ITEM:		CONSENT CALENDAR
6.	RECEIVE AND FILE SECOND QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2014-2015
Meeting Date:			February 18, 2015	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Suresh Prasad	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on February 10, 2015 and recommended approval.
CEQA Compliance: N/A

SUMMARY: The second quarter of Fiscal Year (FY) 2014-2015 came to a conclusion on December 31, 2014. Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 6-A and 6-B. Exhibit 6-C presents the same information in a table format. The following comments summarize District staff's observations:

REVENUES

The revenues graph compares amounts received through the second quarter and conclusion of FY 2014-2015 to the amounts budgeted for that same time period. Total revenues collected were $4,508,731, or 82.5% of the budgeted amount of $5,468,000. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,024,551, or 119.1% of the budget for the period. The first installment of this revenue was received in December 2014.
• Mitigation revenue was $471,900, or 47.6% of the budget. Mitigation revenue is billed and collected in arrears.
• Property tax revenues were $887,592, or 118.3% of the budget for the period. The first installment of this revenue was received in December 2014.
• User fee revenues were $27,008, or about 72% of the amount budgeted. This is below the budgeted amount as Reclamation Project’s share is billed and collected at the end of the fiscal year.
• Connection Charge revenues were $82,988, or 94.8% of the budget for the period. Budget figures are forecasted based on estimated number of customers pulling permits.
• Permit Fees revenues were $99,572, or 86.2% of the budget for the period. Budget figures are forecasted based on estimated number of customers pulling permits.
• Interest revenues were $6,138, or 81.8% of the budget for the period. This is due to second quarter interest revenue for LAIF is not received until January 2015.
• Project reimbursements of $890,539, or 108.9% of the budget. This is based on actual spending and collection of reimbursement project funds.
• Grant revenue of $4,703, or 1.5% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The “Other” revenue category totaled $13,740 or about 2.1% of the budgeted amount. This is well below budget as this category includes potential use of reserves, water supply carry forward balance and the line of credit during the fiscal year.

EXPENDITURES

Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past fiscal years. Total expenditures of $3,944,259 were about 72.1% of the budgeted amount of $5,468,000 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $1,577,003 were about 98.5% of the budget. This was in line with the anticipated spending.
• Expenditures for supplies and services were $483,865, or about 95% of the budgeted amount. This was in line with the anticipated spending.
• Fixed assets purchases of $43,067 represented around 43.3% of the budgeted amount as some of the purchases were deferred to next quarter.
• Funds spent for project expenditures were $1,768,852, or approximately 57.0% of the amount budgeted for the period. This is due to project spending being deferred to next quarter.
• Debt Service included costs of $71,472, or 62.1% of the budget for the period. Additional debt service costs will be paid in fourth quarter of the fiscal year.
• Contingencies/Other expenditures $0, or about 0% of the budgeted amount. This was due to the contingency budget not spent during this quarter.

EXHIBITS

6-A Revenue Graph

6-B Expenditure Graph

6-C Revenue and Expenditure Table

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