Management’s Discussion & Analysis

Revenues & Expenses

Governmental Activities

For the fiscal year ended June 30, 2017, total revenues of governmental activities were $7.3 billion while total expenses were $7.1 billion. Of the $7.1 billion total expenses, 61.6% was funded by taxes and other general revenues, and the remaining 38.4% was funded by program revenues, transfers from business-type funds and available net position. Program revenues are resources obtained from parties outside of the City, and charges for services between the governmental and business-type activities.  

Total expenses increased by $926.3 million or 14.9% over fiscal year 2016. Increases in expenses were attributed to increases in general government of $132.3 million, protection of persons and property of $550.6 million, public works of $175.3 million, transportation of $86.0 million and community development of $55.2 million.

Business-type Activities

The $7.3 billion combined operating revenues of the City’s six business-type activities were $1.4 billion more than the $5.9 billion combined operating costs.

Fiscal Year 2017 Revenues: $15.3 billion

Chart values in thousands of dollars. Click to toggle between years.

Fiscal Year 2017 Expenses: $13.9 billion

Chart values in thousands of dollars. Click to toggle between years.

BUSINESS-TYPE ACTIVITIES

Enterprise funds are used to report the functions presented as business-type activities in the government-wide financial statements, they are generally used to account for services for which the City charges customers – either outside customers, or other departments/funds of the City. All of the City’s enterprise funds, except the convention center, are considered major funds.

The operating results of the City’s six enterprise funds are reflected in the change in net position statement below.

Business-Type Activities: Change in Net Position

LONG-TERM DEBT

Bonded Debt and Long-Term Notes Payable: $27.4 billion ⬆ 3.8% from Fiscal Year 2016

Ratings of the City’s debts by rating agencies, as of June 30th:

The City’s has established guidelines for the structure and management of the City’s debt, which include target and ceiling levels for certain debt ratios to be used for financial planning purposes and restrictions on the types of items that can be financed, limiting financing only to those items with a useful life of six years or more.

In accordance with this policy, the ratio of annual debt payments cannot exceed 15% of General Fund revenues for voter-approved and non-voter approved debt overall, and cannot exceed 6.0% of General Fund revenues for non-voter approved debt alone. The 6.0% ceiling for non-voter approved debt may be exceeded, only if there is a guaranteed new revenue stream for the debt payments and the additional debt will not cause the ratio to exceed 7.5%, or there is no guaranteed revenue stream but the 6.0% ceiling shall not be exceeded for more than one year.

Of the $27.4 billion long-term bonds and notes payable, $756.4 million were General Obligation bonds.