1. City of Menifee Mid-Year Financial Review Fiscal Year 2014-2015

2. City Wide Revenues $39,796,176 2

3. General Fund Revenues OriginalMid-YearRevisedYTD BudgetAdjustmentBudgetActual% Property Tax $ 10,122,000 $ (164,926) $ 9,957,074 $ 5,721,75457% Sales Tax 5,790,000 2,988,54352% Franchise Fees 3,152,000 896,14028% Development Fees 5,835,000 (700,000) 5,135,000 3,399,15166% Other Revenues 2,699,244 986,94437% Total $ 27,598,244 $ (864,926) $ 26,733,318 $ 13,992,53152% YTD Actual based on the first 8 months of FY 2014-2015 3

4. Building Permits Issued Number of Permits% Growth/Decline Revenues FY 2009/101684 $ 2,022,654 FY 2010/11185210.0% $ 2,119,315 FY 2011/121324-28.5% $ 1,739,944 FY 2012/132807112.0% $ 2,541,969 FY 2013/14318013.3% $ 6,283,373 FY 2014/151613 $ 3,399,151 4

5. Number of Building Permits 5

6. Historical Building Permits Issued JulyAugSeptOctNovDecJanFebMarAprMayJunTotal FY 2012-13 225 240 182 180 217 181 205 179 269 286 357 286 2,807 YTD 225 465 647 827 1,044 1,225 1,430 1,609 1,878 2,164 2,521 2,807 FY 2013-14 316 276 376 402 273 386 234 105 225 139 205 243 3,180 YTD 316 592 968 1,370 1,643 2,029 2,263 2,368 2,593 2,732 2,937 3,180 FY 2014-15 296 141 135 148 171 290 209 223 1,613 YTD 296 437 572 720 891 1,181 1,390 1,613 YTD % Variance94%74%59%53%54%58%61%68% 6

7. Median Home Prices in $1,000’s April ofMenifeeSan DiegoOrange Co.Temecula 2012 $ 203 $ 377 $ 488 $ 273 2013 $ 240 $ 438 $ 556 $ 328 2014 $ 305 $ 485 $ 626 $ 387 2015 $ 314 $ 502 $ 614 $ 399 %3.0%3.5%-1.9%3.1% Percentage increase (decrease) April 2014-2015 7

8. General Fund Expenditures OriginalMid-YearRevisedYTD BudgetAdjustmentBudgetActual% Police $ 10,464,127 $ 4,678,73645% Fire 7,282,492 1,909,01226% Public Works/Engineering 2,344,997 (115,186) 2,229,811 1,379,55337% Building & Safety/Code 1,519,255 891,93063% Planning 1,140,238 827,68973% Non Departmental 1,008,221 844,42281% Administrative Services 711,709 483,93969% Finance 694,870 468,71065% Community Services 666,012 355,51053% 8

9. General Fund Expenditures OriginalMid-YearRevisedYTD BudgetAdjustmentBudgetActual% City Manager $ 547,541 $ 429,15171% Economic Development 505,378 232,70650% City Attorney 488,400 142,25540% Animal Control 487,054 231,27547% City Clerk 388,545 241,73371% City Council 177,334 128,13970% Emergency Services 5,620 69812% Allocation from other funds (489,572) (326,381)67% Total $ 27,942,221 $ (115,186) $ 27,827,035 $ 12,919,07846% 9

10. Gas Tax Fund 10 OriginalMid-YearRevisedYTD BudgetAdjustmentBudgetActual% Gas Tax Revenues $ 2,396,047 $ 320,220 $ 2,716,267 $ 1,169,72643% Salaries & Wages - 115,186 0% Street Maintenance 1,284,564 1,047,88482% Street Lighting 20,000 9,17346% Traffic Signal Maint. 170,865 58,63434% Transfer to General Fund 156,436 104,29167% Capital Projects 1,052,107 252,38824% Debt Settlement 903,000 602,00067% Total Expenditures 3,586,972 115,186 3,702,158 2,074,37056% Net Surplus (Deficit) $ (1,190,925) $ 205,034 $ (985,891) $ (904,644)

11. Measure “A” Fund OriginalMid-YearRevisedYTD BudgetAdjustmentBudgetActual% Measure A Revenues $ 1,448,000 $ 718,04450% Street Maintenance 1,256,766 1,230,766 -0% Capital Expenditures - 26,000 25,935100% Capital Projects 940,436 188,48920% Debt Settlement 516,428 344,28567% Total Expenditures 2,713,630 558,70921% Net Surplus (Deficit) $ (1,265,630) $ 159,335 11

12. Summary of Mid-Year Adjustments  Reduce Property Tax $164,926 (General Fund)  Reduce Building Permit Revenues $700,000 (General Fund)  Increase Gas Tax Revenues $320,220  Transfer $115,186 from General Fund to Gas Tax for Salaries & Benefits 12