• Local sales tax collections in the General Fund total $13.8 million or 89.7% of the budget amount of $15.4 million. Sales tax collections in the General Fund are estimated to come in below budget by approximately $704,000 or 4.6%, due primarily to the delay in one-time construction sales tax collections from slower single family residential and commercial building activity than planned. This is a shortfall in one-time revenues, and because one-time revenues are dedicated to one-time capital improvement projects, this shortfall does not impact ongoing Town operations. All other local sales tax categories are trending on budget. Please see Attachment F for a monthly tracking of General Fund local sales tax collections, including retail, construction and utility sales tax.
• State shared revenues total $9.6 million or 91.7% of the budget amount of $10.4 million, and are estimated to come in over budget by roughly $146,000 or 1.4%, based on projections from the Arizona Department of Revenue and the League of Arizona Cities and Towns.
• Charges for Services revenues total $1.9 million or 101.3% of the budget amount of $1.87 million. Charges for Services revenues are estimated to come in over budget by about $168,000 or 8.9%, due primarily to revenue at the Aquatic Center.
• License and permit revenues total $1.6 million or 91.9% of the budget amount of $1.8 million. These revenues are estimated to come in slightly under budget by about $89,000 or 5.1%, due to residential building permits. Although we expect to come in on budget in terms of the number of single family residential building permits that are issued (which was 200), the revenues per permit are down slightly from what was budgeted.
• State grant revenues total $1,224,820 or 85.4% of the budget amount of $1.4 million. These revenue are estimated to come in under budget by about $25,000 or 1.8%, due to capacity budgeted for grants that will not be utilized.
• Miscellaneous revenues are estimated to come in over budget by nearly $127,000 or 93.9%, primarily due to insurance recovery proceeds from storm damage at Riverfront Park.

• Expenditures are estimated to come in under budget by about $676,000 or 2.1%. Of this amount, approximately $481,000 was planned for one-time Capital Improvement Program (CIP) projects, to be funded entirely with one-time construction sales taxes and permitting revenues. Projects were slowed or placed on hold due to single family residential construction and delayed commercial construction activity, as referenced above.
• Please note that although the Parks and Recreation Department is expected to go over budget by about $56,000, or 1.9%, due to Aquatic Center expenditures, this overage will be more than offset by revenues that are also expected to exceed budget by approximately $100,000.
• Please note that the estimated overage in General Administration is due entirely to the spending of insurance recovery proceeds related to storm damage at Riverfront Park, as referenced above in the revenue discussion.
• The remaining expenditure budget variances in other departments are due to estimated personnel and department operating savings. Please note that these savings are estimates and are subject to change.

• State shared highway user funds total roughly $2.7 million or 91.7% of the budget amount of $3.0 million and are expected to come in on budget at year-end. State grant revenues are estimated at $195,551 for the fiscal year, due to reimbursements from the Pima Association of Governments (PAG) and the Regional Transportation Authority (RTA) for contract administration of roadway projects, as well as Transportation Art by Youth (TABY) program expenditures. Highway Fund revenues in total are estimated to come in over budget by about $226,000 or 7.1%.

Highway Fund Expenditures

• Expenditures are estimated to come in under budget by about $141,000 or 2.9%. This variance is due largely to the Tangerine Access to Safeway (1st Ave) CIP project, which will roll over into FY 16/17. Please note that these figures are estimates and are subject to change.

BED TAX FUND

Bed Tax Revenues

• Bed tax revenues total $981,376 or 103.8% of the budget amount of $945,000, and are estimated to come in over budget by nearly $120,000 or 12.7%, based on collections received through May. Please note this is an estimate and is subject to change.

• Expenditures are estimated to come in under budget by about $5,600 or 0.5% due to projected personnel savings. Please note that these savings are estimates and are subject to change.

• Revenues in the Community Center Fund total $5.3 million or 71.7% of the budget amount of $7.4 million. Contracted operating revenues from Troon total $2.7 million and Town operating revenues total $672,572. Local sales tax revenues from the dedicated half-cent sales tax total roughly $1.9 million or 93.1% of the budget amount of $2,000,000.
• Local sales tax revenues from the dedicated half-cent sales tax are estimated to come in over budget by $30,000 or 1.5%, based on collections received thus far in the fiscal year. Please note this is an estimate and is subject to change.
• Contracted operating revenues from Troon are estimated to come in under budget by about $1.8 million or 37.3%, based on Troon's forecast through the remainder of the fiscal year. These revenue estimates have been revised downward to $3.0 million from the original budgeted amount of $4.7 million based on revenues collected thus far in the fiscal year.
• Town operating revenues are estimated to come in over budget by roughly $81,000 or 12.3%, due to member dues, which are expected to come in nearly 10% over budgeted figures, as well as recreation program revenues, which are expected to come in more than 50% over budgeted figures, for summer camp programs at the Community Center.

• Expenditures in the Community Center Fund total approximately $6.1 million or 75.9% of the budget amount of $8.1 million. Contracted operating expenditures from Troon total roughly $5.1 million and Town operating expenditures total $622,048. Capital outlay expenditures total $436,875.
• Contracted operating expenditures from Troon are estimated to come in under budget by about $847,000 or 13.5%, based on Troon's forecast through the remainder of the fiscal year reflecting savings from operational changes that were implemented in December, as well as other line item expense reductions in the operations and maintenance categories, including closure of the golf courses on Mondays, reduced hours at The Overlook restaurant, reductions in staffing levels in the golf maintenance and restaurant operations, closure of the lap pool and reduced hours at the tennis facilities. The year-end expenditure estimates have been revised downward to $5.4 million from the original budgeted amount of $6.3 million. Accordingly, the year-end net loss for the Troon-managed operations has been revised from the budgeted amount of $1.5 million to approximately $2.4 million.
• Please note that the budgeted loan repayment to the General Fund of $120,000 has been removed to reflect a one-year delay as approved by Council on May 19, 2016.
• The ending fund balance in the Community Center Fund is estimated at $172,481.