over 90% by state and federal grants. The Housing and Community Development Division’s FY17/18 grant budget is projected to be $19.5 million for new grants, carrying over $9.0 million in federal grants supporting Housing Services and Community Planning and Development. These carryovers are for HOME, Section 8 Housing, and Community Development projects. Overall, Community Services budget is $1.3 million less than the year prior. As part of the citywide cost reduction efforts, the Community Services Department is moving a position from the General Fund to a grant fund.

Community Services will carryover $9.0 million in expenditure budget capacity in community development and housing assistance grant funds from FY 16/17 into FY 17/18, which will result in decreased year-end expenditure estimates and increased FY 17/18 budget. The department will also carryover $8.5 million in grant revenues from FY 16/17 to FY 17/18.

City of Mesa, Arizona 186 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $2,553,314 $2,798,953 $2,698,806 $2,888,667

Grant Funds $15,644,597 $29,628,310 $20,824,863 $28,268,996

Restricted Funds $108,000 $225,131 $108,000 $248,915

Sum: $18,305,911 $32,652,394 $23,631,669 $31,406,578

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 43 44

Capital Outlay $27,645 $5,312 119,300 $1,312

Commodities $110,511 $222,588 17,713,533 $95,579

Other Services $15,013,124 $28,913,604 3,534,006 $27,650,722

Personal Services $3,154,631 $3,510,890 2,264,830 $3,658,965

Sum: $18,305,911 $32,652,394 23,631,669 $31,406,578

City of Mesa, Arizona 187 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Animal Control - $545,208 - - - $545,208

Diversity and Neighborhood - $679,534 - - - $679,534

Housing and Community - $1,663,925 $28,268,996 - $248,915 $30,181,836

Expenditure Total - $2,888,667 $28,268,996 - $248,915 $31,406,578

Revenue Diversity and Neighborhood ------

Housing and Community - $35,124 $28,291,990 - $131,784 $28,458,898

Revenue Total - $35,124 $28,291,990 - $131,784 $28,458,898

Expenditures Net of Revenues - $2,853,543 -$22,994 - $117,131 $2,947,680

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

General Fund Capital - General Fund $1,312 - $1,312

General Fund $2,887,355 $35,124 $2,852,231

Grant Funds Community Development Block Grant $11,237,910 $11,251,901 -$13,991

HOME $3,347,125 $3,352,129 -$5,004

Section 8 $13,683,961 $13,687,960 -$3,999

Restricted Funds Restricted Programs Fund $248,915 $131,784 $117,131

Totals $31,406,578 $28,458,898 $2,947,680

City of Mesa, Arizona 188 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Animal Control 5 - $11,099 $164,700 $369,409 $545,208

Diversity and Neighborhood Outreach 6 - $14,984 $46,680 $617,870 $679,534

Housing and Community Development 33 $1,312 $69,496 $27,439,342 $2,671,686 $30,181,836

Sum: 44 $1,312 $95,579 $27,650,722 $3,658,965 $31,406,578

City of Mesa, Arizona 189 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Animal Control Business Objective

Mission

Serve and protect citizens and animals in the community through cooperative partnerships, education, and voluntary compliance or enforcement in order to contribute to the quality of life for Mesa residents.

Desired Outcomes

- Animals and citizens are protected. - Citizens understand codes related to animals.

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

All Calls for Service # of calls for service 23,400 0 23,400

These targets were determined by the average number of calls that come into the AC office and are fielded by staff. Slight adjustments are made yearly according to data recorded by AC staff.

City of Mesa, Arizona 190 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Animal Control Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $448,080 $526,291 $2,698,806 $545,208

Sum: $448,080 $526,291 2,698,806 $545,208

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 5 5

Personal Services $338,370 $350,492 $2,264,830 $369,409

Other Services $104,136 $164,700 $3,534,006 $164,700

Commodities $5,574 $11,099 $17,713,533 $11,099

Sum: $448,080 $526,291 $23,631,669 $545,208

City of Mesa, Arizona 191 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Animal Control Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Customer Service - $164,453 - - - $164,453

Field Response and Action - $380,755 - - - $380,755

Expenditure Total - $545,208 - - - 545,208

Expenditures Net of Revenues - $545,208 - - - $545,208

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $545,208 - $545,208

Totals $545,208 - $545,208

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Customer Service 2 - $1,200 $8,800 $154,453 $164,453

Field Response and Action 3 - $9,899 $155,900 $214,956 $380,755

Sum: 5 - $11,099 $164,700 $369,409 $545,208

City of Mesa, Arizona 192 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Diversity and Neighborhood Outreach Business Objective

Mission

Work collectively to bring Mesa's diverse communities together through volunteerism and neighborhood outreach in order to create an informed, active, and accepting community.

Desired Outcomes

The community is enhanced by engaged neighborhoods, volunteers, and diverse populations of Mesa.

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Citywide Volunteer Program Hrs Volunteer Prg Hrs Citywide 180,000 0 180,000

These targets were determined by the average number of volunteer hours submitted by departments across the city who have Volunteer Coordinators.

Diversity Contacts & Assistance # of Diversity Cnts & Assts 100 0 100

These targets were determined by the average number of calls that come into the Diversity office over a given quarter as tracked by the Diversity office staff.

City of Mesa, Arizona 193 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Diversity and Neighborhood Outreach Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $637,272 $657,266 $2,698,806 $679,534

Sum: $637,272 $657,266 2,698,806 $679,534

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 6 6

Personal Services $583,501 $595,602 $2,264,830 $617,870

Other Services $44,707 $46,680 $3,534,006 $46,680

Commodities $9,064 $14,984 $17,713,533 $14,984

Sum: $637,272 $657,266 $23,631,669 $679,534

City of Mesa, Arizona 194 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Diversity and Neighborhood Outreach Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Diversity Initiatives - $199,749 - - - $199,749

Neighborhood Outreach and Collaboration - $365,013 - - - $365,013

Volunteer Coordination Program - $114,772 - - - $114,772

Expenditure Total - $679,534 - - - 679,534

Expenditures Net of Revenues - $679,534 - - - $679,534

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $679,534 - $679,534

Totals $679,534 - $679,534

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Diversity Initiatives 1.5 - $1,800 $15,850 $182,099 $199,749

Neighborhood Outreach and Collaboration 3.5 - $6,500 $20,230 $338,283 $365,013

Volunteer Coordination Program 1 - $6,684 $10,600 $97,488 $114,772

Sum: 6 - $14,984 $46,680 $617,870 $679,534

City of Mesa, Arizona 195 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Housing and Community Development Business Objective

Mission

Partnering to preserve and create sustainable communities enhancing the quality of life for Mesa residents.

Desired Outcomes

To be good stewards by overseeing federal and local funding for our residents to: - End homelessness - Ensure safe, decent and sanitary housing - Sustain and increase affordable rental housing and home ownership - Serve low- to moderate-income households through various services and rental assistance - Oversee program administration - Account for and report on federal and local funding allocations - Support local nonprofits

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Utilization Rate of Housing Choice Vouchers (HCV) % Utilization of Vouchers 98 0 98

City of Mesa, Arizona 196 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Housing and Community Development Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $1,467,962 $1,615,396 $2,698,806 $1,663,925

Grant Funds $15,644,597 $29,628,310 $20,824,863 $28,268,996

Restricted Funds $108,000 $225,131 $108,000 $248,915

Sum: $17,220,559 $31,468,837 23,631,669 $30,181,836

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 32 33

Personal Services $2,232,760 $2,564,796 $2,264,830 $2,671,686

Other Services $14,864,281 $28,702,224 $3,534,006 $27,439,342

Commodities $95,873 $196,505 $17,713,533 $69,496

Capital Outlay $27,645 $5,312 $119,300 $1,312

Sum: $17,220,559 $31,468,837 $23,631,669 $30,181,836

City of Mesa, Arizona 197 Executive Budget Plan 2017/18 Department Operational Plans

Community Services

Housing and Community Development Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Housing and Community Expenditure Development - $1,663,925 $28,268,996 - $248,915 $30,181,836

Expenditure Total - $1,663,925 $28,268,996 - $248,915 30,181,836

Housing and Community Revenue Development - $35,124 $28,291,990 - $131,784 $28,458,898

Revenue Total - $35,124 $28,291,990 - $131,784 28,458,898

Expenditures Net of Revenues - $1,628,801 -$22,994 - $117,131 $1,722,938

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund Capital - General Fund $1,312 - $1,312

General Fund $1,662,613 $35,124 $1,627,489

Grant Funds Community Development Block Grant $11,237,910 $11,251,901 -$13,991

HOME $3,347,125 $3,352,129 -$5,004

Section 8 $13,683,961 $13,687,960 -$3,999

Restricted Funds Restricted Programs Fund $248,915 $131,784 $117,131

Totals $30,181,836 $28,458,898 $1,722,938

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Housing and Community Development 33 $1,312 $69,496 $27,439,342 $2,671,686 $30,181,836

Sum: 33 $1,312 $69,496 $27,439,342 $2,671,686 $30,181,836

City of Mesa, Arizona 198 Executive Budget Plan 2017/18 Department Operational Plans

Contingency

Contingency Contact Information:

Department Phone Number: 480-644-5799 (Office of Management & Budget) Department Address: City of Mesa, Office of Management & Budget 20 E Main St Suite 450, PO Box 1466 Mesa, AZ 85211-1466 Website: http://mesaaz.gov/city-hall/office-of-management-budget

Department Description As a part of the budget process, the City adopts a contingency fund budget. The contingency fund is used to provide spending authority to meet any municipal expense, the necessity or extent of which could not have been foreseen or reasonably evaluated at the time of adopting the annual budget, or from which to provide funding for emergencies or other unexpected events. In addition, unanticipated revenues (e.g., unanticipated grant awards) that may become available during the fiscal year have been included in the contingency fund budget.

To request contingency funds, a department must submit a request to the Office of Management and Budget (OMB). OMB reviews the request and forwards it, along with any pertinent analysis, to the City Manager’s Office. The City Manager’s Office reviews the request and determines whether it meets the priorities and needs of the City.

City Council Strategic Initiatives: Well-Managed & Innovative Government

Department Business Objective Core Business Process

Contingency Contingency • Contingency

Budgetary Highlights

The City’s FY 16/17 budget was $127.5 million and will be $91.2M in FY 17/18. In FY 17/18, there were more than 40 contingency transfers to several departments for approximately of $2.5M.

City of Mesa, Arizona 199 Executive Budget Plan 2017/18 Department Operational Plans

Contingencies

Contingency Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Other Funds - $134,471,000 - $91,174,000

Sum: - $134,471,000 $91,174,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE

Contingency - $134,471,000 - $91,174,000

Sum: - $134,471,000 - $91,174,000

City of Mesa, Arizona 200 Executive Budget Plan 2017/18 Department Operational Plans

Contingencies

Contingency Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Contingency - - - $91,174,000 - $91,174,000

Expenditure Total - - - $91,174,000 - 91,174,000

Revenue Contingency - - - $5,000,000 - $5,000,000

Revenue Total - - - $5,000,000 - 5,000,000

Expenditures Net of Revenues - - - $86,174,000 - $86,174,000

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Other Funds Contingency $91,174,000 $5,000,000 $86,174,000

Totals $91,174,000 $5,000,000 $86,174,000

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

- - - - $91,174,000

Sum: - - - - $91,174,000

City of Mesa, Arizona 201 Executive Budget Plan 2017/18 Department Operational Plans

Development Services

Development Services Contact Information:

Department Phone Number: (480) 644-4273 Department Address: City of Mesa, Development Services 55 N. Center St. Mesa, AZ 85201 P.O. Box 1466 Mesa, AZ 85201 Website: http://mesaaz.gov/business/development-services

Department Description

The Development Services Department is made up of three units: Planning, Development Services, and Inspection Service and Code Compliance.

Planning: Planning works with elected officials, appointed boards, and citizens to develop long range plans (General Plan and sub- area plans) for the growth and development of the community consistent with Council strategic initiatives and visions for a more complete, vibrant and dynamic community. Planning also manages entitlement processes for specific development projects including annexations, design review, rezoning, site plans, platting, variances and appeals to entitlement standards. Planning is also responsible for the City’s Historic Preservation Office.

Development Services: Development Services functions as a central point of contact with various other City departments, elected officials and outside agencies to ensure that City development standards and infrastructure requirements for new development projects and re-purposing of existing facilities are maintained. Development Services reviews building and infrastructure improvement plans and issues construction permits.

Inspection Service and Code Compliance: Inspection Service inspects new and existing construction projects to ensure compliance with building, electrical, plumbing, mechanical, fire and zoning codes and to authorize the final occupancy approvals. Code Compliance works with property owners to promote compliance with the property maintenance and nuisance codes to facilitate a more sustainable community and to enhance the quality and appearance of neighborhoods throughout the City.

City Council Strategic Initiatives: Sustainable Economy, Workforce Development, Enterpreneurism

Department Business Objective Core Business Process

• Administration • Annexations • Code Administration Development Planning and • Historic Preservation Development • Building Inspection Services • Code Compliance • Land Entitlement • Permitting • Plan Review • Planning Tools

City of Mesa, Arizona 202 Executive Budget Plan 2017/18 DepartmentDepartment OperationalOperational Plans

Development Services

Budgetary Highlights

Over the last several years, increasing development activity has required the department to utilize temporary services to complete the additional workload and meet customer expectations resulting in the department’s need for contingency funds. The increased development activity levels resulted in revenues above projections and covered the cost for the additional temporary services. The FY17/18 budget includes an increase in expenditures and revenues to address the anticipated continued higher level of development activity which will reduce the likelihood of the department needing additional budget during FY17/18. The additional budget will be adjusted annually as needed based on the anticipated permit activity level. The department tracks workload on a daily basis and makes adjustments in the use of temporary workers based on demand.

The project to replace the aging permitting system continued through FY16/17 and is expected to be online in FY17/18. The existing permitting system was obsolete and minimally supported by the vendor. Replacing the system will result in savings to the City and to the development community by reducing printing costs and increasing productivity of professionals responsible for preparing, submitting, and correcting development plans. The system is mainly funded through the technology fee which is charged on each permit and service charge in Development Services and is restricted for use on technology maintenance and improvements. Two Building Plans Examiner (One of which is being converted from part time), One Planner, One Building Inspector, and One Administrative Support Assistant are included in the proposed budget.

City of Mesa, Arizona 203 Executive Budget Plan 2017/18 Department Operational Plans

Development Services

Planning and Development Business Objective

Mission

In support of the City's General Plan; assisting in developing a "Complete Community" by providing professional planning, plan review, permitting, inspections and code compliance services to guide the orderly development of an attractive, healthy, livable city and promote a high quality, dynamic, diverse and sustainable environment.

Desired Outcomes

- The General Plan and Subarea Plans are prepared and maintained to guide development of the community - High quality new development, redevelopment, and property maintenance are facilitated by expert and proficient staff - Professional staff members use technology used to provide exceptional customer service

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Active Work Items per Planner # of active work items/planner 18 8 18

Monitoring the # of active items being worked on per planner per month to avoid overload

Turn-Around Time for Small Residential Plan Review Avg TAT small res plan review 6 6.5 6

Average TATs of small residential (remodels, additions, RV, MH master site plans, pools) plans.

Inspection Stops Tot # inspection stops 14,400 37,372 14,400

Total # of inspection stops completed each month. # of inspectors x average days in a month x number of stops per day.

Code Case Voluntary Compliance % vol. compliance 80 70.2 80

Percentage of code cases which are resolved through voluntary compliance

City of Mesa, Arizona 204 Executive Budget Plan 2017/18 Department Operational Plans

Development Services

Planning and Development Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $144,915 $151,487 $150,949 $154,341

General Fund $6,566,480 $7,246,757 $7,333,533 $7,237,647

Grant Funds $269,720 - - -

Restricted Funds $1,343,314 $1,214,283 $881,907 $662,679

Sum: $8,324,428 $8,612,527 8,366,389 $8,054,667

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 64.5 69

Personal Services $5,967,926 $6,257,562 $784,385 $6,732,824

Other Services $2,153,735 $1,800,917 $5,508,875 $975,926

Commodities $198,582 $36,045 $2,062,096 $47,914

Capital Outlay $4,186 $518,003 $11,033 $298,003

Sum: $8,324,428 $8,612,527 $8,366,389 $8,054,667

City of Mesa, Arizona 205 Executive Budget Plan 2017/18 Department Operational Plans

Development Services

Planning and Development Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Administration - $1,198,303 - - - $1,198,303

Annexations - $35,936 - - $49,340 $85,276

Code Administration - $125,464 - - - $125,464

Development Services Building Inspection - $1,059,512 - - - $1,059,512

Development Services Code Compliance - $1,075,025 - - $39,518 $1,114,543

Historic Preservation - $51,353 - - - $51,353

Land Entitlement - $1,100,290 - - - $1,100,290

Permitting $3,288 $859,216 - - $401,385 $1,263,889

Planning Tools - $293,773 - - $63,804 $357,577

Plan Review $151,053 $1,438,775 - - $108,632 $1,698,460

Expenditure Total $154,341 $7,237,647 - - $662,679 8,054,667

Development Services Revenue Code Compliance - $111,042 - - - $111,042

Land Entitlement - $795,667 - - - $795,667

Permitting - $10,229,002 - - $428,563 $10,657,565

Revenue Total - $11,135,711 - - $428,563 11,564,274

Expenditures Net of Revenues $154,341 -$3,898,064 - - $234,116 -$3,509,607

City of Mesa, Arizona 206 Executive Budget Plan 2017/18 Department Operational Plans

Development Services

Planning and Development Business Objective

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Enterprise Fund $154,341 - $154,341

General Fund General Fund $7,237,647 $11,135,711 -$3,898,064

Restricted Funds Environmental Compliance Fee $63,804 - -$100,498

Local Streets Sales Tax $231,292 - $39,518

Restricted Programs Fund $328,065 $428,563 $63,804

Special Programs Fund $39,518 - $231,292

Totals $8,054,667 $11,564,274 -$3,509,607

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Administration 7 - $37,293 $475,917 $685,093 $1,198,303

Annexations .8 - - - $85,276 $85,276

Code Administration .9 - - - $125,464 $125,464

Development Services Building Inspection 10 - - $88,050 $971,462 $1,059,512

Development Services Code Compliance 11 - - $112,373 $1,002,170 $1,114,543

Historic Preservation .3 - - $3,300 $48,053 $51,353

Land Entitlement 11.2 - - $4,000 $1,096,290 $1,100,290

Permitting 9.3 $298,003 $10,621 $213,670 $741,595 $1,263,889

Planning Tools 3.2 - - - $357,577 $357,577

Plan Review 15.4 - - $78,616 $1,619,844 $1,698,460

Sum: 69 $298,003 $47,914 $975,926 $6,732,824 $8,054,667

City of Mesa, Arizona 207 Executive Budget Plan 2017/18 Department Operational Plans

Economic Development

Economic Development Contact Information:

Department Phone Number: 480-644-2398 Department Email: [email protected] Department Address: City of Mesa, Economic Development P.O. Box 1466 Mesa, AZ 85211-1466 Website: http://mesaaz.gov/business/economic-development

Department Description

The Economic Development Department directs programs to attract and retain businesses that create quality jobs, increase the tax base, improve land values and enhance city vitality. The department coordinates with both internal and external partners to preserve a business-friendly climate and enhance the quality of life for the residents of Mesa. City Council Strategic Initiatives: Workforce Development and Entrepreneurship, Sustainable Economy

Department Business Objective Core Business Process

Economic Economic • Building a Sustainable Community Development • Creating and Retaining Quality Jobs Development • Economic Investment Projects

Budgetary Highlights

The FY 17/18 proposed budget includes a reduction of $50,000 from other services and consulting. Economic Development is continuing with the expansion of the Redevelopment Area (RDA) to the east and west from the current RDA area to include the light rail line. The cost for all three areas is included in the FY 16/17 budget and will be carried over to be completed in FY 17/18.

City of Mesa, Arizona 208 Executive Budget Plan 2017/18 Department Operational Plans

Economic Development

Economic Development Business Objective

Mission

Create and retain high quality jobs, strengthen the city's economic base, and provide opportunities to enhance the financial well-being of Mesa residents.

Desired Outcomes

- High-quality jobs are created and retained within the city of Mesa. - Capital investment is increased within the city of Mesa. - Commercial square footage is increased within the city of Mesa.

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Capital Investment - Announced $ Capital Invested 300,000,000 425,214,303 325,000,000

For FY 17/18, Mesa OED is increasing the goal for Total Capital Investment from $300,000,000 to $325,000,000, an increase of 8.3%

New or Renovated Commercial SF - Announced # New or Renovated sq ft 450,000 1,167,972 500,000

For FY 17/18, Mesa OED is increasing the goal for New or Renovated Commercial Square Footage from 450,000 SF to 500,000 SF, an increase of 11.1%.

Announced New and Retained Jobs # jobs(anncd/retnd) 1,600 1,624 1,700

For FY 17/18, OED is increasing the goal for Jobs Created or Retained from 1,600 to 1,700, an increase of 6.3%.

Average Annual wage of new jobs announced and jobs retained Avg Wage of jobs(anncd/retnd) 44,070 4,530,969 44,700

For FY 17/18, OED is increasing the goal for Annual Average Wage from $44,070 to $44,700, an increase of 1.4%. This goal is set at 125% the Maricopa County Median Wage ($35,760/year), as per the Arizona Commerce Authority.

New Companies Announced and Retained #companies (anncd/ret) in Mesa 22 38 24

For FY 17/18, Mesa OED is increasing the goal for New Companies Announced and Retained from 22 Companies to 24 Companies, an increase of 9.1%.

City of Mesa, Arizona 209 Executive Budget Plan 2017/18 Department Operational Plans

Economic Development

Economic Development Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $70,000 - - -

General Fund $3,628,448 $4,025,307 $3,937,307 $4,017,995

Grant Funds $73,169 - - -

Restricted Funds $3,883,725 $6,198,693 $5,022,988 $5,551,710

Sum: $7,655,342 $10,224,000 8,960,295 $9,569,705

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 14 14

Personal Services $1,415,437 $1,648,919 $1,648,919 $1,675,054

Other Services $5,924,845 $8,542,381 $7,257,676 $7,862,951

Commodities $14,546 $32,700 $32,700 $31,700

Capital Outlay $300,514 - $21,000 -

Sum: $7,655,342 $10,224,000 $8,960,295 $9,569,705

City of Mesa, Arizona 210 Executive Budget Plan 2017/18 Department Operational Plans

Economic Development

Economic Development Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Building a Sustainable Expenditure Community - $1,280,780 - - $366,467 $1,647,247

Creating and Retaining Quality Jobs - $2,737,215 - - $55,387 $2,792,602

Economic Investment Projects - - - - $5,129,856 $5,129,856

Expenditure Total - $4,017,995 - - $5,551,710 9,569,705

Building a Sustainable Revenue Community - $10,000 - - $466,516 $476,516

Economic Investment Projects - - - - $2,910,000 $2,910,000

Revenue Total - $10,000 - - $3,376,516 3,386,516

Expenditures Net of Revenues - $4,007,995 - - $2,175,194 $6,183,189

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $4,017,995 $10,000 $4,007,995

Restricted Funds Economic Investment Fund $5,129,856 $2,910,000 -$100,049

Falcon Field Airport $55,387 - $55,387

Special Programs Fund $366,467 $466,516 $2,219,856

Totals $9,569,705 $3,386,516 $6,183,189

City of Mesa, Arizona 211 Executive Budget Plan 2017/18 Department Operational Plans

Economic Development

Economic Development Business Objective

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Building a Sustainable Community 7 - $13,700 $827,854 $805,693 $1,647,247

Creating and Retaining Quality Jobs 6.4 - $5,000 $2,011,474 $776,128 $2,792,602

Economic Investment Projects .7 - $13,000 $5,023,623 $93,233 $5,129,856

Sum: 14 - $31,700 $7,862,951 $1,675,054 $9,569,705

City of Mesa, Arizona 212 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Energy Resources Contact Information:

Department Phone Number: 480-644-4444 Department Email: [email protected] Department Address: City of Mesa, Energy Resources Department 640 N. Mesa Dr. Mesa, AZ 85201

Website: http://mesaaz.gov/residents/energy-resources Department Description The Energy Resources Department consists of two utility units: Electric and Gas.

Electric: Electric utility service is provided to approximately 16,800 residential and commercial customers located within approximately 5.5 square-miles centered about and including Mesa's downtown area.

Gas: Natural gas service is provided to more than 60,800 homes and businesses within the City service area of approximately 90 square miles located in the City limits; and the Magma service area, a 236 square-mile certificated system located southeast of the City in Pinal County, Arizona.

City Council Strategic Initiatives: Community Safety, Stronger Neighborhoods, Placemaking and Diversity, Well-Managed and Innovative Government

City of Mesa, Arizona 213 Executive Budget Plan 2017/18 Department Operational Plans

Department Business Objective Core Business Process

• Electric Business Development • Electric Meter Operations and Maintenance • Electric Substation Operations & Maintenance • Electric Transmission and Distribution Electric Operations & Maintenance • Planning and Acquisition of Electric Energy Supplies

Energy Resources

• Gas Administration • Gas Business Development • Gas Emergency Response Gas • Gas Meter Installation and Maintenance • Gas Regulatory Compliance • Gas System Construction • Gas System Maintenance • Gas System Operations • Gas System Planning • Planning and Acquisition of Natural Gas Supplies • Utility Locating

Budgetary Highlights In FY17/18, Energy Resources forecasts modest customer growth for Natural Gas and Electric customers. The commodity cost for natural gas which is a pass-through cost to the customer is budgeted approximately $2.3 million more than it was in FY16/17. Since the FY16/17 budget was passed, natural gas prices have been slowly but steadily increasing, causing the year-end estimate in FY16/17 to be more than the adopted budget. This trend in higher prices is increasing the budget for FY17/18. Additionally, more customers typically result in purchases of more natural gas supplies. The commodity cost for electric, which is also a pass- through cost to the customer, is budgeted approximately $2.2 million less for FY17/18 than was budgeted in FY16/17. The main reason for the budget reduction is due to new contracts that were executed mid-way through FY16/17. These new electric contracts lower the cost to the City, which in turn lowers the cost to its customers.

Through efficiency, Energy Resources reduced the scheduled fixed rate adjustments from $1.50 to $1.25 per month for Electric residential customers and from $1.00 to $0.75 per month for Natural Gas customers.

Energy Resources also reduced or absorbed almost $300,000 within its FY17/18 budget with no anticipated material changes in the department’s safety or reliability. For example, innovative programs such as the solar incentive program for Mesa residents and the Summer Energy Assistance (SEA) program were continued or expanded despite the budget reductions.

City of Mesa, Arizona 214 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $36,981,007 $40,969,216 $39,308,235 $40,797,777

General Fund $64,849 $62,569 $60,314 $56,738

Restricted Funds $355,027 $415,215 $399,799 $432,485

Sum: $37,400,882 $41,447,000 $39,768,348 $41,287,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 100.8 101.6

Capital Outlay $346 $460 $460

Commodities $26,145,855 $27,496,940 1,901,888 $27,463,611

Other Services $1,793,619 $2,671,345 9,867,476 $2,550,488

Personal Services $9,461,062 $11,278,255 27,998,984 $11,272,441

Sum: $37,400,882 $41,447,000 39,768,348 $41,287,000

City of Mesa, Arizona 215 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Electric $18,753,087 - - - - $18,753,087

Gas $22,044,690 $56,738 - - $432,485 $22,533,913

Expenditure Total $40,797,777 $56,738 - - $432,485 $41,287,000

Revenue Electric $170,500 - - - - $170,500

Gas $190,000 - - - - $190,000

Revenue Total $360,500 - - - - $360,500

Expenditures Net of Revenues $40,437,277 $56,738 - - $432,485 $40,926,500

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

Enterprise Fund Capital - Enterprise $460 $205,000 -$204,540

Enterprise Fund $40,797,317 $155,500 $40,641,817

General Fund General Fund $56,738 - $56,738

Restricted Funds Local Streets Sales Tax $432,485 - $432,485

Totals $41,287,000 $360,500 $40,926,500

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Electric 27.1 $230 $13,978,331 $1,157,453 $3,617,073 $18,753,087

Gas 74.5 $230 $13,485,280 $1,393,035 $7,655,368 $22,533,913

Sum: 101.6 $460 $27,463,611 $2,550,488 $11,272,441 $41,287,000

City of Mesa, Arizona 216 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Electric Business Objective

Mission

Provide safe, reliable and cost-effective power to Mesa Electric customers.

Desired Outcomes

- Electric energy is acquired for and transmitted to Mesa's electric distribution system reliably at the lowest possible costs. - Electric energy is distributed safely and reliably to our customers. - Our customers' electric energy consumption is accurately and safely measured.

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Distribution Outages # distribution outages 58 0 41

The Target for outages for FY17/18 is 40 interruptions. 40 interruptions are spread over 12 months to derive monthly targets. Target (& actual) excluded major events and goal to improve reliability by 1.0 %/yr.

Lost Time Accidents - Electric # Lost-time accidents 0 0 0

Lost-time accidents are not acceptable. The target is zero.

City of Mesa, Arizona 217 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Electric Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $19,016,002 $21,024,725 $39,308,235 $18,753,087

Sum: $19,016,002 $21,024,725 39,308,235 $18,753,087

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 26.2 27.1

Personal Services $3,091,338 $3,519,788 $27,998,984 $3,617,073

Other Services $595,231 $1,212,603 $9,867,476 $1,157,453

Commodities $15,329,260 $16,292,104 $1,901,888 $13,978,331

Capital Outlay $173 $230 - $230

Sum: $19,016,002 $21,024,725 $39,768,348 $18,753,087

City of Mesa, Arizona 218 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Electric Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Electric Business Expenditure Development $187,056 - - - - $187,056

Electric Meter Operations and Maintenance $507,954 - - - - $507,954

Electric Substation Operations and $831,677 - - - - $831,677 Maintenance Electric Transmission & Distribution Operations & $3,443,839 - - - - $3,443,839 Maint Planning and Acquisition of Electric Energy $13,782,561 - - - - $13,782,561 Supplies

Expenditure Total $18,753,087 - - - - 18,753,087

Electric Business Revenue Development $95,000 - - - - $95,000

Electric Transmission & Distribution Operations & $75,500 - - - - $75,500 Maint

Revenue Total $170,500 - - - - 170,500

Expenditures Net of Revenues $18,582,587 - - - - $18,582,587

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Capital - Enterprise $230 $95,000 -$94,770

Enterprise Fund $18,752,857 $75,500 $18,677,357

Totals $18,753,087 $170,500 $18,582,587

City of Mesa, Arizona 219 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Electric Business Objective

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Electric Business Development 1.6 - $3,000 $2,650 $181,406 $187,056

Electric Meter Operations and Maintenance 3.9 - $22,500 $26,500 $458,954 $507,954

Electric Substation Operations and 3.9 - $36,691 $254,508 $540,478 $831,677

Electric Transmission & Distribution Operations & 16.9 $230 $288,185 $858,795 $2,296,629 $3,443,839

Planning and Acquisition of Electric Energy .9 - $13,627,955 $15,000 $139,606 $13,782,561

Sum: 27.1 $230 $13,978,331 $1,157,453 $3,617,073 $18,753,087

City of Mesa, Arizona 220 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Gas Business Objective

Mission

Provide safe, reliable and cost-effective natural gas to our customers.

Desired Outcomes

- Reliable receipt, transmission, distribution and delivery of natural gas to our customers. - Natural gas is delivered to our community safely. - Mesa's cost of natural gas service is the lowest in our region. - Employees will perform their duties safely with no accidents or lost time.

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Gas Emergency Response Time in Mesa % emerg calls > 30 min Mesa 10 0 9.8

Less than 9.8% of emergency calls in Mesa shall exceed the 30 minutes response time threshold.

Accuracy of Utility Locates # hit lines/1000 requests 24 0 24

This target measures the effectiveness of field locates adhering to the industry focus for reduction of utility infrastructure damages. The target is to not have more than two (2) preventable excavation damages per month.

City of Mesa, Arizona 221 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Gas Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $17,965,005 $19,944,491 $39,308,235 $22,044,690

General Fund $64,849 $62,569 $60,314 $56,738

Restricted Funds $355,027 $415,215 $399,799 $432,485

Sum: $18,384,880 $20,422,275 39,768,348 $22,533,913

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 74.5 74.5

Personal Services $6,369,724 $7,758,467 $27,998,984 $7,655,368

Other Services $1,198,389 $1,458,742 $9,867,476 $1,393,035

Commodities $10,816,595 $11,204,836 $1,901,888 $13,485,280

Capital Outlay $173 $230 - $230

Sum: $18,384,880 $20,422,275 $39,768,348 $22,533,913

City of Mesa, Arizona 222 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Gas Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Gas Administration $1,223,025 - - - - $1,223,025

Gas Business Development $289,732 - - - - $289,732

Gas Emergency Response $631,109 - - - - $631,109

Gas Meter Installation and Maintenance $653,490 - - - - $653,490

Gas Regulatory Compliance $829,115 - - - - $829,115

Gas System Construction $278,945 - - - - $278,945

Gas System Maintenance $3,217,844 - - - - $3,217,844

Gas System Operations $617,967 - - - - $617,967

Gas System Planning $490,263 - - - - $490,263

Planning and Acquisition of Natural Gas Supplies $13,185,318 - - - - $13,185,318

Utility Locating $627,882 $56,738 - - $432,485 $1,117,105

Expenditure Total $22,044,690 $56,738 - - $432,485 22,533,913

Gas Business Revenue Development $190,000 - - - - $190,000

Revenue Total $190,000 - - - - 190,000

Expenditures Net of Revenues $21,854,690 $56,738 - - $432,485 $22,343,913

City of Mesa, Arizona 223 Executive Budget Plan 2017/18 Department Operational Plans

Energy Resources

Gas Business Objective

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Capital - Enterprise $230 $110,000 -$109,770

Enterprise Fund $22,044,460 $80,000 $21,964,460

General Fund General Fund $56,738 - $56,738

Restricted Funds Local Streets Sales Tax $432,485 - $432,485

Totals $22,533,913 $190,000 $22,343,913

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Gas Administration 6.5 $230 $65,000 $351,524 $806,271 $1,223,025

Gas Business Development 1.8 - $4,000 $80,374 $205,358 $289,732

Gas Emergency Response 4.1 - $15,900 $22,000 $593,209 $631,109

Gas Meter Installation and Maintenance 5.2 - $34,500 $60,250 $558,740 $653,490

Gas Regulatory Compliance 7.7 - $9,200 $31,417 $788,498 $829,115

Gas System Construction 2.1 - - - $278,945 $278,945

Gas System Maintenance 25.9 - $315,586 $511,028 $2,391,230 $3,217,844

Gas System Operations 5.2 - $32,700 $46,600 $538,667 $617,967

Gas System Planning 4.6 - $9,000 $100 $481,163 $490,263

Planning and Acquisition of Natural Gas Supplies .8 - $12,951,014 $106,600 $127,704 $13,185,318

Utility Locating 10.6 - $48,380 $183,142 $885,583 $1,117,105

Sum: 74.5 $230 $13,485,280 $1,393,035 $7,655,368 $22,533,913

City of Mesa, Arizona 224 Executive Budget Plan 2017/18 Department Operational Plans

Engineering

Engineering Contact Information:

Department Phone Number: 480-644-2251 Department Email: [email protected] Department Address: City of Mesa, Engineering P.O. Box 1466 Mesa, AZ 85211-1466

Website: http://mesaaz.gov/business/engineering

Department Description

By utilizing a “single-point” project management approach, the Engineering Department manages the design and construction of City improvement projects. Additionally, the Department manages City property, acquires land for City projects, and coordinates with private developers and other entities, such as non-city utilities, to ensure that the City’s infrastructure is built to City standards. The Department uses both City staff and private consultants to perform project design, contract administration, materials testing, and inspections of the City’s projects and work done in the public right-of-way by private developers.

Through public outreach by the Department, the citizens and business establishments and the media/news community are kept up-to-date on the progress of City improvement projects.

It is the Department’s goal to see that City projects are delivered on time, within budget, and in a quality manner.

City Council Strategic Initiatives: Well-Managed and Innovative Government

Department Business Objective Core Business Process

• Project Management Engineering Engineering • Property Management and Sales • ROW Management

Budgetary Highlights

Much of the Engineering Department is funded through the Capital Improvement Program (CIP) through both direct and indirect support. The FY 17/18 proposed budget includes the elimination of one full-time position that has been vacant for several years. It also includes the conversion of one position from being fully funded by the general fund, to being partially funded with the Falcon Field Fund. Engineering will be taking over the lease duties that Falcon Field personnel currently performs.

City of Mesa, Arizona 225 Executive Budget Plan 2017/18 Department Operational Plans

Engineering

Engineering Business Objective

Mission

As a team, we apply technical and professional expertise to deliver city infrastructure projects, acquire and manage property / Right of Way, and resolve customer concerns to improve the quality of life for Mesa citizens.

Desired Outcomes

To maintain and enhance the quality of life for the citizens of Mesa

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Real Estate Customer Service % cust sat rated 4 or greater 90 0 90

The Engineering Department's primary focus is to deliver the highest level of customer service to its customers thus completing projects in a timely and fiscally responsible manner.

ROW Avg Response Time Avg # days to respond 3 1.22 4

The Engineering Department's primary focus is to respond to Right of Way concerns within a timely and efficient manner.

Capital Improvement Projects Completed on Schedule %CIP completed w/in AprvSched 80 81.7 80

The Engineering Department's primary responsibility is to deliver projects on schedule to meet the needs of the City of Mesa and its citizens.

Project Management Customer Service % PM CustSat rating> 4 90 80 90

The Engineering Department's primary focus is to deliver the highest level of customer service to its customers thus completing projects in a timely and fiscally responsible manner.

City of Mesa, Arizona 226 Executive Budget Plan 2017/18 Department Operational Plans

Engineering

Engineering Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $1,365 $201,518 $57,370 $201,673

General Fund $5,413,949 $7,357,292 $6,251,273 $7,161,269

Restricted Funds $39,965 $89,190 $44,479 $111,699

Sum: $5,455,279 $7,648,000 6,353,122 $7,474,641

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 53.5 50.7

Personal Services $4,249,840 $5,566,198 $4,823,971 $5,339,677

Other Services $1,111,718 $1,653,246 $1,398,058 $1,653,767

Commodities $92,787 $370,915 $126,093 $370,915

Capital Outlay $935 $57,641 $5,000 $110,282

Sum: $5,455,279 $7,648,000 $6,353,122 $7,474,641

City of Mesa, Arizona 227 Executive Budget Plan 2017/18 Department Operational Plans

Engineering

Engineering Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Project Management - $5,803,905 - - $38,514 $5,842,419

Property Management and Sales $175,000 $688,500 - - $37,620 $901,120

ROW Management $26,673 $668,864 - - $35,565 $731,102

Expenditure Total $201,673 $7,161,269 - - $111,699 7,474,641

Revenue Project Management - $3,180 - - - $3,180

Property Management and Sales - $961,266 - - - $961,266

ROW Management - $1,111,914 - - - $1,111,914

Revenue Total - $2,076,360 - - - 2,076,360

Expenditures Net of Revenues $201,673 $5,084,909 - - $111,699 $5,398,281

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Enterprise Fund $201,673 - $201,673

General Fund Capital - General Fund $110,282 - $110,282

General Fund $7,050,987 $2,076,360 $4,974,627

Restricted Funds Cadence CFD - Operating $20,000 - $18,514

Community Facilities Districts - Operating $18,514 - $20,000

Falcon Field Airport $37,620 - $35,565

Local Streets Sales Tax $35,565 - $37,620

Totals $7,474,641 $2,076,360 $5,398,281

City of Mesa, Arizona 228 Executive Budget Plan 2017/18 Department Operational Plans

Engineering

Engineering Business Objective

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Project Management 39.7 $110,282 $296,915 $1,196,180 $4,239,042 $5,842,419

Property Management and Sales 4.6 - $73,000 $390,870 $437,250 $901,120

ROW Management 6.4 - $1,000 $66,717 $663,385 $731,102

Sum: 50.7 $110,282 $370,915 $1,653,767 $5,339,677 $7,474,641

City of Mesa, Arizona 229 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management & Sustainability

Finance Services Contact Information:

Department Phone Number: 480-644-2221 Department Email: [email protected] Department Address: City of Mesa, Environmental Management and Sustainability MS 4499 P.O. Box 1466 City of Mesa, AZ 85211-1466 Website: http://mesaaz.gov/residents/solid-waste-trash-recycling

Department Description The Environmental Management and Sustainability Department encourages efficient use of natural resources, protects the community from environmental hazards, and ensures excellence in the delivery of solid waste services through waste reduction, reuse, recycling, innovative technology, and education.

City Council Strategic Initiatives: Community Safety, Well-Managed and Innovative Government

Department Business Objective Core Business Process

• Water Quality Environmental • Air Quality and • Hazardous Materials/Waste Sustainability • Storage Tanks • Sustainability • Asbestos and Lead • Energy Efficiency Program

Environmental Management and Sustainability

Solid Waste • Solid Waste Administration Management • Recycling and Outreach • Safety • Barrel Collection

City of Mesa, Arizona 230 Executive Budget Plan 2017/18 Department Operational Plans

Budgetary Highlights For FY17/18, Environmental Management and Sustainability will have a decrease in the budget needed for purchasing vehicles compared to FY16/17. The department has been working closely with the Performance Excellence team on the timing of the replacements and purchases of additional vehicles. The estimated savings is $950k for the Enterprise Fund over FY 17/18.

Personal Services for the department will be higher compared to the FY16/17 budget, as the department will be using ongoing operational savings to add five new positions in midyear FY16/17. The budget for tipping fees in the Enterprise Fund is increasing $575k due to customer growth and contractual rate adjustments at the landfills. Environmental Management and Sustainability will receive $157k through two intergovernmental agreements (IGA), from Phoenix and Tempe, to create marketing material and purchase media for the Water - Use It Wisely campaign. For Environmental Management and Sustainability’s revenues in the Enterprise Fund, the residential utility rates and the bulk item pick-up and appliance collection utility rates will increase 3.5%; changes to the multi-day factors, multi-bin factors, and out- of-zone fees will increase the front-load utility rates 2.5% overall; and the commercial roll-off green waste per ton fee will increase 4.9%. With growth included, FY17/18’s rate-related revenue budget will increase $2.8 million compared to the FY16/17 budget.

City of Mesa, Arizona 231 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $28,260,479 $29,025,859 $28,369,079 $29,661,452

General Fund $26 - - -

Grant Funds $66,572 $473,927 $231,853 $242,074

Restricted Funds $1,346,138 $2,159,141 $1,871,735 $2,446,548

Sum: $29,673,214 $31,658,927 $30,472,667 $32,350,074

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 143 149

Capital Outlay $93,000 $133,860 13,000 $54,250

Commodities $1,561,973 $1,766,540 3,750,991.91 $1,677,458

Other Services $16,220,769 $17,780,450 12,023,600 $18,167,860

Personal Services $11,797,472 $11,978,077 14,685,075 $12,450,506

Sum: $29,673,214 $31,658,927 30,472,666.91 $32,350,074

City of Mesa, Arizona 232 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Environmental and Sustainability $1,016,475 - $242,074 - $1,970,517 $3,229,066

Solid Waste Management $28,644,977 - - - $476,031 $29,121,008

Expenditure Total $29,661,452 - $242,074 - $2,446,548 $32,350,074

Revenue Environmental and Sustainability $157,500 - $242,074 - $25,000 $424,574

Planning and Development ------

Solid Waste Management $1,031,305 - - - - $1,031,305

Revenue Total $1,188,805 - $242,074 - $25,000 $1,455,879

Expenditures Net of Revenues $28,472,647 - - - $2,421,548 $30,894,195

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

Enterprise Fund Enterprise Fund $29,661,452 $1,188,805 $28,472,647

Grant Funds Grants - Gen. Gov. $242,074 $242,074 -

Restricted Funds Environmental Compliance Fee $2,322,548 - $2,322,548

Solid Waste Development Fee $124,000 - $124,000

Special Programs Fund - $25,000 -$25,000

Totals $32,350,074 $1,455,879 $30,894,195

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Environmental and Sustainability 11 $54,250 $70,525 $2,006,900 $1,097,391 $3,229,066

Solid Waste Management 138 - $1,606,933 $16,160,960 $11,353,115 $29,121,008

Sum: 149 $54,250 $1,677,458 $18,167,860 $12,450,506 $32,350,074

City of Mesa, Arizona 233 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

Environmental and Sustainability Business Objective

Mission

Ensure residents of the City of Mesa are provided with a clean, safe and environmentally sound community and promote sustainable development that minimizes the use of natural resources, reduces dependence on nonrenewable resources, and guide decisions that recognize that economy, society, and the environment are interconnected and have a significant impact on the community.

Desired Outcomes

- The public is protected from Environmental hazards - City operations comply with applicable Environmental regulations - Residents and City departments are knowledgeable about Environmental issues - The use of nonrenewable resources are reduced and promoted - The City realizes a significant financial return on investment from the efficient use of natural resources

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Household Hazardous Waste # Gal HHW 54,000 60,052 54,000

Energy Conservation # kWh Saved 1,158,450 3,541,150 4,573,800

Renewable Energy # kWh Generated Renewal 2,148,456 1,380,461 2,148,457

Environmental Notices Of Violation # Notices of Violation 0 0 0

City of Mesa, Arizona 234 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

Environmental and Sustainability Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $788,309 $903,294 $28,369,079 $1,016,475

General Fund $26 - - -

Grant Funds $66,572 $473,927 $231,853 $242,074

Restricted Funds $1,204,163 $1,939,402 $1,871,735 $1,970,517

Sum: $2,059,069 $3,316,623 30,472,666.91 $3,229,066

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 11 11

Personal Services $942,242 $1,065,895 $14,685,075 $1,097,391

Other Services $1,095,099 $2,163,029 $12,023,600 $2,006,900

Commodities $21,728 $60,639 $3,750,992 $70,525

Capital Outlay - $27,060 $13,000 $54,250

Sum: $2,059,069 $3,316,623 $30,472,667 $3,229,066

City of Mesa, Arizona 235 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

Environmental and Sustainability Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Air Quality - - - - $179,777 $179,777

Asbestos and Lead - - - - $194,110 $194,110

Hazardous Materials/ Waste $566,783 - - - $194,023 $760,806

Storage Tanks - - - - $488,625 $488,625

Sustainability $449,692 - $242,074 - $567,094 $1,258,860

Water Quality - - - - $346,888 $346,888

Expenditure Total $1,016,475 - $242,074 - $1,970,517 3,229,066

Revenue Sustainability $157,500 - $242,074 - $25,000 $424,574

Revenue Total $157,500 - $242,074 - $25,000 424,574

Expenditures Net of Revenues $858,975 - - - $1,945,517 $2,804,492

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Enterprise Fund $1,016,475 $157,500 $858,975

Grant Funds Grants - Gen. Gov. $242,074 $242,074 -

Restricted Funds Environmental Compliance Fee $1,970,517 - -$25,000

Special Programs Fund - $25,000 $1,970,517

Totals $3,229,066 $424,574 $2,804,492

City of Mesa, Arizona 236 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

Environmental and Sustainability Business Objective

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Air Quality 1.2 - $3,500 $67,200 $109,077 $179,777

Asbestos and Lead .9 - - $104,000 $90,110 $194,110

Hazardous Materials/ Waste 1 - $18,700 $635,037 $107,069 $760,806

Storage Tanks .7 - - $411,000 $77,625 $488,625

Sustainability 5.4 $3,000 $37,825 $689,313 $528,722 $1,258,860

Water Quality 1.8 $51,250 $10,500 $100,350 $184,788 $346,888

Sum: 11 $54,250 $70,525 $2,006,900 $1,097,391 $3,229,066

City of Mesa, Arizona 237 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

Solid Waste Management Business Objective

Mission

Committed to providing excellence in the delivery of solid waste services to Mesa's residents, businesses and visitors.

Desired Outcomes

- Solid Waste is collected in a safe, timely, professional and fiscally responsible manner - Dependence on natural resources is reduced through waste reduction and recycling - The Solid Waste Management program is managed to ensure our financial obligations

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Commercial Customer Retention & Growth % Comm Cust Reten & Growth 100 0 100

100% combined new & existing customer base accounts. Excludes Roll-Off customers, City of Mesa department accounts and development agreement accounts.

Overall Blue & Green Barrel Recycling Diversion Rate % Overall Diversion Rate 31.7 0 31.2

Monthly target is based on a variable 3-year average diversion rate. This takes into consideration seasonal fluctuations in tonnage.

Number of Work Related Injuries # work inj 0 4 0

Zero OSHA Recordable Injuries

% Barrels Collected as Scheduled % barrels collected 100 0 100

100% of barrels scheduled to be serviced are collected with no missed barrels that were confirmed to be at the fault of operations.

City of Mesa, Arizona 238 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

Solid Waste Management Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $27,472,170 $28,122,565 $28,369,079 $28,644,977

Restricted Funds $141,975 $219,739 $1,871,735 $476,031

Sum: $27,614,145 $28,342,304 30,240,813.91 $29,121,008

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 132 138

Personal Services $10,855,231 $10,912,182 $14,685,075 $11,353,115

Other Services $15,125,669 $15,617,421 $12,023,600 $16,160,960

Commodities $1,540,245 $1,705,901 $3,750,992 $1,606,933

Capital Outlay $93,000 $106,800 $13,000 -

Sum: $27,614,145 $28,342,304 $30,472,667 $29,121,008

City of Mesa, Arizona 239 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

Solid Waste Management Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Barrel Collection $18,026,883 - - - - $18,026,883

Recycling and Outreach $438,261 - - - - $438,261

Safety $135,734 - - - - $135,734

Solid Waste Administration $10,044,099 - - - $476,031 $10,520,130

Expenditure Total $28,644,977 - - - $476,031 29,121,008

Revenue Recycling and Outreach $1,004,505 - - - - $1,004,505

Solid Waste Administration $26,800 - - - - $26,800

Revenue Total $1,031,305 - - - - 1,031,305

Expenditures Net of Revenues $27,613,672 - - - $476,031 $28,089,703

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Enterprise Fund $28,644,977 $1,031,305 $27,613,672

Restricted Funds Environmental Compliance Fee $352,031 - $124,000

Solid Waste Development Fee $124,000 - $352,031

Totals $29,121,008 $1,031,305 $28,089,703

City of Mesa, Arizona 240 Executive Budget Plan 2017/18 Department Operational Plans

Environmental Management and Sustainability

Solid Waste Management Business Objective

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Barrel Collection 69 - - $12,327,604 $5,699,279 $18,026,883

Recycling and Outreach 3 - $74,500 $27,450 $336,311 $438,261

Safety 1 - $27,000 $6,800 $101,934 $135,734

Solid Waste Administration 65 - $1,505,433 $3,799,106 $5,215,591 $10,520,130

Sum: 138 - $1,606,933 $16,160,960 $11,353,115 $29,121,008

City of Mesa, Arizona 241 Executive Budget Plan 2017/18 Department Operational Plans

Falcon Field

Falcon Field Contact Information:

Department Phone Number: 480-644-2450 Department Email: [email protected] Department Address: City of Mesa, Falcon Field Airport 4800 East Falcon Drive Mesa, AZ 85215 Website: http://www.falconfieldairport.com/home-ffa

Department Description Falcon Field Airport, and its unique aviation businesses, is an active economic engine in northeast Mesa. As a general aviation reliever airport for Phoenix-Mesa Gateway Airport and Phoenix Sky Harbor Airport, over 90 businesses call Falcon Field home. The range of services provided includes aircraft manufacturing, maintenance & repair, avionics, interiors, fueling, flight training, charters, and painting. Approximately 700 aircraft are based at the airport for corporate, business, public safety, and recreational use.

The Airport’s successful “Fly Friendly” program demonstrates its commitment as a good neighbor to the community. Falcon Field Airport provides a safe, high quality, and friendly air transportation facility that meets the needs of its customers while remaining sensitive to the quality of life in the surrounding neighborhoods.

City Council Strategic Initiatives: Sustainable Economy, Well-Managed and Innovative Government

Department Business Objective Core Business Process

Falcon Field Falcon Field • Economic Growth Airport • Environmental Airport • Safety

Budgetary Highlights The FY17/18 proposed operational budget is consistent with the FY16/17 budget. In FY 17/18 the airport will fund half of the cost of a Real Estate (Engineering) position to assist with the airport’s ground lease management. Included in the CIP is the commencement of the Falcon Field Master Plan Update which provides direction for future development of the airport. The Falcon Field Enterprise Fund is financially self-sustaining. All revenues are reinvested back into the airport.

City of Mesa, Arizona 242 Executive Budget Plan 2017/18 Department Operational Plans

Falcon Field Airport

Falcon Field Airport Business Objective

Mission

Provide a safe, operationally-efficient general aviation reliever airport which is a financially self-sustaining economic hub in the City and takes reasonable measures to be environmentally responsible and sensitive to the surrounding community.

Desired Outcomes

- Falcon Field is a major economic asset for the City of Mesa. - A wide variety of aviation businesses and services are available to Falcon Field's customers, creating jobs for the community. - Falcon Field does not rely upon the City's General Fund to operate. - The environment and quality of life of those affected by the airport is protected without adversely affecting commerce, trade, and recreation at the airport.

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Airport Businesses # On-Field Businesses 85 95 94

While the Airport works to attract new businesses to Falcon Field, the number of businesses located on the airport has remained relatively constant. The number is derived from the Airport's Business Registration program

City of Mesa, Arizona 243 Executive Budget Plan 2017/18 Department Operational Plans

Falcon Field Airport

Falcon Field Airport Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Restricted Funds $1,417,453 $1,735,000 $1,431,445 $1,959,000

Sum: $1,417,453 $1,735,000 1,431,445 $1,959,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 11 11

Personal Services $913,310 $970,102 $26,457 $993,694

Other Services $436,111 $699,338 $984,074 $899,476

Commodities $67,430 $64,560 $396,914 $62,330

Capital Outlay $602 $1,000 $24,000 $3,500

Sum: $1,417,453 $1,735,000 $1,431,445 $1,959,000

City of Mesa, Arizona 244 Executive Budget Plan 2017/18 Department Operational Plans

Falcon Field Airport

Falcon Field Airport Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Airport Safety - - - - $1,053,877 $1,053,877

Economic Growth - - - - $758,304 $758,304

Environmental - - - - $146,819 $146,819

Expenditure Total - - - - $1,959,000 1,959,000

Revenue Airport Safety - - - - $3,100 $3,100

Economic Growth - - - - $4,124,315 $4,124,315

Revenue Total - - - - $4,127,415 4,127,415

Expenditures Net of Revenues - - - - -$2,168,415 -$2,168,415

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Restricted Funds Falcon Field Airport $1,959,000 $4,127,415 -$2,168,415

Totals $1,959,000 $4,127,415 -$2,168,415

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Airport Safety 4.6 - $19,180 $630,109 $404,588 $1,053,877

Economic Growth 5.2 $3,500 $42,900 $250,260 $461,644 $758,304

Environmental 1.3 - $250 $19,107 $127,462 $146,819

Sum: 11 $3,500 $62,330 $899,476 $993,694 $1,959,000

City of Mesa, Arizona 245 Executive Budget Plan 2017/18 Department Operational Plans

Financial Services

Finance Services Contact Information:

Department Phone Number: 480-644-2275 Department Email: [email protected] Department Address: City of Mesa, Financial Services P.O. Box 1466 Mesa, AZ 85211-1466 Website: http://mesaaz.gov/city-hall/accounting

Department Description The Financial Services Department is responsible for general accounting services and payroll. The Department is also responsible for compiling and reporting the City’s Comprehensive Annual Financial Report (CAFR).

City Council Strategic Initiatives: Well-Managed and Innovative Government

Department Business Objective Core Business Process

Financial Accounting Services • Accounting Services

Budgetary Highlights The FY 17/18 proposed budget includes reductions of $162,678 in non-personnel areas. This reduction will not impact their daily operations.

City of Mesa, Arizona 246 Executive Budget Plan 2017/18 Department Operational Plans

Financial Services

Accounting Business Objective

Mission

Provide exceptional service in managing the City's financial resources for our customers and stakeholders.

Desired Outcomes

Provide proactive leadership and reporting allowing our customers to make informed financial decisions for their organization by providing efficiency, innovation, and flexibility

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Material Audit Adjustments # material audit adj 0

Business Days to Close Advantage # bus days to close Adv 5

Closing the month on a timely basis is best practice. 5 business days is timely.

City of Mesa, Arizona 247 Executive Budget Plan 2017/18 Department Operational Plans

Financial Services

Accounting Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $608 $623 $300 $696

General Fund $3,369,048 $3,771,322 $3,498,889 $3,618,271

Restricted Funds $47,088 $89,055 $60,663 $95,033

Sum: $3,416,745 $3,861,000 3,559,852 $3,714,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 37 37

Personal Services $2,945,213 $3,185,486 $3,166,338 $3,281,113

Other Services $435,506 $650,514 $378,514 $415,387

Commodities $26,298 $25,000 $15,000 $17,500

Capital Outlay $9,729 - - -

Sum: $3,416,745 $3,861,000 $3,559,852 $3,714,000

City of Mesa, Arizona 248 Executive Budget Plan 2017/18 Department Operational Plans

Financial Services

Accounting Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Accounting Services $696 $3,618,271 - - $95,033 $3,714,000

Expenditure Total $696 $3,618,271 - - $95,033 3,714,000

Expenditures Net of Revenues $696 $3,618,271 - - $95,033 $3,714,000

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Enterprise Fund $696 - $696

General Fund General Fund $3,618,271 - $3,618,271

Restricted Funds Cadence CFD - Operating $30,000 - $348

Community Facilities Districts - Operating $55,061 - $1,200

Greenfield WRP Joint Venture $1,200 - $8,424

TOPAZ Joint Venture Fund $8,424 - $30,000

Transit Fund $348 - $55,061

Totals $3,714,000 - $3,714,000

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Accounting Services 37 - $17,500 $415,387 $3,281,113 $3,714,000

Sum: 37 - $17,500 $415,387 $3,281,113 $3,714,000

City of Mesa, Arizona 249 Executive Budget Plan 2017/18 Department Operational Plans

Fire & Medical

Fire & Medical Services Contact Information:

Department Phone Number: 480-644-2101 Department Email: [email protected] Department Address: 13 W 1st Street Mesa, AZ 85201 Website: http://mesaaz.gov/residents/fire-medical

Department Description The Mesa Fire and Medical Department (MFMD) is a full service public safety organization responsible for protecting life, property and natural resources through the delivery of fire and emergency medical services. Emergency response, public education, prevention and disaster preparedness represent the core of the program. The Department recognizes that it is an integral part of the community and are sensitive and responsive to citizen needs, therefore, as an organization they are committed to improving service using innovative and efficient response models with an eye toward the future. City Council Strategic Initiatives: Community Safety

Department/ Business Service Core Business Process Business Objective

• Emergency Management • Fire Prevention Community • Fire and Life Safety Education Involvement • Public Information

Incident • Dispatch and Deployment Fire and Response • Fire and Medical Operations Medical

• Departmental Training • EMS Training • Fire Administration Departmental • Fire Maintenance Support • Personnel and Wellness • Planning and Research • Resource Management • Special Ops Training • Technical Support

City of Mesa, Arizona 250 Executive Budget Plan 2017/18 Department Operational Plans

Budgetary Highlights

During FY16/17, 3.5 FTEs were added mid-year. Three sworn positions in the Dispatch Center were converted to five civilian FTEs, 1 civilian FTE was added to support maintaining and repairing current MFMD apparatus and assist with the work done on external entities’ fleets, and one part-time employee was converted to full-time. These additions were absorbed into the department’s budget.

The FY17/18 proposed budget includes reducing $1.4 million from the General Fund budget. These reductions include:

• moving sworn staff assigned to day positions to the leave pool to reduce overtime costs • civilianization of 1 FTE • decreased special assignments/projects • reduction in attendance and support for special events • reducing non-operations overtime • various adjustments to commodities and other services Grants

Mesa Fire and Medical planned for $339,500 in grant awards for FY17/18, which is significantly less that the $4.6 million planned for FY16/17. Centers for Medicare and Medicaid Services (CMS) Healthcare Initiative Grant expires in FY16/17. Notable grant awards include the following:

• $200,000 Urban Area Security Initiative (UASI) Rapid Response Team (RRT) for salary & benefits, including travel, conferences and training for key fire personnel. • $139,500 various other grant awards which include grants to provide immunizations and provide support for Community Emergency Response Teams

Fire & Medical will carryover $2.7 million in expenditures from FY 16/17 into FY 17/18, which will result in decreased year-end expenditure estimates and increased FY 17/18 budget. The department will also carryover $3.5 million in revenues for various grant carryovers.

City of Mesa, Arizona 251 Executive Budget Plan 2017/18 Department Operational Plans

Fire and Medical

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $61,703,097 $63,632,833 $63,593,240 $66,636,550

Grant Funds $4,444,049 $7,546,241 $2,966,372 $3,854,061

Restricted Funds $8,147,521 $9,669,495 $9,669,495 $8,416,966

Sum: $74,294,667 $80,848,569 $76,229,107 $78,907,577

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 512.5 516.3

Capital Outlay $284,636 $1,221,887 908,448 $661,440

Commodities $3,211,994 $3,852,335 3,437,301 $3,310,452

Offsets and Credits -$5,813 - -

Other Services $5,550,211 $6,771,260 2,761,062 $5,123,664

Personal Services $65,253,639 $69,003,087 69,122,296 $69,812,021

Sum: $74,294,667 $80,848,569 76,229,107 $78,907,577

City of Mesa, Arizona 252 Executive Budget Plan 2017/18 Department Operational Plans

Fire and Medical

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Fire and Medical - $66,636,550 $3,854,061 - $8,416,966 $78,907,577

Expenditure Total - $66,636,550 $3,854,061 - $8,416,966 $78,907,577

Revenue Fire and Medical - $5,223,789 $3,854,061 - - $9,077,850

Revenue Total - $5,223,789 $3,854,061 - - $9,077,850

Expenditures Net of Revenues - $61,412,761 - - $8,416,966 $69,829,727

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

General Fund Capital - General Fund $629,940 - $629,940

General Fund $66,006,610 $5,223,789 $60,782,821

Grant Funds Grants - Gen. Gov. $3,854,061 $3,854,061 -

Restricted Funds Falcon Field Airport $511,406 - $511,406

Quality of Life Sales Tax $7,905,560 - $7,905,560

Totals $78,907,577 $9,077,850 $69,829,727

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Fire and Medical 516.3 $661,440 $3,310,452 $5,123,664 $69,812,021 $78,907,577

Sum: 516.3 $661,440 $3,310,452 $5,123,664 $69,812,021 $78,907,577

City of Mesa, Arizona 253 Executive Budget Plan 2017/18 Department Operational Plans

Fire and Medical

Fire and Medical Business Objective

Mission

Provide the highest level of safety possible through Emergency Response, Prevention, Preparation, and Education to ensure the safety and welfare of the community.

Desired Outcomes

- Safe and efficient emergency response is provided to the community - Accidents and injuries are minimized through effective public education - Hazards are mitigated through prevention activities

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Onsite Inspections #Onsite Inspections 3,784 4,328 3,784

Based on number of inspectors and required number of inspections to be completed per inspector.

Fire/EMS Response Time % of time 1st arr. in 6 min. 90

Based on NFPA standards.

City of Mesa, Arizona 254 Executive Budget Plan 2017/18 Department Operational Plans

Fire and Medical Fire and Medical Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure

Community Emergency Involvement Management - $265,658 $3,682,014 - - 3,947,672

Fire and Life Safety Education - $751,797 - - - 751,797

Fire Prevention - $875,372 - - $106,836 982,208

Public Information - $501,746 - - - 501,746

Departmental Departmental Support Training - $1,254,079 - - - 1,254,079

EMS Training - $1,485,699 $172,047 - - 1,657,746

Fire Administration - $1,975,820 - - - 1,975,820

Fire Maintenance - $2,332,021 - - - 2,332,021

Personnel and Wellness - $1,019,896 - - - 1,019,896

Planning and Research - $259,619 - - - 259,619

Resource Management - $3,863,312 - - - 3,863,312

Special Ops Training - $537,389 - - - 537,389

Technical Support - $1,640,844 - - - 1,640,844

Incident Dispatch and Response Deployment - $3,490,118 - - - 3,490,118

Fire and Medical Operations - $46,383,180 - - $8,310,130 54,693,310

Expenditure Total 66,636,550 3,854,061 0 8,416,966 78,907,577

Revenue

Community Emergency Involvement Management - - $3,682,014 - - 3,682,014

Fire and Life Safety Education - $800 - - - 800

City of Mesa, Arizona 255 Executive Budget Plan 2017/18 Department Operational Plans

Fire and Medical Fire and Medical Business Objective

Fire Prevention - $909,000 - - - 909,000

Public Information - - - - - 0

Departmental Departmental Support Training - $24,000 - - - 24,000

EMS Training - $720,305 $172,047 - - 892,352

Fire Administration - - - - - 0

Fire Maintenance - $140,000 - - - 140,000

Personnel and Wellness - - - - - 0

Planning and Research - - - - - 0

Resource Management - - - - - 0

Special Ops Training - - - - - 0

Technical Support - - - - - 0

Incident Dispatch and Response Deployment - $2,241,340 - - - 2,241,340

Fire and Medical Operations - $1,188,344 - - - 1,188,344

Revenue Total - $5,223,789 $3,854,061 - - 9,077,850

Expenditures Net of Revenues 61,412,761 0 0 8,416,966 69,829,727

City of Mesa, Arizona 256 Executive Budget Plan 2017/18 Department Operational Plans

Fire and Medical Fire and Medical Business Objective

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Fund Name Expenditures Revenues Net of Revenues

General Fund Capital - General Fund $3,149,700 - $3,149,700

General Fund $330,033,050 $26,118,945 $303,914,105

Grant Funds Grants - Gen. Gov. $19,270,305 $19,270,305 -

Restricted Funds Falcon Field Airport $2,557,030 - $2,557,030

Quality of Life Sales Tax $39,527,800 - $39,527,800

Totals $394,537,885 $45,389,250 $349,148,635

FY 17/18 Operational Budget By Core Business Process and Category

Capital Other Personal FY 17/18 Core Business Process FTE Outlay Commodities Services Services Budget

Community Involvement Emergency Management 15 $31,500 $400,213 $2,021,286 $1,494,673 $3,947,672

Fire and Life Safety Education 7 - $58,500 $34,050 $659,247 $751,797

Fire Prevention 11 - $11,700 $28,975 $941,533 $982,208

Public Information 4 - $27,400 $14,950 $459,396 $501,746

Departmental Support Departmental Training 6 - $40,500 $48,500 $1,165,079 $1,254,079

City of Mesa, Arizona 257 Executive Budget Plan 2017/18 Department Operational Plans

Fire and Medical Fire and Medical Business Objective

EMS Training 7 - $182,050 $181,847 $1,293,849 $1,657,746

Fire Administration 13 - $74,200 $41,046 $1,860,574 $1,975,820

Fire Maintenance 13 - $738,900 $424,600 $1,168,521 $2,332,021

Personnel and Wellness 3.7 - $42,440 $367,300 $610,156 $1,019,896

Planning and Research 1.5 - - $14,150 $245,469 $259,619

Resource Management 10 $592,940 $1,586,463 $939,536 $744,373 $3,863,312

Special Ops Training 2 - $45,000 $53,000 $439,389 $537,389

Technical Support 9 $37,000 $73,986 $521,724 $1,008,134 $1,640,844

Incident Response Dispatch and Deployment 39.3 - $18,200 $34,200 $3,437,718 $3,490,118

Fire and Medical Operations 374.8 - $10,900 $398,500 $54,283,910 $54,693,310

Totals 516.3 $661,440 $3,310,452 $5,123,664 $69,812,021 $78,907,577

City of Mesa, Arizona 258 Executive Budget Plan 2017/18 Department Operational Plans

Fleet Services

Fleet Services Contact Information:

Department Phone Number: 480-644-2391 Department Address: City of Mesa, Fleet Services 310 E 6th Street Mesa, AZ 85201-5107

Department Description The Fleet Services Department operates two Automotive Service Excellence (ASE) Certified Blue Seal Facilities responsible for safe, dependable, professional and economical service and repairs to City vehicles. These services are delivered in an environmentally conscious manner that supports Mesa’s departments in accomplishing their goals and objectives with a high focus on public safety. In addition to maintaining the City’s fleet, the Fleet Services Department procures and designs new vehicles, operates and maintains eight fuel sites and can fabricate and weld most projects from other departments. City vehicle service and maintenance records are maintained in a professional database, Asset Works. This system provides management with the information to make fast and productive decisions regarding the City’s fleet daily.

City Council Strategic Initiatives: Well-Managed and Innovative Government

Department Business Objective Core Business Process

• Fleet Services Administration • Parts Management Fleet Fleet Services • Preventative Maintenance Services • Vehicle Acquisition • Vehicle and Equipment Repairs

Budgetary Highlights The Fleet Services Department is funded through the Internal Services Fund. This is an internal service fund established to account for financing, on a cost reimbursement basis, of commodities or services provided by one program for the benefit of other programs within the City.

The Office of Management of Budget’s Performance Excellence team has developed an analytical model using a vehicle’s cost history to determine when to replace instead of repair a vehicle. The model’s output is combined with information from the Customer Department and Fleet Services repair data, including information about the vehicle’s configuration, safety, and availability. Fleet Services provides information about the vehicle’s replacement cost, the cost of anticipated major repairs, and parts availability. Taken together, the decision to replace a vehicle has become more transparent and cost effective. Fleet Services will carryover $10.5 million in expenditure budget across enterprise, special revenue, and general capital funds from FY 16/17 into FY 17/18, which will result in decreased year-end expenditure estimates and increased FY 17/18 budget. This carryover amount is primarily for vehicles that were not purchased in FY 16/18, but rather will be purchased and delivered in FY 17/18.

City of Mesa, Arizona 259 Executive Budget Plan 2017/18 Department Operational Plans

Fleet Services

Fleet Services Business Objective

Mission

Minimize downtime and maximize equipment availability at an acceptable cost.

Desired Outcomes

- Satisfy customers - Maximize vehicle and equipment availability - Meet required vehicle turnaround times - Maintain competitive cost and service levels - Keep Safety a priority

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Scheduled Preventative Maintenance % preventative main orders 90 0 90

Based upon industry best practices and key performance indicators (KPIs) as defined by national fleet consultants (Mercury Fleet Consultants, Fleet Counselor Services, National Association of Fleet Administrators, Government Fleet Magazine)

Repair Turnaround Time % orders completed in 1 day 70 0 70

Based upon industry best practices and key performance indicators (KPIs) as defined by national fleet consultants (Mercury Fleet Consultants, Fleet Counselor Services, National Association of Fleet Administrators, Government Fleet Magazine)

Parts Filled From Inventory % orders filled from inventory 70 0 70

Based upon industry best practices and key performance indicators (KPIs) as defined by national fleet consultants (Mercury Fleet Consultants, Fleet Counselor Services, National Association of Fleet Administrators, Government Fleet Magazine)

Fleet and Equipment Availability % fleet availability 99 0 99

Based upon industry best practices and key performance indicators (KPIs) as defined by national fleet consultants (Mercury Fleet Consultants, Fleet Counselor Services, National Association of Fleet Administrators, Government Fleet Magazine)

Indirect Labor - Preventative Maintenance and Repair % indirect labor 30 0 30

Based upon industry best practices and key performance indicators (KPIs) as defined by national fleet consultants (Mercury Fleet Consultants, Fleet Counselor Services, National Association of Fleet Administrators, Government Fleet Magazine)

City of Mesa, Arizona 260 Executive Budget Plan 2017/18 Department Operational Plans

Fleet Services

Fleet Services Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $107,293 $5,658,158 $2,104,197 $5,813,061

General Fund $227,792 $511,250 $85,128 $447,373

Grant Funds - $166,756 $166,756 -

Restricted Funds $22,335,648 $30,624,964 $22,382,948 $28,723,983

Sum: $22,670,734 $36,961,128 24,739,028.21 $34,984,417

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 79 79

Personal Services $6,304,797 $6,600,290 $6,590,290 $6,807,232

Other Services $1,363,396 $1,586,946 $1,633,446 $1,450,247

Commodities $8,837,689 $8,206,841 $8,173,341 $7,857,472

Capital Outlay $6,164,852 $20,567,051 $8,341,951 $18,869,466

Sum: $22,670,734 $36,961,128 $24,739,028 $34,984,417

City of Mesa, Arizona 261 Executive Budget Plan 2017/18 Department Operational Plans

Fleet Services

Fleet Services Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Fleet Services Expenditure Administration - $7 - - $6,588,374 $6,588,381

Parts Management - - - - $4,870,153 $4,870,153

Preventative Maintenance - - - - $689,037 $689,037

Vehicle Acquisition $5,813,061 $447,366 - - $12,025,273 $18,285,700

Vehicle and Equipment Repairs - - - - $4,551,146 $4,551,146

Expenditure Total $5,813,061 $447,373 - - $28,723,983 34,984,417

Revenue Parts Management - - - - $737,722 $737,722

Vehicle Acquisition - - - - $223,234 $223,234

Vehicle and Equipment Repairs - - - - $249,889 $249,889

Revenue Total - - - - $1,210,845 1,210,845

Expenditures Net of Revenues $5,813,061 $447,373 - - $27,513,138 $33,773,572

City of Mesa, Arizona 262 Executive Budget Plan 2017/18 Department Operational Plans

Fleet Services

Fleet Services Business Objective

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Capital - Enterprise $5,813,061 - $5,813,061

General Fund Capital - General Fund $447,366 - $7

General Fund $7 - $447,366

Restricted Funds Environmental Compliance Fee $868,578 - $55,000

Fleet Internal Service $16,198,918 $987,611 $387,000

Greenfield WRP Joint Venture $55,000 - $868,578

Local Streets Sales Tax $1,817,901 - $1,817,901

Solid Waste Development Fee $387,000 - $3,533,926

Utility Replacement Extension and Renewal $3,533,926 - $5,639,426

Vehicle Replacement $5,862,660 $223,234 $15,211,307

Totals $34,984,417 $1,210,845 $33,773,572

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Fleet Services Administration 24.5 $723,552 $2,866,272 $604,593 $2,393,964 $6,588,381

Parts Management 9.3 - $4,057,200 $71,700 $741,253 $4,870,153

Preventative Maintenance 8.9 - $15,000 $10,300 $663,737 $689,037

Vehicle Acquisition 1.9 $18,132,914 - - $152,786 $18,285,700

Vehicle and Equipment Repairs 34.5 $13,000 $919,000 $763,654 $2,855,492 $4,551,146

Sum: 79 $18,869,466 $7,857,472 $1,450,247 $6,807,232 $34,984,417

City of Mesa, Arizona 263 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Human Resources Contact Information:

Department Phone Number: 480-644-2758 Department Email: [email protected] Department Address: City of Mesa, Human Resources Department 20 E. Main, Suite 100 City of Mesa, AZ 85201 Website: http://mesaaz.gov/city-hall/departments-divisions/human-resources

Department Description The Human Resources (HR) Department provides the full range of HR services to approximately 4,000 City employees. The City's medical benefits programs are fully self-funded, and our Workers Compensation services are fully self-funded and self- administered. The Human Resources Department is dedicated to providing services in Recruitment/Testing/Selection; Benefits; Compensation/Classification; Employee Development/Training; Employee Relations; Safety/Workers’ Compensation. The Human Resources Department reports to the City Manager's Office and is a key Department in providing Citywide Human Resources leadership and consultation. The Department focuses on delivering the highest quality of HR service, and values our partnerships with employees, supervisors, managers, and directors. The Department continually seeks new ways to improve our services and satisfy the needs of our customers.

City Council Strategic Initiatives: Innovative & Well-Managed Government

Department Business Objective Core Business Process

• Employee Development Personnel • Employee Retention • Recruit and Hire • Time and Labor

Human Safety and Workers’ • Claims Management Resources Compensation • Safety Management

Employee • Benefits Contract Administration Benefits • Self-Funded Health Plan • Wellness Program

City of Mesa, Arizona 264 Executive Budget Plan 2017/18 Department Operational Plans

Budgetary Highlights For the Employee Benefits Trust Fund, FY16/17 claims were $72.1 million. FY 17/18 claims costs are expected to rise to $78.0 million due to several factors including a nationwide medical and prescription drug trend increases, increased health care reform related, fees, taxes and plan design compliance changes that have introduced new cost factors or shifted cost share from members to the City, and an increase in amount and severity of catastrophic claims.

The FY17/18 budget for the Workers Compensation Trust Fund includes an increase in claims of $336k to $4.5 million due to increasing health care costs. As FY17/18 Summary of Proposed Budget a part of Citywide cost reduction efforts, the Safety Services team will continue to evaluate measures that can be taken to reduce claims and increase workers’ safety. A detailed update on the Employee Benefits and Workers Compensation Trust Funds was given to the Self-Insurance Trust Fund Board ion February 2017.

Human Resources had two project-funded FTEs used in the KRONOS timekeeping project in FY16/17, and will continue to be utilized in FY 17/18. There were no other FTE changes or additions for Human Resources.

City of Mesa, Arizona 265 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Personnel Business Objective

Mission

Provide quality HR services to attract, develop, motivate and retain a diverse workforce within a supportive work environment.

Desired Outcomes

Diverse, high-quality, productive employees are attracted, developed, and committed to providing quality service to our customers

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

HR Recruitment Turnaround # Days Between Req&Screen 12.4 0 12.4

This metric measures the days between requisition receipt and eligible list created. We consider historical trends and benchmark data (when applicable).

City of Mesa, Arizona 266 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $3,318,221 $3,777,234 $3,169,557 $3,648,376

Other Funds $81,524,907 $88,457,766 $81,972,862 $94,569,624

Sum: $84,843,127 $92,235,000 $85,142,419 $98,218,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 55.5 56.5

Capital Outlay $53,856 $47,500 47,500 -

Commodities $119,377 $151,897 129,270 $151,897

Other Services $80,074,171 $86,965,962 80,363,300.63 $92,954,162

Personal Services $4,595,724 $5,069,641 4,602,348 $5,111,941

Sum: $84,843,127 $92,235,000 85,142,418.63 $98,218,000

City of Mesa, Arizona 267 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Employee Benefits - - - $88,075,118 - $88,075,118

Personnel - $3,347,876 - - - $3,347,876

Safety and Workers' Compensation - $300,500 - $6,494,506 - $6,795,006

Expenditure Total - $3,648,376 - $94,569,624 - $98,218,000

Revenue Employee Benefits - - - $85,436,396 - $85,436,396

Safety and Workers' Compensation - - - $3,771,406 - $3,771,406

Revenue Total - - - $89,207,802 - $89,207,802

Expenditures Net of Revenues - $3,648,376 - $5,361,822 - $9,010,198

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

General Fund General Fund $3,648,376 - $3,648,376

Other Funds Employee Benefit Trust $88,075,118 $85,436,396 $2,638,722

Worker's Compensation $6,494,506 $3,771,406 $2,723,100

Totals $98,218,000 $89,207,802 $9,010,198

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Employee Benefits 10.5 - $46,100 $86,976,439 $1,052,579 $88,075,118

Personnel 36.5 - $79,767 $92,982 $3,175,127 $3,347,876

Safety and Workers' Compensation 9.5 - $26,030 $5,884,741 $884,235 $6,795,006

Sum: 56.5 - $151,897 $92,954,162 $5,111,941 $98,218,000

City of Mesa, Arizona 268 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Personnel Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $3,082,548 $3,482,407 $3,169,557 $3,347,876

Sum: $3,082,548 $3,482,407 3,169,556.63 $3,347,876

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 35.5 36.5

Personal Services $2,890,821 $3,205,900 $4,602,348 $3,175,127

Other Services $112,833 $196,740 $80,363,301 $92,982

Commodities $78,895 $79,767 $129,270 $79,767

Sum: $3,082,548 $3,482,407 $85,142,419 $3,347,876

City of Mesa, Arizona 269 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Personnel Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Employee Development - $375,339 - - - $375,339

Employee Retention - $826,587 - - - $826,587

Recruit and Hire - $1,476,303 - - - $1,476,303

Time and Labor - $669,647 - - - $669,647

Expenditure Total - $3,347,876 - - - 3,347,876

Expenditures Net of Revenues - $3,347,876 - - - $3,347,876

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $3,347,876 - $3,347,876

Totals $3,347,876 - $3,347,876

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Employee Development 3.3 - - $2,700 $372,639 $375,339

Employee Retention 6.8 - $60,267 $43,874 $722,446 $826,587

Recruit and Hire 16.3 - $19,500 $46,408 $1,410,395 $1,476,303

Time and Labor 10 - - - $669,647 $669,647

Sum: 36.5 - $79,767 $92,982 $3,175,127 $3,347,876

City of Mesa, Arizona 270 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Employee Benefits Business Objective

Mission

Provide plan members with a competitive and financially stable benefits package.

Desired Outcomes

Plan members receive a benefits program that meets or exceeds those offered by the local market within a financially stable framework

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Employee Benefit Trust Fund Balance EOY $ Trust Fund Balance EOY 35,000,000 0 35,000,000

Trust Fund balance as reported on statement of total revenues and expenditures FIN report measured on a fiscal year basis. Fund balance target is determined with joint agreement of Budget, Benefits Administration and Self-Insurance Trust Fund Board.

City of Mesa, Arizona 271 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Employee Benefits Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Other Funds $77,078,222 $82,308,111 $81,972,862 $88,075,118

Sum: $77,078,222 $82,308,111 81,972,862 $88,075,118

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 10.5 10.5

Personal Services $922,973 $1,012,030 $4,602,348 $1,052,579

Other Services $76,068,831 $81,202,481 $80,363,301 $86,976,439

Commodities $32,562 $46,100 $129,270 $46,100

Capital Outlay $53,856 $47,500 $47,500 -

Sum: $77,078,222 $82,308,111 $85,142,419 $88,075,118

City of Mesa, Arizona 272 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Employee Benefits Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Benefits Contract Expenditure Administration - - - $78,654,083 - $78,654,083

Self-Funded Health Plan - - - $7,653,831 - $7,653,831

Wellness Program - - - $1,767,204 - $1,767,204

Expenditure Total - - - $88,075,118 - 88,075,118

Benefits Contract Revenue Administration - - - $85,436,396 - $85,436,396

Revenue Total - - - $85,436,396 - 85,436,396

Expenditures Net of Revenues - - - $2,638,722 - $2,638,722

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Other Funds Employee Benefit Trust $88,075,118 $85,436,396 $2,638,722

Totals $88,075,118 $85,436,396 $2,638,722

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Benefits Contract Administration 7.3 - - $77,985,604 $668,479 $78,654,083

Self-Funded Health Plan 2.2 - $17,100 $7,375,996 $260,735 $7,653,831

Wellness Program 1 - $29,000 $1,614,839 $123,365 $1,767,204

Sum: 10.5 - $46,100 $86,976,439 $1,052,579 $88,075,118

City of Mesa, Arizona 273 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Safety and Workers' Compensation Business Objective

Mission

Administer comprehensive Safety and Workers' Compensation programs that ensure regulatory compliance, while providing a safe work environment and superior Workers' Compensation adjudication in a way that demonstrates caring and fiscal responsibility.

Desired Outcomes

1. The workplace is free from recognized hazards that cause, or are likely to cause, harm to City employees 2. Qualified, productive, skilled employees continue to work in their pre-injury position following a work-related injury and/ or illness

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Experience Modification Rate Avg Safety&WrksComp Cost 25 0.9 25

The EMOD Rate is determined by the Arizona Industrial Commission based on historical losses and future financial risk and is provided to us by ICA sometime in March. A target of "1" indicates losses are average.

City of Mesa, Arizona 274 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Safety and Workers' Compensation Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $235,672 $294,827 $3,169,557 $300,500

Other Funds $4,446,685 $6,149,655 $81,972,862 $6,494,506

Sum: $4,682,357 $6,444,482 85,142,418.63 $6,795,006

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 9.5 9.5

Personal Services $781,930 $851,711 $4,602,348 $884,235

Other Services $3,892,507 $5,566,741 $80,363,301 $5,884,741

Commodities $7,920 $26,030 $129,270 $26,030

Sum: $4,682,357 $6,444,482 $85,142,419 $6,795,006

City of Mesa, Arizona 275 Executive Budget Plan 2017/18 Department Operational Plans

Human Resources

Safety and Workers' Compensation Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Claims Management - - - $6,491,616 - $6,491,616

Safety Management - $300,500 - $2,890 - $303,390

Expenditure Total - $300,500 - $6,494,506 - 6,795,006

Revenue Claims Management - - - $3,771,406 - $3,771,406

Revenue Total - - - $3,771,406 - 3,771,406

Expenditures Net of Revenues - $300,500 - $2,723,100 - $3,023,600

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $300,500 - $300,500

Other Funds Worker's Compensation $6,494,506 $3,771,406 $2,723,100

Totals $6,795,006 $3,771,406 $3,023,600

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Claims Management 7.3 - $2,000 $5,821,700 $667,916 $6,491,616

Safety Management 2.2 - $24,030 $63,041 $216,319 $303,390

Sum: 9.5 - $26,030 $5,884,741 $884,235 $6,795,006

City of Mesa, Arizona 276 Executive Budget Plan 2017/18 Department Operational Plans

Information Technology

Information Technology Contact Information:

Department Phone Number: 480-644-2362 Department Email: [email protected] Department Address: City of Mesa, Information Technology Department 200 South Center Street, Building 2 Mesa, AZ 85210 Website: http://mesaaz.gov/city-hall/departments-divisions/information-technology

Department Description The City of Mesa's Information Technology Department (ITD) provides the technology leadership, system implementation and ongoing support for a broad range of technologies used by City departments to provide quality services to our citizens, visitors and businesses. Technology services include: Business Solutions & Support, Enterprise Operations, and Enterprise IT Services.

City Council Strategic Initiatives: Well-Managed and Innovative Government

Department Business Objective Core Business Process

• Enterprise IT Services Information Information • Enterprise Operations Technology • IT Business Solutions Technology • IT Security

Budgetary Highlights The proposed budget includes a reduction of 4 vacant positions (3.5 FTEs). The positions are: Management Assistant II, Assistant Chief Information Officer, Office Assistant II, and part-time Student COE. The department is continuing the work of relocating the City’s data center to an AT&T Data Center located within Mesa. The existing location is an aging building that does not have redundant electric power and has the potential for extensive outages. Funds originally allocated for repairs/upgrades to the existing building have been reallocated to the relocation. The project will take two years for completion, requiring the purchase and set up of new equipment before operations can commence. The estimated cost is approximately $1.4 million. A minimal presence will remain at the existing location for purposes of connectivity.

ITD will carryover $4.0 million in expenditures from FY 16/17 into FY 17/18, which will result in decreased year-end expenditure estimates and increased FY 17/18 budget. These the carryover amounts are for several ITD related projects including data center relocation projects, computer lifecycle replacements, and ITD infrastructure projects.

City of Mesa, Arizona 277 Executive Budget Plan 2017/18 Department Operational Plans

Information Technology

Information Technology Business Objective

Mission

Improving existing City services and creating new possibilities (via technology) anytime, anywhere the City needs it.

Desired Outcomes

City services are delivered more efficiently and effectively through the use of information technology

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Enterprise Platform Availability % Overall Avail Infra 99.9 0 0

Critical Business Application Availability % Overall Avail Apps 9 0 0

City of Mesa, Arizona 278 Executive Budget Plan 2017/18 Department Operational Plans

Information Technology

Information Technology Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund - $46,000 - $196,000

General Fund $25,684,455 $35,822,195 $29,407,403 $35,158,432

Restricted Funds - - - $104,896

Sum: $25,684,455 $35,868,195 29,407,403 $35,459,328

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 142 137.5

Personal Services $16,523,496 $17,694,979 $16,495,000 $17,267,844

Other Services $6,031,531 $8,328,171 $7,539,263 $9,337,989

Commodities $2,497,619 $5,893,058 $3,681,624 $4,405,975

Capital Outlay $631,809 $3,951,987 $1,691,516 $4,447,520

Sum: $25,684,455 $35,868,195 $29,407,403 $35,459,328

City of Mesa, Arizona 279 Executive Budget Plan 2017/18 Department Operational Plans

Information Technology

Information Technology Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Enterprise IT Services - $10,285,047 - - - $10,285,047

Enterprise Operations $196,000 $13,274,500 - - - $13,470,500

IT Business Solutions - $11,598,885 - - $104,896 $11,703,781

Expenditure Total $196,000 $35,158,432 - - $104,896 35,459,328

Expenditures Net of Revenues $196,000 $35,158,432 - - $104,896 $35,459,328

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Capital - Enterprise $196,000 - $196,000

General Fund Capital - General Fund $4,420,108 - $4,420,108

General Fund $30,738,324 - $30,738,324

Restricted Funds Restricted Programs Fund $104,896 - $104,896

Totals $35,459,328 - $35,459,328

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Enterprise IT Services 51.9 $228,000 $412,325 $3,646,273 $5,998,449 $10,285,047

Enterprise Operations 33.8 $4,219,520 $2,503,650 $2,396,346 $4,350,984 $13,470,500

IT Business Solutions 51.8 - $1,490,000 $3,295,370 $6,918,411 $11,703,781

Sum: 137.5 $4,447,520 $4,405,975 $9,337,989 $17,267,844 $35,459,328

City of Mesa, Arizona 280 Executive Budget Plan 2017/18 Department Operational Plans

Library Services

Library Services Contact Information:

Department Phone Number: 480-644-3100 Department Email: [email protected] Department Address: Mesa Public Library Reference Department P.O. Box 1466 Mesa, AZ 85211 Website: http://www.mesalibrary.org/

Department Description

The public library system serves the needs of Mesa citizens by providing books, programming, audio/visual materials and electronic resources that inform, educate and entertain residents. Mesa currently has four branches: Main Branch, Red Mountain Branch, Dobson Branch, and the Mesa Express Library.

City Council Strategic Initiatives: Stronger Neighborhoods, Placemaking, and Diversity

Department Business Objective Core Business Process

Library Library • Library Resources Services Services • Library Programs and Services

Budgetary Highlights

The FY17/18 proposed budget is consistent with the FY16/17 budget.

Design work is finishing on THINKspot 2.0 at the Main Library. Programming will be based on learning-focused activities that directly support the Council’s “What Works Cities” desired outcome of increasing educational attainment and the efforts of the Mayor’s “Early Childhood Learning Task Force” to ensure Mesa’s children arrive at kindergarten ready and able to learn. The goal of both THINKspot sites is to continue to support Mesa’s residents and children Pre-K through university age.

City of Mesa, Arizona 281 Executive Budget Plan 2017/18 Department Operational Plans

Library Services

Library Services Business Objective

Mission

To provide access and guidance to information through library services resources.

Desired Outcomes

The community is provided with services and resources for lifelong learning.

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

LIB-Circulation of Library Materials # Library Matrls Circulated 3,608,582 2,792,790 3,161,511

Based on historical performance.

LIB-Hours of Public Internet Terminal Use # Hrs public internet use 210,000 182,331 218,108

Based on historical performance.

LIB-In-house Library Visits # In Library Visits 1,172,719 964,463 1,156,131

Based on historical performance.

Program Attendance ages 0-5 # of participants who att 0-5 18,037

Based on historical performance.

City of Mesa, Arizona 282 Executive Budget Plan 2017/18 Department Operational Plans

Library Services

Library Services Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $6,521,597 $7,120,727 $7,024,164 $7,188,474

Grant Funds $22,569 $78,000 $25,030 $34,363

Restricted Funds $62,900 $290,561 $274,311 $350,526

Sum: $6,607,066 $7,489,288 7,323,505 $7,573,363

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 77.2 77.2

Personal Services $4,857,667 $5,376,122 $607,150 $5,444,630

Other Services $938,580 $1,082,479 $5,652,455 $1,039,355

Commodities $802,846 $1,030,687 $1,063,900 $1,089,378

Capital Outlay $7,974 - -

Sum: $6,607,066 $7,489,288 $7,323,505 $7,573,363

City of Mesa, Arizona 283 Executive Budget Plan 2017/18 Department Operational Plans

Library Services

Library Services Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Library Programs and Expenditure Services - $4,619,197 $11,363 - $18,000 $4,648,560

Library Resources - $2,569,277 $23,000 - $332,526 $2,924,803

Expenditure Total - $7,188,474 $34,363 - $350,526 7,573,363

Library Programs and Revenue Services - $152,150 $11,363 - $103,500 $267,013

Library Resources - - $23,000 - - $23,000

Revenue Total - $152,150 $34,363 - $103,500 290,013

Expenditures Net of Revenues - $7,036,324 - - $247,026 $7,283,350

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $7,188,474 $152,150 $7,036,324

Grant Funds Grants - Gen. Gov. $34,363 $34,363 -

Restricted Funds Restricted Programs Fund $350,526 $103,500 $247,026

Totals $7,573,363 $290,013 $7,283,350

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Library Programs and Services 64.7 - $139,464 $244,124 $4,264,972 $4,648,560

Library Resources 12.5 - $949,914 $795,231 $1,179,658 $2,924,803

Sum: 77.2 - $1,089,378 $1,039,355 $5,444,630 $7,573,363

City of Mesa, Arizona 284 Executive Budget Plan 2017/18 Department Operational Plans

Mayor and City Council

Mayor & Council Contact Information:

Department Phone Number: 480-644-3000 Department Email: [email protected] Department Address: City of Mesa Mayor & Council PO Box 1466 Mesa, AZ 85211 Website: http://mesaaz.gov/city-hall/mayor-council

Department Description

The Mayor and City Council constitute the elected legislative body and policy making body of the City. The Mayor is elected at- large every four years. Councilmembers are also elected to four-year terms from one of six electoral districts in Mesa. The City of Mesa is a council-manager form of government whereby the Council employs a City Manager who runs the day-to-day operations of the City.

Each year the Mesa City Council reviews and updates its strategic priorities and goals. The City Council’s priorities and goals are broad statements that serve as the vision and priorities of Mesa. City staff refers to and responds to these priorities and goal in their operational planning and budget preparation. The City Council priorities and goals are:

. COMMUNITY SAFETY Building communities that are safe, healthy, and welcoming. . WORKFORCE DEVELOPMENT Creating an enriching environment where the skills required to succeed in today’s economy are made readily available and easily accessible. . SUSTAINABLE ECONOMY Striving for continued economic growth and increased prosperity for all Mesa residents. . TRANSFORM NEIGHBORHOODS Pursuing that Mesa's neighborhoods are clean, safe, and economically vibrant places where residents and businesses are engaged, informed, and take pride in their property and community. . PLACEMAKING Cultivating vibrant, unique spaces ranging from a city block to entire economic centers that attract and benefit residents, businesses, and visitors.

The Mesa City Council actively works to encourage citizen participation in the decision-making process. Whether it is through neighborhood meetings, advisory boards and committees, newsletters, telephone calls, email, letters, or social media, the Mesa City Council sets policies based on the input and needs of its citizens.

Department Business Objective Core Business Process

Mayor and Legislative • Legislative Council

City of Mesa, Arizona 285 Executive Budget Plan 2017/18 Department Operational Plans

Budgetary Highlights

In FY16/17, personal service costs will decrease due to changes in the Elected Officials pension system. Newly elected officials no longer contribute to the pension system. Otherwise, the FY17/18 budget is consistent with the FY16/17 budget.

City of Mesa, Arizona 286 Executive Budget Plan 2017/18 Department Operational Plans

Mayor and Council

Legislative Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $703,253 $1,016,000 $782,750 $889,000

Sum: $703,253 $1,016,000 782,750 $889,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 7 7

Personal Services $489,323 $762,120 $537,500 $634,908

Other Services $188,184 $230,905 $217,865 $225,172

Commodities $25,746 $22,975 $27,385 $28,920

Sum: $703,253 $1,016,000 $782,750 $889,000

City of Mesa, Arizona 287 Executive Budget Plan 2017/18 Department Operational Plans

Mayor and Council

Legislative Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Legislative - $889,000 - - - $889,000

Expenditure Total - $889,000 - - - 889,000

Expenditures Net of Revenues - $889,000 - - - $889,000

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $889,000 - $889,000

Totals $889,000 - $889,000

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Legislative 7 - $28,920 $225,172 $634,908 $889,000

Sum: 7 - $28,920 $225,172 $634,908 $889,000

City of Mesa, Arizona 288 Executive Budget Plan 2017/18 Department Operational Plans

Municipal Court

Municipal Court Contact Information:

Department Phone Number: 480-644-2255 Department Email: [email protected] Department Address: City of Mesa, Municipal Court 250 East 1st Avenue Mesa, AZ 85210 Website: http://mesaaz.gov/city-hall/court

Department Description

The purpose of the Mesa Municipal Court is to serve as the Judicial Branch of Government for the City of Mesa, adjudicate violations of State and Local law in a fair and timely manner; and provide court services to the public in a courteous, efficient and professional manner. City Council Strategic Initiatives: Community Safety, Well-Managed and Innovative Government

Department Business Objective Core Business Process

Municipal Municipal Court • Business Operations Court • Court Operations

Budgetary Highlights

The proposed budget for the Municipal Court is consistent with the FY16/17 budget. This year, the Arizona Supreme Court’s FARE (Fine and Restitution Enforcement) Program will be implemented to assist in the collection of older accounts, bringing additional revenue to the City. Demand for specialty court services including Veteran’s Court, Homeless cases, and the Rule 11 Court has been increasing and provides great service for the community.

The Municipal Court will carryover $1.3 million in expenditure budget capacity for various grant sources from FY 16/17 into FY 17/18, which will result in decreased year-end expenditure estimates and increased FY 17/18 budget.

City of Mesa, Arizona 289 Executive Budget Plan 2017/18 Department Operational Plans

Municipal Court

Municipal Court Business Objective

Mission

As the judicial branch of government, to administer justice in a fair and timely manner.

Desired Outcomes

Services are provided to the community in an efficient, accurate, consistent, and accessible manner

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Court Performance % Composite Index of Perform 90 0 90

Meeting a composite of 90% for time to disposition, clearance rate, and trial date certainty is a reasonable goal based on the individual target goals of our other measures.

City of Mesa, Arizona 290 Executive Budget Plan 2017/18 Department Operational Plans

Municipal Court

Municipal Court Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $7,366,386 $7,667,301 $7,613,775 $7,755,997

Grant Funds $550 - -

Restricted Funds $262,714 $1,764,026 $414,400 $2,509,385

Sum: $7,629,650 $9,431,327 8,028,175 $10,265,382

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 80 80

Personal Services $6,590,448 $6,815,489 $99,302 $6,975,720

Other Services $977,461 $2,103,690 $6,846,402 $2,861,504

Commodities $61,741 $455,148 $1,082,471 $371,158

Capital Outlay - $57,000 - $57,000

Sum: $7,629,650 $9,431,327 $8,028,175 $10,265,382

City of Mesa, Arizona 291 Executive Budget Plan 2017/18 Department Operational Plans

Municipal Court

Municipal Court Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Business Operations - $3,349,449 - - $1,054,487 $4,403,936

Court Operations - $4,406,548 - - $1,454,898 $5,861,446

Expenditure Total - $7,755,997 - - $2,509,385 10,265,382

Revenue Business Operations - $8,798,989 - - $196,829 $8,995,818

Revenue Total - $8,798,989 - - $196,829 8,995,818

Expenditures Net of Revenues - -$1,042,992 - - $2,312,556 $1,269,564

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund Capital - General Fund $2,000 - -$1,044,992

General Fund $7,753,997 $8,798,989 $2,000

Restricted Funds Restricted Programs Fund $2,509,385 $191,535 -$5,294

Special Programs Fund - $5,294 $2,317,850

Totals $10,265,382 $8,995,818 $1,269,564

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Business Operations 37.5 $57,000 $102,000 $1,306,987 $2,937,949 $4,403,936

Court Operations 42.5 - $269,158 $1,554,517 $4,037,771 $5,861,446

Sum: 80 $57,000 $371,158 $2,861,504 $6,975,720 $10,265,382

City of Mesa, Arizona 292 Executive Budget Plan 2017/18 Department Operational Plans

Office of Enterprise Resource Planning Management

Office of ERP Management Contact Information:

Department Address: City of Mesa Office of ERP Management PO Box 1466 Mesa, AZ 85211

Department Description

The Office of ERP Management supports the group of citywide business systems collectively referred to as the ERP, Enterprise Resource Planning. The ERP includes Performance Budgeting, Financials, Purchasing, Vendor Self Service, Human Resources, Payroll, Timekeeping, Recruiting, and Debt & Investment Management systems. Primary department functions include security and workflow administration along with citywide functional training for central office staff, department users and managers. In addition to operational support the department acts as a primary liaison to its vendor partners to improve issues management, contribute to ongoing product development, promote city driven product enhancement requests and strategic Enterprise Resource Planning roadmap and lifecycle planning.

City Council Strategic Initiatives: Well-managed and Innovative Government

Department Business Objective Core Business Process

Office of ERP ERP Management • ERP Management Management

Budgetary Highlights

The FY17/18 proposed budget is consistent with the FY16/17 budget, but with a reduction of $26k in expenses as a part of citywide cost reduction efforts. ERP will be carrying over $92k for enterprise-wide project costs relating to Human Resources systems upgrades and technology services upgrades.

City of Mesa, Arizona 293 Executive Budget Plan 2017/18 Department Operational Plans

Office of ERP Management

ERP Management Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $472,794 $900,000 $658,656 $855,557

Sum: $472,794 $900,000 658,656 $855,557

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 5 5

Personal Services $420,796 $543,268 - $544,657

Other Services $49,251 $348,162 $512,200 $303,650

Commodities $2,748 $3,570 $146,456 $3,250

Capital Outlay - $5,000 - $4,000

Sum: $472,794 $900,000 $658,656 $855,557

City of Mesa, Arizona 294 Executive Budget Plan 2017/18 Department Operational Plans

Office of ERP Management

ERP Management Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure ERP Management - $855,557 - - - $855,557

Expenditure Total - $855,557 - - - 855,557

Expenditures Net of Revenues - $855,557 - - - $855,557

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund Capital - General Fund $4,000 - $4,000

General Fund $851,557 - $851,557

Totals $855,557 - $855,557

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

ERP Management 5 $4,000 $3,250 $303,650 $544,657 $855,557

Sum: 5 $4,000 $3,250 $303,650 $544,657 $855,557

City of Mesa, Arizona 295 Executive Budget Plan 2017/18 Department Operational Plans

Office of Management & Budget

Office of Management & Budget Contact Information:

Department Phone Number: 480-644-5799 Department Address: City of Mesa, Office of Management & Budget 20 E Main St Suite 450, PO Box 1466 Mesa, AZ 85201 Website: http://mesaaz.gov/city-hall/office-of-management-budget

Department Description The Office of Management and Budget's (OMB) mission is to ensure the effective and efficient use of resources in order to sustain the delivery of quality services for the residents of Mesa.

The OMB develops and manages the annual operating budget and the five-year capital improvement program; forecasts City- wide revenues, expenditures and fund balances; and conducts special projects. The OMB also manages a variety of City administrative processes and provides process improvement, performance management, surveying, data analysis and strategic planning services to City organizations.

City Council Strategic Initiatives: Well-Managed and Innovative Government

Department Business Objective Core Business Process

Office of • Forecast Management Management • Operating Budget Management Management and Budget • Performance Excellence & Budget • Project Management Program

Budgetary Highlights The FY17/18 budget includes the transfer of one Data Program Manager position from the Information Technology Department to OMB. This position will provide oversight and coordination of the City’s data policy and supporting initiatives, including the development and implementation of citywide plans, procedures and standards to enable and support data-driven decision making. This position will be responsible for actively leading multi-disciplinary partnerships to establish, implement, and monitor enterprise data governance, strategy, standards and initiatives.

City of Mesa, Arizona 296 Executive Budget Plan 2017/18 Department Operational Plans

Office of Management and Budget

Office of Management and Budget Business Objective

Mission

Ensure the effective and efficient use of resources in order to sustain the delivery of quality services for the residents of Mesa.

Desired Outcomes

- City resources are managed well - City is delivering on outcomes

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Customer Satisfaction with Responsiveness %cust indicat sat w omb resp 80 89 80

Target set based on historical data

Stakeholder Ratings of OMB Services %responses abve sat OMB Svcs 80 94 80

Target based on historical performance

City of Mesa, Arizona 297 Executive Budget Plan 2017/18 Department Operational Plans

Office of Management and Budget

Office of Management and Budget Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $2,273,786 $2,809,529 $2,601,558 $2,682,910

Restricted Funds $7,540 $14,000 $22,134 $14,000

Sum: $2,281,326 $2,823,529 2,623,692 $2,696,910

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 23 24

Personal Services $2,185,785 $2,569,356 $2,415,730 $2,599,612

Other Services $59,976 $238,173 $190,817 $82,163

Commodities $18,153 $16,000 $10,145 $14,135

Capital Outlay $17,412 - - $1,000

Sum: $2,281,326 $2,823,529 $2,623,692 $2,696,910

City of Mesa, Arizona 298 Executive Budget Plan 2017/18 Department Operational Plans

Office of Management and Budget

Office of Management and Budget Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Forecast Management - $671,615 - - $14,000 $685,615

Operating Budget Management - $778,078 - - - $778,078

Performance Excellence - $687,029 - - - $687,029

Project Management Program - $546,188 - - - $546,188

Expenditure Total - $2,682,910 - - $14,000 2,696,910

Expenditures Net of Revenues - $2,682,910 - - $14,000 $2,696,910

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund Capital - General Fund $1,000 - $1,000

General Fund $2,681,910 - $2,681,910

Restricted Funds Cadence CFD - Operating $7,000 - $7,000

Community Facilities Districts - Operating $7,000 - $7,000

Totals $2,696,910 - $2,696,910

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Forecast Management 5.8 - $200 $21,920 $663,495 $685,615

Operating Budget Management 7.8 - $10,735 $38,603 $728,740 $778,078

Performance Excellence 6.3 $1,000 $3,000 $11,540 $671,489 $687,029

Project Management Program 4.3 - $200 $10,100 $535,888 $546,188

Sum: 24 $1,000 $14,135 $82,163 $2,599,612 $2,696,910

City of Mesa, Arizona 299 Executive Budget Plan 2017/18 Department Operational Plans

Parks, Recreation, & Community Facilities

Parks, Recreation & Community Facilities Contact Information:

Department Phone Number: 480-644-2352 Department Email: [email protected] Department Address: City of Mesa, Parks, Recreation and Community Facilities MS 7010 P.O. Box 1466 City of Mesa, AZ 85211-1466 Website: http://mesaaz.gov/things-to-do/parks-recreation-commercial-facilities

Department Description

The Parks, Recreation and Community Facilities Department is committed to providing sustainable facilities and opportunities to enhance the quality of life and well-being of our community. The Parks, Recreation and Community Facilities division aims to help residents enjoy Mesa to the fullest through a comprehensive park system that spans more than 2,000 acres, recreation centers, aquatic centers, wheels courts, tennis facilities, Dobson Ranch Golf Course, Sloan Park (Spring Training Home for the Chicago Cubs), Hohokam Stadium (Spring Training Home for the Oakland A’s), Mesa Convention Center, Mesa Amphitheatre and the Mesa Cemetery.

The Facilities Maintenance division is responsible for providing heating, ventilation and air conditioning (HVAC), electrical, plumbing, carpentry, cleaning, and structure maintenance for City facilities with in-house personnel, and outside service contracts when needed. In addition, lifecycle planning and replacement and comprehensive preventive maintenance programs are used to minimize downtime, and preserve the life expectancy of buildings and building systems.

The District Cooling division is an enterprise in the Enterprise Fund that is overseen by Facilities Maintenance. It provides cooling for many of the large downtown City buildings and is also available for commercial buildings. This type of cooling method reduces long term capital costs.

City Council Strategic Initiatives: STRONGER NEIGHBORHOODS, PLACEMAKING, AND DIVERSITY; COMMUNITY SAFETY

City of Mesa, Arizona 300 Executive Budget Plan 2017/18 Department Operational Plans

Department Business Objective Core Business Process

• Cemetery • Convention Center Amphitheatre • Golf • Pro Sports (HHK and CUB) • Parks Administration Parks, • Parks Land, Basin, Sports Facility Maintenance Recreation and • Adaptive Community • Aquatics Facilities • Athletics • Recreation Centers • Youth Camp

Parks, Recreation Facilities • Custodial and Maintenance • Facilities Maintenance Community • Landscaping Facilities

District Cooling • District Cooling

Budgetary Highlights For FY17/18 Parks, Recreation and Community Facilities budget will include various reductions across the department. The reductions are in unscheduled work, repair, and supplement contractual services for Facilities Maintenance and materials, supplies, and equipment at Red Mountain, Riverview, adult sports and others services for Parks and Recreation. Estimated savings for the General Fund from the reductions are $780k.

Due to Prop 206, the minimum wage increase passed by voters, the department is experiencing an increase in contractual costs for custodial and landscaping work. Parks, Recreation and Community Facilities’ budget will increase $470k to cover these pressures. Other approved on-going enhancements are $10k for marketing within the Mesa Public School district, $95k for preventative maintenance of C-Cure, part of the city door security system, and $8.500 additional budget for personal services to monitor the volleyball courts to retrieve lost revenue and oversee scheduling at Gene Autry Sports Complex. The additional revenue received by the volleyball courts will cover the cost of the additional personal services.

The Parks, Recreation and Community Facilities department will carryover $2.5 million in general funds budget capacity from FY 16/17 into FY 17/18, which will result in decreased year-end expenditure estimates and increased FY 17/18 budget.

City of Mesa, Arizona 301 Executive Budget Plan 2017/18 Department Operational Plans

Parks, Recreation and Community Facilities

Parks, Recreation and Commercial Facilities Business Objective

Mission

Committed to providing sustainable facilities and opportunities to enhance the quality of life and well being of our community.

Desired Outcomes

- The community enjoys the benefits of urban forests, natural areas, and waters that endure and captivate - Recreation that inspires personal growth, healthy lifestyles, and a sense of community is readily available - Dynamic parks that shape city character and meet diverse community needs are created and maintained - Residents enjoy a safe place to play, celebrate, contemplate and recreate

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Convention Center and Amphitheatre Attendance # patrons Conv Ctr & Amph 200,000 0 200,000

Target based on historical, facility capacities and comp's.

Rounds Played # golf rounds played 52,000 0 52,000

Target based on Historical, comp's and business practices.

Developed Park Acres # park acres/1000 pop 9.5 0 9.5

Based on NRPA measurement standards - benchmark from ICMA.

City of Mesa, Arizona 302 Executive Budget Plan 2017/18 Department Operational Plans

Parks, Recreation and Community Facilities

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $7,350,069 $10,945,263 $10,749,791 $8,267,923

General Fund $14,291,157 $17,201,413 $16,692,720 $17,227,006

Grant Funds $44,552 - $24,056 -

Restricted Funds $7,367,211 $7,997,487 $7,749,073 $8,187,913

Sum: $29,052,988 $36,144,163 $35,215,640 $33,682,842

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 268.9 273.7

Capital Outlay $61,093 $4,107,263 1,783,077.28 $759,934

Commodities $2,847,010 $2,984,887 14,004,403 $2,846,946

Other Services $13,269,657 $13,455,342 15,558,609.52 $13,847,471

Personal Services $12,875,229 $15,596,671 3,869,550 $16,228,491

Sum: $29,052,988 $36,144,163 35,215,639.8 $33,682,842

City of Mesa, Arizona 303 Executive Budget Plan 2017/18 Department Operational Plans

Parks, Recreation and Community Facilities

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Parks, Recreation and Commercial Facilities $8,267,923 $17,227,006 - - $8,187,913 $33,682,842

Expenditure Total $8,267,923 $17,227,006 - - $8,187,913 $33,682,842

Revenue Parks, Recreation and Commercial Facilities $4,030,412 $3,967,868 - - $1,543,602 $9,541,882

Revenue Total $4,030,412 $3,967,868 - - $1,543,602 $9,541,882

Expenditures Net of Revenues $4,237,511 $13,259,138 - - $6,644,311 $24,140,960

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

Enterprise Fund Capital - Enterprise $691,242 - $691,242

Enterprise Fund $7,576,681 $4,030,412 $3,546,269

General Fund General Fund $17,227,006 $3,967,868 $13,259,138

Restricted Funds Cemetery $1,214,810 $1,371,602 -$156,792

Cemetery Reserve - $75,000 -$75,000

Environmental Compliance Fee $6,870,743 - $6,870,743

Restricted Programs Fund $52,360 - $52,360

Special Programs Fund $50,000 $97,000 -$47,000

Totals $33,682,842 $9,541,882 $24,140,960

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Parks, Recreation and Commercial Facilities 273.7 $759,934 $2,846,946 $13,847,471 $16,228,491 $33,682,842

Sum: 273.7 $759,934 $2,846,946 $13,847,471 $16,228,491 $33,682,842

City of Mesa, Arizona 304 Executive Budget Plan 2017/18 Department Operational Plans

Parks, Recreation and Community Facilities Parks, Recreation and Commercial Facilities Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure

Commercial Cemetery - - - - $1,204,810 1,204,810

Convention Center/ Amphitheatre $3,086,416 - - - - 3,086,416

Golf $2,171,994 - - - - 2,171,994

Recreation Adaptive - $473,288 - - - 473,288

Aquatics - $3,494,804 - - $31,330 3,526,134

Athletics - $1,250,062 - - $3,250 1,253,312

Recreation Centers - $2,059,692 - - - 2,059,692

Youth Camp - $401,540 - - - 401,540

Resource Parks Management Administration $1,018,872 $3,418,962 - - $77,780 4,515,614

Parks Land, Basin, Sports Facility Maintenance $1,990,641 $6,128,658 - - $6,870,743 14,990,042

Expenditure Total 8,267,923 17,227,006 0 8,187,913 33,682,842

Revenue

Commercial Cemetery - - - - $1,446,602 1,446,602

Convention Center/ Amphitheatre $2,296,967 - - - - 2,296,967

Golf $1,619,800 - - - - 1,619,800

Recreation Adaptive - $140,600 - - - 140,600

Aquatics - $1,233,780 - - - 1,233,780

Athletics - $1,429,098 - - - 1,429,098

Recreation Centers - $627,453 - - - 627,453

Youth Camp - $133,850 - - - 133,850

Resource Parks Management Administration $62,000 $359,087 - - $97,000 518,087

City of Mesa, Arizona 305 Executive Budget Plan 2017/18 Department Operational Plans

Parks, Recreation and Community Facilities Parks, Recreation and Commercial Facilities Business Objective

FY 17/18 OperationalParks Budget Land, by Funding Source - Expenditures and Revenues Basin, Sports Facility Maintenance $51,645 $44,000 - - FY- 17/1895,645 FY 17/18 FY 17/18 Expenditures Funding Source Fund Name Expenditures Revenues Revenue Total $4,030,412 $3,967,868 - - $1,543,602Net of Revenues9,541,882

EnterpriseExpenditures Fund Net of Revenues 4,237,511 13,259,138 0 6,644,311 24,140,960 Capital - Enterprise $3,456,210 - $3,456,210

Enterprise Fund $37,883,405 $20,152,060 $17,731,345

General Fund General Fund $86,135,030 $19,839,340 $66,295,690

Restricted Funds Cemetery $6,074,050 $6,858,010 -$783,960

Cemetery Reserve - $375,000 -$375,000

Environmental Compliance Fee $34,353,715 - -$235,000

Restricted Programs Fund $261,800 - $261,800

Special Programs Fund $250,000 $485,000 $34,353,715

Totals $168,414,210 $47,709,410 $120,704,800

FY 17/18 Operational Budget By Core Business Process and Category

Capital Other Personal FY 17/18 Core Business Process FTE Outlay Commodities Services Services Budget

Commercial

Cemetery 10.6 $75,000 $132,868 $199,294 $797,648 $1,204,810

Convention Center/ Amphitheatre 16.5 $222,000 $136,293 $1,453,917 $1,274,206 $3,086,416

Golf 19.7 $277,934 $297,750 $415,220 $1,181,090 $2,171,994

City of Mesa, Arizona 306 Executive Budget Plan 2017/18 Department Operational Plans

Parks, Recreation and Community Facilities Parks, Recreation and Commercial Facilities Business Objective

Recreation

Adaptive 7.4 - $42,850 $61,508 $368,930 $473,288

Aquatics 65.1 - $424,297 $287,633 $2,814,204 $3,526,134

Athletics 21 - $88,899 $112,109 $1,052,304 $1,253,312

Recreation Centers 35.3 - $61,025 $262,383 $1,736,284 $2,059,692

Youth Camp 9.2 - $27,700 $29,511 $344,329 $401,540

Resource Management Parks Administration 23.5 $150,000 $387,895 $1,953,903 $2,023,816 $4,515,614

Parks Land, Basin, Sports Facility Maintenance 65.7 $35,000 $1,247,369 $9,071,993 $4,635,680 $14,990,042

Totals 273.7 $759,934 $2,846,946 $13,847,471 $16,228,491 $33,682,842

City of Mesa, Arizona 307 Executive Budget Plan 2017/18 Department Operational Plans

Police

Police Contact Information:

Department Phone Number: 480-644-2030 Department Contact Form: http://mesaaz.gov/residents/police/contact-the-mesa-police-department Department Address: 130 N. Robson, Mesa AZ 85201 Website: http://mesaaz.gov/residents/police

Department Description

The Police Department is responsible for promoting an exceptional quality of life within the Mesa community through a process of collaboration and teamwork with residents and like-minded organizations. The Department’s highest priorities are to protect life and property, preserve the peace, and uphold the rights of individuals. The Department accomplishes its mission by the suppression of crime through intensive patrol operations, thorough criminal investigations, the apprehension of criminal offenders, enhanced forensic analysis, as well as crime prevention and community engagement initiatives.

City Council Strategic Initiatives: Community Safety

Department/ Business Service Core Business Process Business Objective

• Chief’s Office Administration • Fiscal Management

• Patrol Operations Bureau

Police

• Criminal Investigations Investigations • Metro Bureau • Special Operations • Forensic Services

Community Engagement & • Community Engagement Employee • Human Resources Services • Professional Services Bureau • Police Communications • Technical Services

City of Mesa, Arizona 308 Executive Budget Plan 2017/18 Department Operational Plans

Budgetary Highlights

During FY16/17, 3 FTEs were added. These civilian positions are funded through an U.S. Department of Justice, Bureau of Justice Statistics Grant.

The Police department receives miscellaneous revenue from many resources including grants, donations, statutorily allocated revenue, intergovernmental agreements, etc. As new resources are identified during the year, the department budget is modified to create budget capacity to accommodate the additional funds.

The FY17/18 proposed budget includes reducing $3.5 million from the general fund budget. These reductions include: • civilianization of 15 sworn positions • reduction in task force involvement (4 sworn positions) • elimination of 2 vacant sworn positions • elimination of 6 vacant civilian positions • privatization of the Departments misdemeanor jail services Grants

The Mesa Police Department is budgeting for $3.4 million in new grant awards for FY17/18. Notable grant awards and pending applications include the following:

• $900,000 of Homeland Security Grants to provide funds for training and equipment to support Homeland Security initiatives. • $390,000 of Governor’s Office of Highway Safety (GOHS) Grants provides resources for DUI and traffic enforcement activities, including overtime for officers supporting the City’s Traffic Safety Program. • $358,906 in grants for the Mesa Family Advocacy Center (MFAC) providing for the salaries and benefits for Victim Support Services personnel, software and training, and a Police Awareness Community Education Portal. • $658,514 in multiple forensics grants. The National Institute of Justice DNA Backlog Program Grant provides resources for forensic personnel and equipment to enhance analyzing forensic DNA to reduce system backlog. The Coverdell Grant primarily allows for an upgrade of hardware and software. The Forensics Crime Lab Grant provides funding for training and equipment. The Governor’s Office of Highway Safety Grant may provide a Liquid Chromatograph Time of Flight Mass Spectrometer which will enhance the laboratory’s ability to identify various toxicological substances.

• $350,000 Arizona Criminal Justice Commission (ACJC) grant for microfilm conversion of the Police Department’s records to digital media.

• $140,000 Edward Byrne Memorial Justice Assistance Grant would provide for Police Department information technology infrastructure.

• $250,000 Tribal Gaming Grants would provide funding for training, and equipment for various divisions in the Police Department.

• $52,000 High Intensity Drug Trafficking Areas (HITDA) Grant provides funding for officer overtime to coordinate activities that address drug trafficking in specially designated areas of the United States.

Police will carryover $2.9 million in expenditure budget capacity in general and grant funds from FY 16/17 into FY 17/18, which will result in decreased year-end expenditure estimates and increased FY 17/18 budget. The department will also carryover $1.2 million in revenues for various grants.

City of Mesa, Arizona 309 Executive Budget Plan 2017/18 Department Operational Plans

Police

Police Business Objective

Mission

Deliver professional police services.

Desired Outcomes

- Comprehensive Public Safety Plan - Strong Community Partnerships - Properly Trained Members

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Percent of 911 Calls Answered w/in 20 seconds %911call answered in 20 secs 95 98.8 95

Receive and process calls for service. Managing resources to ensure efficient call servicing. Answer 911 calls within 20 seconds

Part I Crimes # Part 1 Crimes per 1K 28.94 28.06 28

# Part 1 Crimes per 1K Reported Part I Crimes per 1,000 population which include: Homicide, Rape, Aggravated Assault, Kidnapping, Robbery, Theft, Burglary (commercial, residential and vehicle) and Stolen Vehicle

City of Mesa, Arizona 310 Executive Budget Plan 2017/18 Department Operational Plans

Police

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $823,820 $757,328 $816,009 $769,143

General Fund $145,396,313 $156,311,684 $153,828,902 $162,146,519

Grant Funds $1,511,351 $3,355,240 $1,105,162 $5,007,807

Other Funds $43,705 $47,110 $46,567 $47,867

Restricted Funds $16,083,513 $18,079,095 $17,716,923 $17,925,025

Sum: $163,858,703 $178,550,457 $173,513,563 $185,896,361

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 1,196.5 1,187.5

Capital Outlay $545,780 $1,396,298 645,869 $430,696

Commodities $3,637,951 $7,798,158 3,844,677 $8,031,156

Offsets and Credits -$199,128 - -145,469 -

Other Services $19,910,869 $23,192,792 20,492,464.8 $22,142,808

Personal Services $139,963,230 $146,163,209 148,303,641.65 $155,291,701

- - 372,380 -

Sum: $163,858,703 $178,550,457 173,513,563.45 $185,896,361

City of Mesa, Arizona 311 Executive Budget Plan 2017/18 Department Operational Plans

Police

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Police $769,143 $162,146,519 $5,007,807 $47,867 $17,925,025 $185,896,361

Expenditure Total $769,143 $162,146,519 $5,007,807 $47,867 $17,925,025 $185,896,361

Revenue Police - $5,303,066 $4,612,043 - $1,600,000 $11,515,109

Revenue Total - $5,303,066 $4,612,043 - $1,600,000 $11,515,109

Expenditures Net of Revenues $769,143 $156,843,453 $395,764 $47,867 $16,325,025 $174,381,252

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

Enterprise Fund Enterprise Fund $769,143 - $769,143

General Fund Capital - General Fund $51,500 - $51,500

General Fund $162,095,019 $5,303,066 $156,791,953

Grant Funds Grants - Gen. Gov. $5,007,807 $4,612,043 $395,764

Other Funds Employee Benefit Trust $47,867 - $47,867

Restricted Funds Falcon Field Airport $256,553 - $256,553

Local Streets Sales Tax $128,305 - $128,305

Quality of Life Sales Tax $15,348,488 - $15,348,488

Restricted Programs Fund $2,091,679 $1,500,000 $591,679

Special Programs Fund $100,000 $100,000 -

Totals $185,896,361 $11,515,109 $174,381,252

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Police 1,187.5 $430,696 $8,031,156 $22,142,808 $155,291,701 $185,896,361

Sum: 1,187.5 $430,696 $8,031,156 $22,142,808 $155,291,701 $185,896,361

City of Mesa, Arizona 312 Executive Budget Plan 2017/18 Department Operational Plans Department Operational Plans Police Police Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure

Administrative Chief's Office Services Bureau - $12,084,882 $79,060 - $1,275,000 13,438,942

Fiscal Management - $4,055,741 $50,000 - $290,000 4,395,741

Forensic Services - $7,250,346 $994,286 - $273,000 8,517,632

Police Communications - $8,062,555 - $4,140 - 8,066,695

Technical Services - $10,802,626 $1,493,687 - - 12,296,313

Community Engagement & Community Employee Engagement Services Bureau - $3,296,456 $14,181 - - 3,310,637

Human Resources - $7,825,563 - - - 7,825,563

Professional Services - $2,718,818 - - - 2,718,818

Investigations Criminal Bureau Investigations - $10,970,239 $452,637 - - 11,422,876

Metro - $23,885,517 $1,784,190 $43,727 $353,679 26,067,113

Special Operations - $16,888,746 $102,000 - - 16,990,746

Operations Patrol Bureau $769,143 $54,305,030 $37,766 - $15,733,346 70,845,285

Expenditure Total 769,143 162,146,519 5,007,807 47,867 17,925,025 185,896,361

Revenue

Administrative Chief's Office Services Bureau - $33,957 - - $1,275,000 1,308,957

Fiscal Management - $371,515 $50,000 - $185,000 606,515

Forensic Services - $513,884 $894,613 - $60,000 1,468,497

City of Mesa, Arizona 313 Executive Budget Plan 2017/18 Department Operational Plans

Police Police Business Objective

FY 17/18 OperationalPolice Budget by Funding Source - Expenditures and Revenues Communications - $1,080,000 - - - 1,080,000 FY 17/18 Technical FY 17/18 FY 17/18 Services - $175,500 $1,322,972 - Expenditures- 1,498,472 Funding Source Fund Name Expenditures Revenues Net of Revenues Community EnterpriseEngagement Fund & Community Employee EngagementEnterprise Fund $3,845,715 - $3,845,715 Services Bureau - $1,274,260 $14,181 - - 1,288,441 General Fund Capital - General Fund $257,500 - $257,500 Human Resources General Fund $810,475,095 $26,515,330 $783,959,765 - $77,300 - - - 77,300

Grant Funds ProfessionalGrants - Gen. Gov. $25,039,035 $23,060,215 $1,978,820 Services Other Funds - - - - - 0 Employee Benefit Trust $239,335 - $239,335 Investigations Criminal BureauRestricted Funds Investigations - $350,500 $406,321 - - 756,821 Falcon Field Airport $1,282,765 - -

Metro - $1,035,152 $1,784,190 - $80,000 2,899,342 Local Streets Sales Tax $641,525 - $641,525 Special Operations - $365,998 $102,000 - - Quality of Life Sales Tax $76,742,440 - $1,282,765467,998 Operations Patrol - $25,000 $37,766 - - Bureau Restricted Programs Fund $10,458,395 $7,500,000 $2,958,39562,766 Revenue Total - $5,303,066 $4,612,043 - $1,600,000 11,515,109 Special Programs Fund $500,000 $500,000 $76,742,440 Expenditures Net of Revenues 769,143 156,843,453 395,764 47,867 16,325,025 174,381,252

Totals $929,481,805 $57,575,545 $871,906,260

FY 17/18 Operational Budget By Core Business Process and Category

Capital Other Personal FY 17/18 Core Business Process FTE Outlay Commodities Services Services Budget

Administrative Services Bureau Chief's Office 23.5 - $1,486,260 $7,380,357 $4,572,325 $13,438,942

Fiscal Management 9 - $958,598 $447,950 $2,989,193 $4,395,741

City of Mesa, Arizona 314 Executive Budget Plan 2017/18 Department Operational Plans

Police Police Business Objective

Forensic Services 64 $124,611 $1,398,556 $764,863 $6,229,602 $8,517,632

Police Communications 98 - $33,400 $197,030 $7,836,265 $8,066,695

Technical Services 85.5 $190,000 $674,232 $3,242,661 $8,189,420 $12,296,313

Community Engagement & Employee Services Community Bureau Engagement 23 - $33,379 $22,200 $3,255,058 $3,310,637

Human Resources 42 - $800,915 $488,641 $6,536,007 $7,825,563

Professional Services 29 - $34,155 $147,237 $2,537,426 $2,718,818

Investigations Bureau Criminal Investigations 82 $9,665 $146,579 $201,314 $11,065,318 $11,422,876

Metro 123.5 $106,420 $2,105,777 $8,724,858 $15,130,058 $26,067,113

Special Operations 104 - $209,476 $229,850 $16,551,420 $16,990,746

Operations Bureau Patrol 504 - $149,829 $295,847 $70,399,609 $70,845,285

Totals 1,187.5 $430,696 $8,031,156 $22,142,808 $155,291,701 $185,896,361

City of Mesa, Arizona 315 Executive Budget Plan 2017/18 Department Operational Plans Project Management

Project Management Services Contact Information:

Department Phone Number: 480-644-5799 Department Email: Office of Management & Budget Email Department Address: City of Mesa, Office of Management & Budget 20 E Main Street, Suite 450; PO Box 1466 Mesa, AZ 85201 Website: http://mesaaz.gov/about-us/city-projects/capital-improvement-program

Department Description The Project Management Program department contains revenues and expenditures related to the Capital Improvement Program and Lifecycle & Infrastructure Program. Although the City Council appropriates funding for the Capital Improvement Program as part of the budget adoption process, individual projects are brought to Council for approval throughout the year. The Project Management Program department is managed separately from any department operational plan.

City Council Strategic Initiatives: Sustainable Economy; Stronger Neighborhoods, Placemaking, and Diversity; Well-Managed and Innovative Government

Department Business Objective Core Business Process

Project Project • Capital Improvement Program Management • Lifecycle and Infrastructure Management Program Program

Budgetary Highlights The FY 17/18 budget includes the expansion of a water reclamation plant and the design and construction of a new water treatment plant as well as the associated distribution infrastructure. The funding of the projects is available through utility revenue bonds authorized by Mesa voters in November 2014. The debt service on utility revenue bonds is funded through the utility rates paid by customers. Therefore, the customers served by these plants will participate in the repayment of the new debt service related to them.

Planned park improvements include Eagles Park (former Mesa Junior High site), Greenfield Park, and Pioneer Park in central Mesa. Scheduled street improvements approved by voters include improvements to several arterial roads citywide, the next phase of Mesa Drive and First Avenue in the downtown area, as well as the Elliot Road Corridor in east Mesa. These projects will use general obligation (GO) bond authorization approved by voters in 2013 to leverage regional grant dollars to complete projects that serve multi-modal transportation and safety needs. The debt service on GO bonds is funded through a secondary property tax as approved by voters in the ballot language for the bond authorization. In conjunction with the street projects,

City of Mesa, Arizona 316 Executive Budget Plan 2017/18 Department Operational Plans

Project Management Program the City will replace and/or upgrade utility infrastructure. Coordinating this effort not only ensures the reliability of the utility service lines, but it also maximizes the life of the pavement. The utility infrastructure is funded with existing utility revenue bond authorization.

Also, included in the proposed CIP are improvements at Falcon Field airport, various shared-use paths, and storm water infrastructure projects. These projects also use local funding sources to leverage grant dollars awarded to Mesa to complete projects that enhance the quality of life in the City of M esa.

The lifecycle and infrastructure program includes computer cycle replacement, pool equipment replacement, and the vehicle replacement program. On an ongoing basis, departments review and identify large periodic operational expenditures which cannot be covered within their annual budget.

The proposed budget includes the allocation of $3.0 million to fund one third of the Police Departments radio replacement needs. Additional funding has been allocated for parking lot pavement treatments and various small utility equipment replacement. Many lifecycle needs were identified during the FY17/18 budget process that the city is not able to fund. Staff will continue to identify and analyze needs citywide to create a comprehensive plan to assist in prioritization for if/when additional funding is available. Project Management will carryover $14.7 million across several funds in expenditure budget capacity for various projects from FY 16/17 into FY 17/18, which will result in decreased year-end expenditure estimates and increased FY 17/18 budget.

City of Mesa, Arizona 317 Executive Budget Plan 2017/18 Department Operational Plans

Project Management Program

Project Management Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $2,681,594 $1,944,222 $1,315,391 $1,549,543

General Fund $4,317,525 $11,755,713 $1,808,956 $23,321,120

Grant Funds $7,363,319 $3,548,507 $2,193,363 $14,779,725

Other Funds $118,494,162 $258,581,000 $99,809,433 $189,904,000

Restricted Funds $32,805,818 $60,640,558 $37,682,277 $144,437,612

Sum: $165,662,417 $336,470,000 142,809,420.25 $373,992,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 94.4 87.9

Personal Services $15,660,343 $9,389,128 $1,384,184 $8,903,863

Other Services $26,150,643 $308,033,105 $118,531,703 $340,062,437

Commodities $4,563,251 $17,424 $1,547,620 $5,411,068

Capital Outlay $119,288,179 $3,804,760 -$270,575 $7,913,807

Debt Service - $972,296 $19,059,187 -

Offsets and Credits - $14,253,287 $2,557,302 $11,700,825

Sum: $165,662,417 $336,470,000 $142,809,420 $373,992,000

City of Mesa, Arizona 318 Executive Budget Plan 2017/18 Department Operational Plans

Project Management Program

Project Management Business Objective

City of Mesa, Arizona 319 Executive Budget Plan 2017/18 Department Operational Plans

Project Management Program

Project Management Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Capital Improvement Expenditure Program $1,549,543 $18,178,263 $14,779,725 $189,904,000 $144,437,612 $368,849,143

Lifecycle and Infrastructure Program - $5,142,857 - - - $5,142,857

Expenditure Total $1,549,543 $23,321,120 $14,779,725 $189,904,000 $144,437,612 $373,992,000

Capital Improvement Revenue Program - - $14,779,725 - $77,803,631 $92,583,356

Revenue Total - - $14,779,725 - $77,803,631 $92,583,356

Expenditures Net of Revenues $1,549,543 $23,321,120 - $189,904,000 $66,633,981 $281,408,644

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Capital - Enterprise $1,193,648 - $355,895

Enterprise Fund $355,895 - $1,193,648

General Fund Capital - General Fund $16,897,015 - $6,424,105

General Fund $6,424,105 - $16,897,015

Grant Funds Community Development Block Grant $4,062,003 $4,062,003 -

Grants - Enterprise $4,311,402 $4,311,402 -

Grants - Gen. Gov. $6,406,320 $6,406,320 -

Other Funds Electric Bond Construction $7,519,810 - $185,494

Gas Bond Construction $13,759,450 - $324,090

Parks Bond Construction $21,299,450 - $3,368,000

Public Safety Bond Construction $185,494 - $7,519,810

Solid Waste Bond Construction $3,368,000 - $13,759,450

Spring Training Bond Construction $324,090 - $17,373,375

Streets Bond Construction $17,373,375 - $21,299,450

Wastewater Bond Construction $45,288,100 - $45,288,100

Water Bond Construction $80,786,231 - $80,786,231 City of Mesa, Arizona 320 Executive Budget Plan 2017/18 Department Operational Plans

Project Management Program

Project Management Business Objective

Restricted Funds Arts & Culture Fund $134,139 - -

Cemetery $94,607 - $2,044

Cemetery Reserve $983,850 - $2,068

Economic Investment Fund $442,862 - $28,926

Environmental Compliance Fee $4,596,358 - $43,022

Falcon Field Airport $3,632,359 - $94,607

Fleet Internal Service $43,022 - $130,000

Greenfield WRP Joint Venture $53,028,242 $52,852,391 $133,217

Highway User Revenue Fund $18,970,655 - $134,139

Local Streets Sales Tax $19,593,322 - $175,851

Mesa Arts Center Restoration Fee $500,000 - $442,862

Print Shop Internal Service $2,044 - $500,000

Restricted Programs Fund $130,000 - $983,850

Special Programs Fund $28,926 - $3,047,176

TOPAZ Joint Venture Fund $1,349,804 $1,349,804 $3,632,359

Transit Fund $19,049,343 $18,916,126 $4,596,358

Transportation $18,808,835 $4,685,310 $14,123,525

Utility Replacement Extension and Renewal $3,047,176 - $18,970,655

Warehouse Internal Service $2,068 - $19,593,322

Totals $373,992,000 $92,583,356 $281,408,644

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Capital Improvement Program 87.9 $7,913,807 $268,211 $340,062,437 $8,903,863 $368,849,143

Lifecycle and Infrastructure Program - $5,142,857 - - $5,142,857

Sum: 87.9 $7,913,807 $5,411,068 $340,062,437 $8,903,863 $373,992,000

City of Mesa, Arizona 321 Executive Budget Plan 2017/18 Department Operational Plans

Public Information & Communications

Public Information & Communications Contact Information:

Department Phone Number: 480-644-3333 Department Email: [email protected] Department Address: City of Mesa, Public Information and Communication Office 20 E. Main Street, Suite 700 Mesa, AZ 85201 Website: http://www.mesanow.org/

Department Description

The Public Information and Communication Office promotes a clear understanding of City policies, issues, and activities to enhance the public’s and City employees' confidence in, and knowledge of City government. The Department provides information on Council strategic initiatives, special events, programs, and services in a timely and accurate manner using print, web, broadcast, social media and other web-based tools. City Council Strategic Initiatives: Community Safety, Stronger Neighborhoods, Placemaking, and Diversity

Department Business Objective Core Business Process

Public Public Information & Information and • Public Information and Communications Communication Communications • Citywide Special Events

Budgetary Highlights

The Department’s FY17/18 budget includes an addition of a part-time Public Information Specialist for social media development that will be funded by a reduction in temporary services. The department also received funding for an Information Technology Specialist III for one year to support the City’s social media outreach. The Public Information & Communication Department, in a citywide cost reduction effort, reduced their budget by $37k.

City of Mesa, Arizona 322 Executive Budget Plan 2017/18 Department Operational Plans

Public Information and Communications

Public Information and Communications Business Objective

Mission

Promote a clear understanding of City policies, issues, and activities as well as provide timely and accurate information on Council strategic initiatives, special events, programs, and services in an effort to enhance the public and City employees' confidence in, and knowledge of, City government.

Desired Outcomes

- Residents, businesses, visitors, and employees (RBVE) know about City services and programs, how to use them, and how they can be involved RBVE are aware of the decisions being made, why they were made, and how they might affect them - Overall media coverage of City services, programs, and issues is fair and balanced - All communications are interesting and informative to RBVEs and are readily available to Mesa RBVEs

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Visits to Mesaaz.gov # of visits to mesa.gov 0 0 3,000,000

Number of sessions on Mesaaz.gov per Google Analytics

Online views of Channel 11 # of Channel 11 views 0 0 6,000

Mesa 11 online live and video on demand views

Positive responses to Event Survey (Vendor) Services % positive response vendor 85 0 85

Positive responses to event vendor survey

City of Mesa, Arizona 323 Executive Budget Plan 2017/18 Department Operational Plans

Public Information and Communications

Public Information and Communications Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

General Fund $1,410,929 $1,423,000 $1,616,156 $1,551,000

Sum: $1,410,929 $1,423,000 1,616,156 $1,551,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 8 8.5

Personal Services $868,857 $924,066 $924,066 $1,115,485

Other Services $350,108 $357,912 $518,573 $309,624

Commodities $90,779 $141,022 $153,980 $125,891

Capital Outlay $101,186 - $19,537

Sum: $1,410,929 $1,423,000 $1,616,156 $1,551,000

City of Mesa, Arizona 324 Executive Budget Plan 2017/18 Department Operational Plans

Public Information and Communications

Public Information and Communications Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Citywide Special Events - $114,722 - - - $114,722

Public Information & Communication - $1,436,278 - - - $1,436,278

Expenditure Total - $1,551,000 - - - 1,551,000

Public Information & Revenue Communication - $77,000 - - - $77,000

Revenue Total - $77,000 - - - 77,000

Expenditures Net of Revenues - $1,474,000 - - - $1,474,000

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

General Fund General Fund $1,551,000 $77,000 $1,474,000

Totals $1,551,000 $77,000 $1,474,000

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Citywide Special Events - $76,722 $38,000 - $114,722

Public Information & Communication 8.5 - $49,169 $271,624 $1,115,485 $1,436,278

Sum: 8.5 - $125,891 $309,624 $1,115,485 $1,551,000

City of Mesa, Arizona 325 Executive Budget Plan 2017/18 Department Operational Plans

Transit Services

Transit Services Contact Information:

Department Phone Number: 480-644-2160 Department Email: [email protected] Department Address: City of Mesa, Transit Services 300 E. 6th St. Mesa, AZ 85211 Website: http://mesaaz.gov/residents/transit-public-transportation

Department Description The Transit Services Department serves the public by planning, designing, operating, and maintaining a high quality, transit system for the City of Mesa.

City Council Strategic Initiatives: Sustainable Economy, Stronger Neighborhoods, Placemaking, and Diversity

Department Business Objective Core Business Process

• Fixed Route Bus • Light Rail Transit Transit • Para Transit Services • Transit Administration Services • Transit Facility and Park-and- Ride O and M

Budgetary Highlights The Transit Services budget is largely determined by contracts with the Regional Public Transportation Authority (RPTA) and Valley Metro Rail for bus, paratransit, and light rail operations. The FY 2017/18 capital improvement program includes the 1.9-mile extension of the light rail line to Gilbert Road. Operational funding for this extension is not needed in FY 2017/18, however it is included in the multi-year forecast.

The costs of services in FY 2017/18 are increasing. The FY 2017/18 Adopted Budget is $1.5 million higher than the FY 2016/17 Adopted Budget mainly due to costs associated with two off-duty uniformed officers to patrol Mesa’s light rail stations, increased maintenance costs on aging light rail cars and lower projections for light rail and bus fare revenues.

The FY 2017/18 Adopted Budget includes $350,000 to fund the first year of an Alternatives Analysis to extend the light rail through Mesa’s Fiesta District south toward downtown Chandler. This Alternatives Analysis is the next step after the corridor feasibility study was completed in early 2017, assessing potential routes, station locations, street configuration changes and phasing options. The analysis is expected to be completed over three years a total cost of $900,000. Additionally, the FY 2017/18 Adopted Budget includes $100,000 to fund Mesa’s portion of the first year of a joint feasibility study with the City of Tempe for a streetcar extension. The study will evaluate extending streetcar down Rio Salado from downtown Tempe to Sloan Park and the Riverview shopping center. The study is expected to be completed over two years at total cost of $300,000 for Mesa’s portion of the study.

City of Mesa, Arizona 326 Executive Budget Plan 2017/18 Department Operational Plans

Transit Services

Transit Services Business Objective

Mission

Collaborate with regional partners to provide innovative, safe, and efficient transit options that support mobility, accessibility, and economic vitality for the City of Mesa.

Desired Outcomes

Mesa residents and visitors have mobility options within the City and the region to access significant employment/activity centers and residential areas

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Dial-a-Ride Ridership # Dial-a-ride trips 0 0 132,000

Numbers of trips Mesa residents take using Dial a Ride service, as reported by Valley Metro. Source: Valley Metro Monthly Performance Report

Ride Choice Ridership # of Ride Choice Riders 0 0 2,030

Number of trips Mesa residents take using Ride Choice services, as reported by Valley Metro. Source: Valley Metro Monthly Performance Report

Light-Rail Passengers # of light-rail passengers 0 0 2,316,000

Total number of passengers boarding light rail at Mesa stops. Source: Valley Metro monthly performance report. Source: Valley Metro Monthly Performance Report

Fixed Route Total Ridership # of fixed route riders 0 0 4,200,000

Total number of passengers boarding Fixed Route service within the City of Mesa as reported by Valley Metro. Source: Valley Metro Monthly Performance Report

City of Mesa, Arizona 327 Executive Budget Plan 2017/18 Department Operational Plans

Transit Services

Transit Services Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Restricted Funds $10,715,468 $13,415,000 $12,731,551 $15,348,000

Sum: $10,715,468 $13,415,000 12,731,551 $15,348,000

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 3 3

Personal Services $286,409 $304,415 $2,500 $313,297

Other Services $10,336,548 $12,962,905 $8,071,345 $14,996,923

Commodities $78,521 $147,680 $4,657,706 $37,780

Capital Outlay $13,991 - -

Sum: $10,715,468 $13,415,000 $12,731,551 $15,348,000

City of Mesa, Arizona 328 Executive Budget Plan 2017/18 Department Operational Plans

Transit Services

Transit Services Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Fixed Route Bus - - - - $4,326,448 $4,326,448

Light Rail - - - - $7,590,000 $7,590,000

Para Transit - - - - $1,629,202 $1,629,202

Transit Administration - - - - $944,200 $944,200

Transit Facility and Park- and-Ride O and M - - - - $858,150 $858,150

Expenditure Total - - - - $15,348,000 15,348,000

Revenue Light Rail - - - - $2,245,264 $2,245,264

Transit Facility and Park- and-Ride O and M - - - - $25,000 $25,000

Revenue Total - - - - $2,270,264 2,270,264

Expenditures Net of Revenues - - - - $13,077,736 $13,077,736

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Restricted Funds Special Programs Fund - $25,000 -$25,000

Transit Fund $15,348,000 $2,245,264 $13,102,736

Totals $15,348,000 $2,270,264 $13,077,736

City of Mesa, Arizona 329 Executive Budget Plan 2017/18 Department Operational Plans

Transit Services

Transit Services Business Objective

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Fixed Route Bus - - $4,326,448 - $4,326,448

Light Rail - - $7,590,000 - $7,590,000

Para Transit - - $1,629,202 - $1,629,202

Transit Administration 3 - $17,780 $613,123 $313,297 $944,200

Transit Facility and Park- and-Ride O and M - $20,000 $838,150 - $858,150

Sum: 3 - $37,780 $14,996,923 $313,297 $15,348,000

City of Mesa, Arizona 330 Executive Budget Plan 2017/18 Department Operational Plans

Transportation

Transportation Contact Information:

Department Phone Number: 480-644-2160 Department Email: [email protected] Department Address: City of Mesa, Transportation Department 300 E. 6th St. Mesa, AZ 85211 Website: http://mesaaz.gov/residents/transportation

Department Description The Transportation Department serves the public by planning, designing, operating, and maintaining a high quality, multi-modal transportation system for the City of Mesa. The Department is a regional leader in transportation, anticipating future needs to maintain a high quality of life for residents.

City Council Strategic Initiatives: Community Safety, Stronger Neighborhoods, Placemaking, and Diversity

Department Business Objective Core Business Process

Transportation • Field Operations Transportation • Traffic Engineering

Budgetary Highlights The FY17/18 adopted budget includes one-time funding from the Local Streets Sales Tax Fund for several projects and initiatives. To plan for future growth, the Department has received $150,000 for a Southeast Mesa Transportation and Land Use Plan that will show the current and future transportation needs in and around the State Route 24 corridor and $150,000 to develop a Streetlight Master Plan, which will evaluate options for a possible conversion from High Pressure Sodium (HPS) fixtures to Light Emitting Diode (LED) fixtures. To promote accessibility and safety, $250,000 is provided to collect data to determine City sidewalks and pedestrian ramps in the public right of way that are out of compliance with the 2010 Americans with Disabilities Act as well as $285,000 to install a High-Intensity Activated Crosswalk (HAWK) Beacon at University and Grand to allow for easier pedestrian and bike crossings over University Drive between Country Club Drive and Center Street. To promote an aesthetically pleasing and welcoming appearance, $115,000 is provided in funding for tree lighting along the East Valley Institute of Technology’s Main Street location.

The adopted budget also includes the purchase of a new street sweeper specifically designed for pavement patching operations. Use of a standard street sweeper causes undue wear and tear and shortens a street’s useful life. The funding is provided from a matching grant from the Maricopa Association of Governments, with the City’s portion of the match provided from the environmental compliance fee.

City of Mesa, Arizona 331 Executive Budget Plan 2017/18 Department Operational Plans

Transportation

Transportation Business Objective

Mission

Serving the public by planning, designing, operating and maintaining a safe and efficient, multi-modal transportation system.

Desired Outcomes

- Motorists can safely and efficiently navigate Mesa's street system - Mesa's street system meets or exceeds industry standards for life expectancy - Vehicular incidents occurring as a result of traffic control device maintenance or street conditions is minimized - The street environment is aesthetically pleasing and environmentally responsible

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Pothole Repairs % Potholes Rep < 1 days 100 97.28 100

The Benchmark Source is City of Chicago who uses a 7 day turn around period as their target.

Graffiti Abatement % graffiti abated w/in 1 day 92.8 90

The Benchmark Source is City of Chicago, their current target turn around time to abate graffiti is 10 days.

Streetlight Repairs # Days to Repair Streetlights 7 2.64 5

The Benchmark Source SRP, City of Phoenix, and City of Seattle. Each of them have work to repair streetlights within 10 days upon notice by the public.

Streets Network PCI Streets Netwk Wghted Avg PCI 70 74.1 70

The Benchmark value is based upon what the State of California does for all of their cities and counties. They have the only state wide system that evaluates all roads on the same basis with the same software.

Average Speed of Travel # MPH Travel in PM Peak 25 25.8 25

This metric is based upon the midpoint for LOS C traffic flow from the Highway Capacity Manual and is a combination of 40 mph and 45 mph streets.

City of Mesa, Arizona 332 Executive Budget Plan 2017/18 Department Operational Plans

Transportation

Transportation Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $422,491 $660,075 $627,128 $443,735

General Fund $15,921 $122,200 $47,261 $196,029

Restricted Funds $34,848,186 $41,819,075 $38,682,560 $43,413,530

Sum: $35,286,598 $42,601,350 39,356,948.8 $44,053,294

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 156.5 158

Personal Services $12,559,494 $13,711,691 $9,048,955 $13,567,935

Other Services $18,129,785 $21,557,332 $10,220,970 $23,812,815

Commodities $4,280,196 $7,746,605 $19,304,560 $7,179,853

Capital Outlay $523,097 - $475,989 -

Offsets and Credits -$205,974 -$414,278 $306,475 -$507,309

Sum: $35,286,598 $42,601,350 $39,356,949 $44,053,294

* Does not include Offsets and Credits City of Mesa, Arizona 333 Executive Budget Plan 2017/18 Department Operational Plans

Transportation

Transportation Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Field Operations $443,735 $196,029 - - $36,449,089 $37,088,853

Traffic Engineering - - - - $6,964,441 $6,964,441

Expenditure Total $443,735 $196,029 - - $43,413,530 44,053,294

Revenue Field Operations - $15,000 - - $402,480 $417,480

Traffic Engineering - - - - $438,273 $438,273

Revenue Total - $15,000 - - $840,753 855,753

Expenditures Net of Revenues $443,735 $181,029 - - $42,572,777 $43,197,541

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Enterprise Fund $443,735 - $443,735

General Fund Capital - General Fund $173,829 - $7,200

General Fund $22,200 $15,000 $173,829

Restricted Funds Environmental Compliance Fee $4,593,228 - $6,000

Falcon Field Airport $6,000 - $55,128

Highway User Revenue Fund $15,702,844 - $4,593,228

Local Streets Sales Tax $23,056,330 $840,753 $15,702,844

Transit Fund $55,128 - $22,215,577

Totals $44,053,294 $855,753 $43,197,541

City of Mesa, Arizona 334 Executive Budget Plan 2017/18 Department Operational Plans

Transportation

Transportation Business Objective

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Field Operations 122.3 - $6,032,023 $21,785,000 $9,779,139 $37,088,853

Traffic Engineering 35.8 - $1,147,830 $2,027,815 $3,788,796 $6,964,441

Sum: 158 - $7,179,853 $23,812,815 $13,567,935 $44,053,294

City of Mesa, Arizona 335 Executive Budget Plan 2017/18 Department Operational Plans

Water Resources

Water Resources Contact Information:

Department Phone Number: 480-644-4444 Department Email: [email protected] Department Address: City of Mesa, Water Resources Department 640 N Mesa Drive Mesa, AZ 85211 Website: www.mesaaz.gov/water

Department Description

For more than a century, the Water Resources Department has provided reliable, safe, economical, and environmentally responsible water and wastewater services for the community. Water Resources staff consider it a personal point of pride to provide these valuable services that protect public health and the environment, bolster the local economy, and are an integral part of the vibrant lifestyle enjoyed in Mesa. The Water Resources Department serves a growing population of over 485,000 in a service area of 170 square miles. As of June 2017, the water system provides service to approximately 149,000 residential and commercial connections. The wastewater system provides service to approximately 125,000 residential and commercial connections.

City Council Strategic Initiatives: Community Safety, Sustainable Economy, Well-Managed and Innovative Government

Department Business Objective Core Business Process

Wastewater • Wastewater Collection • Wastewater Treatment

Water Resources

Water • Water Distribution • Water Treatment • Reclaimed Water

City of Mesa, Arizona 336 Executive Budget Plan 2017/18 Department Operational Plans

Budgetary Highlights

The FY 2017/18 Adopted Budget for the Water Resources Department comprises changes to the cost of power and utilities, water commodity purchases, the commencement of operations of the new Signal Butte Water Treatment Plant, and the City’s participation in joint water treatment ventures with other municipalities. The addition of the new Signal Butte Water Treatment Plant represents the largest increase to the department’s operations and maintenance budget, totaling $3.4 million in FY 2017/18, including $1.2 million in one-time funds for machinery, equipment, furniture and tools. Water purchases are expected to increase by $1.2 million because of water commodity price increases charged by the Central Arizona Project and Salt River Project. Electric and chemical costs are forecasted to decrease by $30,000 because of improved resource management and operational efficiencies at the water treatment plants. The City participates in joint ventures with other municipalities to provide water and wastewater services. The City’s participation costs in these joint ventures are expected to be lower by $155,000 for FY17/18 as compared with the previous fiscal year. The FY 2017/18 Adopted Budget includes 15 new positions. Eleven new positions were authorized for the commencement of operations at the Signal Butte Water Treatment Plant. The positions will support the daily operations and maintenance of the facility, which is expected to become operational in May 2018. Three positions were authorized as part of the Greenfield Water Reclamation Plant Expansion. The Greenfield expansion will service new growth in the southeastern part of the City. The positions will provide support during the construction phase of the expansion project and will transition to plant operations when the expansion project is completed in Summer/Fall 2020. One position was authorized for the operations and maintenance of new City wells.

City of Mesa, Arizona 337 Executive Budget Plan 2017/18 Department Operational Plans

Water Resources

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $50,980,664 $60,177,190 $56,402,932 $66,271,119

General Fund $85,973 $94,083 $93,333 $99,011

Restricted Funds $7,295,974 $7,680,527 $6,887,638 $8,051,944

Sum: $58,362,611 $67,951,800 $63,383,903 $74,422,074

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 243.9 266.8

Capital Outlay $918,415 $496,210 4,207,715.71 $931,675

Commodities $14,917,741 $17,198,562 19,898,088.06 $20,269,445

Other Services $21,685,107 $28,850,926 21,674,915.04 $29,875,488

Personal Services $20,841,349 $21,406,102 17,603,183.86 $23,345,466

Sum: $58,362,611 $67,951,800 63,383,902.67 $74,422,074

City of Mesa, Arizona 338 Executive Budget Plan 2017/18 Department Operational Plans

Water Resources

FY 17/18 Operational Budget By Business Objective and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Business Objective Fund Fund Funds Funds Funds Budget

Expenditure Wastewater $21,533,951 $8,076 - - $7,216,298 $28,758,325

Water $44,737,168 $90,935 - - $835,646 $45,663,749

Expenditure Total $66,271,119 $99,011 - - $8,051,944 $74,422,074

Revenue Wastewater ------

Water ------

Revenue Total ------

Expenditures Net of Revenues $66,271,119 $99,011 - - $8,051,944 $74,422,074

FY 17/18 Operational Budget by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Net Funding Source Fund Name Expenditures Revenues of Revenues

Enterprise Fund Capital - Enterprise $591,675 - $591,675

Enterprise Fund $65,679,444 - $65,679,444

General Fund General Fund $99,011 - $99,011

Restricted Funds Environmental Compliance Fee $32,907 - $32,907

Greenfield WRP Joint Venture $6,720,755 - $6,720,755

Local Streets Sales Tax $93,112 - $93,112

Utility Replacement Extension and Renewal $1,205,170 - $1,205,170

Totals $74,422,074 - $74,422,074

FY 17/18 Operational Budget By Business Objective and Category

Capital Other Personal FY 17/18 Business Objective FTE Commodities Outlay Services Services Budget

Wastewater 82.6 $340,000 $4,229,860 $16,542,207 $7,646,258 $28,758,325

Water 184.2 $591,675 $16,039,585 $13,333,281 $15,699,208 $45,663,749

Sum: 266.8 $931,675 $20,269,445 $29,875,488 $23,345,466 $74,422,074

City of Mesa, Arizona 339 Executive Budget Plan 2017/18 Department Operational Plans

Water Resources

Wastewater Business Objective

Mission

Provide reliable, high quality, and environmentally responsible wastewater services at fair and reasonable rates for the people in our community.

Desired Outcomes

- Wastewater treatment is cost effective - The system reliably collects and treats wastewater and delivers reclaimed water - Treated wastewater meets all regulations for beneficial reuse - The environment is protected from wastewater contamination

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Inspection of Sewer Lines # miles sewer line inspected 80 37.16 80

The target was based on AWWA's standard of all lines inspected in a 20 year time frame.

Sanitary Sewer Overflows # san sewer overflows 0 3 0

The target was determined based on the departments goal of 0 SSO's in the system.

City of Mesa, Arizona 340 Executive Budget Plan 2017/18 Department Operational Plans

Water Resources

Wastewater Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $16,635,024 $21,093,926 $56,402,932 $21,533,951

General Fund $1,879 $7,750 $93,333 $8,076

Restricted Funds $6,772,249 $7,193,482 $6,887,638 $7,216,298

Sum: $23,409,152 $28,295,158 63,383,902.67 $28,758,325

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 79.4 82.6

Personal Services $6,913,808 $7,338,534 $17,603,184 $7,646,258

Other Services $11,830,940 $16,108,243 $21,674,915 $16,542,207

Commodities $4,052,483 $4,438,456 $19,898,088 $4,229,860

Capital Outlay $611,921 $409,925 $4,207,716 $340,000

Sum: $23,409,152 $28,295,158 $63,383,903 $28,758,325

City of Mesa, Arizona 341 Executive Budget Plan 2017/18 Department Operational Plans

Water Resources

Wastewater Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Wastewater Collection $4,394,685 $8,076 - - $32,907 $4,435,668

Wastewater Treatment $17,139,266 - - - $7,183,391 $24,322,657

Expenditure Total $21,533,951 $8,076 - - $7,216,298 28,758,325

Expenditures Net of Revenues $21,533,951 $8,076 - - $7,216,298 $28,758,325

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Enterprise Fund $21,533,951 - $21,533,951

General Fund General Fund $8,076 - $8,076

Restricted Funds Environmental Compliance Fee $32,907 - $32,907

Greenfield WRP Joint Venture $6,720,755 - $462,636

Utility Replacement Extension and Renewal $462,636 - $6,720,755

Totals $28,758,325 - $28,758,325

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Wastewater Collection 25.7 - $1,247,110 $760,311 $2,428,247 $4,435,668

Wastewater Treatment 56.9 $340,000 $2,982,750 $15,781,896 $5,218,011 $24,322,657

Sum: 82.6 $340,000 $4,229,860 $16,542,207 $7,646,258 $28,758,325

City of Mesa, Arizona 342 Executive Budget Plan 2017/18 Department Operational Plans

Water Resources

Water Business Objective

Mission

Provide reliable, high quality water services at fair and reasonable rates for the people in our community.

Desired Outcomes

- Mesa's water demands are met - Mesa's water is safe and reliable - Mesa's water quality meets Mesa's goals for taste, odor, and fluoride - Water is provided in a cost-effective manner

Performance Measures

FY 16/17 FY 16/17 FY 17/18 Performance Measure Name Unit of Measure Target YTD Actual Target

Distribution System Water Losses % water lost from system 10 6.4 0

The target was determined based on historical data.

Waterline Breaks # leaks&breaks/100 miles pipe 9 15.29 1

The target is based on historical data.

Error Rate % Wmeter read w/errors 0 0 0.04

The target is based on a management policy to have 4 or fewer errors per 10,000 reads.

City of Mesa, Arizona 343 Executive Budget Plan 2017/18 Department Operational Plans

Water Resources

Water Business Objective

Operational History by Funding Source

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Funding Source Projected Actual Budget Budget Expenditures

Enterprise Fund $34,345,640 $39,083,264 $56,402,932 $44,737,168

General Fund $84,094 $86,333 $93,333 $90,935

Restricted Funds $523,725 $487,045 $6,887,638 $835,646

Sum: $34,953,459 $39,656,642 63,383,902.67 $45,663,749

Operational History by Category

FY 16/17 FY 15/16 FY 16/17 FY 17/18 Category Projected Actual Budget Budget Expenditures

FTE 164.5 184.2

Personal Services $13,927,541 $14,067,568 $17,603,184 $15,699,208

Other Services $9,854,167 $12,742,683 $21,674,915 $13,333,281

Commodities $10,865,258 $12,760,106 $19,898,088 $16,039,585

Capital Outlay $306,494 $86,285 $4,207,716 $591,675

Sum: $34,953,459 $39,656,642 $63,383,903 $45,663,749

City of Mesa, Arizona 344 Executive Budget Plan 2017/18 Department Operational Plans

Water Resources

Water Business Objective

FY 17/18 Operational Budget By Core Business Process and Funding Source

Enterprise General Grant Other Restricted FY 17/18 Core Business Process Fund Fund Funds Funds Funds Budget

Expenditure Reclaimed $11,878,426 - - - - $11,878,426

Water Distribution $15,681,689 $90,935 - - $731,335 $16,503,959

Water Treatment $17,177,053 - - - $104,311 $17,281,364

Expenditure Total $44,737,168 $90,935 - - $835,646 45,663,749

Expenditures Net of Revenues $44,737,168 $90,935 - - $835,646 $45,663,749

FYParent 17/18 Fund Operational Name Fund Budget Name by Funding Source - Expenditures and Revenues

FY 17/18 FY 17/18 FY 17/18 Expenditures Funding Source Expenditures Revenues Net of Revenues

Enterprise Fund Capital - Enterprise $591,675 - $591,675

Enterprise Fund $44,145,493 - $44,145,493

General Fund General Fund $90,935 - $90,935

Restricted Funds Local Streets Sales Tax $93,112 - $93,112

Utility Replacement Extension and Renewal $742,534 - $742,534

Totals $45,663,749 - $45,663,749

FY 17/18 Operational Budget By Core Business Process and Category

Personal FY 17/18 Core Business Process FTE Capital Outlay Commodities Other Services Services Budget

Reclaimed 1.8 - $11,323,838 $342,950 $211,638 $11,878,426

Water Distribution 143 $1,525 $1,341,144 $2,907,795 $12,253,495 $16,503,959

Water Treatment 39.5 $590,150 $3,374,603 $10,082,536 $3,234,075 $17,281,364

Sum: 184.2 $591,675 $16,039,585 $13,333,281 $15,699,208 $45,663,749

City of Mesa, Arizona 345 Executive Budget Plan 2017/18 Department Operational Plans

City of Mesa, Arizona 346 Executive Budget Plan 2017/18 & DEMOGRAPHIC Financial CITY LEADERSHIP

Schedules S

BUDGET & FINANCIAL SUMMARIES

PROJECTS & CAPIT BUDGET

AL

OPERA DEP TIONAL PLANS ARTMENT

SCHEDULES FINANCIAL FISCAL YEAR 2017-2018 MESA, ARIZONA Financial Schedules

Fund Types

The financial transactions of the City are recorded in individual funds. A fund is a grouping of related accounts used to maintain control over resources that have been designated for specific activities or objectives. The City uses fund accounting to ensure compliance with finance-related legal requirements, as well as for managerial control in order to demonstrate fiduciary responsibility over the assets of the City. Types of funds used by the City include governmental funds, proprietary funds and fiduciary funds.

Governmental Funds

The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government that are not accounted for in other funds. In Mesa, these services include general government, public safety, culture and recreation, and any other activity for which a special fund has not been created. The General Fund includes:

• The General Fund is the primary operating fund of the City.

• The Capital – General Fund is used for capital purchases funded by the General Fund. The use of a separate capital fund allows for easier tracking of capital expenditures and provides more accurate comparisons between years in the General Fund.

Restricted Funds are used to account for specific revenues that are restricted to expenditures for particular purposes. The City’s Restricted Funds include the following:

• The Arts and Culture Fund was established to allow for easier tracking and management of the financial aspect of the various activities of the Mesa Arts Center, the i.d.e.a. Museum and the Museum of Natural History. These facilities rely on admission fees and ticket sales to augment the City of Mesa’s General Fund contribution. Revenues collected at the different venues will be allocated to this fund. The General Fund contribution will be set at a fixed amount each fiscal year and transferred to the new fund

• The Cemetery Fund accounts for Cemetery expenditures and revenues from cemetery sales and services.

• The Cemetery Reserve Fund accounts for revenues and expenditures for the perpetual care of interment spaces in the Cemetery. A perpetual care fee is charged on all spaces and the interest earned from the accumulation of these fees provides for perpetual care of the spaces.

• The Court Construction Fee Fund was established to assist with the payment of debt for the construction of a new court facility. Funds are provided through the collection of a surcharge on fines levied by Mesa Municipal Court.

City of Mesa, Arizona 347 Executive Budget Plan 2017/18 Financial Schedules

• The Eastmark and Cadence Community Facilities District (CFD) Funds account for large-scale, comprehensively-planned infrastructure development that promotes residential and non- residential land use.

• The Economic Investment Fund accounts for the investment of funds to help sustain and grow the business environment in the City of Mesa.

• The Environmental Compliance Fee Fund was established to comply with the mandated Federal, State and County requirements regarding environmental standards. A flat fee is charged per account, each month to all City of Mesa utility customers. Revenues from this fee offset mandated compliance expenses such as maintenance of storm water retention basins and air quality standards.

• The Falcon Field Airport Fund is used to account for all of the activities of the city-owned airport.

• The Greenfield Water Reclamation Plant (WRP) Joint Venture Fund accounts for the Greenfield Water Reclamation Plant which is run by the City but which also treats sewage from portions of Mesa, Gilbert, Queen Creek and the Gila River Indian Community.

• The Highway User Revenue Fund (HURF) accounts for capital projects and maintenance of the City’s streets and highways, as mandated by the Arizona Revised Statutes. Financing for this fund is provided by state-shared fuel taxes.

• The Local Streets Sales Tax Fund accounts for voter-approved revenue dedicated to the Streets program. This fund provides the matching requirement to obtain Maricopa Association of Governments (MAG) Proposition 400 monies, and provides a local revenue source to fund street operations and maintenance.

• The Mesa Arts Center Restoration Fee Fund has been established as a replacement fund to provide for future repairs and maintenance of the Mesa Arts Center. The revenues in this fund are collected as a ticket surcharge for events that take place at the Mesa Arts Center.

• The Quality of Life Sales Tax Fund is used for voter-approved revenue dedicated to the following programs: Law Enforcement, Fire and Medical, Parks and Recreation, Library, Aquatics, Arts and Culture and Transportation.

• The Restricted Programs Fund was established to account for other restricted funds such as sponsorships or restricted donations.

• The Solid Waste Development Fee Fund was established to account for the development fee which is collected to cover the cost of new equipment needed to support the growth of residential collection for trash and recycling including the cost of vehicles, barrels and bins.

• The Special Programs Fund was established to account for funds that are restricted by decision of City management and not by law or designation of the donor or sponsor.

City of Mesa, Arizona 348 Executive Budget Plan 2017/18 Financial Schedules

• The TOPAZ Joint Venture Fund accounts for revenue and expenditures related to the City of Mesa’s joint venture in the Trunked Open Arizona Network (TOPAZ) which provides voice and data communication systems for public safety and municipal uses to Mesa as well as a number of other cities in the area.

• The Transit Fund accounts for all transit-related funding sources and expenditures including Local Transportation Assistance Fund (LTAF) monies. The main source of funding is a transfer from the General Fund.

• The Transportation Fund accounts for Maricopa Association of Government (MAG) Proposition 400 sales tax funds that are allocated to local subdivisions for transportation projects in the Regional Transportation Plan (RTP).

• The Utility Replacement Extension and Renewal Fund is designed to account for replacement costs for the City’s utilities (Electric, Gas, Water, Wastewater and Solid Waste). Funds are transferred from the Enterprise Fund to support the replacement of utility vehicles, projects and infrastructure per utility revenue bond requirements.

• The Vehicle Replacement Fund is designed to account for replacement costs for the City’s fleet of vehicles. Funds are transferred from the General Fund to support the replacement of vehicles.

Impact Fee Funds are designed to provide funding to ensure that new development bears a proportionate share of the cost of improvements to the City’s parks, law enforcement facilities, fire facilities and equipment, and utility infrastructure. These funds are provided through the collection of development impact fees.

Grant Funds are designed to account for all grant monies that are received by the City. They include:

• The Community Development Block Grant Fund accounts for Federal grant funds that are provided on an annual basis that can be used to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, principally to benefit low and moderate income persons.

• The Grants – Enterprise Fund is designed to account for contributions by the State or Federal government or other organizations to support a particular function that would typically be accounted for under the Enterprise Funds.

• The Grants – General Government Fund is designed to account for contributions by the State or Federal government or other organizations to support a particular function.

• The HOME (Home Ownership Made Easier) Fund accounts for grant funds received to help communities expand the supply of decent, safe, sanitary and affordable housing, with primary attention to housing for low income families.

City of Mesa, Arizona 349 Executive Budget Plan 2017/18 Financial Schedules

• The Section 8 (Housing Choice Voucher Program) Fund accounts for grant funds received to provide rental assistance to low-income families for decent, safe, and sanitary housing by contracting with private owners and subsidizing a portion of the family’s monthly rent.

Debt Service Funds are used to account for the payment of long-term debt principal and interest. The City’s Debt Service Funds include:

• The General Obligation Bond Redemption Fund accounts for payment of the principal and interest requirements of the City’s General Obligation Bonds. Funding is provided by secondary property tax revenue and a transfer from the General Fund.

• The Highway Project Advancement Notes (HPAN) Fund accounts for the payment of principal and interest requirements for Highway Project Advancement Notes. HPANs are issued to finance highway infrastructure.

• The Highway User Revenue Bond Redemption Fund accounts for the payment of principal and interest requirements of the City’s Highway User Revenue Bonds. Revenues are provided by a transfer from the Highway User Revenue Fund.

• The Non-Utility Bond Redemption Fund accounts for the payment of principal and interest requirements for non-utility economic investment projects.

• The Special Improvements District Bond Redemption Fund accounts for the payment of the Special Improvement District Bonds that are issued to finance the costs of improvements which are paid from special assessments levied against the benefited properties.

• The Transportation Project Advancement Notes (TPAN) Fund accounts for the payment of principal and interest of Transportation Project Advancement Notes issued to finance transit infrastructure.

• The Utility Systems Bond Redemption Fund accounts for the payment of principal and interest requirements of financing the construction and maintenance of utility system infrastructure. Debt service on utility system bonds is funded by revenue from customer utility rate charges.

• The Utility Systems GO Bond Redemption Fund accumulates resources for the payment of principal and interest requirements of General Obligation bonds used to finance the construction and maintenance of utility system infrastructure. Debt service on utility system bonds is funded by revenue from customer utility rate charges.

• The WIFA Redemption Fund accumulates resources for the payment of principal and interest requirements of using Arizona Water Infrastructure Finance Authority (WIFA) financing to construct and maintain water and wastewater infrastructure. Debt service on WIFA bonds is funded by revenue from water and wastewater customer utility rate charges.

City of Mesa, Arizona 350 Executive Budget Plan 2017/18 Financial Schedules

Bond Funds are used to account for bond proceeds to be used only for the construction of approved bond capital projects. These projects include: new park site acquisitions as well as park improvements; public safety buildings; the construction of drains, basins, channels and other storm sewer improvements; right-of-way acquisitions and street improvements; utility (Electric, Gas, Solid Waste, Wastewater and Water) infrastructure construction, upgrades and acquisitions; and the construction of spring training baseball facilities.

Proprietary Funds

The Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that a periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Enterprise Funds include:

• The Capital – Enterprise Fund which is used for purchases funded by the Enterprise Fund. The use of a separate capital fund allows for easier tracking of capital expenditures and provides more accurate comparisons between years in the Enterprise Fund.

• The Enterprise Fund which is utilized to account for city-owned electric, gas, water, wastewater, solid waste and district cooling systems, as well as the city-owned golf course, the Mesa Convention Center, the Hohokam Stadium and Cubs Spring Training facilities.

Internal Service Funds account for goods or services provided by one department to other departments or agencies of the City, on a cost reimbursement basis. These services include fleet services, a print shop, and a materials warehouse.

Fiduciary Funds

Agency Funds account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.

Trust Funds are held in a trustee capacity and account for all assets and activities that are restricted to a specific purpose in accordance with the formal intent of the trust. The principal of the fund can only be expended to forward the activity specified, such as an employee benefits plan, self-insurance for property and public liability, and worker’s compensation.

City of Mesa, Arizona 351 Executive Budget Plan 2017/18 Financial Schedules

Budget Basis of Accounting

The basis of budgeting is the method used to determine when revenues and expenditures are recognized for budgetary purposes. This documents the key differences between generally accepted accounting principles (GAAP) and the employed budgetary basis to ensure consistency from year to year and equitably communicate the planned costs for major service areas and capital projects.

The City of Mesa uses the modified accrual basis of accounting for governmental funds. Revenues are recognized when they become measurable and available to finance City operations. “Available” means “collectable” within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are generally recognized when the related fund liability is incurred.

An exception to this general rule is interest on long-term debt, which is recorded when due.

The accrual basis of accounting is used for Proprietary Funds. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenditures are recognized when they are incurred.

The Fund Statements in the Comprehensive Annual Financial Report (CAFR) present the status of the City’s finances on the basis of “generally accepted accounting principles” (GAAP). In most cases, this conforms to the way the City prepares its budget with the following major exceptions:

a. Compensated absence liabilities that are expected to be liquidated with expendable available financial resources are accrued as earned by employees (GAAP), as opposed to being expended when paid (budget).

b. Principal payments on long-term debt within the Enterprise Fund are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a budget basis.

c. Capital outlays within the Enterprise Fund are recorded as assets on a GAAP basis and expended on a budget basis.

d. Depreciation expense is recorded on a GAAP basis only.

The Comprehensive Annual Financial Report presents fund expenditures and revenues on both a GAAP basis and budget basis for comparison purposes.

The City of Mesa CAFR can be found at: www.mesaaz.gov/city-hall/accounting.

City of Mesa, Arizona 352 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Estimated Revenues and Expenditures Fiscal Year 2017/18 Adopted

1 2 3 4 5 6 7 8 9 10 FUND TYPES Internal Impact Debt Total Fiscal General Enterprise Restricted Service Fee Grant Trust Service Bond Contingency All

Year Schedule Fund Fund Funds Funds Funds Funds Funds Funds Funds Fund Funds

2015/16 Actual Expenditures/Expenses E $315,712,452 $147,715,021 $169,806,066 $112,433 $939 $29,894,929 $84,372,399 $408,052,252 $119,925,087 - $1,275,591,578

2016/17 Adopted Budgeted Expenditures/Expenses E $364,637,547 $175,849,469 $223,313,016 $7,406,561 - $45,645,895 $97,314,653 $177,380,859 $258,581,000 $319,871,000 $1,670,000,000

2017/18 Estimated Fund Balance at July 1, 2017 $102,069,626 $93,940,697 $153,786,173 $830,717 $14,113,242 $1,411,329 $61,211,916 $5,197,900 $121,365,823 - $553,927,422

2017/18 Primary Property Tax Levy B ------

2017/18 Secondary Property Tax Levy B ------$33,440,262 - - $33,440,262

2017/18 Estimated Revenues Other than Property Taxes C $278,653,881 $364,769,335 $225,306,880 $7,473,754 $9,125,706 $52,560,187 $96,067,885 $9,074,301 - $5,000,000 $1,048,031,929

2017/18 Other Financing Sources D - - $15,000,000 - - - - - $191,754,000 $265,068,000 $471,822,000

2017/18 Interfund Transfers In D $125,313,058 $3,972,986 $36,025,891 - $660,375 - - $96,558,763 - - $262,531,073

2017/18 Interfund Transfers Out D $36,250,935 $198,655,704 $20,843,311 - $6,781,124 - - - - - $262,531,074

2017/18 Total Financial Resources Available $542,287,500 $661,338,722 $450,962,255 $8,304,471 $30,680,447 $53,971,516 $157,279,801 $144,271,226 $313,119,823 $270,068,000 $2,632,283,761

2017/18 Budget Expenditures/Expenses E $386,613,341 $178,972,418 $321,815,856 $7,473,754 - $53,126,674 $103,890,921 $140,111,036 $191,754,000 $356,242,000 $1,740,000,000

Expenditure Limitation Comparison 2016/17 2017/18 Budget Expenditures/Expenses $1,670,000,000 $1,740,000,000 Less Estimated Exclusions $(1,670,000,000) $(1,740,000,000) Amount Subject to the Expenditure Limitation - - Economic Estimates Commission Expenditure Limitation $545,882,614 $559,918,849 Over (Under) State Limit $(545,882,614) $(559,918,849)

The Fund Types above include the following funds: General Fund - General Fund and Capital-General Fund. Enterprise Fund - Enterprise Fund and Capital-Enterprise. Restricted Funds - Arts & Culture, Cadence CFD - Operating, Cemetery, Cemetery Reserve, Court Construction Fee, Customer Deposit Trust, Eastmark CFD 1 - Capital, Eastmark CFD 1 - Debt, Eastmark CFD 1 - Operating, Economic Investment, Environmental Compliance Fee, Falcon Field, Greenfield WRP Joint Venture, Highway User Revenue Fund, Local Streets Sales Tax, Mesa Arts Center Restoration Fee, Quality of Life Sales Tax, Restricted Programs, Solid Waste Development Fee, Special Programs Fund, TOPAZ Joint Venture, Transit, Transportation, and Utility Replacement Extension & Renewal, and Vehicle Replacement. Internal Service Funds - Fleet, Print Shop, and Warehouse. Impact Fee Funds - Cultural Facility, Fire, General Government Facility, Library, Parks, Police, Stormwater, Wastewater, and Water. Grant Funds - Community Development Block Grant, Grants-Enterprise, Grants-Gen. Gov., HOME, and Section 8. Trust Funds - Employee Benefit, Property and Public Liability, and Workers' Compensation.

Debt Service Funds - General Obligation Bond, Highway Project Advancement Notes, Highway User Revenue Bond, Non-Utility Bond, Special Improvement District Bond, Transportation Project Advancement Notes, Utility Systems Bond, Utility Systems Bond, Utility Systems GO Bond, and WIFA.

Bond Funds - Electric, Gas, Parks, Public Safety, Solid Waste, Spring Training, Streets, Wastewater, and Water.

Contingency Fund - Contingency, General Obligation Bond Refunding, Utility Systems Bond Refunding

City of Mesa, Arizona 353 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Tax Levy and Tax Rate Information Fiscal Year 2017/18 Adopted

FY 2016/17 FY 2017/18

Maximum allowable primary property tax levy N/A N/A

Amount received from primary property taxation in excess of the sum of that year's maximum allowable primary property tax levy N/A

Property tax levy amounts: Primary property taxes N/A N/A Secondary property taxes $33,440,629 $33,440,262 Total property tax levy amounts $33,440,629 $33,440,262

Property taxes collected:

Primary property taxes: Current year's levy N/A Prior years' levies N/A Total primary property taxes N/A

Secondary property taxes: Current year's levy $33,440,629 * Prior years' levies - Total secondary property taxes $33,440,629

Total property taxes collected $33,440,629

Property tax rates:

City tax rate: Primary property tax rate N/A N/A Secondary property tax rate 1.1578 1.0968 Total city tax rate 1.1578 1.0968

Special assessment district tax rates: Number of special assessment districts for which secondary property taxes are levied. 0 0

*Includes actual property taxes collected as of the date the proposed budget was prepared, plus estimated property tax collections for the remainder of the fiscal year.

City of Mesa, Arizona 354 Executive Budget Plan 2017/18 Summary of Resources by Source Fiscal Year 2017/18

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Resources Budget Resources Budget Taxes Sales & Use Tax $151,826,064 $156,328,000 $159,379,076 $162,729,000 Secondary Property Tax - City $34,034,768 $33,441,000 $33,441,000 $33,441,000 Secondary Property Tax - Community Facility Districts $729,543 - $745,000 $1,541,000 Transient Occupancy Tax $3,490,914 $3,000,000 $3,000,000 $3,096,000 Other Taxes $30,060 - $31,359 $30,000 Total Taxes $190,111,350 $192,769,000 $196,596,435 $200,837,000

Intergovernmental Federal Grants and Reimbursements $30,780,044 $57,850,224 $25,781,200 $51,740,967 State Shared Revenues $149,349,552 $157,755,000 $159,905,648 $165,390,000 State Grants and Reimbursements $996,606 $780,191 $646,650 $1,016,087 County and Other Governments Revenues $7,541,547 $16,105,019 $15,863,853 $37,778,921 Total Intergovernmental $188,667,750 $232,490,434 $202,197,351 $255,925,975

Sales and Charges for Services General $28,825,361 $31,011,559 $29,148,486 $30,899,000 Culture and Recreation $8,186,081 $7,578,000 $7,571,792 $7,967,000 Enterprise $350,492,057 $370,230,000 $378,398,955 $428,579,954 Total Sales and Charges for Services $387,503,499 $408,819,559 $415,119,233 $467,445,954

Licenses, Fees and, Permits Business Licenses $4,428,932 $4,309,000 $4,107,472 $4,493,000 Permits $13,764,444 $12,392,000 $13,431,989 $12,909,000 Fees $18,718,268 $10,698,000 $19,076,066 $11,004,000 Court Fees $4,417,016 $4,438,000 $3,832,010 $4,902,000 Culture and Recreation $599,010 $476,000 $875,247 $626,000 Total Licenses, Fees and Permits $41,927,669 $32,313,000 $41,322,783 $33,934,000

Fines and Forfeitures Court Fines $4,500,224 $3,989,000 $4,055,173 $5,552,000 Other Fines $501,372 $471,000 $521,434 $414,000 Total Fines and Forfeitures $5,001,596 $4,460,000 $4,576,608 $5,966,000

Self Insurance Contributions Self Insurance Contributions $79,467,370 $89,652,000 $84,639,374 $96,006,000 Total Self Insurance Contributions $79,467,370 $89,652,000 $84,639,374 $96,006,000

Other Revenue Interest $3,819,481 $1,777,000 $1,362,700 $2,126,000 Contributions and Donations $3,414,528 $4,351,000 $2,570,963 $3,221,000 Sale of Property $757,368 $23,866,000 $24,025,812 $440,000 Other Revenues $8,013,644 $25,080,098 $14,557,573 $15,571,000 Total Other Revenue $16,005,021 $55,074,098 $42,517,049 $21,358,000 Operating Resources Subtotal $908,684,255 $1,015,578,091 $986,968,834 $1,081,472,929

Changes in accounting presentation affect comparisons between years

This schedule does not include Other Financing Sources such as bonds and fund balance

City of Mesa, Arizona 355 Executive Budget Plan 2017/18 Summary of Resources by Fund Fiscal Year 2017/18

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 Actual Adopted Projected Adopted Source Resources Budget Resources Budget General Fund General Fund $257,560,077 $265,818,099 $268,938,629 $278,653,881 Capital - General Fund $77,162 - $25,000 - Total General Fund $257,637,240 $265,818,099 $268,963,629 $278,653,881

Enterprise Fund Capital - Enterprise $301,206 $300,000 $300,000 $505,000 Enterprise Fund $334,806,466 $345,769,842 $350,878,715 $364,264,335 Total Enterprise Fund $335,107,672 $346,069,842 $351,178,715 $364,769,335

Restricted Funds Arts and Culture Fund $6,955,524 $5,337,094 $6,010,827 $6,100,756 Cadence CFD - Operating - $94,816 - $94,816 Cemetery $1,409,395 $1,371,602 $1,375,300 $1,371,602 Cemetery Reserve $181,137 $116,000 $126,000 $126,000 Court Construction Fee $643,506 $779,700 $619,893 $799,910 Customer Deposit Trust $171,112 - - - Eastmark CFD 1 - Capital $216,900 - $44,980 - Eastmark CFD 1 - Debt $1,320,403 $2,091,847 $1,391,609 $3,078,404 Eastmark CFD 1 - Operating $200,890 $158,517 $242,636 $153,403 Economic Investment Fund $2,726,040 $3,113,599 $4,938,657 $2,930,000 Environmental Compliance Fee $15,274,163 $15,274,128 $15,274,128 $15,662,003 Falcon Field Airport $3,713,736 $3,881,883 $4,041,928 $4,184,415 Greenfield WRP Joint Venture $9,825,442 $21,184,100 $20,542,611 $60,765,718 Highway User Revenue Fund $35,424,683 $37,691,409 $38,989,354 $39,660,968 Local Streets Sales Tax $27,831,945 $28,082,740 $28,427,017 $28,797,070 Mesa Arts Center Restoration Fee $353,387 $257,000 $480,000 $306,000 Quality of Life Sales Tax $21,805,010 $22,358,650 $22,873,011 $23,254,048 Restricted Programs Fund $5,532,996 $5,985,179 $6,097,173 $6,210,738 Solid Waste Development Fee $479,211 $403,000 $525,717 $481,990 Special Programs Fund $805,070 $712,644 $907,338 $780,177 TOPAZ Joint Venture Fund $5,839,447 $3,187,478 $4,051,735 $3,155,395 Transit Fund $3,485,157 $15,943,367 $8,230,375 $22,484,923 Transportation $165,460 $3,805,797 $2,162,058 $4,685,310 Utility Replacement Extension & Renewal $5,989 - - - Vehicle Replacement $444,594 $223,234 $200,755 $223,234 Total Restricted Funds $144,811,196 $172,053,784 $167,553,102 $225,306,880

Internal Service Funds Fleet Internal Service $436,321 $835,919 $841,110 $987,611 Print Shop Internal Service $21,029 - $11,500 - Warehouse Internal Service $207,496 $6,570,642 $6,025,961 $6,486,143 Total Internal Service Funds $664,846 $7,406,561 $6,878,571 $7,473,754

Impact Fee Funds Cultural Facility Impact Fee $4,866 - - - Fire Impact Fee $873,169 $424,945 $1,004,909 $437,654 Gen Govt Facility Impact Fee ---- Library Impact Fee $7,736 $2,000 $2,000 $2,000 Parks Impact Fee $2,068,619 $16,000 $13,546 $20,000 Police Impact Fee $1,317,019 $638,201 $1,543,380 $657,284 Stormwater Drainage Impact Fee $717,459 $466,424 $788,305 $489,001 Wastewater Impact Fee $6,288,960 $3,996,538 $7,160,000 $4,095,285 Water Impact Fees $5,372,783 $3,331,511 $6,420,000 $3,424,482 Total Impact Fee Funds $16,650,610 $8,875,619 $16,932,139 $9,125,706

Grant Funds Community Development Block Grant $4,014,862 $13,027,814 $4,255,922 $15,313,904 Grants - Enterprise $1,749,716 $2,788,178 $2,919,526 $4,311,402 Grants - Gen. Gov. $11,957,891 $12,796,573 $4,547,273 $15,892,792 HOME $499,156 $3,054,449 $1,009,752 $3,352,129

City of Mesa, Arizona 356 Executive Budget Plan 2017/18 Summary of Resources by Fund Fiscal Year 2017/18

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 Actual Adopted Projected Adopted Source Resources Budget Resources Budget Section 8 $12,218,335 $13,151,566 $13,010,770 $13,689,960 Total Grant Funds $30,439,960 $44,818,580 $25,743,243 $52,560,187

Trust Funds Employee Benefit Trust $72,684,819 $77,835,572 $75,769,556 $85,436,333 Property and Public Liability $2,978,907 $6,655,085 $3,226,837 $6,860,146 Worker's Compensation $4,489,510 $5,573,428 $5,793,519 $3,771,406 Total Trust Funds $80,153,236 $90,064,085 $84,789,912 $96,067,885

Debt Service Funds General Obligation Bond Redemption $34,759,079 $33,999,699 $33,999,699 $33,999,099 Highway Project Advancement Notes $361,776 - $33,000 $6,000 Highway User Revenue Bond Redemption $9 - - - Non Utility Bond Redemption $4,872,923 $27,811,685 $27,811,685 $4,867,151 Special Improvement District Bond Redemption $790,198 $843,085 $843,085 $403,405 Transportation Project Advancement Notes - $2,500,000 - $1,000,000 Utility Systems Bond Redemption $2,389,620 $2,317,052 $2,242,052 $2,239,646 Utility GO Bond Redemption $677 - - - WIFA Redemption $1,753 - - - Total Debt Service Funds $43,176,035 $67,471,521 $64,929,521 $42,515,301

Bond Funds Electric Bond Construction $4,208 - - - Wastewater Bond Construction $27,076 - - - Water Bond Construction $12,175 - - - Total Bond Funds $43,459 - - -

Contingency Fund Contingency - $13,000,000 - $5,000,000 Total Contingency Fund - $13,000,000 - $5,000,000

Total City Revenues $908,684,255 $1,015,578,091 $986,968,834 $1,081,472,929

Changes in accounting presentation affect comparisons between years.

This schedule does not include Other Financing Sources such as bonds and fund balance.

City of Mesa, Arizona 357 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

General Fund General Fund Taxes Sales and Use Taxes $104,116,182 $107,196,170 $109,115,652 $111,585,495 Transient Occupancy Taxes $39,538 $25,000 $25,000 $25,000 Other Taxes $30,060 - $31,359 $30,000 Total Taxes $104,185,780 $107,221,170 $109,172,011 $111,640,495

Intergovernmental Federal Grants & Reimbursements $367,577 $327,790 $322,190 $397,747 State Shared Revenues $112,643,166 $118,898,591 $119,751,294 $124,568,499 State Grants and Reimbursements $43,057 - $77,776 $10,000 County and Other Governments Revenues $3,507,583 $3,550,353 $3,447,003 $3,823,871 Total Intergovernmental $116,561,382 $122,776,734 $123,598,263 $128,800,117

Sales and Charges for Services General $7,909,251 $7,918,833 $8,118,098 $7,900,688 Culture and Recreation $2,232,026 $2,741,484 $2,358,696 $2,550,075 Enterprise $60,230 - $54,846 $16,957 Total Sales and Charges for Services $10,201,508 $10,660,317 $10,531,640 $10,467,720

Licenses, Fees, and Permits Business Licenses $4,229,454 $4,309,000 $4,107,472 $4,493,000 Permits $12,229,178 $10,892,000 $11,904,217 $11,409,002 Fees $1,119,993 $1,171,291 $1,022,933 $1,056,596 Court Fees $3,004,936 $2,897,270 $2,551,888 $3,321,882 Culture and Recreation Fees - $753 - - Total Licenses, Fees, and Permits $20,583,560 $19,270,314 $19,586,510 $20,280,480

Fines and Forfeitures Court Fines $4,218,020 $3,728,765 $3,811,145 $5,275,465 Other Fines $346,537 $351,235 $421,434 $314,000 Total Fines and Forfeitures $4,564,558 $4,080,000 $4,232,580 $5,589,465

Other Revenues Interest $278,232 $490,590 $309,000 $926,725 Contributions and Donations $441,809 $39,441 $169,910 $262,500 Sale of Property $16,231 $773,996 $796,792 - Self Insurance Contributions - - - $352 Other Revenues $727,018 $505,537 $541,924 $686,027 Total Other Revenues $1,463,290 $1,809,564 $1,817,625 $1,875,604

Total General Fund $257,560,077 $265,818,099 $268,938,629 $278,653,881

Capital - General Fund Other Revenues Other Revenues $77,162 - $25,000 - Total Other Revenues $77,162 - $25,000 -

Total Capital - General Fund $77,162 - $25,000 -

Total General Fund $257,637,240 $265,818,099 $268,963,629 $278,653,881

Enterprise Fund Other Revenues Contributions and Donations $300,000 $300,000 $300,000 $505,000 Other Revenues $1,206 - - - Total Other Revenues $301,206 $300,000 $300,000 $505,000

Total Capital - Enterprise $301,206 $300,000 $300,000 $505,000

Enterprise Fund Taxes Transient Occupancy Taxes $1,160,551 $700,000 $700,000 $722,666 Total Taxes $1,160,551 $700,000 $700,000 $722,666

Intergovernmental County and Other Governments Revenues $157,500 $157,500 $157,500 $315,000 State Grants and Reimbursements $13,804 - - - Federal Grants & Reimbursements $94,513 - - - Total Intergovernmental $265,817 $157,500 $157,500 $315,000 City of Mesa, Arizona 358 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Sales and Charges for Services Enterprise $325,668,272 $338,579,156 $343,951,511 $357,141,268 General $193,777 $174,900 $180,607 $170,915 Total Sales and Charges for Services $325,862,049 $338,754,056 $344,132,118 $357,312,183

Licenses, Fees, and Permits Permits $1,535,267 $1,500,000 $1,527,772 $1,499,998 Total Licenses, Fees, and Permits $1,535,267 $1,500,000 $1,527,772 $1,499,998

Other Revenues Contributions and Donations $1,152,299 $689,500 $997,577 $594,402 Interest $2,059,115 $534,710 $318,400 $536,228 Other Revenues $2,686,769 $3,366,840 $3,026,981 $3,217,092 Sale of Property $84,600 $67,236 $18,367 $66,766 Total Other Revenues $5,982,783 $4,658,286 $4,361,325 $4,414,488

Total Enterprise Fund $334,806,466 $345,769,842 $350,878,715 $364,264,335

Total Enterprise Fund $335,107,672 $346,069,842 $351,178,715 $364,769,335

Restricted Funds Arts & Culture Fund Sales and Charges for Services Culture and Recreation $5,821,861 $4,730,516 $5,083,296 $5,319,925 Enterprise $54,170 $31,481 $39,186 $31,481 General $804,294 $349,850 $463,098 $409,350 Total Sales and Charges for Services $6,680,325 $5,111,847 $5,585,580 $5,760,756

Licenses, Fees, and Permits Culture and Recreation Fees $268,530 $225,247 $405,247 $326,000 Total Licenses, Fees, and Permits $268,530 $225,247 $405,247 $326,000

Other Revenues Interest $508 - $4,000 Other Revenues $6,162 - $20,000 $10,000 Total Other Revenues $6,670 - $20,000 $14,000

Total Arts and Culture Fund $6,955,524 $5,337,094 $6,010,827 $6,100,756

Cadence CFD - Operating Other Revenues Other Revenues - $94,816 - $94,816 Total Other Revenues - $94,816 - $94,816

Total Cadence CFD - Operating - $94,816 - $94,816

Cemetery Intergovernmental Federal Grants & Reimbursements $32 - - - State Grants and Reimbursements $5 - - - Total Intergovernmental $37 - - -

Sales and Charges for Services General $1,411,857 $1,371,602 $1,375,300 $1,371,602 Total Sales and Charges for Services $1,411,857 $1,371,602 $1,375,300 $1,371,602

Other Revenues Interest $391 - - - Other Revenues $(2,890) - - - Total Other Revenues $(2,499) - - -

Total Cemetery $1,409,395 $1,371,602 $1,375,300 $1,371,602

Cemetery Reserve Sales and Charges for Services General $97,200 $75,000 $85,000 $75,000 Total Sales and Charges for Services $97,200 $75,000 $85,000 $75,000

Other Revenues Interest $83,937 $41,000 $41,000 $51,000 City of Mesa, Arizona 359 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Total Other Revenues $83,937 $41,000 $41,000 $51,000

Total Cemetery Reserve $181,137 $116,000 $126,000 $126,000

Court Construction Fee Licenses, Fees, and Permits Court Fees $643,246 $779,700 $619,893 $799,910 Total Licenses, Fees, and Permits $643,246 $779,700 $619,893 $799,910

Other Revenues Interest $260 - - - Total Other Revenues $260 - - -

Total Court Construction Fee $643,506 $779,700 $619,893 $799,910

Customer Deposit Trust Other Revenues Interest $171,112 - - - Total Other Revenues $171,112 - - -

Total Customer Deposit Trust $171,112 - - -

Eastmark CFD 1 - Capital Other Revenues Contributions and Donations $216,900 - $44,980 - Total Other Revenues $216,900 - $44,980 -

Total Eastmark CFD 1 - Capital $216,900 - $44,980 -

Eastmark CFD 1 - Debt Taxes Property Taxes $676,782 - $685,000 $1,429,582 Total Taxes $676,782 - $685,000 $1,429,582

Other Revenues Interest $471 - - Other Revenues $643,150 $2,091,847 $706,609 $1,648,822 Total Other Revenues $643,621 $2,091,847 $706,609 $1,648,822

Total Eastmark CFD 1 - Debt $1,320,403 $2,091,847 $1,391,609 $3,078,404

Eastmark CFD 1 - Operating Taxes Property Taxes $52,761 - $60,000 $111,418 Total Taxes $52,761 - $60,000 $111,418

Other Revenues Contributions and Donations $148,043 - $85,000 - Interest $86 - - - Other Revenues - $158,517 $97,636 $41,985 Total Other Revenues $148,129 $158,517 $182,636 $41,985

Total Eastmark CFD 1 - Operating $200,890 $158,517 $242,636 $153,403

Economic Investment Fund Intergovernmental Federal Grants & Reimbursements $7,043 $6,400 - - Total Intergovernmental $7,043 $6,400 - -

Sales and Charges for Services Enterprise $1,505,706 $1,700,000 $3,703,332 $1,700,000 General $1,147,939 $1,346,874 $1,150,000 $1,150,000 Total Sales and Charges for Services $2,653,645 $3,046,874 $4,853,332 $2,850,000

Other Revenues Interest - - - $20,000 Other Revenues $65,352 $60,325 $85,325 $60,000 Total Other Revenues $65,352 $60,325 $85,325 $80,000

Total Economic Investment Fund $2,726,040 $3,113,599 $4,938,657 $2,930,000

Environmental Compliance Fee Intergovernmental City of Mesa, Arizona 360 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Federal Grants & Reimbursements $137,483 - - - State Grants and Reimbursements $19,383 - - - Total Intergovernmental $156,866 - - -

Sales and Charges for Services General $15,065,926 $15,233,128 $15,233,128 $15,617,003 Total Sales and Charges for Services $15,065,926 $15,233,128 $15,233,128 $15,617,003

Other Revenues Interest $51,372 $41,000 $41,000 $45,000 Total Other Revenues $51,372 $41,000 $41,000 $45,000

Total Environmental Compliance Fee $15,274,163 $15,274,128 $15,274,128 $15,662,003

Falcon Field Fund Intergovernmental Federal Grants & Reimbursements $18,508 - - - State Grants and Reimbursements $2,114 - - - Total Intergovernmental $20,622 - - -

Sales and Charges for Services Enterprise $3,622,113 $3,855,848 $4,037,528 $4,045,115 General - - - $74,000 Total Sales and Charges for Services $3,622,113 $3,855,848 $4,037,528 $4,119,115

Other Revenues Interest $1,586 $16,000 - $60,000 Self Insurance Contributions $48,630 - - - Other Revenues $20,784 $10,035 $4,400 $5,300 Total Other Revenues $71,001 $26,035 $4,400 $65,300

Total Falcon Field Fund $3,713,736 $3,881,883 $4,041,928 $4,184,415

Greenfield WRP Joint Venture Intergovernmental Federal Grants & Reimbursements $1,964 - - - State Grants and Reimbursements $287 - - - Total Intergovernmental $2,251 - - -

Sales and Charges for Services Enterprise $9,823,191 $21,184,100 $20,542,611 $60,765,718 Total Sales and Charges for Services $9,823,191 $21,184,100 $20,542,611 $60,765,718

Total Greenfield WRP Joint Venture $9,825,442 $21,184,100 $20,542,611 $60,765,718

Highway User Revenue Fund Intergovernmental Federal Grants & Reimbursements $16,922 - - - State Shared Revenues $35,383,437 $37,565,409 $38,863,354 $39,497,968 State Grants and Reimbursements $2,471 - - - Total Intergovernmental $35,402,830 $37,565,409 $38,863,354 $39,497,968

Sales and Charges for Services General $9,800 - - - Total Sales and Charges for Services $9,800 - - -

Other Revenues Interest $7,193 $126,000 $126,000 $163,000 Sale of Property $4,859 - - - Total Other Revenues $12,053 $126,000 $126,000 $163,000

Total Highway User Revenue Fund $35,424,683 $37,691,409 $38,989,354 $39,660,968

Local Streets Sales Tax Taxes Sales and Use Taxes $26,017,125 $26,799,180 $27,416,413 $27,896,457 Total Taxes $26,017,125 $26,799,180 $27,416,413 $27,896,457

Intergovernmental County and Other Governments Revenues $138,964 - $813 - State Grants and Reimbursements $1,617 - - - Federal Grants & Reimbursements $11,074 - - - Total Intergovernmental $151,656 - $813 - City of Mesa, Arizona 361 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Sales and Charges for Services General $341,982 $611,600 $313,828 $438,273 Total Sales and Charges for Services $341,982 $611,600 $313,828 $438,273

Licenses, Fees, and Permits Business Licenses $109,210 - - - Fees $32,627 $51,000 $173,626 $92,145 Permits - - - - Total Licenses, Fees, and Permits $141,837 $51,000 $173,626 $92,145 Fines and Forfeitures Other Fines - $39,765 - - Total Fines and Forfeitures - $39,765 - -

Other Revenues Interest $434,044 $191,000 $191,000 $20,000 Other Revenues $745,302 $390,195 $331,337 $350,195 Total Other Revenues $1,179,345 $581,195 $522,337 $370,195

Total Local Streets Sales Tax $27,831,945 $28,082,740 $28,427,017 $28,797,070

Mesa Arts Center Restoration Fee Intergovernmental Federal Grants & Reimbursements $1,678 - - - State Grants and Reimbursements $245 - - - Total Intergovernmental $1,923 - - -

Sales and Charges for Services General $300 - - - Total Sales and Charges for Services $300 - - -

Licenses, Fees, and Permits Culture and Recreation Fees $330,480 $250,000 $470,000 $300,000 Total Licenses, Fees, and Permits $330,480 $250,000 $470,000 $300,000

Other Revenues Interest $20,684 $7,000 $7,000 $6,000 Contributions and Donations - - $3,000 - Total Other Revenues $20,684 $7,000 $10,000 $6,000

Total Mesa Arts Center Restoration Fee $353,387 $257,000 $480,000 $306,000

Quality of Life Sales Tax Taxes Sales and Use Taxes $21,692,757 $22,332,650 $22,847,011 $23,247,048 Total Taxes $21,692,757 $22,332,650 $22,847,011 $23,247,048

Licenses, Fees, and Permits Business Licenses $90,268 - - - Total Licenses, Fees, and Permits $90,268 - - -

Other Revenues Interest $21,985 $26,000 $26,000 $7,000 Total Other Revenues $21,985 $26,000 $26,000 $7,000

Total Quality of Life Sales Tax $21,805,010 $22,358,650 $22,873,011 $23,254,048

Restricted Programs Fund Taxes Transient Occupancy Taxes $2,290,826 $2,275,000 $2,275,000 $2,348,334 Total Taxes $2,290,826 $2,275,000 $2,275,000 $2,348,334

Intergovernmental County and Other Governments Revenues $57,937 $80,000 $80,000 $80,000 Total Intergovernmental $57,937 $80,000 $80,000 $80,000

Sales and Charges for Services Culture and Recreation $7,305 - $800 - Total Sales and Charges for Services $7,305 - $800 -

Licenses, Fees, and Permits Court Fees $768,833 $761,030 $660,229 $780,208 City of Mesa, Arizona 362 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Fees $492,372 $342,090 $449,650 $428,563 Total Licenses, Fees, and Permits $1,261,205 $1,103,120 $1,109,879 $1,208,771

Fines and Forfeitures Court Fines $282,204 $260,235 $244,028 $276,535 Total Fines and Forfeitures $282,204 $260,235 $244,028 $276,535

Other Revenues Contributions and Donations $602,589 $747,059 $792,441 $859,098 Interest $16,084 - $20 - Other Revenues $1,014,847 $1,519,765 $1,595,005 $1,438,000 Total Other Revenues $1,633,520 $2,266,824 $2,387,466 $2,297,098

Total Restricted Programs Fund $5,532,996 $5,985,179 $6,097,173 $6,210,738

Solid Waste Development Fee Licenses, Fees, and Permits Fees $478,550 $400,000 $522,717 $472,990 Total Licenses, Fees, and Permits $478,550 $400,000 $522,717 $472,990

Other Revenues Interest $661 $3,000 $3,000 $9,000 Total Other Revenues $661 $3,000 $3,000 $9,000

Total Solid Waste Development Fee $479,211 $403,000 $525,717 $481,990

Special Programs Fund Sales and Charges for Services Culture and Recreation $116,890 $97,000 $120,000 $97,000 General $426,557 $430,644 $467,907 $471,810 Total Sales and Charges for Services $543,447 $527,644 $587,907 $568,810

Fines and Forfeitures Other Fines $154,835 $80,000 $100,000 $100,000 Total Fines and Forfeitures $154,835 $80,000 $100,000 $100,000

Other Revenues Contributions and Donations $54,269 - $18,605 - Interest $1,427 - - - Other Revenues $51,093 $105,000 $200,826 $111,367 Total Other Revenues $106,789 $105,000 $219,431 $111,367

Total Special Programs Fund $805,070 $712,644 $907,338 $780,177

TOPAZ Joint Venture Fund Intergovernmental County and Other Governments Revenues $403,500 $2,063,101 $2,870,513 $1,838,036 Total Intergovernmental $403,500 $2,063,101 $2,870,513 $1,838,036

Sales and Charges for Services General - $1,124,377 - $1,317,359 Enterprise $4,871,717 - $1,181,222 - Total Sales and Charges for Services $4,871,717 $1,124,377 $1,181,222 $1,317,359

Other Revenues Other Revenues $564,230 - - - Total Other Revenues $564,230 - - -

Total TOPAZ Joint Venture Fund $5,839,447 $3,187,478 $4,051,735 $3,155,395

Transit Fund Intergovernmental Federal Grants & Reimbursements $120 $11,969,822 - - State Shared Revenues $1,322,949 $1,291,000 $1,291,000 $1,323,533 State Grants and Reimbursements $17 - - - County and Other Governments Revenues $671,417 $178,599 $5,054,621 $19,121,126 Total Intergovernmental $1,994,503 $13,439,421 $6,345,621 $20,444,659

Sales and Charges for Services Enterprise $12,078 $12,264 $12,264 $12,264 General $1,395,042 $2,369,192 $1,750,000 $1,903,000 Total Sales and Charges for Services $1,407,120 $2,381,456 $1,762,264 $1,915,264

City of Mesa, Arizona 363 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Other Revenues Other Revenues $83,534 $122,490 $122,490 $125,000 Total Other Revenues $83,534 $122,490 $122,490 $125,000

Total Transit Fund $3,485,157 $15,943,367 $8,230,375 $22,484,923

Transportation Intergovernmental County and Other Governments Revenues $165,460 $3,805,797 $2,000,000 $4,685,310 Total Intergovernmental $165,460 $3,805,797 $2,000,000 $4,685,310

Other Revenues Other Revenues - - $162,058 - Total Other Revenues - - $162,058 -

Total Transportation $165,460 $3,805,797 $2,162,058 $4,685,310

Utility Replacement Extension & Renewal Other Revenues Interest $5,989 - - - Total Other Revenues $5,989 - - -

Total Utility Replacement Extension & Renewal $5,989 - - -

Vehicle Replacement Other Revenues Sale of Property $444,594 $223,234 $200,755 $223,234 Total Other Revenues $444,594 $223,234 $200,755 $223,234

Total Vehicle Replacement $444,594 $223,234 $200,755 $223,234

Total Restricted Funds $144,811,196 $172,053,784 $167,553,102 $225,306,880

Internal Service Funds Fleet Internal Services Intergovernmental Federal Grants & Reimbursements $791 - - - State Grants and Reimbursements $116 - - - Total Intergovernmental $906 - - -

Sales and Charges for Services Enterprise $7,429 - $9,304 - Total Sales and Charges for Services $7,429 - $9,304 -

Other Revenues Contributions and Donations $167,338 - - - Other Revenues $260,649 $835,919 $831,806 $987,611 Total Other Revenues $427,987 $835,919 $831,806 $987,611

Total Fleet Internal Services $436,321 $835,919 $841,110 $987,611

Print Shop Internal Services Intergovernmental Federal Grants & Reimbursements $133 - - - State Grants and Reimbursements $19 - - - Total Intergovernmental $152 - - -

Sales and Charges for Services General $20,876 - $11,500 - Total Other Revenues $20,876 - $11,500 -

Total Print Shop Internal Service $21,029 - $11,500 -

Warehouse Internal Services Intergovernmental Federal Grants & Reimbursements $359 - - - State Grants and Reimbursements $53 - - - Total Intergovernmental $412 - - -

Other Revenues Sale of Property $207,084 - $208,364 $150,000 City of Mesa, Arizona 364 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Other Revenues - $6,570,642 $5,817,597 $6,336,143 Total Other Revenues $207,084 $6,570,642 $6,025,961 $6,486,143

Total Warehouse Internal Services $207,496 $6,570,642 $6,025,961 $6,486,143

Total Internal Service Funds $664,846 $7,406,561 $6,878,571 $7,473,754

Impact Fee Funds Cultural Facility Impact Fee Other Revenues Contributions and Donations - - - - Interest $4,866 - - - Total Other Revenues $4,866 - - -

Total Cultural Facility Impact Fee $4,866 - - -

Fire Impact Fee Licenses, Fees, and Permits Fees $868,237 $424,945 $1,004,909 $435,654 Total Licenses, Fees, and Permits $868,237 $424,945 $1,004,909 $435,654 Other Revenues Interest $4,932 - - $2,000 Total Other Revenues $4,932 - - $2,000

Total Fire Impact Fee $873,169 $424,945 $1,004,909 $437,654

Library Impact Fee Other Revenues Interest $7,736 $2,000 $2,000 $2,000 Total Other Revenues $7,736 $2,000 $2,000 $2,000

Total Library Impact Fee $7,736 $2,000 $2,000 $2,000

Parks Impact Fee Licenses, Fees, and Permits Fees $2,052,100 - $(2,454) - Total Licenses, Fees, and Permits $2,052,100 - $(2,454) -

Other Revenues Interest $16,519 $16,000 $16,000 $20,000 Total Other Revenues $16,519 $16,000 $16,000 $20,000

Total Parks Impact Fee $2,068,619 $16,000 $13,546 $20,000

Police Impact Fee Licenses, Fees, and Permits Fees $1,309,476 $638,201 $1,543,380 $654,284 Total Licenses, Fees, and Permits $1,309,476 $638,201 $1,543,380 $654,284

Other Revenues Interest $7,543 - - $3,000 Total Other Revenues $7,543 - - $3,000

Total Police Impact Fee $1,317,019 $638,201 $1,543,380 $657,284

Storm Water Drainage Impact Fee Licenses, Fees, and Permits Fees $710,781 $459,424 $781,305 $471,001 Total Licenses, Fees, and Permits $710,781 $459,424 $781,305 $471,001

Other Revenues Interest $6,678 $7,000 $7,000 $18,000 Total Other Revenues $6,678 $7,000 $7,000 $18,000

Total Stormwater Drainage Impact Fee $717,459 $466,424 $788,305 $489,001

Wastewater Impact Fee Licenses, Fees, and Permits Fees $6,283,734 $3,918,538 $7,160,000 $4,017,285 Total Licenses, Fees, and Permits $6,283,734 $3,918,538 $7,160,000 $4,017,285

City of Mesa, Arizona 365 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Other Revenues Interest $5,226 $78,000 - $78,000 Total Other Revenues $5,226 $78,000 - $78,000

Total Wastewater Impact Fee $6,288,960 $3,996,538 $7,160,000 $4,095,285

Water Impact Fees Licenses, Fees, and Permits Fees $5,370,397 $3,292,511 $6,420,000 $3,375,482 Total Licenses, Fees, and Permits $5,370,397 $3,292,511 $6,420,000 $3,375,482

Other Revenues Interest $2,386 $39,000 - $49,000 Total Other Revenues $2,386 $39,000 - $49,000

Total Water Impact Fees $5,372,783 $3,331,511 $6,420,000 $3,424,482

Total Impact Fee Funds $16,650,610 $8,875,619 $16,932,139 $9,125,706

Grant Funds Community Development Block Grant Intergovernmental Federal Grants & Reimbursements $3,969,625 $13,027,814 $4,175,945 $15,236,457 Total Intergovernmental $3,969,625 $13,027,814 $4,175,945 $15,236,457

Other Revenues Interest $45,237 - $78,000 $77,447 Other Revenues - - $1,977 - Total Other Revenues $45,237 - $79,977 $77,447

Total Community Development Block Grant $4,014,862 $13,027,814 $4,255,922 $15,313,904

Grants - Enterprise Intergovernmental Federal Grants & Reimbursements $1,485,832 $2,399,045 $2,693,676 $3,682,630 State Grants and Reimbursements $263,884 $389,133 $225,850 $628,772 Total Intergovernmental $1,749,716 $2,788,178 $2,919,526 $4,311,402

Total Grants - Enterprise $1,749,716 $2,788,178 $2,919,526 $4,311,402

Grants - Gen. Gov. Intergovernmental County and Other Governments Revenues $2,439,187 $1,269,669 $2,253,403 $2,915,578 Federal Grants & Reimbursements $9,163,459 $11,121,287 $1,776,816 $12,599,899 State Grants and Reimbursements $325,114 $391,058 $343,024 $377,315 Total Intergovernmental $11,927,760 $12,782,014 $4,373,243 $15,892,792

Sales and Charges for Services Culture and Recreation $8,000 $9,000 $9,000 - General - $5,559 - - Total Sales and Charges for Services $8,000 $14,559 $9,000 -

Other Revenues Contributions and Donations $20,000 - $159,450 - Interest $2,131 - $5,580 - Total Other Revenues $22,131 - $165,030 -

Total Grants - Gen. Gov. $11,957,891 $12,796,573 $4,547,273 $15,892,792

HOME Intergovernmental Federal Grants & Reimbursements $499,156 $3,054,449 $1,009,752 $3,352,129 Total Intergovernmental $499,156 $3,054,449 $1,009,752 $3,352,129

Total HOME $499,156 $3,054,449 $1,009,752 $3,352,129

Section 8 Intergovernmental Federal Grants & Reimbursements $12,202,283 $13,142,866 $13,002,070 $13,674,360 Total Intergovernmental $12,202,283 $13,142,866 $13,002,070 $13,674,360

Sales and Charges for Services City of Mesa, Arizona 366 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

General $540 - - - Total Sales and Charges for Services $540 - - -

Other Revenues Interest $15,513 $8,700 $8,700 $15,600 Total Other Revenues $15,513 $8,700 $8,700 $15,600

Total Section 8 $12,218,335 $13,151,566 $13,010,770 $13,689,960

Total Grant Funds $30,439,960 $44,818,580 $25,743,243 $52,560,187

Trust Funds Employee Benefit Trust Intergovernmental Federal Grants & Reimbursements $742 - - - State Grants and Reimbursements $108 - - - Total Intergovernmental $850 - - -

Sales and Charges for Services General $20 - $20 - Total Sales and Charges for Services $20 - $20 -

Other Revenues Interest $379,744 - - - Other Revenues $22,012 $350,000 $180 $(63) Self Insurance Contributions $72,282,194 $77,485,572 $75,769,356 $85,436,396 Total Other Revenues $72,683,950 $77,835,572 $75,769,536 $85,436,333

Total Employee Benefit Trust $72,684,819 $77,835,572 $75,769,556 $85,436,333

Property & Public Liability Other Revenues Interest $86,626 - - - Other Revenues - $55,085 $55,085 $55,300 Self Insurance Contributions $2,892,281 $6,600,000 $3,171,752 $6,804,846 Total Other Revenues $2,978,907 $6,655,085 $3,226,837 $6,860,146

Total Property & Public Liability $2,978,907 $6,655,085 $3,226,837 $6,860,146

Workers' Compensation Other Revenues Interest $32,012 $7,000 $7,000 $7,000 Other Revenues $213,232 - $88,253 - Self Insurance Contributions $4,244,265 $5,566,428 $5,698,266 $3,764,406 Total Other Revenues $4,489,510 $5,573,428 $5,793,519 $3,771,406

Total Workers' Compensation $4,489,510 $5,573,428 $5,793,519 $3,771,406

Total Trust Funds $80,153,236 $90,064,085 $84,789,912 $96,067,885

Debt Service Funds

General Obligation Bond Redemption Taxes Property Taxes $34,034,768 $33,441,000 $33,441,000 $33,441,000 Total Taxes $34,034,768 $33,441,000 $33,441,000 $33,441,000

Intergovernmental Federal Grants & Reimbursements $558,699 $558,699 $558,699 $558,099 Total Intergovernmental $558,699 $558,699 $558,699 $558,099

Other Revenues Interest $1,409 - - - Contributions and Donations $164,203 - - - Total Other Revenues $165,612 - - -

Total General Obligation Bond Redemption $34,759,079 $33,999,699 $33,999,699 $33,999,099

Highway Project Advancement Notes

City of Mesa, Arizona 367 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Intergovernmental State Grants and Reimbursements $324,313 - - - Total Intergovernmental $324,313 - - -

Other Revenues Interest $37,464 - $33,000 $6,000 Total Other Revenues $37,464 - $33,000 $6,000

Total Highway Project Advancement Notes $361,776 - $33,000 $6,000

Highway User Revenue Bond Redemption Other Revenues Interest $9 - - - Total Other Revenues $9 - - -

Total Highway User Revenue Bond Redemption $9 - - -

Non-Utility Bond Redemption Sales and Charges for Services Enterprise $4,867,152 $4,867,151 $4,867,151 $4,867,151 Total Sales and Charges for Services $4,867,152 $4,867,151 $4,867,151 $4,867,151

Other Revenues Interest $5,771 $143,000 $143,000 - Sale of Property - $22,801,534 $22,801,534 - Total Other Revenues $5,771 $22,944,534 $22,944,534 -

Total Non-Utility Bond Redemption $4,872,923 $27,811,685 $27,811,685 $4,867,151

Special Improvement District Bond Redemption Other Revenues Interest $116 - - - Other Revenues $790,082 $843,085 $843,085 $403,405 Total Other Revenues $790,198 $843,085 $843,085 $403,405

Total Special Improvement District Bond Redemption $790,198 $843,085 $843,085 $403,405

Transportation Projected Advancement Notes Other Revenues Contributions and Donations - $2,500,000 - $1,000,000 Total Other Revenues - $2,500,000 - $1,000,000

Total Transportation Projected Advancement Notes - $2,500,000 - $1,000,000

Utility Systems Bond Redemption Intergovernmental Federal Grants & Reimbursements $2,242,052 $2,242,052 $2,242,052 $2,239,646 Total Intergovernmental $2,242,052 $2,242,052 $2,242,052 $2,239,646

Other Revenues Contributions and Donations $147,078 $75,000 - - Other Revenues $490 - - - Total Other Revenues $147,568 $75,000 - -

Total Utility Systems Bond Redemption $2,389,620 $2,317,052 $2,242,052 $2,239,646

Utility Systems GO Bond Redemption Other Revenues Interest $677 - - - Total Other Revenues $677 - - -

Total Utility Systems GO Bond Redemption $677 - - -

WIFA Redemption Other Revenues Interest $1,753 - - - Total Other Revenues $1,753 - - -

Total WIFA Redemption $1,753 - - -

Total Debt Service Funds $43,176,035 $67,471,521 $64,929,521 $42,515,301

City of Mesa, Arizona 368 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Revenues by Fund and Source Fiscal Year 2017/18 Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Revenues Budget Revenues Budget

Bond Funds Electric Bond Construction Other Revenues Other Revenues $4,208 - - - Total Other Revenues $4,208 - - -

Total Electric Bond Construction $4,208 - - -

Wastewater Bond Construction Other Revenues Other Revenues $27,076 - - - Total Other Revenues $27,076 - - -

Total Water Bond Construction $27,076 - - -

Water Bond Construction Other Revenues Other Revenues $12,175 - - - Total Other Revenues $12,175 - - -

Total Electric Bond Construction $12,175 - - -

Total Bond Funds $43,459 - - -

Contingency Fund Contingency Fund Intergovernmental County and Other Governments Revenues - $5,000,000 - $5,000,000 Total Intergovernmental - $5,000,000 - $5,000,000

Other Revenues Other Revenues - $8,000,000 - - Total Other Revenues - $8,000,000 - -

Total Contingency Fund - $13,000,000 - $5,000,000

Total Contingency Fund - $13,000,000 - $5,000,000

Total City Revenues $908,684,255 $1,015,578,091 $986,968,834 $1,081,472,929

Changes in accounting presentation affect comparisons between years.

This schedule does not include Other Financing Sources such as bonds and fund balance.

City of Mesa, Arizona 369 Executive Budget Plan 2017/18 Summary of Expeditures by Department Fiscal Year 2017/18

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Department Expenditures Budget Expenditures Budget Arts and Culture $14,967,866 $14,439,202 $13,696,713 $14,807,997 Business Services $11,953,398 $13,796,170 $13,508,522 $13,400,000 Centralized Appropriations $417,986,893 $385,080,100 $310,159,190 $446,055,000 City Attorney $8,664,671 $13,110,000 $9,438,187 $13,205,000 City Auditor $693,657 $715,000 $754,263 $747,000 City Clerk $842,051 $1,319,000 $1,192,758 $883,000 City Manager $5,230,587 $5,676,960 $5,547,687 $5,992,135 Communications $3,341,872 $3,582,000 $3,582,000 $3,758,000 Community Services $18,305,911 $32,652,394 $23,631,669 $31,406,578 Contingency - $134,471,000 - $91,174,000 Development Services $8,324,421 $8,612,527 $8,366,389 $8,054,667 Economic Development $7,655,342 $10,224,000 $8,960,295 $9,569,705 Energy Resources $37,400,882 $41,447,000 $39,768,348 $41,287,000 Engineering $5,455,279 $7,648,000 $6,353,122 $7,474,641 Environmental Management & Sustainability $29,673,214 $31,658,927 $30,472,667 $32,350,074 Falcon Field Airport $1,417,453 $1,735,000 $1,431,445 $1,959,000 Financial Services $3,416,745 $3,861,000 $3,559,852 $3,714,000 Fire and Medical $74,294,667 $80,848,569 $76,229,107 $78,907,577 Fleet Services $22,670,734 $36,961,128 $24,739,028 $34,984,417 Human Resources $84,843,127 $92,235,000 $85,142,419 $98,218,000 Information Technology $25,684,455 $35,868,195 $29,407,403 $35,459,328 Library Services $6,607,066 $7,489,288 $7,323,505 $7,573,363 Mayor and Council $703,253 $1,016,000 $782,750 $889,000 Municipal Court $7,629,650 $9,431,327 $8,028,175 $10,265,382 Office of ERP Management $472,794 $900,000 $658,656 $855,557 Office of Management and Budget $2,281,326 $2,823,529 $2,623,692 $2,696,910 Parks, Recreation and Community Facilities $39,693,832 $51,987,077 $47,939,437 $49,049,940 Police $163,858,703 $178,550,457 $173,513,563 $185,896,361 Project Management Program $165,746,120 $336,470,000 $140,209,420 $373,992,000 Public Information and Communications $1,410,929 $1,423,000 $1,616,156 $1,551,000 Transit Services $10,715,468 $13,415,000 $12,731,551 $15,348,000 Transportation $35,286,598 $42,601,350 $39,356,949 $44,053,294 Water Resources $58,362,611 $67,951,800 $63,383,903 $74,422,074 Total Expenditures $1,275,591,578 $1,670,000,000 $1,194,108,821 $1,740,000,000

Changes in accounting presentation affect comparisons between years.

City of Mesa, Arizona 370 Executive Budget Plan 2017/18 Summary of Expeditures by Fund Fiscal Year 2017/18

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Expenditures Budget Expenditures Budget General Fund General Fund $309,756,913 $349,553,414 $328,524,009 $365,131,172 Capital - General Fund $5,955,539 $15,084,133 $6,141,850 $21,482,169 Total General Fund $315,712,452 $364,637,547 $334,665,859 $386,613,341

Enterprise Fund Capital - Enterprise $2,293,083 $10,712,718 $5,520,806 $9,166,652 Enterprise Fund $145,421,938 $165,136,751 $156,711,081 $169,805,766 Total Enterprise Fund $147,715,021 $175,849,469 $162,231,887 $178,972,418

Restricted Funds Arts and Culture Fund $16,151,476 $15,617,753 $15,057,608 $16,432,450 Cadence CFD - Operating - $94,816 $26,484 $94,816 Cemetery $1,293,213 $1,450,280 $2,386,776 $1,505,655 Cemetery Reserve - $953,000 $179,150 $983,850 Court Construction Fee - - - - Eastmark CFD 1 - Capital $8,880,226 $3,750,000 $449,330 $15,000,000 Eastmark CFD 1 - Debt $1,321,437 $2,091,847 $1,470,709 $3,078,680 Eastmark CFD 1 - Operating $80,555 $158,517 $115,434 $153,403 Economic Investment Fund $6,983,506 $6,531,081 $5,239,166 $6,358,619 Environmental Compliance Fee $12,930,303 $18,918,526 $14,714,418 $20,431,765 Falcon Field Airport $5,085,142 $3,701,669 $2,530,129 $7,023,980 Greenfield WRP Joint Venture $9,552,571 $21,184,100 $20,721,945 $60,765,718 Highway User Revenue Fund $19,152,927 $25,125,396 $17,027,992 $34,789,533 Local Streets Sales Tax $32,898,112 $45,053,480 $33,264,468 $50,699,114 Mesa Arts Center Restoration Fee $537,331 $682,000 $612,000 $500,000 Quality of Life Sales Tax $22,258,090 $24,702,684 $24,702,684 $23,635,561 Restricted Programs Fund $5,435,356 $7,896,285 $6,281,695 $8,792,895 Solid Waste Development Fee $114,911 $872,000 $872,000 $511,000 Special Programs Fund $542,930 $813,162 $702,819 $584,911 TOPAZ Joint Venture Fund $5,834,508 $3,187,478 $4,051,735 $3,155,395 Transit Fund $12,295,544 $25,821,392 $18,182,122 $34,860,744 Transportation $17,745 - $28,220 $18,808,835 Utility Replacement Extension & Renewal $5,370,064 $10,292,167 $7,773,612 $7,786,272 Vehicle Replacement $3,070,117 $4,415,383 $732,682 $5,862,660 Total Restricted Funds $169,806,066 $223,313,016 $177,123,179 $321,815,856

Internal Service Funds Fleet Internal Service $82,296 $835,919 $461,135 $987,611 Print Shop Internal Service $141,345 - $132,510 - Warehouse Internal Service $(111,208) $6,570,642 $5,982,692 $6,486,143 Total Internal Service Funds $112,433 $7,406,561 $6,576,337 $7,473,754

Impact Fee Funds Gen Govt Facility Impact Fee $939 - - - Total Impact Fee Funds $939 - - -

Grant Funds Community Development Block Grant $3,662,375 $13,027,814 $4,144,227 $15,313,904 Grants - Enterprise $1,750,764 $2,788,178 $2,223,784 $4,311,402 Grants - Gen. Gov. $11,882,671 $13,204,475 $4,975,534 $16,459,279 HOME $499,156 $3,054,449 $1,005,449 $3,352,129 Section 8 $12,099,963 $13,570,979 $13,100,119 $13,689,960 Total Grant Funds $29,894,929 $45,645,895 $25,449,113 $53,126,674

Trust Funds Employee Benefit Trust $77,033,434 $84,493,221 $78,617,959 $90,536,269 Property and Public Liability $2,892,281 $6,671,777 $3,346,753 $6,860,146 Worker's Compensation $4,446,685 $6,149,655 $5,281,085 $6,494,506 Total Trust Funds $84,372,399 $97,314,653 $87,245,797 $103,890,921

City of Mesa, Arizona 371 Executive Budget Plan 2017/18 Summary of Expeditures by Fund Fiscal Year 2017/18

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Source Expenditures Budget Expenditures Budget

Debt Service Funds General Obligation Bond Redemption $83,790,658 $36,396,228 $87,026,173 $38,714,956 Highway Project Advancement Notes $78,159,313 - - - Highway User Revenue Bond Redemption $12,238,007 $12,377,013 $12,377,013 $12,459,513 Non Utility Bond Redemption $4,703,900 $49,739,000 $46,822,008 $4,703,900 Special Improvement District Bond Redemption $883,055 $843,085 $843,085 $403,405 Transportation Project Advancement Notes - $2,500,000 - $1,000,000 Utility Systems Bond Redemption $227,882,197 $75,264,414 $152,705,522 $82,565,464 Utility GO Bond Redemption $217,457 $83,448 $83,448 $86,130 WIFA Redemption $177,665 $177,671 $177,671 $177,668 Total Debt Service Funds $408,052,252 $177,380,859 $300,034,920 $140,111,036

Bond Construction Funds Electric Bond Construction $1,687,189 $11,706,885 $2,306,256 $7,555,810 Fire Bond Construction $2,480,817 - - - Gas Bond Construction $5,403,285 $24,524,058 $3,590,418 $13,830,450 Parks Bond Construction $4,361,704 $14,171,255 $1,197,839 $21,555,450 Public Safety Bond Construction $25,356,157 $9,436,635 $12,911,520 $185,494 Solid Waste Bond Construction $270,314 - $3,465,774 $3,389,000 Spring Training Bond Construction $447,014 - $(306,254) $324,090 Streets Bond Construction $13,648,836 $23,712,507 $7,755,310 $17,667,375 Wastewater Bond Construction $17,506,848 $28,517,037 $15,847,666 $45,739,100 Water Bond Construction $48,762,922 $146,512,623 $54,013,201 $81,507,231 Total Bond Construction Funds $119,925,087 $258,581,000 $100,781,729 $191,754,000

Contingency Fund Contingency - $134,471,000 $356,242,000 General Oblication Bond Refunding - $50,200,000 - Utility Systems Bond Refunding - $135,200,000 - - Total Contingency Fund - $319,871,000 - $356,242,000

Total City Expenditures $1,275,591,578 $1,670,000,000 $1,194,108,821 $1,740,000,000

Changes in accounting presentation affect comparisons between years.

City of Mesa, Arizona 372 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget General Fund

General Fund Arts & Culture $(3,158) - - - - Business Services $11,131,160 $11,930,644 $40,429 $11,747,354 $11,398,937 Centralized Appropriations $(14,342,875) $(11,635,251) $339,307 $(16,113,315) $(7,668,343) City Attorney $5,500,263 $5,666,951 - $5,477,936 $5,576,587 City Auditor $693,657 $715,000 - $754,263 $747,000 City Clerk $835,921 $1,313,368 - $1,189,442 $877,356 City Manager $5,112,748 $5,434,000 $109,398 $5,493,580 $5,813,000 Communications $1,836,328 $2,045,268 - $2,045,268 $1,960,833 Community Services $2,529,608 $2,797,641 - $2,697,494 $2,887,355 Development Services $6,566,480 $7,246,757 $(109,398) $7,333,533 $7,237,647 Economic Development $3,628,448 $4,025,307 - $3,937,307 $4,017,995 Energy Resources $64,849 $62,569 - $60,314 $56,738 Engineering $5,413,014 $7,299,651 $259,700 $6,246,273 $7,050,987 Environmental Management & Sustainability $26 - - - - Financial Services $3,369,048 $3,771,322 - $3,498,889 $3,618,271 Fire & Medical $61,475,752 $62,508,946 $248,018 $62,714,116 $66,006,610 Fleet Services $(545) $567 - $567 $7 Human Resources $3,318,221 $3,777,234 $(50,000) $3,169,557 $3,648,376 Information Technology $24,467,968 $31,827,970 $10,900 $27,691,919 $30,738,324 Library Services $6,513,623 $7,120,727 $(26,563) $7,024,164 $7,188,474 Mayor & Council $703,253 $1,016,000 - $782,750 $889,000 Municipal Court $7,366,386 $7,665,301 - $7,613,775 $7,753,997 Office of ERP Management $472,794 $895,000 - $658,656 $851,557 Office of Management & Budget $2,256,374 $2,809,529 - $2,601,558 $2,681,910 Parks, Recreation & Community Facilities $24,067,976 $31,770,696 $(714,458) $28,425,078 $31,607,219 Police $145,268,926 $155,615,293 $(253,988) $153,491,315 $162,095,019 Project Management Program $99,033 $2,333,641 $(637,362) $(1,728,826) $6,424,105 Public Information and Communications $1,309,744 $1,423,000 $64,050 $1,596,619 $1,551,000 Transportation $15,921 $22,200 - $21,090 $22,200 Water Resources $85,973 $94,083 - $93,333 $99,011 Total General Fund $309,756,913 $349,553,414 $(719,968) $328,524,009 $365,131,172

Capital - General Fund Centralized Appropriations $(213,722) $(1,126,264) $(4,996) $(637,807) $(1,256,183) Community Services $23,706 $1,312 - $1,312 $1,312 Engineering $935 $57,641 - $5,000 $110,282 Fire & Medical $227,346 $1,123,887 $(24,251) $879,124 $629,940 Fleet Services $228,337 $510,683 $21,244 $84,561 $447,366 Information Technology $1,216,487 $3,994,225 $(545,633) $1,715,484 $4,420,108 Library Services $7,974 - - - - Municipal Court - $2,000 - - $2,000 Office of ERP Management - $5,000 - - $4,000 Office of Management & Budget $17,412 - - - $1,000 City of Mesa, Arizona 373 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Parks, Recreation & Community Facilities - $297,186 $(124,086) $173,100 - Police $127,387 $696,391 $(306,450) $337,587 $51,500 Project Management Program $4,218,492 $9,422,072 $2,241,642 $3,537,782 $16,897,015 Public Information and Communications $101,186 - $19,537 $19,537 - Transportation - $100,000 - $26,171 $173,829 Total Capital - General Fund $5,955,539 $15,084,133 $1,277,006 $6,141,850 $21,482,169

Total General Fund $315,712,452 $364,637,547 $557,038 $334,665,859 $386,613,341

Enterprise Fund Capital - Enterprise Centralized Appropriations $111,984 $610,693 $1,656 $260,211 $680,566 Energy Resources $346 $460 - - $460 Environmental Management & Sustainability $92,152 $106,800 $(106,800) - - Fleet Services $107,293 $5,658,158 $(6,306) $2,104,197 $5,813,061 Information Technology - $46,000 - - $196,000 Parks, Recreation & Community Facilities $6,346 $3,456,993 $(449,450) $2,804,609 $691,242 Project Management Program $1,974,962 $825,639 $268,874 $351,439 $1,193,648 Water Resources - $7,975 - $350 $591,675 Total Capital - Enterprise $2,293,083 $10,712,718 $(292,026) $5,520,806 $9,166,652

Enterprise Fund Business Services - $150,000 - - $180,000 Centralized Appropriations $19,094,646 $23,595,157 $(3,722) $21,178,615 $23,006,990 City Attorney - $163,341 - $163,341 $167,980 Communications $(5,170) - - - - Development Services $144,908 $151,487 - $150,949 $154,341 Economic Development $70,000 - - - - Energy Resources $36,980,661 $40,968,756 $(183,834) $39,308,235 $40,797,317 Engineering $1,365 $201,518 - $57,370 $201,673 Environmental Management & Sustainability $28,168,327 $28,919,059 $(38,200) $28,369,079 $29,661,452 Financial Services $608 $623 - $300 $696 Parks, Recreation & Community Facilities $8,032,913 $8,281,609 $586,000 $8,673,521 $8,387,100 Police $823,820 $757,328 - $816,009 $769,143 Project Management Program $706,704 $1,118,583 $181,516 $963,952 $355,895 Transportation $422,491 $660,075 - $627,128 $443,735 Water Resources $50,980,664 $60,169,215 $(43,480) $56,402,582 $65,679,444 Total Enterprise Fund $145,421,938 $165,136,751 $498,280 $156,711,081 $169,805,766

Total Enterprise Fund $147,715,021 $175,849,469 $206,254 $162,231,887 $178,972,418

Restricted Funds Arts & Culture Fund

City of Mesa, Arizona 374 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Arts & Culture $14,284,790 $13,141,823 $280,358 $13,043,491 $13,919,482 Centralized Appropriations $1,844,261 $2,465,948 $150,000 $2,003,523 $2,378,829 Project Management Program $22,426 $9,982 $103,000 $10,594 $134,139 Total Arts and Culture $16,151,476 $15,617,753 $533,358 $15,057,608 $16,432,450

Cadence CFD - Operating Centralized Appropriations - $10,000 - - $10,000 City Attorney - $15,000 - $13,750 $15,000 City Clerk - $2,816 - $500 $2,816 City Manager - $10,000 - $10,000 $10,000 Engineering - $20,000 - $1,000 $20,000 Financial Services - $30,000 - $100 $30,000 Office of Management & Budget - $7,000 - $1,134 $7,000 Total Cadence CFD 2 - Operating - $94,816 - $26,484 $94,816

Cemetery Centralized Appropriations $107,438 $131,944 - $109,890 $196,238 Parks, Recreation & Community Facilities $994,221 $1,249,154 $(25,400) $1,124,000 $1,214,810 Project Management Program $191,553 $69,182 $25,400 $1,152,886 $94,607 Total Cemetery $1,293,213 $1,450,280 - $2,386,776 $1,505,655

Cemetery Reserve Project Management Program - $953,000 - $179,150 $983,850 Total Cemetery Reserve - $953,000 - $179,150 $983,850

City of Mesa, Arizona 375 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Eastmark CFD 1 - Capital Centralized Appropriations $8,880,226 $3,750,000 - $449,330 $15,000,000 Total Eastmark CFD - Capital $8,880,226 $3,750,000 - $449,330 $15,000,000

Eastmark CFD 1 - Debt Centralized Appropriations $1,321,437 $2,091,847 - $1,470,709 $3,078,680 Total Eastmark CFD 1 - Debt $1,321,437 $2,091,847 - $1,470,709 $3,078,680

Eastmark CFD 1 - Operating Centralized Appropriations $3,400 $20,000 $(6,400) - $20,000 City Attorney $7,732 $40,000 - $25,000 $40,000 City Clerk $3,308 $2,816 - $2,816 $2,828 City Manager $12,928 $10,000 - $10,000 $10,000 Engineering $10,541 $33,804 - $12,321 $18,514 Financial Services $38,229 $44,897 $6,400 $51,297 $55,061 Office of Management & Budget $4,417 $7,000 - $14,000 $7,000 Total Community Facilities Districts - Operating $80,555 $158,517 - $115,434 $153,403

Economic Investment Fund Centralized Appropriations $477,282 $570,908 $3,910 $538,492 $609,435 Economic Development $3,476,789 $5,777,067 $(435,000) $4,601,362 $5,129,856 Parks, Recreation & Community Facilities $204,626 $183,106 - $90,000 $176,466 Project Management Program $2,824,809 - $444,312 $9,312 $442,862 Total Economic Investment Fund $6,983,506 $6,531,081 $13,223 $5,239,166 $6,358,619

Environmental Compliance Fee Centralized Appropriations $685,132 $1,259,838 $(260,000) $799,918 $1,058,904 City Attorney - $23,829 - $23,829 $24,695 Development Services $78,112 $101,400 - $100,944 $63,804 Environmental Management & Sustainability $1,231,227 $2,010,141 $(64,851) $1,747,735 $2,322,548 Fleet Services $525,788 $1,170,867 $(24,277) $917,038 $868,578 Parks, Recreation & Community Facilities $6,264,920 $6,483,896 $(1,000) $6,482,896 $6,870,743 Project Management Program $1,408,670 $3,168,227 $3,087,503 $1,042,018 $4,596,358 Transportation $2,726,188 $4,670,351 $(517,744) $3,574,531 $4,593,228 Water Resources $10,265 $29,977 - $25,509 $32,907 Total Environmental Compliance Fee $12,930,303 $18,918,526 $2,219,631 $14,714,418 $20,431,765

Falcon Field Fund Centralized Appropriations $339,695 $511,959 - $470,179 $565,655 Economic Development $47,229 $55,159 - $55,159 $55,387 Engineering - - - - $37,620 Falcon Field Airport $1,417,453 $1,735,000 $(233,394) $1,431,445 $1,959,000 Fire & Medical $551,805 $596,067 - $596,067 $511,406 Fleet Services - - $18,000 $18,000 - Parks, Recreation & Community Facilities - - - - - Police $183,363 $252,507 - $181,645 $256,553 City of Mesa, Arizona 376 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Project Management Program $2,540,122 $544,977 $215,394 $(228,066) $3,632,359 Transportation $5,475 $6,000 - $5,700 $6,000 Total Falcon Field Fund $5,085,142 $3,701,669 - $2,530,129 $7,023,980

Greenfield WRP Joint Venture Centralized Appropriations $539,050 $954,300 - $848,009 $960,521 Financial Services $4,930 $5,771 - $3,914 $1,200 Fleet Services - $14,400 - $14,400 $55,000 Project Management Program $3,378,379 $13,668,860 $175,851 $13,668,860 $53,028,242 Water Resources $5,630,214 $6,540,769 $(200,726) $6,186,762 $6,720,755 Total Greenfield WRP Joint Venture $9,552,571 $21,184,100 $(24,875) $20,721,945 $60,765,718

Highway User Revenue Fund Centralized Appropriations $111,361 $205,200 - $198,554 $116,034 Fleet Services $167,731 - $96,000 $96,000 - Project Management Program $929,355 $9,586,402 $(173,107) $2,409,181 $18,970,655 Transportation $17,944,479 $15,333,794 $173,107 $14,324,257 $15,702,844 Total Highway User Revenue Fund $19,152,927 $25,125,396 $96,000 $17,027,992 $34,789,533

Local Streets Sales Tax Centralized Appropriations $4,134,971 $5,383,207 - $4,392,530 $5,310,802 Development Services $216,780 $227,440 - $223,002 $231,292 Energy Resources $355,027 $415,215 - $399,799 $432,485 Engineering $29,117 $35,386 $56,821 $31,158 $35,565 Fleet Services $280,932 $1,826,429 $(225,820) $456,609 $1,817,901 Police $124,722 $126,144 - $124,754 $128,305 Project Management Program $13,740,086 $15,201,096 $1,349,460 $6,862,804 $19,593,322 Transportation $13,932,878 $21,750,179 $(1,010,281) $20,682,201 $23,056,330 Water Resources $83,600 $88,384 - $91,611 $93,112 Total Local Streets Sales Tax $32,898,112 $45,053,480 $170,180 $33,264,468 $50,699,114

Mesa Arts Center Restoration Fee Arts & Culture $(348) $682,000 $(612,000) - - Project Management Program $537,679 - $612,000 $612,000 $500,000 Total Mesa Arts Center Restoration Fee $537,331 $682,000 - $612,000 $500,000

Quality of Life Sales Tax Fire & Medical $7,591,090 $9,073,428 - $9,073,428 $7,905,560 Police $14,667,000 $15,629,256 - $15,629,256 $15,348,488 Total Quality of Life Sales Tax $22,258,090 $24,702,684 - $24,702,684 $23,635,561

Restricted Programs Fund Arts & Culture $572,072 $518,527 $182,334 $563,249 $628,594 Centralized Appropriations $2,290,826 $2,275,000 - $2,705,607 $2,348,475 Community Services $108,000 $225,131 - $108,000 $248,915 Development Services $996,183 $845,925 - $517,860 $328,065 City of Mesa, Arizona 377 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Fire & Medical $4,626 - - - - Information Technology - - - - $104,896 Library Services $62,900 $290,561 $(16,250) $274,311 $350,526 Municipal Court $262,714 $1,764,026 $(49,257) $414,400 $2,509,385 Parks, Recreation & Community Facilities $30,167 $25,260 $31,330 $3,000 $52,360 Police $1,061,143 $1,928,188 $75,000 $1,695,268 $2,091,679 Project Management Program $46,726 $23,667 $(23,667) - $130,000 Total Restricted Programs Fund $5,435,356 $7,896,285 $199,490 $6,281,695 $8,792,895

Solid Waste Development Fee Environmental Management & Sustainability $114,911 $124,000 - $124,000 $124,000 Fleet Services - $748,000 $387,000 $748,000 $387,000 Total Solid Waste Development Fee $114,911 $872,000 $387,000 $872,000 $511,000

Special Programs Fund City Attorney $22,036 - - - - City Clerk $2,823 - - - - City Manager $7,298 - - - - Development Services $52,238 $39,518 - $40,101 $39,518 Economic Development $359,708 $366,467 - $366,467 $366,467 Engineering $307 - - - - Environmental Management & Sustainability - $25,000 - - - Office of Management & Budget $3,122 - - - - Parks, Recreation & Community Facilities $48,112 $239,177 $(100,000) $139,177 $50,000 Police $47,285 $143,000 - $86,000 $100,000 Project Management Program - - $100,000 $71,074 $28,926 Total Special Programs Fund $542,930 $813,162 - $702,819 $584,911

TOPAZ Joint Venture Fund Centralized Appropriations - $9,383 - $8,698 - Communications $1,510,714 $1,536,732 - $1,536,732 $1,797,167 Financial Services $3,570 $7,535 - $4,500 $8,424 Project Management Program $4,320,225 $1,633,828 - $2,501,805 $1,349,804 Total TOPAZ Joint Venture Fund $5,834,508 $3,187,478 - $4,051,735 $3,155,395

Transit Fund Centralized Appropriations $271,988 $376,759 - $354,335 $407,925 Financial Services $359 $852 - $852 $348 Project Management Program $1,068,563 $11,970,030 $123,500 $4,999,513 $19,049,343 Transit Services $10,715,468 $13,415,000 $(175,200) $12,731,551 $15,348,000 Transportation $239,166 $58,751 $42,000 $95,871 $55,128 Total Transit Fund $12,295,544 $25,821,392 $(9,700) $18,182,122 $34,860,744

Transportation Centralized Appropriations $17,745 - - - Project Management Program - - - $28,220 $18,808,835 City of Mesa, Arizona 378 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Total Transportation $17,745 - - $28,220 $18,808,835

Utility Replacement Extension & Renewal Fleet Services $2,012,592 $6,148,789 $(888,688) $3,489,122 $3,533,926 Project Management Program $1,785,577 $3,121,981 $38,870 $3,700,734 $3,047,176 Water Resources $1,571,895 $1,021,397 $(99,317) $583,756 $1,205,170 Total Utility Replacement Extension & Renewal $5,370,064 $10,292,167 $(949,135) $7,773,612 $7,786,272

Vehicle Replacement Fleet Services $3,070,117 $4,415,383 $(939,721) $732,682 $5,862,660 Total Vehicle Replacement $3,070,117 $4,415,383 $(939,721) $732,682 $5,862,660

Total Restricted Funds $169,806,066 $223,313,016 $1,695,451 $177,123,179 $321,815,856

Internal Service Funds Fleet Internal Services Centralized Appropriations $(16,206,931) $(15,868,958) $(35,000) $(15,830,720) $(15,254,329) Fleet Services $16,278,606 $16,301,096 - $15,911,096 $16,198,918 Project Management Program $10,620 $403,781 $35,000 $380,759 $43,022 Total Fleet Internal Services $82,296 $835,919 - $461,135 $987,611

Print Shop Internal Services Business Services $(4,429) $613,021 $266,342 $879,363 $761,355 Centralized Appropriations $145,730 $(755,856) $(266,342) $(887,644) $(763,399) Project Management Program $44 $142,835 - $140,791 $2,044 Total Print Shop Internal Services $141,345 - - $132,510 -

Warehouse Internal Services Business Services $826,667 $1,102,505 $(50,000) $881,805 $1,059,708 Centralized Appropriations $(937,802) $5,325,427 $50,000 $4,953,245 $5,424,367 Fleet Services $(117) - - - - Office of Management & Budget - - - $7,000 - Project Management Program $44 $142,710 - $140,642 $2,068 Total Warehouse Internal Service $(111,208) $6,570,642 - $5,982,692 $6,486,143

Total Internal Service Funds $112,433 $7,406,561 - $6,576,337 $7,473,754

Impact Fee Funds

Gen Government Facility Impact Fee Project Management Program $939 - - - - Total Gen Government Facility Impact Fee $939 - - - -

City of Mesa, Arizona 379 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Total Impact Fee Funds $939 - - - -

Grant Funds Community Development Block Grant City Attorney $(0) $16,233 $(7,408) $8,825 $13,991 Community Services $3,045,478 $13,011,581 $(100,000) $6,735,402 $11,237,910 Development Services $263,870 - - - - Project Management Program $353,028 - $100,000 $(2,600,000) $4,062,003 Total Community Development Block Grant $3,662,375 $13,027,814 $(7,408) $4,144,227 $15,313,904

Grants - Enterprise Project Management Program $1,750,764 $2,788,178 - $2,223,784 $4,311,402 Total Grants - Enterprise $1,750,764 $2,788,178 - $2,223,784 $4,311,402

Grants - Gen. Gov. Arts & Culture $114,510 $96,852 $215,765 $89,973 $259,921 City Attorney $242,359 $504,170 - $362,646 $495,598 City Manager $97,613 $222,960 - $34,107 $159,135 Development Services $5,850 - - - - Economic Development $73,169 - - - - Environmental Management & Sustainability $66,572 $473,927 - $231,853 $242,074 Fire & Medical $4,444,049 $7,546,241 - $2,966,372 $3,854,061 Fleet Services - $166,756 - $166,756 - Library Services $22,569 $78,000 $(52,970) $25,030 $34,363 Municipal Court $550 - - - - Parks, Recreation & Community Facilities $44,552 - $24,056 $24,056 - Police $1,511,351 $3,355,240 $236,300 $1,105,162 $5,007,807 Project Management Program $5,259,527 $760,329 $1,892,978 $(30,421) $6,406,320 Total Grants - Gen. Gov. $11,882,671 $13,204,475 $2,316,129 $4,975,534 $16,459,279

HOME City Attorney - $7,511 $1,000 $8,511 $5,004 Community Services $499,156 $3,046,938 - $996,938 $3,347,125 Total HOME $499,156 $3,054,449 $1,000 $1,005,449 $3,352,129

Section 8 City Attorney - $1,188 $6,408 $7,596 $5,999 Community Services $12,099,963 $13,569,791 - $13,092,523 $13,683,961 Total Section 8 $12,099,963 $13,570,979 $6,408 $13,100,119 $13,689,960

Total Grant Funds $29,894,929 $45,645,895 $2,316,129 $25,449,113 $53,126,674

Trust Funds Employee Benefit Trust City of Mesa, Arizona 380 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Centralized Appropriations $(88,493) $2,138,000 - $1,879,615 $2,413,284 Human Resources $77,078,222 $82,308,111 - $76,691,777 $88,075,118 Police $43,705 $47,110 - $46,567 $47,867 Total Employee Benefit Trust $77,033,434 $84,493,221 - $78,617,959 $90,536,269

Property & Public Liability City Attorney $2,892,281 $6,671,777 - $3,346,753 $6,860,146 Total Property & Public Liability $2,892,281 $6,671,777 - $3,346,753 $6,860,146

Workers' Compensation Human Resources $4,446,685 $6,149,655 - $5,281,085 $6,494,506 Total Workers' Compensation $4,446,685 $6,149,655 - $5,281,085 $6,494,506

Total Trust Funds $84,372,399 $97,314,653 - $87,245,797 $103,890,921

Debt Service Funds General Obligation Bond Redemption Centralized Appropriations $83,790,658 $36,396,228 $51,185,868 $87,026,173 $38,714,956 Total General Obligation Bond Redemption $83,790,658 $36,396,228 $51,185,868 $87,026,173 $38,714,956

Highway Project Advancement Notes Centralized Appropriations $78,159,313 - - - - Total Highway Project Advancement Notes $78,159,313 - - - -

Highway User Revenue Bond Redemption Centralized Appropriations $12,238,007 $12,377,013 - $12,377,013 $12,459,513 Total Highway User Revenue Bond Redemption $12,238,007 $12,377,013 - $12,377,013 $12,459,513

Non-Utility Bond Redemption Centralized Appropriations $4,703,900 $49,739,000 - $46,822,008 $4,703,900 Total Non-Utility Bond Redemption $4,703,900 $49,739,000 - $46,822,008 $4,703,900

Special Improvement District Bond Redemption Centralized Appropriations $883,055 $843,085 - $843,085 $403,405 Total Special Improvement District Bond Redemption $883,055 $843,085 - $843,085 $403,405

Transportation Projected Advancement Notes Centralized Appropriations - $2,500,000 - - $1,000,000 Total Transportation Projected Advancement Notes - $2,500,000 - - $1,000,000

Utility Systems Bond Redemption Centralized Appropriations $227,882,197 $75,264,414 $135,200,000 $152,705,522 $82,565,464 Total Utility Systems Bond Redemption $227,882,197 $75,264,414 $135,200,000 $152,705,522 $82,565,464

Utility Systems GO Bond Redemption City of Mesa, Arizona 381 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Centralized Appropriations $217,457 $83,448 - $83,448 $86,130 Total Utility Systems GO Bond Redemption $217,457 $83,448 - $83,448 $86,130

WIFA Redemption Centralized Appropriations $177,665 $177,671 - $177,671 $177,668 Total WIFA Redemption $177,665 $177,671 - $177,671 $177,668

Total Debt Service Funds $408,052,252 $177,380,859 $186,385,868 $300,034,920 $140,111,036

Bond Funds Electric Bond Construction Centralized Appropriations $17,793 - $16,924 $16,924 $36,000 Project Management Program $1,669,396 $11,706,885 $(16,924) $2,289,332 $7,519,810 Total Electric Bond Construction $1,687,189 $11,706,885 - $2,306,256 $7,555,810

Fire Bond Construction Centralized Appropriations $28,817 - - - Project Management Program $2,452,000 - - - Total Gas Bond Construction $2,480,817 - - - -

Gas Bond Construction Centralized Appropriations $31,364 - $40,592 $40,592 $71,000 Project Management Program $5,371,921 $24,524,058 $(40,592) $3,549,826 $13,759,450 Total Gas Bond Construction $5,403,285 $24,524,058 - $3,590,418 $13,830,450

Parks Bond Construction Centralized Appropriations $26,633 - $77,250 $77,250 $256,000 Project Management Program $4,335,071 $14,171,255 $(77,250) $1,120,589 $21,299,450 Total Parks Bond Construction $4,361,704 $14,171,255 - $1,197,839 $21,555,450

Public Safety Bond Construction Centralized Appropriations $259,294 - $97,014 $97,014 - Project Management Program $25,096,863 $9,436,635 $(97,014) $12,814,506 $185,494 Total Public Safety Bond Construction $25,356,157 $9,436,635 - $12,911,520 $185,494

Solid Waste Bond Construction Centralized Appropriations $0 - - - $21,000 Project Management Program $270,314 - - $3,465,774 $3,368,000 Total Solid Waste Bond Construction $270,314 - - $3,465,774 $3,389,000

Spring Training Bond Construction Project Management Program $447,014 - - $(306,254) $324,090 Total Spring Training Bond Construction $447,014 - - $(306,254) $324,090

City of Mesa, Arizona 382 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Fund and Department Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Fund/Department Expenditures Budget Adjustments Expenditures Budget Streets Bond Construction Centralized Appropriations $120,366 - $115,876 $115,876 $294,000 Project Management Program $13,528,470 $23,712,507 $(115,876) $7,639,434 $17,373,375 Transportation - - - - - Total Streets Bond Construction $13,648,836 $23,712,507 - $7,755,310 $17,667,375

Wastewater Bond Construction Centralized Appropriations $115,460 - $189,462 $189,462 $451,000 Project Management Program $17,391,387 $28,517,037 $(189,462) $15,658,204 $45,288,100 Total Wastewater Bond Construction $17,506,848 $28,517,037 - $15,847,666 $45,739,100

Water Bond Construction Centralized Appropriations $747,567 - $435,178 $435,178 $721,000 Project Management Program $48,015,355 $146,512,623 $(435,178) $53,578,023 $80,786,231 Total Water Bond Construction $48,762,922 $146,512,623 - $54,013,201 $81,507,231

Total Bond Funds $119,925,087 $258,581,000 - $100,781,729 $191,754,000

Contingency Fund Contingency Fund Centralized Appropriations - - - - $265,068,000 Contingency - $134,471,000 $(5,760,740) - $91,174,000 Total Contingency - $134,471,000 $(5,760,740) - $356,242,000

General Obligation Bond Refunding Centralized Appropriations - $50,200,000 $(50,200,000) - - Total General Obligation Bond Refunding - $50,200,000 $(50,200,000) - -

Utility Systems Bond Refunding Centralized Appropriations - $135,200,000 $(135,200,000) - - Total Utility Systems Bond Refunding - $135,200,000 $(135,200,000) - -

Total Contingency Fund - $319,871,000 $(191,160,740) - $356,242,000

Total Expenditures $1,275,591,578 $1,670,000,000 $1 $1,194,108,821 $1,740,000,000

Changes in accounting presentation affect comparisons between years.

City of Mesa, Arizona 383 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Adopted Budget Projected Adopted Department/Fund Budget Adjustments Expenditures Budget Arts & Culture General Fund General Fund $(3,158) - - - - Total General Fund $(3,158) - - - -

Restricted Funds Arts & Culture Fund $14,284,790 $13,141,823 $280,358 $13,043,491 $13,919,482 Mesa Arts Center Restoration Fee $(348) $682,000 $(612,000) - - Restricted Programs Fund $572,072 $518,527 $182,334 $563,249 $628,594 Total Restricted Funds $14,856,514 $14,342,350 $(149,308) $13,606,740 $14,548,076

Grant Funds Grants - Gen. Gov. $114,510 $96,852 $215,765 $89,973 $259,921 Total Grant Funds $114,510 $96,852 $215,765 $89,973 $259,921

Total Arts and Culture $14,967,866 $14,439,202 $66,457 $13,696,713 $14,807,997

Business Services General Fund General Fund $11,131,160 $11,930,644 $40,429 $11,747,354 $11,398,937 Total General Fund $11,131,160 $11,930,644 $40,429 $11,747,354 $11,398,937

Enterprise Fund Enterprise Fund - $150,000 - - $180,000 Total Enterprise Fund - $150,000 - - $180,000

Internal Services Funds Print Shop Internal Services $(4,429) $613,021 $266,342 $879,363 $761,355 Warehouse Internal Services $826,667 $1,102,505 $(50,000) $881,805 $1,059,708 Total Internal Services Funds $822,238 $1,715,526 $216,342 $1,761,168 $1,821,063

Total Business Services $11,953,398 $13,796,170 $256,771 $13,508,522 $13,400,000

Centralized Appropriations General Fund City of Mesa, Arizona 384 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Capital - General Fund $(213,722) $(1,126,264) $(4,996) $(637,807) $(1,256,183) General Fund $(14,342,875) $(11,635,251) $339,307 $(16,113,315) $(7,668,343) Total General Fund $(14,556,598) $(12,761,515) $334,311 $(16,751,122) $(8,924,526)

Enterprise Fund Capital - Enterprise $111,984 $610,693 $1,656 $260,211 $680,566 Enterprise Fund $19,094,646 $23,595,157 $(3,722) $21,178,615 $23,006,990 Total Enterprise Fund $19,206,630 $24,205,850 $(2,066) $21,438,826 $23,687,556

Restricted Funds Arts & Culture Fund $1,844,261 $2,465,948 $150,000 $2,003,523 $2,378,829 Cadence CFD - Operating - $10,000 - - $10,000 Cemetery $107,438 $131,944 - $109,890 $196,238 Eastmark CFD 1 - Capital $8,880,226 $3,750,000 - $449,330 $15,000,000 Eastmark CFD 1 - Debt $1,321,437 $2,091,847 - $1,470,709 $3,078,680 Eastmark CFD 1 - Operating $3,400 $20,000 $(6,400) - $20,000 Economic Investment Fund $477,282 $570,908 $3,910 $538,492 $609,435 Environmental Compliance Fee $685,132 $1,259,838 $(260,000) $799,918 $1,058,904 Falcon Field Fund $339,695 $511,959 - $470,179 $565,655 Greenfield WRP Joint Venture $539,050 $954,300 - $848,009 $960,521 Highway User Revenue Fund $111,361 $205,200 - $198,554 $116,034 Local Streets Sales Tax $4,134,971 $5,383,207 - $4,392,530 $5,310,802 Quality of Life Sales Tax - - - - $381,513 Restricted Programs Fund $2,290,826 $2,275,000 - $2,705,607 $2,348,475 TOPAZ Joint Venture Fund - $9,383 - $8,698 - Transit Fund $271,988 $376,759 - $354,335 $407,925 Transportation $17,745 - - - - Total Restricted Funds $21,024,811 $20,016,293 $(112,490) $14,349,775 $32,443,011

Internal Services Funds Fleet Internal Services $(16,206,931) $(15,868,958) $(35,000) $(15,830,720) $(15,254,329) Print Shop Internal Services $145,730 $(755,856) $(266,342) $(887,644) $(763,399) Warehouse Internal Services $(937,802) $5,325,427 $50,000 $4,953,245 $5,424,367 Total Internal Services Fund $(16,999,003) $(11,299,387) $(251,342) $(11,765,119) $(10,593,361)

Trust Funds Employee Benefit Trust $(88,493) $2,138,000 - $1,879,615 $2,413,284 Total Trust Funds $(88,493) $2,138,000 - $1,879,615 $2,413,284 City of Mesa, Arizona 385 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget

Debt Service Funds General Obligation Bond Redemption $83,790,658 $36,396,228 $51,185,868 $87,026,173 $38,714,956 Highway Project Advancement Notes $78,159,313 - - - - Highway User Revenue Bond Redemption $12,238,007 $12,377,013 - $12,377,013 $12,459,513 Non-Utility Bond Redemption $4,703,900 $49,739,000 - $46,822,008 $4,703,900 Special Improvement District Bond Redemption $883,055 $843,085 - $843,085 $403,405 Transportation Projected Advancement Notes - $2,500,000 - - $1,000,000 Utility Systems Bond Redemption $227,882,197 $75,264,414 $135,200,000 $152,705,522 $82,565,464 Utility Systems GO Bond Redemption $217,457 $83,448 - $83,448 $86,130 WIFA Redemption $177,665 $177,671 - $177,671 $177,668 Total Debt Service Funds $408,052,252 $177,380,859 $186,385,868 $300,034,920 $140,111,036

Bond Funds Electric Bond Construction $17,793 - $16,924 $16,924 $36,000 Fire Bond Construction $28,817 - - - - Gas Bond Construction $31,364 - $40,592 $40,592 $71,000 Parks Bond Construction $26,633 - $77,250 $77,250 $256,000 Public Safety Bond Construction $259,294 - $97,014 $97,014 - Streets Bond Construction $120,366 - $115,876 $115,876 $294,000 Wastewater Bond Construction $115,460 - $189,462 $189,462 $451,000 Water Bond Construction $747,567 - $435,178 $435,178 $721,000 Total Bond Funds $1,347,294 - $972,296 $972,296 $1,850,000

Contingency Fund Contingency Fund - - - - $265,068,000 General Obligation Bond Refunding - $50,200,000 $(50,200,000) - - Utility Systems Bond Refunding - $135,200,000 $(135,200,000) - - Total Contingency Fund - $185,400,000 $(185,400,000) - $265,068,000

Total Centralized Appropriations $417,986,893 $385,080,100 $1,926,578 $310,159,190 $446,055,000

City Attorney General Fund General Fund $5,500,263 $5,666,951 - $5,477,936 $5,576,587 Total General Fund $5,500,263 $5,666,951 - $5,477,936 $5,576,587

City of Mesa, Arizona 386 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Enterprise Fund Enterprise Fund - $163,341 - $163,341 $167,980 Total Enterprise Fund - $163,341 - $163,341 $167,980

Restricted Funds Cadence CFD - Operating - $15,000 - $13,750 $15,000 Eastmark CFD 1 - Operating $7,732 $40,000 - $25,000 $40,000 Environmental Compliance Fee - $23,829 - $23,829 $24,695 Special Programs Fund $22,036 - - - - Total Restricted Funds $29,769 $78,829 - $62,579 $79,695

Grant Funds Grants - Gen. Gov. $242,359 $504,170 - $362,646 $495,598 Community Development Block Grant $(0) $16,233 $(7,408) $8,825 $13,991 HOME - $7,511 $1,000 $8,511 $5,004 Section 8 - $1,188 $6,408 $7,596 $5,999 Total Grant Funds $242,359 $529,102 - $387,578 $520,592

Trust Funds Property & Public Liability $2,892,281 $6,671,777 - $3,346,753 $6,860,146 Total Trust Funds $2,892,281 $6,671,777 - $3,346,753 $6,860,146

Total City Attorney $8,664,671 $13,110,000 - $9,438,187 $13,205,000

City Auditor General Fund General Fund $693,657 $715,000 - $754,263 $747,000 Total General Fund $693,657 $715,000 - $754,263 $747,000

Total City Auditor $693,657 $715,000 - $754,263 $747,000

City Clerk General Fund General Fund $835,921 $1,313,368 - $1,189,442 $877,356 Total General Fund $835,921 $1,313,368 - $1,189,442 $877,356

City of Mesa, Arizona 387 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Restricted Funds Cadence CFD - Operating - $2,816 - $500 $2,816 Eastmark CFD 1 - Operating $3,308 $2,816 - $2,816 $2,828 Special Programs Fund $2,823 - - - - Total Restricted Funds $6,130 $5,632 - $3,316 $5,644

Total City Clerk $842,051 $1,319,000 - $1,192,758 $883,000

City Manager General Fund General Fund $5,112,748 $5,434,000 $109,398 $5,493,580 $5,813,000 Total General Fund $5,112,748 $5,434,000 $109,398 $5,493,580 $5,813,000

Restricted Funds Cadence CFD - Operating - $10,000 - $10,000 $10,000 Eastmark CFD 1 - Operating $12,928 $10,000 - $10,000 $10,000 Special Programs Fund $7,298 - - - - Total Restricted Funds $20,226 $20,000 - $20,000 $20,000

Grant Funds Grants - Gen. Gov. $97,613 $222,960 - $34,107 $159,135 Total Grant Funds $97,613 $222,960 - $34,107 $159,135

Total City Manager $5,230,587 $5,676,960 $109,398 $5,547,687 $5,992,135

Communications General Fund General Fund $1,836,328 $2,045,268 - $2,045,268 $1,960,833 Total General Fund $1,836,328 $2,045,268 - $2,045,268 $1,960,833

Enterprise Fund Enterprise Fund $(5,170) - - - - Total Enterprise Fund $(5,170) - - - -

Restricted Funds TOPAZ Joint Venture Fund $1,510,714 $1,536,732 - $1,536,732 $1,797,167 City of Mesa, Arizona 388 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Total Restricted Funds $1,510,714 $1,536,732 - $1,536,732 $1,797,167

Total Communications $3,341,872 $3,582,000 - $3,582,000 $3,758,000

Community Services General Fund Capital - General Fund $23,706 $1,312 - $1,312 $1,312 General Fund $2,529,608 $2,797,641 - $2,697,494 $2,887,355 Total General Fund $2,553,314 $2,798,953 - $2,698,806 $2,888,667

Restricted Funds Restricted Programs Fund $108,000 $225,131 - $108,000 $248,915 Total Restricted Funds $108,000 $225,131 - $108,000 $248,915

Grant Funds Community Development Block Grant $3,045,478 $13,011,581 $(100,000) $6,735,402 $11,237,910 HOME $499,156 $3,046,938 - $996,938 $3,347,125 Section 8 $12,099,963 $13,569,791 - $13,092,523 $13,683,961 Total Grant Funds $15,644,597 $29,628,310 $(100,000) $20,824,863 $28,268,996

Total Community Services $18,305,911 $32,652,394 $(100,000) $23,631,669 $31,406,578

Contingency Contingency Fund Contingency Fund - $134,471,000 $(5,760,740) - $91,174,000 Total Contingency Fund - $134,471,000 $(5,760,740) - $91,174,000

Total Contingency - $134,471,000 $(5,760,740) - $91,174,000

Development Services General Fund General Fund $6,566,480 $7,246,757 $(109,398) $7,333,533 $7,237,647 Total General Fund $6,566,480 $7,246,757 $(109,398) $7,333,533 $7,237,647

Enterprise Fund City of Mesa, Arizona 389 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Enterprise Fund $144,908 $151,487 - $150,949 $154,341 Total Enterprise Fund $144,908 $151,487 - $150,949 $154,341

Restricted Funds Environmental Compliance Fee $78,112 $101,400 - $100,944 $63,804 Local Streets Sales Tax $216,780 $227,440 - $223,002 $231,292 Restricted Programs Fund $996,183 $845,925 - $517,860 $328,065 Special Programs Fund $52,238 $39,518 - $40,101 $39,518 Total Restricted Funds $1,343,314 $1,214,283 - $881,907 $662,679

Grant Funds Community Development Block Grant $263,870 - - - - Grants - Gen. Gov. $5,850 - - - - Total Grant Funds $269,720 - - - -

Total Development Services $8,324,421 $8,612,527 $(109,398) $8,366,389 $8,054,667

Economic Development General Fund General Fund $3,628,448 $4,025,307 - $3,937,307 $4,017,995 Total General Fund $3,628,448 $4,025,307 - $3,937,307 $4,017,995

Enterprise Fund Enterprise Fund $70,000 - - - - Total Enterprise Fund $70,000 - - - -

Restricted Funds Economic Investment Fund $3,476,789 $5,777,067 $(435,000) $4,601,362 $5,129,856 Special Programs Fund $359,708 $366,467 - $366,467 $366,467 Falcon Field Fund $47,229 $55,159 - $55,159 $55,387 Total Restricted Funds $3,883,725 $6,198,693 $(435,000) $5,022,988 $5,551,710

Grant Funds Grants - Gen. Gov. $73,169 - - - - Total Grant Funds $73,169 - - - -

Total Economic Development $7,655,342 $10,224,000 $(435,000) $8,960,295 $9,569,705 City of Mesa, Arizona 390 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget

Energy Resources General Fund General Fund $64,849 $62,569 - $60,314 $56,738 Total General Fund $64,849 $62,569 - $60,314 $56,738

Enterprise Fund Capital - Enterprise $346 $460 - - $460 Enterprise Fund $36,980,661 $40,968,756 $(183,834) $39,308,235 $40,797,317 Total Enterprise Fund $36,981,007 $40,969,216 $(183,834) $39,308,235 $40,797,777

Restricted Funds Local Streets Sales Tax $355,027 $415,215 - $399,799 $432,485 Total Restricted Funds $355,027 $415,215 - $399,799 $432,485

Total Energy Resources $37,400,882 $41,447,000 $(183,834) $39,768,348 $41,287,000

Engineering General Fund Capital - General Fund $935 $57,641 - $5,000 $110,282 General Fund $5,413,014 $7,299,651 $259,700 $6,246,273 $7,050,987 Total General Fund $5,413,949 $7,357,292 $259,700 $6,251,273 $7,161,269

Enterprise Fund Enterprise Fund $1,365 $201,518 - $57,370 $201,673 Total Enterprise Fund $1,365 $201,518 - $57,370 $201,673

Restricted Funds Cadence CFD - Operating - $20,000 - $1,000 $20,000 Eastmark CFD 1 - Operating $10,541 $33,804 - $12,321 $18,514 Falcon Field Fund - - - - $37,620 Local Streets Sales Tax $29,117 $35,386 $56,821 $31,158 $35,565 Special Programs Fund $307 - - - - Total Restricted Funds $39,965 $89,190 $56,821 $44,479 $111,699

Total Engineering $5,455,279 $7,648,000 $316,521 $6,353,122 $7,474,641 City of Mesa, Arizona 391 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget

Environmental Management & Sustainability General Fund General Fund $26 - - - - Total General Fund $26 - - - -

Enterprise Fund Capital - Enterprise $92,152 $106,800 $(106,800) - - Enterprise Fund $28,168,327 $28,919,059 $(38,200) $28,369,079 $29,661,452 Total Enterprise Fund $28,260,479 $29,025,859 $(145,000) $28,369,079 $29,661,452

Restricted Funds Environmental Compliance Fee $1,231,227 $2,010,141 $(64,851) $1,747,735 $2,322,548 Solid Waste Development Fee $114,911 $124,000 - $124,000 $124,000 Special Programs Fund - $25,000 - - - Total Restricted Funds $1,346,138 $2,159,141 $(64,851) $1,871,735 $2,446,548

Grant Funds Grants - Gen. Gov. $66,572 $473,927 - $231,853 $242,074 Total Grant Funds $66,572 $473,927 - $231,853 $242,074

Total Environmental Management & Sustainability $29,673,214 $31,658,927 $(209,851) $30,472,667 $32,350,074

Falcon Field Airport Restricted Funds Falcon Field Fund $1,417,453 $1,735,000 $(233,394) $1,431,445 $1,959,000 Total Restricted Funds $1,417,453 $1,735,000 $(233,394) $1,431,445 $1,959,000

Total Falcon Field Airport $1,417,453 $1,735,000 $(233,394) $1,431,445 $1,959,000

Financial Services General Fund General Fund $3,369,048 $3,771,322 - $3,498,889 $3,618,271 Total General Fund $3,369,048 $3,771,322 - $3,498,889 $3,618,271

City of Mesa, Arizona 392 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Enterprise Fund Enterprise Fund $608 $623 - $300 $696 Total Enterprise Fund $608 $623 - $300 $696

Restricted Funds Cadence CFD - Operating - $30,000 - $100 $30,000 Eastmark CFD 1 - Operating $38,229 $44,897 $6,400 $51,297 $55,061 Greenfield WRP Joint Venture $4,930 $5,771 - $3,914 $1,200 TOPAZ Joint Venture Fund $3,570 $7,535 - $4,500 $8,424 Transit Fund $359 $852 - $852 $348 Total Restricted Funds $47,088 $89,055 $6,400 $60,663 $95,033

Total Financial Services $3,416,745 $3,861,000 $6,400 $3,559,852 $3,714,000

Fire & Medical General Fund Capital - General Fund $227,346 $1,123,887 $(24,251) $879,124 $629,940 General Fund $61,475,752 $62,508,946 $248,018 $62,714,116 $66,006,610 Total General Fund $61,703,097 $63,632,833 $223,767 $63,593,240 $66,636,550

Restricted Funds Falcon Field Fund $551,805 $596,067 - $596,067 $511,406 Quality of Life Sales Tax $7,591,090 $9,073,428 - $9,073,428 $7,905,560 Restricted Programs Fund $4,626 - - - - Total Restricted Funds $8,147,521 $9,669,495 - $9,669,495 $8,416,966

Grant Funds Grants - Gen. Gov. $4,444,049 $7,546,241 - $2,966,372 $3,854,061 Total Grant Funds $4,444,049 $7,546,241 - $2,966,372 $3,854,061

Total Fire and Medical $74,294,667 $80,848,569 $223,767 $76,229,107 $78,907,577

Fleet Services General Fund Capital - General Fund $228,337 $510,683 $21,244 $84,561 $447,366 General Fund $(545) $567 - $567 $7

City of Mesa, Arizona 393 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Total General Fund $227,792 $511,250 $21,244 $85,128 $447,373

Enterprise Fund Capital - Enterprise $107,293 $5,658,158 $(6,306) $2,104,197 $5,813,061 Enterprise Fund - - - - - Total Enterprise Fund $107,293 $5,658,158 $(6,306) $2,104,197 $5,813,061

Restricted Funds Environmental Compliance Fee $525,788 $1,170,867 $(24,277) $917,038 $868,578 Falcon Field Fund - - $18,000 $18,000 - Greenfield WRP Joint Venture - $14,400 - $14,400 $55,000 Highway User Revenue Fund $167,731 - $96,000 $96,000 - Local Streets Sales Tax $280,932 $1,826,429 $(225,820) $456,609 $1,817,901 Solid Waste Development Fee - $748,000 $387,000 $748,000 $387,000 Utility Replacement Extension & Renewal $2,012,592 $6,148,789 $(888,688) $3,489,122 $3,533,926 Vehicle Replacement $3,070,117 $4,415,383 $(939,721) $732,682 $5,862,660 Total Restricted Funds $6,057,159 $14,323,868 $(1,577,505) $6,471,852 $12,525,065

Internal Services Funds Fleet Internal Services $16,278,606 $16,301,096 - $15,911,096 $16,198,918 Warehouse Internal Services $(117) - - - - Total Internal Services Funds $16,278,489 $16,301,096 - $15,911,096 $16,198,918

Grant Funds Grants - Gen. Gov. - $166,756 - $166,756 - Total Grant Funds - $166,756 - $166,756 -

Total Fleet Services $22,670,734 $36,961,128 $(1,562,568) $24,739,028 $34,984,417

Human Resources General Fund General Fund $3,318,221 $3,777,234 $(50,000) $3,169,557 $3,648,376 Total General Fund $3,318,221 $3,777,234 $(50,000) $3,169,557 $3,648,376

Trust Funds Employee Benefit Trust $77,078,222 $82,308,111 - $76,691,777 $88,075,118 Workers' Compensation $4,446,685 $6,149,655 - $5,281,085 $6,494,506 City of Mesa, Arizona 394 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Total Trust Funds $81,524,907 $88,457,766 - $81,972,862 $94,569,624

Total Human Resources $84,843,127 $92,235,000 $(50,000) $85,142,419 $98,218,000

Information Technology General Fund Capital - General Fund $1,216,487 $3,994,225 $(545,633) $1,715,484 $4,420,108 General Fund $24,467,968 $31,827,970 $10,900 $27,691,919 $30,738,324 Total General Fund $25,684,455 $35,822,195 $(534,733) $29,407,403 $35,158,432

Enterprise Fund Capital - Enterprise - $46,000 - - $196,000 Total Enterprise Fund - $46,000 - - $196,000

Restricted Funds Restricted Programs Fund - - - - $104,896 Total Restricted Funds - - - - $104,896

Total Information Technology $25,684,455 $35,868,195 $(534,733) $29,407,403 $35,459,328

Library Services General Fund Capital - General Fund $7,974 - - - - General Fund $6,513,623 $7,120,727 $(26,563) $7,024,164 $7,188,474 Total General Fund $6,521,597 $7,120,727 $(26,563) $7,024,164 $7,188,474

Restricted Funds Restricted Programs Fund $62,900 $290,561 $(16,250) $274,311 $350,526 Total Restricted Funds $62,900 $290,561 $(16,250) $274,311 $350,526

Grant Funds Grants - Gen. Gov. $22,569 $78,000 $(52,970) $25,030 $34,363 Total Grant Funds $22,569 $78,000 $(52,970) $25,030 $34,363

Total Library Services $6,607,066 $7,489,288 $(95,783) $7,323,505 $7,573,363

City of Mesa, Arizona 395 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget

Mayor & Council General Fund General Fund $703,253 $1,016,000 - $782,750 $889,000 Total General Fund $703,253 $1,016,000 - $782,750 $889,000

Total Mayor and Council $703,253 $1,016,000 - $782,750 $889,000

Municipal Court General Fund Capital - General Fund - $2,000 - - $2,000 General Fund $7,366,386 $7,665,301 - $7,613,775 $7,753,997 Total General Fund $7,366,386 $7,667,301 - $7,613,775 $7,755,997

Restricted Funds Restricted Programs Fund $262,714 $1,764,026 $(49,257) $414,400 $2,509,385 Total Restricted Funds $262,714 $1,764,026 $(49,257) $414,400 $2,509,385

Grant Funds Grants - Gen. Gov. $550 - - - - Total Grant Funds $550 - - - -

Total Municipal Court $7,629,650 $9,431,327 $(49,257) $8,028,175 $10,265,382

Office of ERP Management General Fund Capital - General Fund - $5,000 - - $4,000 General Fund $472,794 $895,000 - $658,656 $851,557 Total General Fund $472,794 $900,000 - $658,656 $855,557

Total Office of ERP Management $472,794 $900,000 - $658,656 $855,557

Office of Management & Budget General Fund Capital - General Fund $17,412 - - - $1,000 City of Mesa, Arizona 396 Executive Budget Plan 2017/18 City of Mesa Summary- of Expeditures by Department- and F Fiscal Year 2017/1 - Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget General Fund $2,256,374 $2,809,529 - $2,601,558 $2,681,910 Total General Fund $2,273,786 $2,809,529 - $2,601,558 $2,682,910

Internal Services Funds Warehouse Internal Services - und$7,000 - Total Internal Services Funds - - 8- $7,000 -

Restricted Funds Cadence CFD - Operating - $7,000 - $1,134 $7,000 Eastmark CFD 1 - Operating $4,417 $7,000 - $14,000 $7,000 Special Programs Fund $3,122 - - - - Total Restricted Funds $7,540 $14,000 - $15,134 $14,000

Total Office of Management and Budget $2,281,326 $2,823,529 - $2,623,692 $2,696,910

Parks, Recreation & Community Facilities General Fund Capital - General Fund - $297,186 $(124,086) $173,100 - General Fund $24,067,976 $31,770,696 $(714,458) $28,425,078 $31,607,219 Total General Fund $24,067,976 $32,067,882 $(838,544) $28,598,178 $31,607,219

Enterprise Fund Capital - Enterprise $6,346 $3,456,993 $(449,450) $2,804,609 $691,242 Enterprise Fund $8,032,913 $8,281,609 $586,000 $8,673,521 $8,387,100 Total Enterprise Fund $8,039,259 $11,738,602 $136,550 $11,478,130 $9,078,342

Restricted Funds Cemetery $994,221 $1,249,154 $(25,400) $1,124,000 $1,214,810 Economic Investment Fund $204,626 $183,106 - $90,000 $176,466 Environmental Compliance Fee $6,264,920 $6,483,896 $(1,000) $6,482,896 $6,870,743 Restricted Programs Fund $30,167 $25,260 $31,330 $3,000 $52,360 Special Programs Fund $48,112 $239,177 $(100,000) $139,177 $50,000 Total Restricted Funds $7,542,046 $8,180,593 $(95,070) $7,839,073 $8,364,379

Grant Funds Grants - Gen. Gov. $44,552 - $24,056 $24,056 - Total Grant Funds $44,552 - $24,056 $24,056 - City of Mesa, Arizona 397 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget

Total Parks, Recreation & Community Facilities $39,693,832 $51,987,077 $(773,007) $47,939,437 $49,049,940

Police General Fund Capital - General Fund $127,387 $696,391 $(306,450) $337,587 $51,500 General Fund $145,268,926 $155,615,293 $(253,988) $153,491,315 $162,095,019 Total General Fund $145,396,313 $156,311,684 $(560,439) $153,828,902 $162,146,519

Enterprise Fund Enterprise Fund $823,820 $757,328 - $816,009 $769,143 Falcon Field Fund $183,363 $252,507 - $181,645 $256,553 Total Enterprise Fund $1,007,183 $1,009,835 - $997,655 $1,025,696

Restricted Funds Local Streets Sales Tax $124,722 $126,144 - $124,754 $128,305 Quality of Life Sales Tax $14,667,000 $15,629,256 - $15,629,256 $15,348,488 Restricted Programs Fund $1,061,143 $1,928,188 $75,000 $1,695,268 $2,091,679 Special Programs Fund $47,285 $143,000 - $86,000 $100,000 Total Restricted Funds $15,900,150 $17,826,588 $75,000 $17,535,278 $17,668,472

Grant Funds Grants - Gen. Gov. $1,511,351 $3,355,240 $236,300 $1,105,162 $5,007,807 Total Grant Funds $1,511,351 $3,355,240 $236,300 $1,105,162 $5,007,807

Trust Funds Employee Benefit Trust $43,705 $47,110 - $46,567 $47,867 Property & Public Liability - - - - - Total Trust Funds $43,705 $47,110 - $46,567 $47,867

Total Police $163,858,703 $178,550,457 $(249,139) $173,513,563 $185,896,361

Project Management Program General Fund Capital - General Fund $4,218,492 $9,422,072 $2,241,642 $3,537,782 $16,897,015 General Fund $99,033 $2,333,641 $(637,362) $(1,728,826) $6,424,105 City of Mesa, Arizona 398 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Total General Fund $4,317,525 $11,755,713 $1,604,279 $1,808,956 $23,321,120

Enterprise Fund Capital - Enterprise $1,974,962 $825,639 $268,874 $351,439 $1,193,648 Enterprise Fund $706,704 $1,118,583 $181,516 $963,952 $355,895 Total Enterprise Fund $2,681,666 $1,944,222 $450,390 $1,315,391 $1,549,543

Restricted Funds Arts & Culture Fund $22,426 $9,982 $103,000 $10,594 $134,139 Cemetery $191,553 $69,182 $25,400 $1,152,886 $94,607 Cemetery Reserve - $953,000 - $179,150 $983,850 Economic Investment Fund $2,824,809 - $444,312 $9,312 $442,862 Environmental Compliance Fee $1,408,670 $3,168,227 $3,087,503 $1,042,018 $4,596,358 Falcon Field Fund $2,540,122 $544,977 $215,394 $(228,066) $3,632,359 Greenfield WRP Joint Venture $3,378,379 $13,668,860 $175,851 $13,668,860 $53,028,242 Highway User Revenue Fund $929,355 $9,586,402 $(173,107) $2,409,181 $18,970,655 Local Streets Sales Tax $13,740,086 $15,201,096 $1,349,460 $6,862,804 $19,593,322 Mesa Arts Center Restoration Fee $537,679 - $612,000 $612,000 $500,000 Restricted Programs Fund $46,726 $23,667 $(23,667) - $130,000 Special Programs Fund - - $100,000 $71,074 $28,926 TOPAZ Joint Venture Fund $4,320,225 $1,633,828 - $2,501,805 $1,349,804 Transit Fund $1,068,563 $11,970,030 $123,500 $4,999,513 $19,049,343 Transportation - - - $28,220 $18,808,835 Utility Replacement Extension & Renewal $1,785,577 $3,121,981 $38,870 $3,700,734 $3,047,176 Total Restricted Funds $32,794,170 $59,951,232 $6,078,517 $37,020,085 $144,390,478

Internal Services Funds Fleet Internal Services $10,620 $403,781 $35,000 $380,759 $43,022 Print Shop Internal Services $44 $142,835 - $140,791 $2,044 Warehouse Internal Services $44 $142,710 - $140,642 $2,068 Total Internal Services Funds $10,708 $689,326 $35,000 $662,192 $47,134

Impact Fees Gen Government Facility Impact Fee $939 - - - - Total Impact Fees $939 - - - -

Grant Funds Community Development Block Grant $353,028 - $100,000 $(2,600,000) $4,062,003 City of Mesa, Arizona 399 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Grants - Enterprise $1,750,764 $2,788,178 - $2,223,784 $4,311,402 Grants - Gen. Gov. $5,259,527 $760,329 $1,892,978 $(30,421) $6,406,320 Total Grant Funds $7,363,319 $3,548,507 $1,992,978 $(406,637) $14,779,725

Trust Funds Employee Benefit Trust - - - - - Total Trust Funds - - - - -

Bond Funds Electric Bond Construction $1,669,396 $11,706,885 $(16,924) $2,289,332 $7,519,810 Fire Bond Construction $2,452,000 - - - - Gas Bond Construction $5,371,921 $24,524,058 $(40,592) $3,549,826 $13,759,450 Parks Bond Construction $4,335,071 $14,171,255 $(77,250) $1,120,589 $21,299,450 Public Safety Bond Construction $25,096,863 $9,436,635 $(97,014) $12,814,506 $185,494 Solid Waste Bond Construction $270,314 - - $3,465,774 $3,368,000 Spring Training Bond Construction $447,014 - - $(306,254) $324,090 Streets Bond Construction $13,528,470 $23,712,507 $(115,876) $7,639,434 $17,373,375 Wastewater Bond Construction $17,391,387 $28,517,037 $(189,462) $15,658,204 $45,288,100 Water Bond Construction $48,015,355 $146,512,623 $(435,178) $53,578,023 $80,786,231 Total Bond Funds $118,577,792 $258,581,000 $(972,296) $99,809,433 $189,904,000

Total Project Management Program $165,746,120 $336,470,000 $9,188,868 $140,209,420 $373,992,000

Public Information and Communications General Fund Capital - General Fund $101,186 - $19,537 $19,537 - General Fund $1,309,744 $1,423,000 $64,050 $1,596,619 $1,551,000 Total General Fund $1,410,929 $1,423,000 $83,587 $1,616,156 $1,551,000

Total Public Information and Communications $1,410,929 $1,423,000 $83,587 $1,616,156 $1,551,000

Transit Services Restricted Funds Transit Fund $10,715,468 $13,415,000 $(175,200) $12,731,551 $15,348,000 Total Restricted Funds $10,715,468 $13,415,000 $(175,200) $12,731,551 $15,348,000

City of Mesa, Arizona 400 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Total Transit Services $10,715,468 $13,415,000 $(175,200) $12,731,551 $15,348,000

Transportation General Fund Capital - General Fund - $100,000 - $26,171 $173,829 General Fund $15,921 $22,200 - $21,090 $22,200 Total General Fund $15,921 $122,200 - $47,261 $196,029

Enterprise Fund Enterprise Fund $422,491 $660,075 - $627,128 $443,735 Falcon Field Fund $5,475 $6,000 - $5,700 $6,000 Total Enterprise Fund $427,966 $666,075 - $632,828 $449,735

Restricted Funds Environmental Compliance Fee $2,726,188 $4,670,351 $(517,744) $3,574,531 $4,593,228 Highway User Revenue Fund $17,944,479 $15,333,794 $173,107 $14,324,257 $15,702,844 Local Streets Sales Tax $13,932,878 $21,750,179 $(1,010,281) $20,682,201 $23,056,330 Transit Fund $239,166 $58,751 $42,000 $95,871 $55,128 Total Restricted Funds $34,842,711 $41,813,075 $(1,312,918) $38,676,860 $43,407,530

Total Transportation $35,286,598 $42,601,350 $(1,312,918) $39,356,949 $44,053,294

Water Resources General Fund General Fund $85,973 $94,083 - $93,333 $99,011 Total General Fund $85,973 $94,083 - $93,333 $99,011

Enterprise Fund Capital - Enterprise - $7,975 - $350 $591,675 Enterprise Fund $50,980,664 $60,169,215 $(43,480) $56,402,582 $65,679,444 Total Enterprise Fund $50,980,664 $60,177,190 $(43,480) $56,402,932 $66,271,119

Restricted Funds Environmental Compliance Fee $10,265 $29,977 - $25,509 $32,907 Greenfield WRP Joint Venture $5,630,214 $6,540,769 $(200,726) $6,186,762 $6,720,755 Local Streets Sales Tax $83,600 $88,384 - $91,611 $93,112 City of Mesa, Arizona 401 Executive Budget Plan 2017/18 City of Mesa Summary of Expeditures by Department and Fund Fiscal Year 2017/18- Adopted

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Budget Projected Adopted Department/Fund Expenditures Budget Adjustments Expenditures Budget Utility Replacement Extension & Renewal $1,571,895 $1,021,397 $(99,317) $583,756 $1,205,170 Total Restricted Funds $7,295,974 $7,680,527 $(300,043) $6,887,638 $8,051,944

Total Water Resources $58,362,611 $67,951,800 $(343,523) $63,383,903 $74,422,074

Total Expenditures $1,275,591,578 $1,670,000,000 $1 $1,194,108,821 $1,740,000,000

Changes in accounting presentation affect comparisons between years.

City of Mesa, Arizona 402 Executive Budget Plan 2017/18 City of Mesa Other Financing Sources/Uses and Interfund Transfers Fiscal Year 2017/18- Adopted Other Financing Interfund Transfers Sources Uses In Out General Fund General Fund - - $113,976,851 $36,250,935 Capital - General Fund - - $11,336,207 - Total General Fund - - $125,313,058 $36,250,935

Enterprise Fund Capital - Enterprise - - $3,972,986 - Enterprise Fund - - - $198,655,704 Total Enterprise Fund - - $3,972,986 $198,655,704

Restricted Funds Arts and Culture Fund - - $9,316,000 - Cemetery - - $89,835 - Cemetery Reserve - - - $89,835 Court Construction Fee - - - $799,910 Eastmark CFD 1 - Capital $15,000,000 - - - Economic Investment Fund - - $4,585,959 - Highway User Revenue Fund - - - $12,455,013 Special Programs Fund - - - $7,498,553 Transit Fund - - $12,375,821 - Utility Replacement Extension & Renewal - - $7,158,276 - Vehicle Replacement - - $2,500,000 - Total Restricted Funds $15,000,000 - $36,025,891 $20,843,311

Impact Fee Funds Cultural Facility Impact Fee - - - - Fire Impact Fee - - $259,972 $664,404 Library Impact Fee - - - $66,051 Parks Impact Fee - - - $616,576 Police Impact Fee - - $400,403 $1,034,211 Stormwater Drainage Impact Fee - - - $244,013 Wastewater Impact Fee - - - $1,734,489 Water Impact Fees - - - $2,421,380 Total Impact Fee Funds - - $660,375 $6,781,124

Debt Service Funds General Obligation Bond Redemption - - $3,487,697 - Highway User Revenue Bond Redemption - - $12,455,013 - Utility Systems Bond Redemption - - $80,352,279 - Utility Systems GO Bond Redemption - - $86,109 - WIFA Redemption - - $177,665 - Total Debt Service Funds - - $96,558,763 -

Bond Funds Electric Bond Construction $7,555,810 - - - Gas Bond Construction $13,830,450 - - - Parks Bond Construction $21,555,450 - - - Public Safety Bond Construction $185,494 - - - Solid Waste Bond Construction $3,389,000 - - - Spring Training Bond Construction $324,090 - - - Streets Bond Construction $17,667,375 - - - Wastewater Bond Construction $45,738,518 - - - Water Bond Construction $81,507,813 - - - Total Bond Funds $191,754,000 - - -

Contingency Funds Contingency Fund $265,068,000 - - - Total Contingency Funds $265,068,000 - - -

Total $471,822,000 - $262,531,073 $262,531,074

City of Mesa, Arizona 403 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Changes in Fund Balance Fiscal Year 2017/18

Projected Funds Available Budgeted Expenditures Capital Projected Beginning Estimated Capital Improvement Ending Fund Projected Fund Funds Operating Improvement Program Fund Fund Balance Sources Transfers Available Operating Carryover Program Carryover Expenditures Balance

General Fund General Fund $91,923,663 $278,653,881 $77,725,916 $448,303,460 $357,632,299 $7,498,873 - - $365,131,172 $83,172,288 Capital - General Fund $10,145,962 - $11,336,207 $21,482,169 $9,620,684 $6,034,117 $1,715,523 $4,111,845 $21,482,169 $0 Enterprise Fund Capital - Enterprise $6,635,308 $505,000 $3,972,986 $11,113,294 $3,959,470 $4,329,645 $273,516 $604,021 $9,166,652 $1,946,642 Enterprise Fund $87,305,389 $364,264,335 $(198,655,704) $252,914,020 $167,496,958 $1,850,888 $457,920 - $169,805,766 $83,108,254 Restricted Funds Arts and Culture Fund $1,380,755 $6,100,756 $9,316,000 $16,797,511 $15,787,086 $511,225 $133,000 $1,139 $16,432,450 $365,061 Cadence CFD - Operating $(26,484) $94,816 - $68,332 $94,816 - - - $94,816 $(26,484) Cemetery $44,218 $1,371,602 $89,835 $1,505,655 $1,402,398 $103,257 - - $1,505,655 $(0) Cemetery Reserve $5,983,108 $126,000 $(89,835) $6,019,273 - - $210,000 $773,850 $983,850 $5,035,423 Court Construction Fee $(0) $799,910 $(799,910) $(0) -- - - - $(0) Customer Deposit Trust $265,807 - - $265,807 -- - - - $265,807 Eastmark CFD 1 - Capital $183,582 $15,000,000 - $15,183,582 $15,000,000 - - - $15,000,000 $183,582 Eastmark CFD 1 - Debt $669,432 $3,078,404 - $3,747,836 $3,078,680 - - - $3,078,680 $669,156 Eastmark CFD 1 - Operating $213,937 $153,403 - $367,340 $153,403 - - - $153,403 $213,937 Economic Investment Fund $842,660 $2,930,000 $4,585,959 $8,358,619 $5,515,959 $399,798 - $442,862 $6,358,619 $2,000,000 Environmental Compliance Fee $10,080,929 $15,662,003 - $25,742,932 $15,825,677 $323,185 - $4,282,903 $20,431,765 $5,311,167 Falcon Field Fund $8,486,505 $4,184,415 - $12,670,920 $3,380,351 $12,701 $2,137,239 $1,493,689 $7,023,980 $5,646,940 Greenfield WRP Joint Venture $42,985 $60,765,718 - $60,808,703 $7,711,175 $202,152 $51,931,394 $920,997 $60,765,718 $42,985 Highway User Revenue Fund $23,761,520 $39,660,968 $(12,455,013) $50,967,475 $23,818,878 $5,056,082 $5,914,573 - $34,789,533 $16,177,942 Local Streets Sales Tax $29,067,347 $28,797,070 - $57,864,417 $29,793,419 $2,469,221 $11,461,299 $6,975,175 $50,699,114 $7,165,303 Mesa Arts Center Restoration Fee $883,341 $306,000 - $1,189,341 $500,000 - - - $500,000 $689,341 Quality of Life Sales Tax $794,511 $23,254,048 - $24,048,559 $23,635,561 - - - $23,635,561 $412,998 Restricted Programs Fund $6,560,342 $6,210,738 - $12,771,080 $6,549,674 $2,113,221 - $130,000 $8,792,895 $3,978,185 Solid Waste Development Fee $575,555 $481,990 - $1,057,545 $124,000 $387,000 - - $511,000 $546,545 Special Programs Fund $19,436,116 $780,177 $(7,498,553) $12,717,740 $555,985 $28,926 - - $584,911 $12,132,829 TOPAZ Joint Venture Fund $171,901 $3,155,395 - $3,327,296 $1,805,591 - $954,804 $395,000 $3,155,395 $171,901 Transit Fund $(0) $22,484,923 $12,375,821 $34,860,744 $15,941,242 $3,376 $11,822,326 $7,093,800 $34,860,744 $(0) Transportation $15,973,311 $4,685,310 - $20,658,621 - - $18,808,835 - $18,808,835 $1,849,786 Utility Replacement Extension & Renewal $23,527,754 - $7,158,276 $30,686,030 $2,807,158 $1,931,938 $3,047,176 - $7,786,272 $22,899,758 Vehicle Replacement $4,867,451 $223,234 $2,500,000 $7,590,685 $3,119,680 $2,742,980 - - $5,862,660 $1,728,025 Internal Service Funds Fleet Internal Service $514,824 $987,611 - $1,502,435 $311,504 $676,107 - - $987,611 $514,824 Print Shop Internal Service $(500,453) - - $(500,453) $(50,613) $50,613 - - - $(500,453) Warehouse Internal Service $816,346 $6,486,143 - $7,302,489 $6,430,724 $55,419 - - $6,486,143 $816,346 Impact Fee Funds Cultural Facility Impact Fee $46,706 - - $46,706 -- - - - $46,706 Fire Impact Fee $0 $437,654 $(404,432) $33,222 -- - - - $33,222 Gen Govt Facility Impact Fee $2,310 - - $2,310 -- - - - $2,310 Library Impact Fee $280,809 $2,000 $(66,051) $216,758 -- - - - $216,758 Parks Impact Fee $2,674,927 $20,000 $(616,576) $2,078,351 -- - - - $2,078,351 Police Impact Fee $(0) $657,284 $(633,808) $23,476 -- - - - $23,476

City of Mesa, Arizona 404 Executive Budget Plan 2017/18 City of Mesa, Arizona Summary of Changes in Fund Balance Fiscal Year 2017/18

Projected Funds Available Budgeted Expenditures Capital Projected Beginning Estimated Capital Improvement Ending Fund Projected Fund Funds Operating Improvement Program Fund Fund Balance Sources Transfers Available Operating Carryover Program Carryover Expenditures Balance

Stormwater Drainage Impact Fee $1,664,165 $489,001 $(244,013) $1,909,153 -- - - - $1,909,153 Wastewater Impact Fee $5,458,959 $4,095,285 $(1,734,489) $7,819,755 -- - - - $7,819,755 Water Impact Fees $3,985,367 $3,424,482 $(2,421,380) $4,988,469 -- - - - $4,988,469 Grant Funds Community Development Block Grant $464,181 $15,313,904 - $15,778,085 $4,975,722 $6,276,179 - $4,062,003 $15,313,904 $464,181 Grants - Enterprise $676,667 $4,311,402 - $4,988,069 - - $3,841,315 $470,087 $4,311,402 $676,667 Grants - Gen. Gov. $(334,238) $15,892,792 - $15,558,554 $6,161,179 $4,827,471 $3,180,000 $2,290,629 $16,459,279 $(900,725) HOME $4,303 $3,352,129 - $3,356,432 $1,302,129 $2,050,000 - - $3,352,129 $4,303 Section 8 $600,403 $13,689,960 - $14,290,363 $13,212,692 $477,268 - - $13,689,960 $600,403 Trust Funds Employee Benefit Trust $41,908,855 $85,436,333 - $127,345,188 $90,482,911 $53,358 - - $90,536,269 $36,808,919 Property and Public Liability $10,000,000 $6,860,146 - $16,860,146 $6,860,146 - - - $6,860,146 $10,000,000 Workers' Compensation $9,303,060 $3,771,406 - $13,074,466 $6,494,506 - - - $6,494,506 $6,579,960 Debt Service Funds General Obligation Bond Redemption $4,484,697 $33,999,099 $3,487,697 $41,971,493 $38,714,956 - - - $38,714,956 $3,256,537 Highway Project Advancement Notes $649,619 $6,000 - $655,619 -- - - - $655,619 Highway User Revenue Bond Redemption $33,124 - $12,455,013 $12,488,137 $12,459,513 - - - $12,459,513 $28,624 Non-Utility Bond Redemption $0 $4,867,151 - $4,867,151 $4,703,900 - - - $4,703,900 $163,251 Special Improvement District Bond Redemption $116 $403,405 - $403,521 $403,405 - - - $403,405 $116 Transportation Project Advancement Notes - $1,000,000 - $1,000,000 $1,000,000 - - - $1,000,000 - Utility Systems Bond Redemption $40 $2,239,646 $80,352,279 $82,591,965 $82,565,464 - - - $82,565,464 $26,501 Utility Systems GO Bond Redemption $8,474 - $86,109 $94,583 $86,130 - - - $86,130 $8,453 WIFA Redemption $21,829 - $177,665 $199,494 $177,668 - - - $177,668 $21,826 Bond Funds Electric Bond Construction $1,095,387 $7,555,810 - $8,651,197 $36,000 - $7,519,810 - $7,555,810 $1,095,387 Fire Bond Construction $45,856 - - $45,856 -- - - - $45,856 Gas Bond Construction $4,563,683 $13,830,450 - $18,394,133 $71,000 - $13,759,450 - $13,830,450 $4,563,683 Parks Bond Construction $15,738,266 $21,555,450 - $37,293,716 $256,000 - $8,326,034 $12,973,416 $21,555,450 $15,738,266 Public Safety Bond Construction $4,988,034 $185,494 - $5,173,528 - - - $185,494 $185,494 $4,988,034 Solid Waste Bond Construction $46,582 $3,389,000 - $3,435,582 $21,000 - $3,368,000 - $3,389,000 $46,582 Spring Training Bond Construction $(1,484,371) $324,090 - $(1,160,281) - - - $324,090 $324,090 $(1,484,371) Storm Sewer Bond Construction $0 - - $0 -- - - -$0 Streets Bond Construction $15,279,831 $17,667,375 - $32,947,206 $294,000 - $17,373,375 - $17,667,375 $15,279,831 Wastewater Bond Construction $26,684,737 $45,738,518 - $72,423,255 $451,000 - $45,288,100 - $45,739,100 $26,684,155 Water Bond Construction $54,407,817 $81,507,813 - $135,915,630 $721,000 - $80,786,231 - $81,507,231 $54,408,399 Subtotal $553,927,820 $1,283,226,929 $(1) $1,837,154,748 $993,452,080 $50,465,000 $292,309,920 $47,531,000 $1,383,758,000 $453,396,748

Contingency* - $270,068,000 - $270,068,000 $356,242,000 - - - $356,242,000 $(86,174,000)

Total $553,927,820 $1,553,294,929 $(1) $2,107,222,748 $1,349,694,080 $50,465,000 $292,309,920 $47,531,000 $1,740,000,000 $367,222,748 * Budget appropriation to allow for the use of fund balance if needed

City of Mesa, Arizona 405 Executive Budget Plan 2017/18 Summary of Bond and Reserve Expenditures by Fund and Sub-Fund Fiscal Year 2017/18

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Adopted Fund / Sub-Fund Expenditures Budget Expenditures Budget

Electric Bond Construction Electric - 2010 Bond Election $305,259 $1,800,000 $341,790 - Electric - 2014 Bond Election $1,381,930 $9,906,885 $1,964,466 $7,555,810

Fire Bond Construction Fire - 2004 Bond Election $2,480,817 - - -

Gas Bond Construction Gas - 2010 Bond Election $843,457 $8,447,862 $168,456 $3,108,023 Gas - 2014 Bond Election $4,559,828 $16,076,196 $3,421,962 $10,722,427

Parks Bond Construction Parks - 2012 Bond Election $4,361,704 $14,171,255 $1,197,839 $21,555,450

Public Safety Bond Construction Public Safety - 2008 Bond Election $588,117 $1,000,000 $1,000,000 - Public Safety - 2013 Bond Election $24,768,040 $8,436,635 $11,911,520 $185,494

Solid Waste Bond Construction Solid Waste - 1994 Bond Election $270,314 - $3,465,774 $3,389,000

Spring Training Bond Construction $447,014 - $(306,254) $324,090

Streets Bond Construction Streets - 2008 Bond Election $945,683 - $58,215 - Streets - 2013 Bond Election $12,703,153 $23,712,507 $7,697,095 $17,667,375

Wastewater Bond Construction Wastewater - 2006 Bond Election $7,671,971 - $215,716 - Wastewater - 2010 Bond Election $9,345,559 $2,738,561 $5,136,237 $3,555,157 Wastewater - 2014 Bond Election $489,318 $25,778,476 $10,495,713 $42,183,943

Water Bond Construction Water - 2010 Bond Election $3,626,298 $980,271 $366,450 $1,706,250 Water - 2014 Bond Election $45,136,625 $145,532,352 $53,646,751 $79,800,981

Total Bond and Reserve Expenditures $119,925,087 $258,581,000 $100,781,729 $191,754,000

City of Mesa, Arizona 406 Executive Budget Plan 2017/18 City of Mesa Full-Time Employees and Personnel Compensation Fiscal Year 2017/18- Adopted

Full-Time Employee Allocated Total Estimated Equivalent Salaries and Retirement Healthcare Other Benefit Personnel Personnel Fund (FTE) Hourly Costs Costs Costs Costs Costs Compensation

General Fund General Fund* 2,491.1 $183,130,754 $55,155,695 $42,749,019 $19,956,239 $(21,063,153) $279,928,554 Capital - General Fund 0.3 $25,364 $2,875 $3,985 $2,295 - $34,519 Total General Fund 2,491.4 $183,156,118 $55,158,570 $42,753,004 $19,958,534 $(21,063,153) $279,963,073

Enterprise Fund Capital - Enterprise 0.2 $18,366 $2,532 $2,886 $1,972 - $25,755 Enterprise Fund 544.1 $32,542,016 $3,933,168 $9,805,526 $4,081,481 $12,822,563 $63,184,754 Total Enterprise Fund 544.4 $32,560,382 $3,935,700 $9,808,411 $4,083,453 $12,822,563 $63,210,509

Restricted Funds Arts & Culture Fund 82.8 $4,761,175 $499,661 $1,011,674 $495,881 $972,018 $7,740,409 Cadence CFD - Operating - $40,616 $651 - $6,349 - $47,616 Cemetery 10.6 $563,307 $62,229 $126,302 $50,432 $80,271 $882,541 Cemetery Reserve 0.0 $3,038 $344 $477 $275 - $4,134 Community Facilities Districts - Operating 0.3 $36,146 $3,615 $4,344 $8,473 - $52,578 Economic Investment Fund 2.7 $196,884 $22,332 $57,687 $18,875 $338,561 $634,339 Environmental Compliance Fee 51.1 $2,954,731 $339,685 $635,319 $305,785 $604,495 $4,840,014 Falcon Field Airport 19.0 $1,374,943 $220,735 $314,019 $92,922 $260,306 $2,262,924 Greenfield WRP Joint Venture 35.7 $2,426,044 $280,052 $435,250 $265,752 $528,235 $3,935,333 Highway User Revenue Fund 113.9 $6,963,313 $789,187 $1,327,168 $588,927 - $9,668,594 Local Streets Sales Tax 35.9 $2,565,605 $333,012 $1,418,644 $350,144 $2,045,596 $6,713,001 Quality of Life Sales Tax 185.0 $12,426,368 $7,127,623 $2,380,065 $1,319,992 $352,728 $23,606,776 Restricted Programs Fund 10.3 $459,569 $52,849 $58,608 $161,816 - $732,842 TOPAZ Joint Venture Fund 3.5 $295,621 $32,765 $34,527 $34,178 - $397,091 Transit Fund 5.8 $451,655 $51,388 $82,639 $39,783 $284,916 $910,381 Transportation Fund 3.7 $272,067 $30,844 $42,746 $24,617 - $370,273 Utility Replacement Extension and Renewal 1.4 $104,681 $11,868 $16,447 $9,472 - $142,467 Total Restricted Funds 561.7 $35,895,761 $9,858,838 $7,945,916 $3,773,672 $5,467,126 $62,941,313

Internal Service Funds Fleet Internal Service 75.9 $4,567,822 $528,193 $1,342,303 $598,610 $910,584 $7,947,512 Print Shop Internal Service 3.8 $187,732 $21,453 $42,927 $18,386 $66,632 $337,130 Warehouse Internal Service 10.6 $537,850 $61,361 $186,067 $48,638 $130,299 $964,215 Total Internal Service Funds 90.2 $5,293,404 $611,007 $1,571,297 $665,634 $1,107,515 $9,248,857

Grant Funds Community Development Block Grant 9.6 $543,187 $61,607 $118,212 $44,121 - $767,127 Grants - Enterprise 0.8 $58,342 $6,614 $9,166 $5,279 - $79,402 Grants - Gen. Gov. 29.5 $1,172,496 $886,955 $340,512 $1,172,488 - $3,572,451 HOME 1.5 $90,786 $10,306 $15,336 $7,344 - $123,772 City of Mesa, Arizona 407 Executive Budget Plan 2017/18 City of Mesa Full-Time Employees and Personnel Compensation Fiscal Year 2017/18- Adopted

Section 8 14.5 $730,248 $82,879 $156,444 $60,232 - $1,029,803 Total Grant Funds 55.9 $2,595,059 $1,048,361 $639,670 $1,289,464 - $5,572,555

Trust Funds Employee Benefit Trust 11.2 $756,327 $88,430 $279,894 $90,689 $1,665,948 $2,881,288 Property and Public Liability 8.3 $764,371 $87,463 $83,424 $64,629 - $999,887 Worker's Compensation 7.3 $482,292 $55,190 $91,044 $42,280 - $670,806 Total Trust Funds 26.8 $2,002,990 $231,083 $454,362 $197,598 $1,665,948 $4,551,981

Bond Funds Electric Bond Construction 7.8 $583,585 $66,160 $91,690 $52,803 - $794,238 Gas Bond Construction 14.8 $1,102,789 $125,021 $173,265 $99,781 - $1,500,856 Parks Bond Construction 0.3 $22,655 $2,568 $3,559 $2,050 - $30,832 Solid Waste Bond Construction 0.5 $39,055 $4,428 $6,136 $3,534 - $53,153 Streets Bond Construction 4.4 $329,679 $37,375 $51,797 $29,830 - $448,681 Wastewater Bond Construction 9.5 $706,360 $80,079 $110,980 $63,912 - $961,330 Water Bond Construction 26.1 $1,940,391 $219,979 $304,864 $175,568 - $2,640,802 Total Bond Funds 63.5 $4,724,512 $535,610 $742,291 $427,478 - $6,429,892

Total All Funds 3,833.9 $266,228,226 $71,379,170 $63,914,952 $30,395,833 $(1) $431,918,180

* Central administration positions are included in the General Fund but the costs are spread among multiple funds in the Allocated Personnel Costs column.

City of Mesa, Arizona 408 Executive Budget Plan 2017/18 Personnel Services Overview Fiscal Year 2017/18

The Personal Services portion of the City of Mesa budget is a significant part of the total budget. Total personal services dollars for Fiscal Year 2017/18 are $431.9 million which is 24.8% of the total annual budget.

Number of Full Time Equivalent (FTE) by Department

FY 2016/17 FY 2017/18 Budgeted Budgeted % of total Budgeted % of total Department FY 2015/16 FY 2016/17 FTE FY 2017/18 FTE Arts and Culture 79.2 84.5 2.2% 88.8 2.3% Business Services 139.0 138.0 3.6% 137.0 3.6% City Attorney 58.5 64.5 1.7% 64.5 1.7% City Auditor 5.0 5.0 0.1% 5.0 0.1% City Clerk 8.0 8.0 0.2% 8.0 0.2% City Manager 28.0 28.0 0.7% 29.5 0.8% Communications 22.0 21.0 0.6% 20.0 0.5% Community Services 42.0 43.0 1.1% 44.0 1.1% Development Services 74.5 64.5 1.7% 69.0 1.8% Economic Development 14.0 14.0 0.4% 14.0 0.4% Energy Resources 121.0 122.0 3.2% 122.0 3.2% Engineering 104.0 104.0 2.7% 103.0 2.7% Environmental Management & Sustainability 131.0 143.0 3.8% 149.0 3.9% Falcon Field Airport 11.0 11.0 0.3% 11.0 0.3% Financial Services 37.0 37.0 1.0% 37.0 1.0% Fire and Medical 509.0 512.5 13.5% 516.3 13.5% Fleet Services 78.0 79.0 2.1% 79.0 2.1% Human Resources 51.0 55.5 1.5% 56.5 1.5% Information Technology 141.0 142.0 3.7% 137.5 3.6% Library Services 76.2 77.2 2.0% 77.2 2.0% Mayor & Council 7.0 7.0 0.2% 7.0 0.2% Municipal Court 80.5 80.0 2.1% 80.0 2.1% Office of ERP Management 5.0 5.0 0.1% 5.0 0.1% Office of Management and Budget 23.0 23.0 0.6% 24.0 0.6% Parks, Recreation and Community Facilities 250.3 305.9 8.0% 310.7 8.1% Police 1,184.0 1,196.5 31.4% 1,187.5 31.0% Public Information and Communications 7.5 8.0 0.2% 8.5 0.2% Transit Services 3.0 3.0 0.1% 3.0 0.1% Transportation 159.0 159.0 4.2% 160.0 4.2% Water Resources 255.0 264.0 6.9% 280.0 7.3% 3,703.7 3,805.1 100.0% 3,833.9 100.0%

City of Mesa, Arizona 409 Executive Budget Plan 2017/18 Personnel Services Overview Fiscal Year 2017/18

The City of Mesa's total FTE count increased by 28.8 FTE from FY 2016/17 to FY 2017/18. Included in this number was a net increase of 29.0 FTE mid-year changes which were added in FY 2016/17 after the FY 2016/17 budget was adopted. The mid-year changes are approved by the City Manager’s Office and include: • 6.6 FTE increase due to conversion of temporary workers to city employees. 1.0 For Development Services Department, 1.5 FTE from the Parks, Recreation, and Community Facilities Department, 0.5 to the Public Information and Communications Department, 0.25 for the Fire and Medical Department, and 3.3 FTE for Arts and Culture Department. • 6.0 FTE net increase in the Environmental and Sustainability Department due to adding of 5.0 FTE that will reduce the department’s reliance on overtime and the reclassification of a position to two positions that fit the operational needs of the department. • 3.0 FTE increase in the Police Department to support the conversion of the City’s Record Management System (RMS). These positions are supported by a grant. • 3.0 FTE in Development Services, 1.0 FTE for a Planner I, 1.0 FTE for a Building Plans Examiner, and 1.0 FTE for a Sr. Building Plans Examiner due to an increase in building permits. • 2.4 FTE increase in Arts and Culture. Positions are supported by fund balance in the Arts and Culture Fund and ticket sales. • A net 2.0 increase in Fire & Medical Dispatch due to the conversion of 3.0 sworn FTEs to 5.0 civilian FTEs. • 1.5 FTE increase in Fire & Medical. 1.0 FTE added to Fire & Medical Fleet and 0.5 FTE due to the upgrading of a position from part-time to full-time. • 1.0 FTE increase in Community Services for a Volunteer Coordinator supported by grant funding. • 1.0 FTE increase in Transportation to support the traffic barricade program. • 1.0 FTE increase in Information Technology funded by grant funding to support Municipal Court software applications. • 1.0 FTE increase in Human Resources to support the City’s upgrade of its timekeeping system. Funding for the position will no longer be available after the project is complete. • 0.5 FTE increase in to the City Manager’s office for a Public Defender Program Manager to support the City’s Public Defender program. Legally this program cannot be located in the City Attorney’s Cffice or the City Court.

In addition, 0.15 FTE positions were decreased during the FY 2017/18 budget process. • Reduction of 12.0 FTE positions from the Police Department, which includes the elimination of 2.0 FTE vacant sworn positions, elimination of 6.0 FTE vacant civilian positions, and a 4.0 FTE reduction in task force involvement. Additional positions were converted from sworn employees to civilian employees, reducing costs for the City. • Reduction of 3.5 FTE from Information Technology, including Management Assistant II, Assistant Chief Information Officer, Office Assistant II, and part-time Student COE. An additional position was transferred to the Office of Management and Budget to support the City’s open data initiatives. • Reduction of 1.4 FTE from the Arts and Culture Department that were vacated due to retirement.

City of Mesa, Arizona 410 Executive Budget Plan 2017/18 Personnel Services Overview Fiscal Year 2017/18

• Reduction of 1.0 FTE from Business Services with the elimination of a vacant Mail Services Supervisor. • Reduction of 1.0 FTE from the Communications Department through the elimination of a vacant position. • Reduction of 1.0 FTE from the Engineering Department through the elimination of full-time position that has been vacant. • Addition of 15.0 FTE in the Water Resources Department to support recently completed and in- progress Capital Improvement projects, 11.0 FTE of these positions were authorized for the commencement of operations at the Signal Butte Water Treatment Plant, 3.0 FTE positions were authorized for the Greenfield Water Reclamation Plant Expansion, and 1.0 FTE was authorized for the maintenance of new City wells. • Addition of 1.5 FTE in Development Services Departments due to an increase in building permits. • An addition of 3.3 FTE positions in the Parks, Recreation, and Community Facilities to assist at the Gene Autry Sports Complex.

In the Department Operational Plans section of this book, the following departmental FTE that are assigned to work on Capital Improvement Projects are included in the Project Management Department and not in the individual department operational pages. • Energy Resources 20.4 FTE • Engineering 52.35 FTE • Transportation 2.0 FTE • Water Resources 13.03 FTE

City of Mesa, Arizona 411 Executive Budget Plan 2017/18 Transfers In and Transfers Out Fiscal Year 2017/18

Net Transfers Fund Transfers In Transfers Out In & (Out)

General Fund General Fund $113,976,851 $(36,250,935) $77,725,916 Capital - General Fund $11,336,207 - $11,336,207 Total General Fund $125,313,058 $(36,250,935) $89,062,123

Enterprise Fund Enterprise Fund - $(198,655,704) $(198,655,704) Capital - Enterprise $3,972,986 - $3,972,986 Total Enterprise Fund $3,972,986 $(198,655,704) $(194,682,718)

Restricted Funds Arts & Culture Fund $9,316,000 - $9,316,000 Cemetery $89,835 - $89,835 Cemetery Reserve (Perpetual Care) - $(89,835) $(89,835) Court Construction Fee - $(799,910) $(799,910) Economic Investment Fund $4,585,959 - $4,585,959 Highway User Revenue Fund - $(12,455,013) $(12,455,013) Special Programs Fund - $(7,498,553) $(7,498,553) Transit Fund $12,375,821 - $12,375,821 Utility Replacement Extension and Renewal $7,158,276 - $7,158,276 Vehicle Replacement $2,500,000 - $2,500,000 Total Restricted Funds $36,025,891 $(20,843,311) $15,182,580

Impact Fee Funds Fire Impact Fee $259,972 $(664,404) $(404,432) Library Impact Fee - $(66,051) $(66,051) Parks Impact Fee - $(616,576) $(616,576) Police Impact Fee $400,403 $(1,034,211) $(633,808) Storm Sewer Impact Fee - $(244,013) $(244,013) Wastewater Impact Fee - $(1,734,489) $(1,734,489) Water Impact Fees - $(2,421,380) $(2,421,380) Total Impact Fee Funds $660,375 $(6,781,124) $(6,120,749)

Debt Service Funds General Obligation Bond Redemption $3,487,697 - $3,487,697 Highway User Revenue Bond Redemption $12,455,013 - $12,455,013 Utility Systems Bond Redemption $80,352,279 - $80,352,279 Utility GO Bond Redemption $86,109 - $86,109 WIFA Redemption $177,665 - $177,665 Total Debt Service Funds $96,558,763 - $96,558,763

Total Transfers $262,531,073 $(262,531,074) $(1)

City of Mesa, Arizona 412 Executive Budget Plan 2017/18 Summary of Expenditures by Object Fiscal Year 2017/18

Object FY 2015/16 FY 2016/17 FY 2017/18 Code Object Name Actuals Budget Budget Personal Services 1101 Personnel Services $83,218 - - 110110 Salaries - Regular Full Time $206,981,907 $254,155,037 $256,077,821 110111 Special Pay - Certification Pay $2,658,185 $2,734,008 $2,804,532 110112 Vacation Leave $17,261,665 - - 110113 Sick Leave $8,689,683 - - 110114 Holiday Leave $6,167,815 $5,218,542 $5,318,866 110115 Special Pay - Longevity $1,423,948 $1,455,390 $1,001,380 110116 Special Pay - Other $87,664 $2,194,597 $2,033,331 110117 Compensatory Leave $748,383 $84 $100 110118 Other Compensatory Leave $2,862,737 $45,423 $31,562 110119 IIP Pay Event $165,774 - - 110120 Call Back Pay $2,150,389 - - 110121 Holiday - Critical and Essential $4,694,586 - - 110122 Holiday - Worked $1,286,878 - - 110123 Shift Differential $1,363,117 - - 110124 Stand By Pay $1,194,748 - - 110125 Workers Compensation Directed Care $19,520 - - 110130 FICA - City Contribution $9,344,053 $10,173,825 $10,414,162 110131 Medicare - City Contribution $3,688,843 $3,963,042 $3,982,538 110132 Pension - ASRS $17,616,553 $18,469,474 $18,701,441 110133 Pension - PSPRS - Fire $10,365,640 $13,547,302 $17,144,018 110134 Pension - PSPRS - Police $22,397,335 $27,199,367 $35,282,791 110135 Deferred Compensation $1,828,001 $1,223,506 $1,879,538 110136 Medical Insurance - City Contribution $44,870,275 $49,426,200 $55,104,983 110137 Dental Insurance - City Contribution $7,336,572 $7,886,641 $8,119,367 110138 Vision/Life - City Contribution $473,413 $672,461 $690,602 110139 Workers Compensation - City Contribution $4,247,918 $5,450,911 $3,646,106 110141 Long Term Disability - Civilian $184,990 $225,013 $261,164 110142 Long Term Disability - Sworn $120,202 $153,534 $141,081 110143 Allowances - Uniform $869,079 $889,182 $867,875 110144 Allowances - Vehicle $155,075 $155,880 $155,904 110145 Allowances - Phone $173,548 $178,368 $181,536 110146 Other Benefits and Costs $199,187 $911,861 $902,685 110147 Pension - Elected Officials $69,217 $329,832 $218,820 110149 Retiree Benefits Trust $33,288 $26,400 $32,100 110150 Overtime - All $8,789,635 - - 110151 Overtime - Civilian - $2,266,450 $2,256,969 110152 Overtime - Sworn - $6,755,795 $5,674,613 110157 PSPRS Unfunded Liability $3,600,000 - - 1170 Taxes - Civilian - $7 - 1171 Taxes - Fire Sworn - $(1) - 1172 Taxes - Police Sworn - $(2) - 1899 Personal Services Savings - - $(1,007,704) 1991 Fixed Benefit Allocation $147 - - 1994 CIP P/S Overhead Charges $6,886,096 - - 1995 CIP P/S Overhead Credit $(6,885,959) - - 1998 Personal Services Citywide Overhead Charge $63,159,986 $72,676,696 $71,430,487 1999 Personal Services Citywide Overhead Credit $(63,159,986) $(72,676,696) $(71,430,488)

Total Personal Services $394,203,327 $415,708,129 $431,918,180

City of Mesa, Arizona 413 Executive Budget Plan 2017/18 Summary of Expenditures by Object Fiscal Year 2017/18

Object FY 2015/16 FY 2016/17 FY 2017/18 Code Object Name Actuals Budget Budget

Other Services 2101 Accounting and Auditing $126,909 $117,319 $111,000 2102 Advertising $1,361,301 $946,211 $1,012,455 2104 Commercial Facilities $1,312,442 $700,000 $700,000 2105 Concessions and Catering $611,195 $462,210 $464,560 2106 Consulting $999,021 $1,742,248 $2,583,122 2108 Engineering $7,828 - $103,000 2109 Insurance $1,329,716 $1,796,500 $1,948,278 2110 Janitorial $1,736,250 $2,057,000 $1,946,000 2111 Legal $1,436,917 $1,702,025 $1,390,600 2112 Print Service Charges $827,333 $982,733 $797,988 2113 Printing and Publishing - Outside $400,964 $192,733 $317,063 2115 Temp Services $5,122,324 $3,924,227 $2,283,627 2116 Managed Print Services $666,326 $704,208 $706,861 2117 Pro Tem Judges - - $287,273 2130 Rents/Leases - Equipment/Vehicles $2,037,062 $1,844,023 $1,638,720 2131 Rents/Leases - Land/Buildings $1,812,944 $1,935,943 $1,922,001 2135 Software License Renewal and Maintenance $5,937,351 $6,045,297 $6,342,400 2136 Technology Services $232,445 $147,000 $150,000 2137 Credit Card Fees $1,618,073 $1,662,468 $1,066,615 2180 Other Professional Services $26,404,751 $28,666,195 $32,219,845 2181 Other Contractual Services $63,039,876 $91,175,301 $92,888,850 2201 Utilities $20,078,576 $23,822,146 $24,097,890 2202 Utilities - Ebill Incentive $75,380 - - 2210 Telecommunications $7,240,203 $4,488,663 $4,664,301 2215 Building Maintenance and Repair $2,523,951 $8,848,844 $8,897,073 2216 Grounds Maintenance and Repair $5,679,339 $6,010,900 $6,014,641 2217 Office Equipment Repair $268,586 $356,199 $345,745 2224 Other Maintenance and Repair $3,214,095 $5,053,390 $4,772,276 2225 Vehicle and Operational Equipment Usage $17,662,982 $18,074,784 $17,485,277 2226 Vehicle and Operational Equipment Repair $22,343 $28,709 $27,301 2240 Green Waste Disposal $535,622 - $670,884 2241 Solid Waste Recycling $15,162 $2,000 $5,000 2242 Landfill $6,302,072 $6,908,355 $6,897,294 2301 Medical Claims - Employee/Retiree $27,781,300 $31,164,396 $34,194,278 2302 Medical Claims - Dependent $33,622,498 $35,942,707 $38,066,326 2305 Dental Claims - Employee/Retiree $2,289,012 $2,193,259 $2,805,250 2306 Dental Claims - Dependent $3,326,445 $3,099,639 $2,919,750 2307 Workers Comp Claims $2,993,397 $4,200,000 $4,536,000 2308 Property and Public Liability Claims $602,586 $3,979,000 $4,000,000 2310 Miscellaneous Claims $13,962 - - 2315 Stop Loss Premium $2,083,022 $2,394,448 $2,600,304 2316 Life Insurance Premium $1,108,151 $1,200,000 $1,188,667 2317 Vision Insurance Premium - $985,909 $1,025,000 2318 EAP Premium $70,006 $73,000 $73,000 2325 Other Ins Premiums $2,892,281 $6,600,000 $6,804,846 2351 Network Access Fee $331,407 $402,000 $425,104 2352 FSA Administration Fees $40,981 $45,000 $42,000

City of Mesa, Arizona 414 Executive Budget Plan 2017/18 Summary of Expenditures by Object Fiscal Year 2017/18

Object FY 2015/16 FY 2016/17 FY 2017/18 Code Object Name Actuals Budget Budget 2353 Medical Administration Fees $1,787,391 $2,046,208 $2,446,208 2354 Dental Administration Fees $162,648 $175,650 $171,363 2801 Association Dues $764,975 $882,049 $971,092 2802 Subscriptions and Educational Materials $774,052 $850,768 $1,009,291 2803 Training $869,552 $1,355,225 $1,257,506 2804 Meetings and Conferences $184,793 $187,140 $252,254 2805 Education Reimbursement $632,225 $896,417 $893,216 2806 Other Staff Development $7,119 $7,966 $7,514 2807 Travel $788,002 $877,216 $755,895 2808 Bus Pass Reimbursement $28,365 $33,925 $35,009 2809 Mileage Reimbursement $44,272 $63,852 $65,369 2810 Moving and Related Expenses - - $10,000 2811 Fees and Charges $130,616 $39,300 $36,300 2812 Deferred Compensation $(4,500) - - 2850 Housing Assistance Payments $10,870,996 $11,627,424 $11,800,932 2851 Utility Assistance Payments $217,535 $304,265 $305,125 2852 Housing Admin Fees $30,441 $46,651 $31,900 2853 FSS Escrow HAP $42,848 $75,693 $75,693 2854 Housing Interest Expense $4,362 $5,000 $9,000 2855 Housing Assistance Deposits $124,855 - $85,495 2856 Utility Assistance Deposits $18,340 - $11,658 2879 Cash Over/Short $3,327 $235,566 $310,897 2881 Bad Debt Expense $17,745 $2,517,000 $2,580,428 2899 Internal Charges $263,241 $825,065 $732,734 2990 City Staff Time - $18,697,334 $42,393,921 2991 Contracts - $259,032,405 $270,980,367 2992 Direct Expenses - $9,596,229 $5,404,024 2998 Other Services Citywide Overhead Charge $14,982,121 $23,837,849 $22,879,405 2999 Other Services Citywide Overhead Credit $(14,982,121) $(23,837,849) $(23,605,046)

Total Other Services $275,557,582 $623,055,337 $665,346,015

Commodities 3101 Office Supplies $393,240 $474,454 $447,602 3102 Postage/Shipping $1,250,635 $1,607,680 $1,401,746 3103 Safety Supplies $170,652 $228,207 $264,146 3109 Other Supplies $4,614 $107,700 $230,515 3115 Minor Equipment - Computer $553,453 $620,973 $438,060 3116 Minor Equipment - Other $4,905,065 $5,669,779 $5,342,420 3117 Library Materials $544,719 $542,066 $542,166 3118 Software $1,717,508 $6,653,045 $9,781,500 3125 STAR Awards $70,433 $84,594 $81,620 3126 Safety Awards $2,074 $4,000 $4,000 3129 Other Recognition Awards $83,188 $70,973 $72,473 3130 Materials and Supplies Warehouse $6,008,443 $4,570,642 $4,083,978 3131 Materials and Supplies Outside $18,148,513 $22,025,377 $23,666,659 3132 Merchandise for Resale $26,889 $8,655 $8,655 3133 Warehouse Cost of Goods Sold $5,194,068 $4,886,067 $5,081,042 3134 Warehouse Internal Charge - - $252,165 3150 Electricity $15,047,656 $15,850,868 $26,578,969

City of Mesa, Arizona 415 Executive Budget Plan 2017/18 Summary of Expenditures by Object Fiscal Year 2017/18

Object FY 2015/16 FY 2016/17 FY 2017/18 Code Object Name Actuals Budget Budget 3151 Natural Gas $10,362,284 $10,557,924 - 3152 Water $8,488,333 $10,120,940 $11,332,588 3153 Chemicals $3,057,462 $3,876,839 $4,323,240 3160 Ammunition $486,241 $351,793 $350,000 3170 Aviation Fuel and Lubricants $109,187 $150,250 $125,000 3175 Vehicle and Equipment Parts and Supplies - Fleet Services $4,244,262 $4,058,200 $3,832,761 3176 Vehicle and Equipment Fuel - Fleet Services $3,471,230 $2,897,491 $2,810,784 3199 Warehouse Inventory Adjustments $(159,760) $100,000 $100,000 3998 Commodities Citywide Overhead Charge $4,005,742 $7,981,774 $6,186,153 3999 Commodities Citywide Overhead Credit $(4,005,742) $(7,981,774) $(6,468,151)

Total Commodities $84,180,388 $95,518,517 $100,870,091

Capital Outlay 4101 Land Acquisition $16,346,292 - - 4102 Right of Way Acquisition $69,740 - - 4103 Easements and Extraction Rights $1,250 - - 4104 Relocation Assistance $44,429 - - 4301 Building and Improvements Acquisition $579,903 $1,162,900 $956,000 4305 Architectural Services $115,153 - - 4315 Construction - Buildings $4,990,227 - - 4316 Construction - Transportation Admin Bldgs $6,897 - - 4321 Construction - Swimming Pools $490,726 - - 4330 Construction - Other $24,444,748 $1,726,652 $425,000 4401 Office Equipment and Furniture $135,386 $697,714 $719,432 4402 Computer Equipment $886,057 $4,081,489 $4,699,497 4403 Telecommunication Equipment $4,382,361 $443,810 $8,460 4404 Other Machinery and Equipment $2,382,866 $7,577,226 $8,142,815 4405 Vehicles $9,314,607 $20,495,938 $19,436,138 4501 Streets and Signals $20,374,205 $2,138,000 $10,432,000 4502 Transit Systems $13,991 - - 4503 Electric Systems $216,450 - - 4504 Gas Systems $1,166,437 - - 4505 Water Systems $31,109,569 - - 4506 Waste Water Systems $9,501,843 - - 4507 Storm Sewer System $230,482 - - 4508 Lighting $561,857 - - 4510 Joint Equity Muti-City Assets $7,146,414 - - 4511 District Cooling $5,869 - - 4512 Falcon Field $2,765,601 - - 4601 Art and Historical Treasures $48,635 - - 4701 Purchase or Licensed Software / Website $53,856 $695,503 $303,003 4703 Licenses and Permits $1,146 - - 4998 Capital Citywide Overhead Charge $750,407 $3,910,995 $4,256,526 4999 Capital Citywide Overhead Credit $(750,407) $(3,910,995) $(4,256,526)

Total Capital Outlay $137,386,996 $39,019,232 $45,122,345

Debt Service 5101 Bonds - General Obligation Principal $20,950,000 $21,881,986 $25,070,001

City of Mesa, Arizona 416 Executive Budget Plan 2017/18 Summary of Expenditures by Object Fiscal Year 2017/18

Object FY 2015/16 FY 2016/17 FY 2017/18 Code Object Name Actuals Budget Budget 5102 Bonds - Utility Revenue Principal $25,800,000 $211,070,002 $31,355,001 5103 Bonds - Highway Revenue Principal $7,390,000 $7,900,000 $8,375,000 5104 Bonds - Special Assessment Principal $1,234,000 $1,472,307 $1,419,000 5105 Bonds - Not Utility Principal - $45,035,000 - 5106 Bonds - Discounts $43,605 - - 5122 Notes - WIFA Principal $131,189 $134,053 $136,982 5123 Notes - HPAN Principal $77,835,000 - - 5141 Leases - Principal - - - 5201 Bonds - General Obligation Interest $12,782,256 $14,591,162 $13,723,795 5202 Bonds - Utility Revenue Interest $44,793,821 $49,185,567 $51,199,828 5203 Bonds - Highway Revenue Interest $4,843,687 $4,473,013 $4,080,013 5204 Bonds - Special Assessment Interest $970,052 $1,458,125 $2,056,685 5205 Bonds - Non Utility Interest $4,703,000 $4,703,000 $4,703,000 5222 Notes - WIFA Interest $14,737 $13,848 $12,924 5223 Notes - HPAN Interest $324,313 - - 5224 Notes - TPAN Interest - $2,500,000 $1,000,000 5901 Bank Services Charges $58,179 $54,643 $57,487 5902 Bond Issuance Costs $3,006,339 $1,972,296 $2,600,000 5904 Refunding Advance $206,505,886 - -

Total Debt Service $411,386,064 $366,445,002 $145,789,716

Offsets and Credits 9213 CIP Overhead Charge - $14,253,287 $11,700,825 9215 Pass Through Telecom $(105,323) - - 9299 Internal Reimbursement $(27,017,456) $(19,500,504) $(20,819,172)

Total Offsets and Credits $(27,122,779) $(5,247,217) $(9,118,347)

Contingency 9311 Contingency - $135,501,000 $95,004,000 9312 Contingency - Potential Bond Refunding - - $265,068,000

Total Contingency - $135,501,000 $360,072,000

Total All Object Codes $1,275,591,578 $1,670,000,000 $1,740,000,000

Changes in accounting presentation affect comparisons between years.

City of Mesa, Arizona 417 Executive Budget Plan 2017/18 General Obligation Bonds Outstanding Debt Service by Annual Period

Fiscal Year Principal Due Interest Due Total Due 2017/18 $25,120,000 $13,252,218 $38,372,218 2018/19 $19,355,000 $12,161,994 $31,516,994 2019/20 $18,935,000 $11,488,206 $30,423,206 2020/21 $19,535,000 $10,839,052 $30,374,052 2021/22 $20,205,000 $10,182,882 $30,387,882 2022/23 $20,845,000 $9,514,802 $30,359,802 2023/24 $21,635,000 $8,800,516 $30,435,516 2024/25 $23,250,000 $8,066,016 $31,316,016 2025/26 $24,675,000 $7,232,076 $31,907,076 2026/27 $25,550,000 $6,392,195 $31,942,195 2027/28 $26,575,000 $5,451,020 $32,026,020 2028/29 $26,405,000 $4,476,262 $30,881,262 2029/30 $20,300,000 $3,520,000 $23,820,000 2030/31 $18,990,000 $2,541,238 $21,531,238 2031/32 $19,825,000 $1,882,788 $21,707,788 2032/33 $20,600,000 $1,285,038 $21,885,038 2033/34 $8,275,000 $671,788 $8,946,788 2034/35 $5,950,000 $453,788 $6,403,788 2035/36 $5,700,000 $276,788 $5,976,788 2036/37 $3,030,000 $98,475 $3,128,475 Grand Total $374,755,000 $118,587,138 $493,342,138

`

City of Mesa, Arizona 418 Executive Budget Plan 2017/18 Streets and Highways Outstanding Debt Service by Annual Period

Fiscal Year Principal Due Interest Due Total Due

2017/18 $8,375,000 $4,080,013 $12,455,013 2018/19 $8,715,000 $3,663,263 $12,378,263 2019/20 $9,155,000 $3,242,938 $12,397,938 2020/21 $9,645,000 $2,795,613 $12,440,613 2021/22 $10,075,000 $2,314,663 $12,389,663 2022/23 $10,000,000 $1,812,413 $11,812,413 2023/24 $10,490,000 $1,311,788 $11,801,788 2024/25 $10,880,000 $785,150 $11,665,150 2025/26 $3,755,000 $343,950 $4,098,950 2026/27 $3,905,000 $156,200 $4,061,200

Grand Total $84,995,000 $20,505,988 $105,500,988

City of Mesa, Arizona 419 Executive Budget Plan 2017/18 Utility Revenue Outstanding Debt Service by Annual Period

Fiscal Year Principal Due Interest Due Total Due

2017/18 $31,355,000 $51,185,861 $82,540,861 2018/19 $32,660,000 $49,205,549 $81,865,549 2019/20 $30,560,000 $47,595,499 $78,155,499 2020/21 $33,840,000 $46,165,661 $80,005,661 2021/22 $38,305,000 $44,556,699 $82,861,699 2022/23 $40,125,000 $42,685,808 $82,810,808 2023/24 $42,020,000 $40,731,398 $82,751,398 2024/25 $43,955,000 $38,613,055 $82,568,055 2025/26 $45,810,000 $36,707,076 $82,517,076 2026/27 $47,770,000 $34,790,897 $82,560,897 2027/28 $49,670,000 $32,873,972 $82,543,972 2028/29 $52,220,000 $30,860,951 $83,080,951 2029/30 $54,520,000 $28,799,074 $83,319,074 2030/31 $56,830,000 $26,556,012 $83,386,012 2031/32 $59,210,000 $24,228,132 $83,438,132 2032/33 $61,845,000 $21,802,705 $83,647,705 2033/34 $65,550,000 $18,157,763 $83,707,763 2034/35 $69,315,000 $14,441,091 $83,756,091 2035/36 $73,150,000 $11,105,275 $84,255,275 2036/37 $75,540,000 $8,227,775 $83,767,775 2037/38 $56,330,000 $5,278,238 $61,608,238 2038/39 $41,550,000 $3,278,938 $44,828,938 2039/40 $40,725,000 $1,881,438 $42,606,438 2040/41 $18,900,000 $614,250 $19,514,250 Grand Total $1,161,755,000 $660,343,115 $1,822,098,115

City of Mesa, Arizona 420 Executive Budget Plan 2017/18 Water Infrastructure Finance Authority Loans Outstanding Debt Service by Annual Period

Fiscal Year Principal Due Interest Due Total Due

2017/18 $136,981 $40,684 $177,665 2018/19 $139,976 $37,689 $177,665 2019/20 $143,040 $34,625 $177,665 2020/21 $146,173 $31,492 $177,665 2021/22 $149,378 $28,287 $177,665 2022/23 $152,657 $25,009 $177,665 2023/24 $156,010 $21,655 $177,665 2024/25 $159,440 $18,225 $177,665 2025/26 $162,949 $14,716 $177,665 2026/27 $166,538 $11,127 $177,665 2027/28 $170,210 $7,455 $177,665 2028/29 $167,367 $3,698 $171,066

Grand Total $1,850,721 $274,662 $2,125,383

City of Mesa, Arizona 421 Executive Budget Plan 2017/18 Excise Tax Revenue Obligations Outstanding Debt Service by Annual Period

Fiscal Year Principal Due Interest Due Total Due

2017/18 $4,703,000 $4,703,000 2018/19 $4,703,000 $4,703,000 2019/20 $4,703,000 $4,703,000 2020/21 $4,703,000 $4,703,000 2021/22 $6,620,000 $4,703,000 $11,323,000 2022/23 $6,950,000 $4,372,000 $11,322,000 2023/24 $7,300,000 $4,024,500 $11,324,500 2024/25 $7,665,000 $3,659,500 $11,324,500 2025/26 $8,050,000 $3,276,250 $11,326,250 2026/27 $8,450,000 $2,873,750 $11,323,750 2027/28 $8,875,000 $2,451,250 $11,326,250 2028/29 $9,315,000 $2,007,500 $11,322,500 2029/30 $9,780,000 $1,541,750 $11,321,750 2030/31 $10,270,000 $1,052,750 $11,322,750 2031/32 $10,785,000 $539,250 $11,324,250

Grand Total $94,060,000 $49,313,500 $143,373,500

City of Mesa, Arizona 422 Executive Budget Plan 2017/18 Financial Policies

The City Council adopted a set of financial policies on May 19, 2008. These policies identify and outline the financial aspirations of the City of Mesa. They are intended to serve as guidelines for the City Council and City staff alike in the decision-making processes related to the City’s financial operations and the development of financial forecasts, the annual budget, and capital improvement plans.

The City Council’s Audit and Finance Committee completes an annual status review of each of the policy subcomponents. In addition, every year all of the policies and each of their subcomponents are to be evaluated for continued applicability, required modification and/or potential additions.

The following is a summary of the financial policies. The policies identify guidelines applicable to ten content areas.

Financial Policy 1 – The Annual Budget Financial Policy 2 – Fund Balances and Contingency Fund Targets Financial Policy 3 – Fees and Charges Financial Policy 4 – Debt Issuance and Management Financial Policy 5 – Capital Improvement Program (CIP) and Asset Replacement Financial Policy 6 – Investments and Cash Equivalents Financial Policy 7 – Financial Reporting Financial Policy 8 – Long Range Planning and Forecasting Financial Policy 9 – Risk Management Financial Policy 10 – Amending and Updating Financial Policies

Financial Policy 1 – The Annual Budget Arizona law (Title 42 Arizona Revised Statutes (ARS)) requires the City Council to annually adopt a balanced budget by purpose of public expense.

1.1 In accordance with Arizona law (Title 42, ARS), the Mesa City Council shall annually adopt a balanced budget by purpose of public expense. 1.2 The City will budget revenues and expenditures on the basis of a fiscal year which begins on July 1 and ends on the following June 30. 1.3 The status of the Budget will be monitored continuously throughout the course of the fiscal year. 1.4 Financial systems will be maintained to monitor expenditures, revenues and program performances on an ongoing basis. 1.5 Updates will be reported to City Management monthly, and reviewed with the City Council at a minimum of twice annually. 1.6 Performance measurement indicators will be integrated into the budget process as appropriate. 1.7 Ongoing expenses will be funded with ongoing revenues. 1.8 The State of Arizona limits expenditures by local jurisdictions. The City will comply with these expenditure limitations and will submit the necessary documents as required by the Uniform Expenditure Reporting System (ARS 41-1279.07) to the State Auditor General each year.

City of Mesa, Arizona 423 Executive Budget Plan 2017/18 Financial Policies

1.9 The City may pursue through public vote adjustments to its expenditure limitation as it deems necessary through either alternative expenditure limitation (Home Rule) or a permanent base adjustment (Article IX, Section 20, Subsections 9 & 6, Arizona State Constitution). 1.10 Mesa’s annual budget will include contingency appropriations sufficient to provide for the temporary financing of an unforeseen nature for that year. 1.11 The City Manager may institute changes to budgeted operating expenses during the fiscal year including, but not limited to hiring, promotions, transfers, and capital equipment purchases as budget trends dictate. 1.12 The City will provide replacement funding for fleet vehicles. The replacement schedule will be updated as part of the annual budget process.

Financial Policy 2 – Fund Balances and Contingency Fund Targets The economy’s cyclical nature creates a need for comprehensive fund balance policies to ensure stable service delivery, while avoiding revenue-expenditure imbalances when unforeseen circumstances occur. The City’s (bond) rating agencies expect cities to maintain adequate fund balances. Mesa’s revenue structure requires that contingency fund targets are higher than targets in comparable cities that have more typical revenue structures.

2.1 Mesa’s adopted Annual Budget will be developed to maintain a forecasted General and Enterprise (unrestricted) fund balance of 8% - 10% per fiscal year.

Financial Policy 3 – Fees and Charges Fees and charges policies aid in the consistent provision of public services and help ensure financial stability that the fees and charges remain fair and appropriate.

3.1 Fees and charges revenues will be monitored continuously with status reports provided to Management monthly and summary updates provided to the City Council twice annually. 3.2 Adjustments will be made to Fees and Charges if deemed necessary and following approval by the City Council. 3.3 User fees for all operations will be examined annually to ensure that fees address costs of service. Rate adjustments for enterprise operations will be based on five-year enterprise fund plans and/or other comprehensive rate studies. 3.4 Development fees for one-time capital expenses attributable to requirements for additional capacity will have a complete review every three years with index-driven annual adjustments made during the intervening years to ensure that fees match development-related expenses.

Financial Policy 4 – Debt Issuance and Management Debt service requirements can impact the City’s financial condition and can limit the flexibility to respond to changing service priorities, funding availability, or cost structures. When debt is issued, it obligates the borrowing government to make regular payments for periods of up to 30 years or more.

4.1 The City of Mesa should impose a secondary property tax at a rate necessary to offset General Obligation bond debt. 4.2 City should maintain an adequate general obligation debt service fund balance.

City of Mesa, Arizona 424 Executive Budget Plan 2017/18 Financial Policies

4.3 Long-term debt will not be issued to finance current operations. 4.4 Debt term should match the useful life of the capital project funded. 4.5 General Obligation and Revenue bond debt service payments should be structured to be consistent from year-to-year. 4.6 The City shall comply with the State of Arizona Constitution’s requirements that bonded debt not exceed the 20% and 6% limitations of the total secondary assessed valuation of taxable property in the City. 4.7 Benchmark ratios of per capita debt, debt service to operating revenue, and outstanding debt as a percent of full cash value will be updated annually. 4.8 To ensure that bond refunding produce the anticipated savings, the refunding bonds will be measured against a standard of the net present value debt services savings exceeding 3% of the debt service amount of the bonds being refunded unless the refunding was initiated for purposes other than debt service savings. 4.9 The City shall comply will all U.S. Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. 4.10 The City shall comply with all requirements of A.R.S., Title 15.1, and other legal requirements regarding the issuance of bonds and certificates of the City of its debt issuing authorities.

Financial Policy 5 – Capital Improvement Program (CIP) & Asset Replacement The Capital Improvement Plan (CIP) provides a rolling five-year projection of the city’s capital projects. The CIP identifies future financial requirements for the constructed capital component as part of the overall financial forecast.

5.1 Pursuant to the City Charter’s requirement as outlined in Article VI, section 605, the City Manager will submit to the City Council a five-year capital program by March 1 of each year is met. 5.2 Development of the CIP will be coordinated with the annual operating budget. 5.3 Future operating, maintenance and replacement costs associated with new capital improvements will be forecast and matched to available revenue sources. 5.4 Before adoption, the CIP will be adjusted to ensure that adequate revenues are forecasted to be available to offset the initial costs of the project, in the form of cash or available debt service and revenue to meet required operating and maintenance (O&M) costs are identified and allocated. 5.5 Capital project contract awards will include a fiscal impact statement disclosing the expected operating impact of the project and when such cost is expected to occur.

Financial Policy 6 – Investments & Cash Equivalents The investment of City resources will be done to balance risk and return while following a conservative investment approach that preserves sufficient liquidity to allow the government to meet its cash flow needs.

6.1 In accordance with Article VI, section 611 of the City Charter, the Council may authorize the investment of any money subject to its control in any security authorized by the laws of the State of Arizona as delegated in Chapter 18 of the Mesa City Code. 6.2 City of Mesa’s investments shall comply with the approved Investment Policy that is reviewed biannually by the Council’s Audit and Finance Committee and (re)authorized through Council resolution.

City of Mesa, Arizona 425 Executive Budget Plan 2017/18 Financial Policies

6.3 The City will collect, deposit, and disburse all funds on a schedule that insure optimum cash availability for investments. 6.4 All City investment/bank accounts shall be reconciled and reviewed on a monthly basis. 6.5 Updates will be reported to City Management monthly, and reviewed with the City Council annually.

Financial Policy 7 – Financial Reporting Reporting of the City’s finances should be done in such a way as to satisfy both the management and transparency needs of government. It should provide information on the value of the portfolio frequently enough to give an accurate picture of the funds available to provide services, and it should provide the necessary detail for oversight bodies to determine that staff meets the government’s policy goals.

7.1 Mesa will ensure that the City’s accounting and financial reporting systems will be maintained in conformance with all state and federal laws, generally accepted accounting principles (GAAP), standards of the Governmental Accounting Standards Board (GASB), and the Government Finance Officers Association (GFOA). 7.2 An annual audit will be performed by an independent public accounting firm, with the audit opinion included as part of the City’s published Comprehensive Annual Financial Report (CAFR). 7.3 The CAFR will be submitted to the GFOA Certification of Achievement for Excellence in Financial Reporting Program. The financial report should be in conformity with GAAP, demonstrate compliance with finance related legal and contractual provision, disclose thoroughness and detail sufficiency, and minimize ambiguities and potentials for misleading inference. 7.4 The Biennial Budget Plan will be submitted to the GFOA Distinguished Budget Presentation Program. The document should satisfy criteria as a financial and programmatic policy statement, as a comprehensive financial plan, as an operations guide for all organizational units and as a communications device for all significant budgetary issues, trends and resource choices.

Financial Policy 8 – Long Range Planning and Forecasting Long-term financial planning uses trends such as population, labor markets, and general financial conditions to forecast future revenues and expenditures over a three-to-five year period. Accurate assessment of future finances will allow Mesa to adjust resource allocation as necessary.

8.1 The city shall develop and utilize short, medium, and long range forecasts each with commensurate level of detail. 8.1.1 Short-range forecasts shall look at a range of 1 to 2 years. 8.1.2 The medium-range forecast shall look at a range of 3 to 7 years. 8.1.3 The long-range forecast shall look at a range of 8 to 20+ years. 8.2 Financial forecasts should be capable of modeling the following: 8.2.1 Costs to maintain the current level of staffing. 8.2.2 Costs of providing expanded, new, or reduced levels of staffing. 8.2.3 Debt service costs for existing and new bond sales during the forecast period. 8.2.4 Construction and purchased capital needs including the operating and maintenance costs associated with the capital projects.

City of Mesa, Arizona 426 Executive Budget Plan 2017/18 Financial Policies

8.3 Forecasts shall accommodate financial modeling through the integration of the Budget and CIP systems and will allow for changes in forecast variables, such as: 8.3.1 Changes in forecasted individual revenue sources. 8.3.2 Changes in forecasted economic indicators, i.e. consumer price index, disposable income, salary growth, etc. 8.3.3 Changes in population growth percentages. 8.3.4 Changes in service demand volumes. 8.4 The forecast system will integrate the future needs of all budgeted service areas of the City. The use of the system will supplement the use of statistical and regression modeling software. 8.5 The forecast shall allow the City Council to establish & modify short, medium and long-range fiscal plans. These policies include fund balance goals, contingency reserve requirements, revenue strategies, program expansion/reduction and the timing of bond projects. 8.6 Results of the forecasts will be used as components in the annual budget development process for City staff, management and Council.

Financial Policy 9 – Risk Management Risk Management policies are designed to protect against losses that would affect its assets and, hence, its ability to provide ongoing services. Risk Management should seek realistic risk avoidance, risk reduction, risk transfer, and risk retention strategies.

9.1 The City of Mesa relies on the advice and counsel from the City Attorney’s Office to identify, evaluate, and limit the City’s risk. 9.2 The City will work to prevent or mitigate the loss of City assets and to reduce the City’s exposure to liability through training, safety, risk financing and the transfer of risk when cost effective. 9.3 When cost effective, the City shall manage its exposure to risk through self-insurance or through the purchase of traditional third-party insurance as needed. 9.4 When cost effective, the City will further control its exposure to risk through use of “hold harmless” agreements in City contracts and by requiring contractors to carry liability insurance.

9.5 Insurance reserves shall be maintained at a level that together with any purchased insurance will adequately indemnify the City’s assets and its elected officials, officers and directors against loss. Reviews will be conducted for potential liability areas and shall be used as a basis for determining self-insurance reserves based on historical loss data. 9.6 The City will identify and disclose any material issues regarding contingent liabilities in the City’s Comprehensive Annual Financial Report (CAFR).

Financial Policy 10 – Amending and Updating Financial Policies Financial policies should be subject to regular review, and any policy that has become obsolete or in need of revision should be revised at that time.

10.1 Mesa City Council’s Audit and Finance Committee will periodically review the City’s financial policies, and forward recommendations for any revisions to the City’s financial policies to the City Council for consideration. 10.2 City staff will report annually to the Mesa City Council’s Audit and Finance Committee concerning the status of the City’s on-going compliance with the adopted financial policies.

City of Mesa, Arizona 427 Executive Budget Plan 2017/18 RESOLUTION NO. /_Q_98 f A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESA, MARICOPA COUNTY, ARIZONA, APPROVING A BUDGET FOR THE CITY OF MESA FOR FISCAL YEAR ENDING JUNE 30, 2018

WHEREAS, the City Council of the City of Mesa did on the 22nd day of May, 2017 propose a budget for the said City of Mesa forthe fiscal year ending June 30, 2018; and

WHEREAS, the proposed budget has been published forthe period required by law and notice of the hearing on said proposed budget has been published as required by law; and

WHEREAS, the hearing was held at the City Council Chambers in the City of Mesa on Monday, June 5, 2017 at 5:50 p.m., at which meeting all interested persons were invited to appearand be heard in favorof or against adoption of said budget;

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MESA, MARICOPA COUNTY, ARIZONA, AS FOLLOWS:

Section 1: That the proposed budget, a copy of which is attached hereto, incorporated herein, and made a part hereof, be, and the same hereby is adopted as the budget for the City of Mesa forthe fiscalyear ending June 30, 2018.

PASSED AND ADOPTED by the Mayor and City Council of the City of Mesa, Maricopa County, Arizona, this 5th day of June, 2017.

APPROVED:

�e�

ATTEST:

Cityi1ffiw� Clerk

City of Mesa, Arizona 428 Executive Budget Plan 2017/18 City of Mesa, Arizona Final Budget for Fiscal Year Ending June 30, 2018

CITY OF MESA, ARIZONA FINAL BUDGET FOR FISCAL YEAR ENDING JUNE 30, 2018

SUMMARY OF RESOURCES BY SOURCE

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Proposed Source Resources Budget Resources Budget Taxes Sales & Use Tax $151,826,064 $156,328,000 $159,379,076 $162,729,000 Secondary Property Tax - City $34,034,768 $33,441,000 $33,441,000 $33,441,000 Secondary Property Tax - Community Facility Districts $729,543 $745,000 $1,541,000 Transient Occupancy Tax $3,490,914 $3,000,000 $3,000,000 $3,096,000 Other Taxes $30,060 $31,359 $30,000 Total Taxes $190,111,350 $192,769,000 $196,596,435 $200,837,000 Intergovernmental Federal Grants and Reimbursements $30,780,044 $45,227,000 $25,781,200 $31,873,000 State Shared Revenues $149,349,552 $157,755,000 $159,905,648 $165,390,000 State Grants and Reimbursements $996,606 $687,000 $646,650 $546,000 County and Other Governments Revenues $7,541,547 $16,061,000 $15,863,853 $29,971,000 Total Intergovernmental $188,667,750 $219,730,000 $202,197,351 $227,780,000 Sales and Charges for Services General $28,825,361 $31,006,000 $29,148,486 $30,899,000 Culture and Recreation $8,186,081 $7,578,000 $7,571,792 $7,967,000 Enterprise $350,492,057 $370,230,000 $378,398,955 $427,650,000 Total Sales and Charges for Services $387,503,499 $408,814,000 $415,119,233 $466,516,000 Licenses, Fees and, Permits Business Licenses $4,428,932 $4,309,000 $4,107,472 $4,493,000 Permits $13,764,444 $12,392,000 $13,431,989 $12,909,000 Fees $18,718,268 $10,698,000 $19,076,066 $11,004,000 Court Fees $4,417,016 $4,438,000 $3,832,010 $4,902,000 Culture and Recreation $599,010 $476,000 $875,247 $626,000 Total Licenses, Fees and Permits $41,927,669 $32,313,000 $41,322,783 $33,934,000 Fines and Forfeitures Court Fines $4,500,224 $3,989,000 $4,055,173 $5,552,000 Other Fines $501,372 $471,000 $521,434 $414,000 Total Fines and Forfeitures $5,001,596 $4,460,000 $4,576,608 $5,966,000 Self Insurance Contributions Self Insurance Contributions . $79,467,370 $89,652,000 $84,639,374 $96,006,000 Total Self Insurance Contributions $79,467,370 $89,652,000 $84,639,374 $96,006,000 Other Revenue Interest $3,819,481 $1,777,000 $1,362,700 $2,126,000 Contributions and Donations $3,414,528 $4,351,000 $2,570,963 $3,221,000 Other Financing Sources $210,931,812 $3,750,000 $136,532,819 $15,000,000 Sale of Property $757,368 $23,866,000 $24,025,812 $440,000 Other Revenues $7,970,185 $25,006,000 $14,557,573 $15,571,000 Total Other Revenue $226,893,374 $58z750,000 $179,049,868 $36,358,000 Operating Resources Subtotal $1,119,572,608 $1,006,488,000 $1,123,501,653 $1,067,397,000

Potential Bond Refunding Other Financing Sources $185,400,000 $265,068,000 Total Potential Bond Refunding $185,400,000 $265,068,000

Reimbursements/Previous Grant Awards Carried Over $12,840,091 $29,075,929 Use of Reserve Balance $38,657,938 $206,690,909 $(30,174,561) $186,705,071 Total Non-Bond Resources $1115812301546 $1 1411 14191000 $1 109313271092 $1154812461000

Existing Bond Proceeds $38,504,892 $91,930,117 $51,092,552 $121,365,823 New Bond Proceeds $129,948,692 $254,801,000 $171,055,000 $191,754,000 (Less) Remaining Bond Proceeds $(51,092,552) $(88, 150,117) $(121,365,823) $(121,365,823) Total Bond Resources $117,361,032 $258,581,000 $100,7811729 $191,754,000

Ci~ Total Resources $1,275,591,578 $1,670,000,000 $1,194,108,821 $1,740,000,000

City of Mesa, Arizona 429 Executive Budget Plan 2017/18 City of Mesa, Arizona Final Budget for Fiscal Year Ending June 30, 2018

SUMMARY OF RESOURCES BY FUND

FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actual Adopted Projected Proposed Fund Resources Budget Resources Budget

General Fund - Operations $257,560,077 $265,801,099 $268,938,629 $278,644,924 General Fund - Capital $77,162 $25,000 Enterprise Fund - Operations $334,806,466 $345,769,842 $350,878,715 $364,264,335 Enterprise Fund - Capital $301,206 $300,000 $300,000 $505,000 Restricted Funds: Arts & Culture Fund $6,955,524 $5,337,094 $6,010,827 $6,100,756 Community Facilities Districts $10,568,193 $6,095,180 $2,181,225 $18,326,623 Environmental Compliance Fee $15,274,163 $15,274,128 $15,274,128 $15,662,003 Falcon Field Airport $3,713,736 $3,881,883 $4,041,928 $4,184,415 Impact Fee Funds $16,650,610 $8,875,619 $16,932,139 $9,125,706 Internal Service Funds $664,846 $7,406,561 $6,878,571 $7,473,754 Joint Ventures $15,664,888 $24,371,578 $24,594,346 $62,605,116 Quality of Life Sales Tax Fund $21,805,010 $22,358,650 $22,873,011 $23,254,048 Transportation Related: Highway User Revenue Fund $35,424,683 $37,691,409 $38,989,354 $39,660,968 Local Street Sales Tax Fund $27,831,945 $28,082,740 $28,427,017 $28,797,070 Transit Fund $3,485,157 $15,943,367 $8,230,375 $15,391,123 Transportation Fund $165,460 $3,805,797 $2,162,058 $4,685,310 Other Restricted Funds $12,752,437 $25,887,860 $15,270,833 $18,229,651 Grant Funds: General Governmental Grant Fund $11,957,891 $8,639,770 $4,547,273 $8,234,682 Enterprise Grant Fund $1,749,716 $2,788,178 $2,919,526 $3,841,315 Housing Grant Funds $16,732,354 $20,641,639 $18,276,444 $19,827,015 Trust Funds $80,153,236 $90,064,085 $84,789,912 $96,067,885 Debt Service Funds $245,277,848 $67,471,521 $200,960,340 $42,515,301 Total Operating Revenues $1,119,572,608 $1,006,488,000 $1,123,501,653 $1,067,397,000

Potential Bond Refunding $185,400,000 $265,068,000

Reimbursements/Previous Grant Awards Carried Over $12,840,091 $29,075,929 Use of Reserve Balance $38,657,938 $206,690,909 $(30,174,561) $186,705,071 Total Non-Bond Resources $11158,230,546 $1,411 14191000 $1 109313271092 $1,548,2461000

Existing Bond Proceeds $38,504,892 $91,930,117 $51,092,552 $121,365,823 New Bond Proceeds $129,948,692 $254,801,000 $171,055,000 $191,754,000 (Less) Remaining Bond Proceeds $(51,092,552) $(88, 150,117) $(121,365,823) $(121,365,823) Total Bond Resources $1171361,032 $258,5811000 $1001781,729 $191t754,000

Ci~ Total Resources $1,275,591,578 $1,670,000,000 $1,194,108,821 $1,740,000,000

City of Mesa, Arizona 430 Executive Budget Plan 2017/18 City of Mesa, Arizona Final Budget for Fiscal Year Ending June 30, 2018

SUMMARY OF EXPENDITURES BY FUND

FY 2016/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 FY 2017/18 Actual Carryover Adopted Projected Carryovar Proposed Fund Expenditures Budaet Budaet Expenditures Budaet Budaet

General Fund - Operations $309,756,913 $6,020,827 $343,532,587 $328,524,009 $7,498,873 $357 ,632,299 General Fund - Capital $5,955,539 $6,513,654 $8,570,479 $6,141,850 $10,145,962 $11,336,207 Enterprise Fund - Operations $145,421,938 $1,925,871 $163,210,880 $156,711,081 $1,850,888 $167,954,878 Enterprise Fund - Capital $2,293,083 $5,107,428 $5,605,290 $5,520,806 $4,933,666 $4,232,986 Restricted: Arts & Culture Fund $16,151,476 $206,670 $15,411,083 $15,057,608 $512,384 $15,920,086 Community Facilities Districts $10,282,218 - $6,095,180 $2,061,957 - $18,326,899 Environmental Compliance Fee $12,930,303 $532,782 $18,385,744 $14,714,418 $4,606,088 $15,825,677 Falcon Field Airport $5,085,142 $9,260 $3,692,409 $2,530,129 $1,508,390 $5,517,590 Impact Fee Funds $939 - - - - - Internal Service Funds $112,433 $855,994 $6,550,567 $6,576,337 $762,139 $6,691,615 Joint Ventures $15,387,079 $104,621 $24,266,957 $24,773,681 $1,518,149 $62,402,964 Quality of Life Sales Tax Fund $22,258,090 - $24,702,884 $24,702,884 - $23,635,561 Transportation Related: Highway User Revenue Fund $19,152,927 $2,586,402 $22,538,994 $17,027,992 $5,056,082 $29,733,451 Local Street Sales Tax Fund $32,898,112 $6,625,101 $38,428,379 $33,264,468 sg,444,396 $41,254,718 TransH Fund $12,295,544 $5,305 $25,816,087 $18,182,122 $7,097,176 $27,763,568 Transportation Fund $17,745 - - $28,220 - $18,808,835 Other Restricted Funds $23,347,428 $17,896,103 $25,027,518 $24,779,900 $9,053,832 $23,832,030 Grant Funds: General Governmental Grant Fund $11,882,671 $4,579,313 $8,625,162 $4,975,534 $7,118,100 $9,341,179 Enterprise Grant Fund $1,750,764 - $2,788,178 $2,223,784 $470,087 $3,841,315 Housing Grant Funds $16,261,494 - $20,834,979 $18,249,795 $12,865,450 $19,490,543 Trust Funds $84,372,399 $50,669 $97,263,984 $87,245,797 $53,358 $103,837,563 Debt Service Funds $408,052,252 - $177,380,859 $300,034,920 - $140,111,036 Expenditure Subtotal $1,155,666,491 $63,020,000 $1,038,628,000 $1,093,327,092 $84,613,000 $1,107,491,000

Operating and Capital Improvement Non-Bond Carryover - - $53,020,000 - - $84,513,000 Potential Bond Refunding - - $185,400,000 - - $265,068,000 Contingency - - $134,471,000 - - $91,174,000 Total ExlitridltUre Non.SOnd Fund• 1111111.666491 ' 1,,, 111 411 419 000 '( '111 093 327.092 ',Cc,:· 11648,-000

Bond Capital Improvement Scheduled $119,925,087 - $258,581,000 $100,781,729 $13,483,000 $178,271,000 Bond Caoital lmorovement Carrvover - $13,483,000 - ,,, - - - Total 8ond• C.oital lmoroV11111ent ~ Qlt,-\: 'i'., ...'. 1119 '""' 087 , ·•·sa1 ooo, 'ih S1D0781 7'21l" ·. ·· 1.191 fU:111111

Citv Total Expenditures $1 276 591 578 $1 670 000 000 $1194 108 821 $1 740 000 000

Page 1 of 2

City of Mesa, Arizona 431 Executive Budget Plan 2017/18 City of Mesa, Arizona Final Budget for Fiscal Year Ending June 30, 2018

SUMMARY OF EXPENDITURES BY FUND

FY 2016/16 FY 2016/17 FY 2016/17 FY 2018/17 FY 2017/18 FY 2017/18 Actual Carryover Adopted Projected Carryover Proposed Fund Excendltures Budaet Budaet Excenditures Budaet Budaet

Expenditure Limitation Comparison

Expenditures $1,275,591,578 $1,670,000,000 $1,194,106,821 $1,740,000,000 Estimated Exclusions ($1,275,591,578) $(1,870,000,000) $(1,194,108,821) $(1,740,000,000) Estimated Expenditures Subject to Limitation - - - - Excendlture Limitation $545,882,614 $559918 849 $559,918,849 $575,664,783 Over IUnderl State Limit Sl545 882 614 Sl669 918 849 $(669 918 849 Sl676 664 783

Page 2 of2

City of Mesa, Arizona 432 Executive Budget Plan 2017/18 City of Mesa, Arizona Final Budget for Fiscal Year Ending June 30, 2018

SUMMARY OF EXPENDITURES BY DEPARTMENT

FY 2015/16 FY 2016/17 FY 2016/17 FY 2016/17 FY 2017/18 FY 2017/18 Actual Carryover Adopted Projected Carryover Proposed Deoartment Exoendllures Budaet Budaet Exnendltures Budaet Budaet

Arts & Culture $14,967,866 $146,202 $14,293,000 $13,696,713 $410,997 $14,397,000 Business Services $11,953,398 $(192,830) $13,989,000 $13,508,522 $150,000 $13,250,000 CityAllomey $8,664,671 $14,000 $13,096,000 $9,438,187 - $13,205,000 City Auditor $693,657 - $715,000 $754,263 - $747,000 City Clerk $842,051 - $1,319,000 $1,192,758 - $883,000 City Manager $5,230,587 $102,960 $5,574,000 $5,547,687 $59,135 $5,933,000 Communications $3,341,872 - $3,582,000 $3,582,000 - $3,758,000 Community Services $18,305,911 $9,043,394 $23,609,000 $23,631,669 $8,980,578 $22,426,000 Development Services $8,324,421 $847,527 $7,765,000 $8,386,389 $329,667 $7,725,000 Economic Development $7,655,342 $750,000 $9,474,000 $8,960,295 $434,705 $9,135,000 Energy Resources $37,400,862 - $41,447,000 $39,768,348 - $41,287,000 Engineering $5,455,279 - $7,648,000 $6,353,122 $52,641 $7,422,000 Environmental Management & Sustainability $29,673,214 $493,927 $31,165,000 $30,472,667 $267,074 $32,083,000 Falcon Field Airport $1,417,453 - $1,735,000 $1,431,445 - $1,959,000 Financial Services $3,416,745 - $3,661,000 $3,559,852 - $3,714,000 Fire and Medical Services $74,294,667 $2,919,569 $77,929,000 $76,229,107 $2,653,577 $76,254,000 Fleet Services $22,670,734 $9,385,128 $27,576,000 $24,739,028 $10,469,417 $24,495,000 Human Resources $84,843,127 - $92,235,000 $85,142,419 - $96,218,000 Information Technology $25,684,455 $2,142,195 $33,726,000 $29,407,403 $4,002,328 $31,457,000 Library Services $6,607,066 $35,288 $7,454,000 $7,323,505 $11,363 $7,562,000 Mayor & Council $703,253 - $1,016,000 $782,750 - $889,000 Municipal Court $7,629,650 $1,127,327 $8,304,000 $8,028,175 $1,331,382 $8,934,000 Office of Enterprise Resource Planning $472,794 $112,000 $788,000 $658,656 $91,557 $764,000 Office of Management and Budget $2,281,326 $83,529 $2,740,000 $2,623,692 $910 $2,696,000 Parks, Recreation & Community Facillties $39,693,832 $5,234,077 $46,753,000 $47,939,437 $2,960,940 $46,089,000 Police $163,858,703 $3,749,457 $174,801,000 $173,513,563 $2,894,361 $183,002,000 Public Information & Communications $1,410,929 - $1,423,000 $1,616,156 - $1,551,000 Tran sit Services $10,715,468 - $13,415,000 $12,731,551 - $15,348,000 Transportation $35,286,598 $51,350 $42,550,000 $39,356,949 $487,294 $43,566,000 Water Resources $58,362,611 $257,800 $67,694,000 $63,383,903 $157,074 $74,265,000 Centralized Annrooriations $417,986,893 $11,900} $199,682,000 $310159190 - $180,987,000 Subtotal $1,109,845,458 $36,301,000 $977,358,000 $1,053,899,401 $35,765,000 $974,001,000

Page 1 of 2

City of Mesa, Arizona 433 Executive Budget Plan 2017/18 City of Mesa, Arizona Final Budget for Fiscal Year Ending June 30, 2018

SUMMARY OF EXPENDITURES BY DEPARTMENT

FY2015116 FY 2016/17 FY 2018/17 FY 2016/17 FY2017/18 FY 2017/18 Actual Carryover Adopted Projected Carryover Proposed Deoartment Expenditures Budget Budget Expenditures Budget Budget

Project Management Program-Lifecycle/lnfrastructure Projects $13,996,480 $16,719,000 $7,831,000 $9,234,664 $14,700,000 $19,909,000

Operating and Lifecycle Expenditure Call)'over -- $53,020,000 -- $50,465,000 Potential Bond Refunding -- $185,400,000 -- $265,068,000 Continaencv -- $134,471,000 -- $91,174,000 ,;;·, Total O...... ,...nn El(nendituretJi"' ''::· "" 11123 841 938 11:...... ,oeo ooo $1,0&31:loLZU ''-··,', 11.400817 000

Capltal Improvement Program: Non-Bond $33,188,713 - $53,339,000 $31,165,103 $34,048,000 $115,431,000 Capital Improvement Pmnram: Bond $118,560,926 - $258,581,000 $99,809,433 $13,483,000 $176,421,000 Capital Improvement Program Subtotal $161,749,640 - $311,920,000 $130,974,538 $47,631,000 $291,852,000 Capltal Improvement Program Call)'over Subtotal - ---- $47,531,000

Total CaDital lmorovam.nt P""'ram --- $151749640 , .. S311920000 $130;974 538 , '''f ':JV)''<'"'3lfll_3830QO

Citv Total Exnendltures $1 275,591,678 $1 670 000 000 $1194108821 $1740000 000

Page 2 of2

City of Mesa, Arizona 434 Executive Budget Plan 2017/18 City of Mesa, Arizona Final Budget for Fiscal Year Ending June 30, 2018

FULL-TIME EMPLOYEES AND PERSONNEL COMPENSATION FISCAL YEAR 2017/18

Full-Time Employee Allocated Total Estimated Equivalent Salaries and Retirement Healthcare Other Benefit Personnel Personnel Fund (FTE) Hourly Costs Costs Costs Costs Costs Compensation

General Fund· Operations* 2,491.1 $183,130,754 $55,155,695 $42,749,019 $19,956,239 $(21,063, 153) $279,928,554 General Fund • Capttal 0.3 $25,364 $2,875 $3,985 $2,295 $34,519 Enterprise Fund· Operations 544.1 $32,542,016 $3,933,168 $9,805,526 $4,081,481 $12,822,563 $63,184,754 Enterprise Fund • Capital 0.2 $18,366 $2,532 $2,886 $1,972 $25,755 Restricted: Arts & Culture Fund 82.8 $4,761,175 $499,661 $1,011,674 $495,881 $972,018 $7,740,409 Communtty Facilities Districts 0.3 $76,762 $4,266 $4,344 $14,822 $100,194 Environmental Compliance Fee 51.1 $2,954,731 $339,685 $635,319 $305,785 $604,495 $4,840,014 Falcon Field Airport 19.0 $1,374,943 $220,735 $314,019 $92,922 $260,306 $2,262,924 Internal Service Funds 90.2 $5,293,404 $611,007 $1,571,297 $665,634 $1,107,515 $9,248,857 Joint Ventures 39.2 $2,721,665 $312,816 $469,777 $299,930 $528,235 $4,332,424 Qualtty of LWe Sales Tax Fund 185.0 $12,426,368 $7,127,623 $2,380,065 $1,319,992 $352,728 $23,606, 776 Transportation Related: Highway User Revenue Fund 113.9 $6,963,313 $789,187 $1,327,168 $588,927 $9,668,594 Local Streets Sales Tax 35.9 $2,565,605 $333,012 $1,418,644 $350,144 $2,045,596 $6,713,001 Transit Fund 5.8 $451,655 $51,388 $82,639 $39,783 $284,916 $910,381 Transportation Fund 3.7 $272,067 $30,844 $42,746 $24,617 $370,273 Other Restricted Funds 25.0 $1,327,478 $149,622 $259,521 $240,869 $418,832 $2,396,323 Grant Funds: General Governmental Grant Fund 29.5 $1,172,496 $886,955 $340,512 $1,172,488 $3,572,451 Enterprise Grant Fund 0.8 $58,342 $6,614 $9,166 $5,279 $79,402 Housing Grant Funds 25.6 $1,364,221 $154,792 $289,992 $111,697 $1,920,702 Trust Funds 26.8 $2,002990 $231,083 $454 362 $197 598 $1 665946 $4 551 981 Total Non-Bond Funds 3,770.4 261,503,714 70,843,560 63,172,661 29,968,355 (1) 425,468,266

Bond Capital Improvement Electric Bond Construction 7.B $583,585 $66,160 $91,690 $52,803 $794,238 Gas Bond Construction 14.B $1,102,789 $125,021 $173,265 $99,781 $1,500,856 Parks Bond Construction 0.3 $22,655 $2,568 $3,559 $2,050 $30,832 Solid Waste Bond Construction 0.5 $39,055 $4,428 $6,136 $3,534 $53,153 Streets Bond Construction 4.4 $329,679 $37,375 $51,797 $29,830 $448,681 Wastewater Bond Construction 9.5 $706,360 $80,079 $110,980 $63,912 $961,330 Water Bond Construction 26.1 $1,940,391 $219,979 $304,864 $175,568 $2,640,802 Bond Capital lmprovemant 63.5 $4,724,512 $535,610 $742,291 $427,478 $6,429,892

Total All Funds 3,833.9 $266,228.226 $71,379.170 $63,914,952 $30,395,833 $(1) $431.918, 180

• Cantral administration positions are included in the General Fund but the costs are spread among multiple funds. These costs are shown in the "Allocated Personnel Costs" column.

City of Mesa, Arizona 435 Executive Budget Plan 2017/18 RESOLUTION NO. lQS_,y

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESA, MARICOPA COUNTY, ARIZONA, APPROVING A FIVE YEAR CAPITAL PROGRAM FOR THE CITY OF MESA

WHEREAS, the City Manager of the City of Mesa did prepare and submit a Five Year Capital Program for the City of Mesa pursuant to the provisions of Section 605 of the Mesa City Charter; and

WHEREAS, pursuant to the provisions of Section 606 of the Mesa City Charter, a general summary of the preliminary Capital Program has been published for the period required and notice of the hearing on said proposed program has been published as required, and the Capital Program was available for inspection by the public as required; and

WHEREAS, the public hearing was held at the City Council Chambers in the City of Mesa on Monday, May 22, 2017 at 5:45 p.m., at which meeting all interested persons were invited to appear and be heard in favor of or against adoption of said Capital Program;

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MESA, MARICOPA COUNTY, ARIZONA, AS FOLLOWS:

Section 1: That the Five Year Capital Program, a summary of which is attached as Exhibit A, heretofore submitted by the City Manager pursuant to the provisions of Section 605 of the Mesa City Charter, copies of which are posted on the City's website, is adopted.

PASSED AND ADOPTED by the Mayor and City Council of the City of Mesa, Maricopa County, Arizona, this 22nd day of May, 2017.

~May ATTEST:

City of Mesa, Arizona 436 Executive Budget Plan 2017/18 City of Mesa Exhibit A Summary of Final Five-Year Capital Improvement Program

Capital Appropriations Proposed Proposed Proposed Proposed Proposed

Enterprise Fund FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Total Capital - Enterprise 877.537 279.779 286.694 294.072 301,995 2.040,077

Subtotal Enterprise Fund 877.537 279,779 286,694 294,072 301,995 2,040.077

Genera! Fund FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Total Capital - General Fund 5,827,368 4,932,559 4,111,517 3,265.226 4,087.676 22.224,346

Subtotal General Fund 5,827.368 4,932.559 4,111.517 3.265.226 4.087,676 22.224,346

Grant Funds FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Total Community Development Block Grant 4.062,003 4,062.003 Grants - Enterprise 4,311.402 3,391.375 3,360.802 2.860.803 2183,196 16.107,578 Grants - Gen. Gov. 5.470,629 256,000 6,327,279 444.107 898,629 13.396.644

Subtotal Grant Funds 13,844.034 3,647.375 9,688 081 3,304.910 3,081.825 33.566,225

Restricted Funds FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Total Arts & Culture Fund 134,139 134.139 Cemetery Reserve 983.850 17.146 344.445 1.345,441 Economic Investment Fund 442,862 442.862 Environmental Compliance Fee 4,282.903 4.282,903 Falcon Field Airport 3.630,928 479,345 546,594 732,991 1,300,819 6,690.677 Greenfield WRP Joint Venture1 1> 52,852.391 100,814.432 49,240.473 3,529.434 6,901.651 213.338,381 Highway User Revenue Fund 5.914,573 695,090 6 609.663 Local Streets Sales Tax 18,436.474 5,861.250 3.695.632 7.850.888 4.045,641 39.889,885 Restricted Programs Fund 130,000 130.000

TOPAZ Joint Venture Fund <11 1,349.804 659.280 675.569 2,684,653 Tran sit Fund 18,916,126 10.083,806 28999.932 Transportation 18,808.835 1,864.154 7.071.872 6.137,856 33,882,717 Utility Replacement Extension and Renewal 3.047, 176 3. 176,061 3,272,744 3,429,497 3,516.728 16.442.206

Subtotal Restricted Funds 128,930.061 123,633.418 64,520.030 22,025.111 15,764,839 354,873,459

Current Bond Authorization FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Total

1994 Solid Waste Bond 3.368,000 3.368,000

2010 Gas Bond 3,091.023 791,587 6.822,895 10,705.505

2010 Wastewater Bond 3,555.157 3,260,376 991.925 7.807,458

2010 Water Bond 1.706,250 1,706.250

2012 Park Bond 21,299.450 2.355.200 23,654.650

2013 Public Safety Bond 185.494 185,494

2013 Street Bond 17.373,375 3.017,936 2.013, 147 22,404.458

2014 Electric Bond 7,519.810 2,108.425 2. 110.440 11.738,675

2014 Gas Bond 10.668,427 9,463,621 11,571,385 31.703,433 2014 Wastewater Bond 41,732.943 65.631.418 31.766.975 2.061,923 141,193.259 2014 Water Bond 79,079.981 15,073,637 24,833.027 760.947 119.747,592 Spring Training Bond Construction 324,090 324 090 Subtotal Current Bond Authorization 189,904.000 101,702.200 80,109.794 2,822.870 374,538,864

(1) Joint venture funds include the cost to tl1e City as well as tile cost to the partner junsdictions

(2) Major capital pro1ects often require a multi-year design and construction period and therefore operations and maintenance costs may be a result of projects that were completed in a prior fiscal year

(3) FutureCity Bond of Mesa,Authorizations Arizona for Parks. Public Safety, and Library are not included437 at this time pending the completion ofExecutive studies to Budgetidentify servicePlan 2017/18 needs and prionties. City of Mesa Exhibit A Summary of Final Five-Year Capital Improvement Program

Capital Appropriations Proposed Proposed Proposed Proposed Proposed Future Bond Authorization 131 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Total

2018 Street Bond Construction 14,806.531 31,105,659 39 833,365 26.555,935 112,301.490

2020 Electric Bond Construction 4,903.496 5,514.743 10.418,239

2020 Gas Bond Construction 36.440,523 22,937,660 59,378.183

2020 Wastewater Bond Construction 30,649.882 46,776.811 77,426,693

2020 Water Bond Construction 30,557.406 115,766,571 146,323,977

Subtotal Future Bond Authorization 14.806,531 31.105,659 142.384,672 217.551,720 405,848.582

Total Capital Improvement Program 339,383,000 249,001,862 189,821,775 174,096,861 240,788,055 1,193,091,553

Operations and Maintenance t21 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Total

One Time Start Up

Capital - Enterprise 591.675 591,675 Enterprise Fund 1.583,904 1,583.904 Environmental Compliance Fee 250.000 122,880 372,880 Greenfield WRP Joint Venture 9,500 9.500 One Time Start Up Total 2,435.079 122,880 2.557,959

Ongoing

Cemetery 11.000 11,264 11.543 11,840 12.159 57,806 Enterprise Fund 1.571,301 2,720.729 3,852,205 4,023.377 4,189.397 16,357.009 Environmental Compliance Fee 338.814 497,624 519,367 550,061 579,357 2,485,223 General Fund 556,280 1,174.264 1,205,122 1,236,131 1,269.438 5.441.235 Greenfield WRP Joint Venture 268.499 274,942 2,911.993 3,076.532 3.159,427 9,691,393 Highway User Revenue Fund 37,735 141.144 153,023 224,248 261,137 817,287 Local Streets Sales Tax 103.051 203,575 216,532 222.104 246,931 992.193 Transit Fund 938.496 3,846,734 3.945,716 4,052.030 12.782,976 Ongoing Total 2,886 680 5,962 038 12.716.519 13,290.009 13.769,876 48,625,122

Total One-Time Start up and Ongoing Maintenance 5,321,759 6,084,918 12,716,519 13,290,009 13,769,876 51,183,081

/1) Joint venture funds include the cost to the City as we// as the cost to the partner jurisdictions.

(2) Ma1or capital projects often require a multi-year design and construction period and therefore operations and maintenance costs may be a result of projects that were completed in a prior fiscal year. /3) FutureCity Bond of Mesa,Authonzations Arizona for Parks, Public Safety and Library are not included438 at this time pending the completion ofExecutive studies to Budgetidentify servicePlan 2017/18 needs and priorities Glossary of Terms

Accrual Basis – A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent.

Activity – An element used to assign accounting entries to a core business process. Budgets are prepared at the Activity level. Performance data is reported at the Business Objective level and not at the Activity level.

Ad Valorem Tax – A tax based on the assessed value of real estate or personal property.

Adopted – Represents the budget as approved by formal action of the City Council which sets the spending limits for the fiscal year.

Allocation – Assigning one or more items of cost or revenue to one or more segments of an organization according to benefits received, responsibilities, or other logical measures of use.

Annualized Costs – The full‐year (annual) cost of an operating expense.

Appropriation – An authorization granted by the City Council to make expenditures or to incur obligations for specified purposes.

Assessed Valuation – A valuation set upon real estate or other property by the County Assessor or the State as a basis for levying taxes (primary or secondary).

Asset – Resources owned or held which have monetary value.

Balanced Budget – Total anticipated revenues plus beginning undesignated fund balance (all resources) equal total expenditure appropriations for the fiscal year.

Basis of Accounting – The timing of when accounting transactions are recognized.

Benchmarking – The process of comparing an entity’s performance against the practices of other leading entities for the purpose of improving performance. Entities also benchmark internally by tracking and comparing past performance.

Bond – Debt instruments that require repayment of a specified principal amount on a certain date (maturity date), along with interest at a stated rate or according to a formula for determining the interest rate.

Bond Funds – Funds used to account for the purchase or construction of major capital facilities which are not financed by other funds. The use of bond funds is necessary to demonstrate that bond proceeds are spent only in amounts and for purposes authorized.

Bond Proceeds – Debt issuances derived from the sale of bonds for the purpose of constructing major capital facilities.

City of Mesa, Arizona 439 Executive Budget Plan 2017/18 Glossary of Terms

Bond Rating – An evaluation of a bond issuer's credit quality and perceived ability to pay the principal and interest on time and in full.

Budget – A plan of financial operation representing an estimate of proposed expenditures for a given period (the City of Mesa’s adopted budgeted is for a fiscal year July 1 ‐ June 30) and the proposed means of financing those expenditures. This official public document reflects decisions, considers service needs, establishes the allocation of resources, and is the monetary plan for achieving the City’s Strategic Initiatives.

Business Objective – A goal or target that aligns with one or more Strategic Initiatives and defines where the City allocates its resources.

Business Service – A group of Core Business Processes related by a common purpose (mission, outcomes, and expected performance).

Capital Budget – A financial plan of proposed capital expenditures for improvements to facilities and other infrastructure and the means of financing them for the current fiscal period.

Capital Expenditures – Includes the purchase or construction of land, buildings, structures, and facilities of all types, plus machinery and equipment. It includes expenditures that result in the acquisition or addition of a fixed asset or increase the capacity, efficiency, span of life, or economy of operating an existing fixed asset. For an item to qualify as a capital outlay expenditure it must meet all of the following requirements: (1) have an estimated useful life of more than one year; (2) typically have a unit cost of $5,000 or more; and (3) be a betterment or improvement.

Capital Improvement Program (CIP) – A plan separate from the Annual Budget that identifies: (a) all capital improvements which are proposed to be undertaken during a period of five fiscal years; (b) the cost estimate for each improvement; (c) the method of financing each improvement; (d) the recommended time schedule for each project; and (e) the estimated annual operating and maintenance costs. This is a requirement of Mesa’s City Charter as outlined in Article VI, section 605.

Capital Outlay – Expenditures which result in the acquisition of or addition to fixed assets.

Capital Project – Any project having assets of significant value and having a useful life of one year or more. Capital projects include the purchase of land for design, engineering and construction of buildings and infrastructure items such as streets, bridges, drainage, street lighting, water system, etc. Capital projects are permanent attachments intended to remain with the land. Capital projects may include equipment and machinery or rolling stock being requisitioned, etc.

Carry‐Forward Capital Improvement Project – The process of requesting funds for capital improvement projects that were approved in one year’s budget, but are anticipated to be completed in the following fiscal year.

Commodities – Expendable items used by operating or construction activities. Examples include office supplies, repair and replacement parts for equipment, fuels and lubricants etc.

City of Mesa, Arizona 440 Executive Budget Plan 2017/18 Glossary of Terms

Community Development Block Grant (CDBG) – Federal grant funds provided on an annual basis that can be used to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, principally to benefit low and moderate income persons.

Constructed Capital Outlay – Capital items constructed by in‐house personnel and may contain other services and commodities costs.

Contingency – A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted.

Core Business Process – A collection of related inputs and outputs with a common mission and outcomes.

Debt Service – Payment of principal, interest, and related service charges on obligations resulting from the issuance of bonds.

Department – A major administrative division of the City which indicates overall management responsibility for an operation or a group of related operations within a functional area.

Development Fees – See Impact Fees.

Employee Benefit Self‐Insurance Fund – A city fund established to account for the costs of maintaining the City’s self‐insurance health program.

Encumbrances – Obligations in the form of purchase orders or contracts, for which the budget is reserved. The obligations cease to be encumbrances when they are paid or otherwise liquidated.

Enterprise Fund – Established to account for operations, including debt service that are financed and operated similarly to private business – where the intent is that the service is self‐sufficient, with all costs supported predominantly by user charges.

Expenditure – Outlay of funds for obtaining assets or goods and services. Expenditures represent a decrease in fund resources.

Expenditure Limitation – The Arizona Constitution and state statutes establish an expenditure limitation for all cities and towns (Arizona Constitution Article IX § 20 (1); ARS § 41‐563, et. al.). Unless the City Council and the voters of a city approve an expenditure limitation alternative, the State imposed limitation will apply for the fiscal year in question. The State expenditure limitation is based on the City’s budget as of FY 1979/80 adjusted for inflation and population. In November 2014, the voters of Mesa passed a Locally Controlled Alternative Expenditure Limitation, also known as the “Home Rule” Option, which allows the City to determine its own expenditure limitation, within the available revenues and resources. The Home Rule Option remains in effect for the four fiscal years following its passage by the voters. In Mesa’s case this includes FY 2015/16 through FY 2018/19.

City of Mesa, Arizona 441 Executive Budget Plan 2017/18 Glossary of Terms

Fiduciary Funds – Funds used to report assets held in a trustee or agency capacity for others and which therefore cannot be used to support the government’s own programs.

Fiscal Year – A 12‐month period of time to which the Annual Budget applies and at the end of which, a governmental unit determines its financial position and the results of its operations. For the City of Mesa, the fiscal year is July 1 through June 30.

Fixed Asset – A long‐term tangible piece of property owned and used in the production of income and is not expected to be consumed or converted into cash any sooner than at least one year's time. Buildings, real estate, equipment and furniture are examples of fixed assets.

Forecast – A prediction of a future outcome based on known and unknown factors.

Full Faith And Credit – A pledge of a government’s taxing power to repay debt obligations.

Full‐Time Equivalent (FTE) Positions – A position converted to a decimal equivalent of a full‐time position based on 2,080 hours per year. The full‐time equivalent of a part‐time position is calculated by dividing the number of hours budgeted by 2,080 hours.

Fund – An independent fiscal and accounting entity with a self‐balancing set of accounts recording cash and/or other resources, together with all related liabilities, for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations.

Fund Balance – The balance of operating funds brought forward from prior years.

General Fund – A fund used to account for all general purpose transactions of the City which do not require a special type of fund.

General Obligation (GO) Bonds – Bonds that require voter approval and finance a variety of public capital projects. GO Bonds are backed by the “full faith and credit” of the issuing government.

Generally Accepted Accounting Principles (GAAP) – The uniform minimum standards and guidelines for financial accounting and reporting which govern the form and content of the basic financial statements of an entity. These principles encompass the conventions, rules, and procedures that define the accepted accounting practices at a particular time. They include both broad guidelines of general application and detailed practices and procedure and provide a standard by which to measure financial presentations.

Goal – A statement of broad direction, purpose or intent based on the needs of the community. The goal may be of a programmatic, policy, or management nature, and is expressed in a manner which allows a future assessment to be made of whether the goal was or is being achieved.

Governmental Funds – Funds generally used to account for tax‐supported activities.

City of Mesa, Arizona 442 Executive Budget Plan 2017/18 Glossary of Terms

Grant – A contribution by the State or Federal government or other organization to support a particular function. Grants may be classified as either categorical or block depending upon the amount of discretion allowed the grantee.

Impact Fees – Amounts paid by new development to offset costs to the City associated with providing necessary public services to a development. (ARS § 9‐463.05). Also may be referred to as Development Fees.

Infrastructure – Facilities that support the continuance and growth of a community. Examples include roads, water lines, sewers, public buildings, parks and airports.

Interfund Transfers – The movement of monies between funds of the same governmental entity.

Intergovernmental Agreement (IGA) – A contract or agreement between two or more governmental entities for services, to jointly exercise any powers common to the contracting parties or for cooperative actions, so long as each entity has been authorized by their respective legislative or other governing body.

Intergovernmental Revenue – Funds received from federal, state and other local government sources in the form of grants, shared revenue, and payments in lieu of taxes.

Internal Service Fund – A fund established to account for the financing, on a cost reimbursement basis, of commodities or services provided by one program for the benefit of other programs within the City.

Joint Venture – A business agreement in which the City and other parties agree to develop, for a finite time, a new entity and create new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses, and assets.

Major Program – The highest level element of the cost accounting hierarchy equivalent to a Capital Improvement Project (CIP) or a Grant Award contract capturing the costs of a specific CIP project, grant or other jobs/projects.

Modified Accrual Basis – A basis of accounting used by governmental funds where revenue is recognized in the period it is available and measurable, and expenditures are recognized at the time the liability is incurred.

Non‐Capitalized Asset – An item of machinery or furniture having a unit cost of less than $5,000.

Non‐Recurring Revenue – Revenue sources that are not available on an ongoing basis.

Object Code – A Chart of Accounts element that describes tangible items purchased or a service obtained. Also referred to as a line item.

City of Mesa, Arizona 443 Executive Budget Plan 2017/18 Glossary of Terms

Objective – Desired output‐oriented accomplishments which can be measured and achieved within a given time frame. Achievement of the objective advances the activity and organization toward a corresponding goal.

Operating Budget – The portion of the budget that pertains to daily operations that provide basic governmental services. The operating budget contains funding for such expenditures as personnel, supplies, utilities, materials, travel, and fuel.

Operating Funds – Resources derived from recurring revenue sources used to finance recurring operating expenditures and pay‐as‐you‐go capital expenditures.

Ordinance – A formal legislative enactment by the City Council. If it is not in conflict with any higher form of law, such as state statute or constitutional provision, it has the full force and effect of law within the boundaries of the City.

Other Services – Object category that includes outside professional services, public utility services, travel, rents, insurance, etc.

Per Capita – Applies to a unit of population or a person if a commodity/expense was divided equally.

Performance Measure – Data collected to determine how effective or efficient a program is in achieving its objectives.

Personal Services – All employer costs related to compensating employees of the City of Mesa, including employee fringe benefit costs such as city portions of retirement, social security, health insurance, and industrial insurance.

Phase – A department‐specific element representing the various steps of a program.

Post‐Employment Benefits – Post‐employment benefits are benefits that an employee receives at the start of retirement. This does not include pension benefits paid to the retired employee through the retirement system. Other post‐employment benefits that a retired employee can receive are life insurance premiums, healthcare premiums and deferred‐compensation arrangements.

Primary Property Tax – Mesa does not have a primary property tax. A primary property tax is a limited tax levy used to fund general government operations based on the primary assessed valuation and primary tax rate. The total levy for primary taxes is restricted to a two percent annual increase, plus allowances for annexations, new construction, and population increases.

Primary Tax Rate – The rate per one hundred dollars of assessed value employed in the levy of primary taxes (ARS § 42‐17051).

Program – An element that defines the breakdown of a Major Program based on budgeting or reporting requirements.

City of Mesa, Arizona 444 Executive Budget Plan 2017/18 Glossary of Terms

Proprietary Funds – Funds that focus on business‐like activities, including the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows.

Property and Public Liability Self‐Insurance Fund – Established to account for the cost of claims incurred by the City under a self‐insurance program.

Proposition 400 (Regional Sales Tax) – Revenues received from a 2004 voter‐approved 20‐year extension of a half‐cent transportation sales tax in Maricopa County that was first approved in 1985 to fund freeway construction.

Purchased Capital Outlay – The acquisition of any item of capital that is complete in and of itself when it is purchased.

Recurring Revenues – Revenue sources available on a constant basis to support operating and capital budgetary needs.

Replacement And Extension Reserve Fund (RER) – Pursuant to the provisions of the Bond Resolution of City of Mesa Utility System Revenue and Refunding Bonds, Replacement and Reserve Funds are required to be established. A sum equal to 2 percent of gross revenues, as determined on a modified accrual basis, must be deposited in the fund. The revenues deposited are available for replacement and extension expenses for programs contained within the Enterprise Fund.

Resources – Total amounts available for appropriation including estimated revenue, bond proceeds, fund transfers, and beginning balances.

Restricted Revenues – Are legally restricted to be used for a specific purpose as defined by federal, state or local governments.

Revenues – Amounts received from taxes and other sources.

Secondary Property Taxes – Ad valorem taxes or special property assessments that are used to pay the principal, interest, and redemption charges on bonded indebtedness or other lawful long‐term obligations that are issued or incurred for a specific capital purpose by a municipality (ARS § 42‐11001).

Secondary Tax Rate – The rate per one hundred dollars of assessed value employed in the levy of secondary property taxes. The assessed value derived from the full cash value (market value) is the basis for computing taxes for secondary property taxes and special districts.

State Shared Revenue – Revenues levied and collected by the state but shared with local governments each year as determined by state law. In Arizona, a portion of the state's sales, income, and vehicle license tax revenues are distributed on the basis of a city's relative population percentage.

Sub‐Fund – A breakout of a fund. Not every fund will have a sub‐fund.

City of Mesa, Arizona 445 Executive Budget Plan 2017/18

Glossary of Terms

Tax Levy – The total amount to be raised by property taxes for purposes specified in the Tax Levy Ordinance. In Arizona, the property tax system is divided into primary and secondary rates.

Tax Rate – The amount of tax levied for each $100 of assessed valuation.

Taxes – Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments.

Transfers – The authorized exchange of cash or other resources between funds.

Unit – A Chart of Accounts element that functions as both a budget/expense center and an organizational level element.

Unrestricted Fund Balance – That portion of fund balance that is not reserved, designated or restricted for any specific purpose.

User Fees – An amount charged for a public service or use of a public facility paid by the individual or organization benefiting from the service.

Worker’s Compensation Self‐Insurance Fund – Established to account for the costs of maintaining a self‐ insurance program for industrial insurance at the City.

City of Mesa, Arizona 446 Executive Budget Plan 2017/18 Acronyms

ABC A Better Community ACP Asbestos Concrete Pipe ADA Americans with Disabilities Act ADEQ Arizona Department of Environmental Quality ADOT Arizona Department of Transportation ALGA Association of Local Government Auditors ALF Arizona Lottery Funds ALS Advanced Life Support AMY Arizona Museum for Youth APPA American Public Power Association APMS Airport Pavement Management System ARRA American Recovery and Reinvestment Act ARID Anonymous Re‐Identification ARS Arizona Revised Statutes ASOS Automated Surface Observing System ASRS Arizona State Retirement System ASU Arizona State University AWWA American Water Works Association AZMNH Arizona Museum of Natural History BAT Bilingual Assistance Team BLS Basic Life Support BRT Bus Rapid Transit CAFR Comprehensive Annual Financial Report CAP Central Arizona Project CAWCD Central Arizona Water Conservation District CDBG Community Development Block Grant CDC Community Development Corporation CFD Community Facilities District CERT Community Emergency Response Team CI Continuous Improvement

City of Mesa, Arizona 447 Executive Budget Plan 2017/18 Acronyms

CIP Capital Improvement Program CIS Customer Information System CMAQ Congestion, Mitigation and Air Quality Grants CMMS Computerized Maintenance Management System CNG Compressed Natural Gas COM City of Mesa CNG Compressed Natural Gas COLA Cost of Living Adjustment COPS Community Oriented Policing System CP Culture Pass CPI Consumer Price Index CRT Community Response Team CUB Chicago Cubs DBP Disinfection‐by‐Product DIP Ductal Iron Pipe DPS Department of Public Safety DTH Dekatherm DUI Driving Under the Influence EBT Employee Benefit Trust EEOC Equal Employment Opportunity Commission EIC Emergency Information Center EMOD Experience Modification Rate EMS Emergency Medical Services EODCRS Elected Officials Defined Contribution Retirement System EORP Elected Officials Retirement Plan EOY End of Year EPA Environmental Protection Agency ERP Enterprise Resource Planning ESG Emergency Shelter Grant EVDAR East Valley Dial‐a‐Ride

City of Mesa, Arizona 448 Executive Budget Plan 2017/18 Acronyms

FA FleetAnywhere Fleet Management Software FAA Federal Aviation Administration FBI Federal Bureau of Investigation FCV Full Cash Value FEMA Federal Emergency Management Agency FIN Citywide Financial System FLSA Fair Labor Standards Act FMLA Family and Medical Leave Act FTE Full Time Equivalent FY Fiscal Year GAAP Generally Accepted Accounting Principles GASB Governmental Accounting Standards Board GFOA Government Finance Officers Association GIS Geographic Information System GO General Obligation GWRP Greenfield Water Reclamation Plant HCV Housing Choice Voucher HEAT Healthcare, Education, Aerospace, and Tourism/Technology HHK Hohokam HHW Household Hazardous Waste HIPAA Health Insurance Portability and Accountability Act HOME Home Ownership Made Easier HP High Pressure HPAN Highway Project Acceleration Note HR Human Resources HSI Home Safety Inspections HSIP Highway Safety Improvement Program HUD U.S. Department of Housing and Urban Development HURF Highway User Revenue Fund HVAC Heating, Ventilation and Air Conditioning

City of Mesa, Arizona 449 Executive Budget Plan 2017/18 Acronyms

ICA Industrial Commission of Arizona ICC International Code Council ICMA International City/County Management Association ID Identification i.d.e.a. imagination, design, experience, art Museum (formerly Arizona Museum for Youth) IDMS Infrastructure Data Management System IFMA International Facility Management Association IGA Intergovernmental Agreement IP Intermediate Pressure IT Information Technology ITC Information Technology & Communications ITS Intelligent Transportation System IVR Interactive Voice Response JCEF Judicial Collections Enhancement Fund KPI Key Performance Indicator KV Kilovolts KWH Kilowatt‐hour LF Linear Feet LGIP Local Government Investment Pool LID Low Impact Development LPV Limited Property Value LRT Light Rail Transit MAC Mesa Arts Center MAG Maricopa Association of Governments MAL Minimum Acceptable Level MCA Mesa Contemporary Arts MCDOT Maricopa County Department of Transportation MPA Management Performance and Accountability MUP Multi‐Use Path N/A Not Applicable

City of Mesa, Arizona 450 Executive Budget Plan 2017/18 Acronyms

NAFA National Association of Fleet Administrators NCCI National Council on Compensation Insurance NFPA National Fire Protection Association NG Natural Gas NOV Notices of Violation NRPA National Recreation and Park Association NWWRP Northwest Water Reclamation Plant O&M Operations and Maintenance OMB Office of Management and Budget OPEB Other Post‐Employment Benefits OSHA Occupational Safety and Health Administration PAPI Precision Approach Path Indicator PC Personal Computer PCCP Prestressed Concrete Cylinder Pipe PCI Pavement Condition Index PD Police Department PE Polyethylene PEPM Per Employee per Month PFM Public Financial Management PHA Public Housing Authority PM‐10 Particulate Matter less than 10 Microns PO Purchase Order PQI Pavement Quality Index PAPI Precision Approach Path Indicator PRCF Parks, Recreation & Commercial Facilities PRV Pressure Reducing Valves PSPRS Public Safety Personnel Retirement System RBVE Residents, Businesses, Visitors and Employees RC Responsibility Center REIL Runway End Identifier Lights

City of Mesa, Arizona 451 Executive Budget Plan 2017/18 Acronyms

RER Replacement Extension Reserve RFP Request for Proposal RICO Racketeer Influenced and Corrupt Organizations RWCD Roosevelt Water Conservation District ROW Right of Way RPTA Regional Public Transportation Authority RTP Regional Transportation Plan SAIDI System Average Interruption Duration Index SAIFI System Average Interruption Frequency Index SCADA Supervisory Control and Data Acquisition SCBA Self‐Contained Breathing Apparatus SEWRP Southeast Water Reclamation Plant SLA Service Level Agreement SROG Sub Regional Operating Group SRP Salt River Project SSO Sanitary Sewer Overflow SUP Shared Use Path TAT Turn Around Time TOPAZ Trunked OPen AriZona Network TRWC TOPAZ Regional Wireless Cooperative UPRR Union Pacific Railroad VoD Video on Demand VRF Vehicle Replacement Fund WIFA Water Infrastructure Finance Authority WRP Water Reclamation Plant WTP Water Treatment Plant WW Wastewater

City of Mesa, Arizona 452 Executive Budget Plan 2017/18 mesa-az

City of Mesa, Arizona Executive Budget Plan 2017/18 Office of Management & Budget PO Box 1466 Mesa, Arizona 85211-1466 480-644-5799 | www.mesaaz.gov

City of Mesa, Arizona 454 Executive Budget Plan 2017/18