ITEM:		CONSENT CALENDAR
5.	RECEIVE AND FILE SECOND QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2017-2018
Meeting Date:			February 22, 2018	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 13, 2018 and recommendedapproval.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: The second quarter of Fiscal Year (FY) 2017-2018 came to a conclusion on December 31, 2017. A table comparing budgeted and actual year-to-date revenues and expenditures for the period is included as Exhibit 5-A. The Exhibits 5-B and 5-C present the same information in bar graph format. The following comments summarize District staff's observations:

REVENUES

The revenue table compares amounts received through the second quarter and conclusion of FY 2017-2018 to the amounts budgeted for that same time period. Total revenues collected were $5,876,721, or 90.1% of the budgeted amount of $6,520,400. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,059,657, or 121.2% of the budget for the period. The first installment of this revenue was received in December 2017.
• Property tax revenues were $1,057,937, or 120.9% of the budget for the period. The first installment of this revenue was received in December 2017.
• User fee revenues were $2,076,168, or about 121.2% of the amount budgeted. This is the higher than budgeted as the District did not have historical figures on collection.
• Connection Charge revenues were $252,896, or 202.3% of the budget for the period. Actual collection was higher than anticipated budgeted figure as the forecasted figures are based on estimated number of customers pulling permits. There was more connection charge received than budgeted for the first six months.
• Permit Fees revenues were $131,230, or 113.6% of the budget for the period. Actual collection was higher than anticipated budgeted figure as the forecasted figures are based on estimated number of customers pulling permits. There was more permit fees received than budgeted for the first six months.
• Interest revenues were 13,435, or 134.4% of the budget for the period. Actual interest received was slightly higher than budgeted for the first six months.
• Reimbursements of $244,131, or 26.9% of the budget. This is based on actual spending and collection of reimbursement project funds. This is considerably less than the budgeted amount as many projects were deferred and continued to next quarter.
• Grant revenue of 18,043, or 2.9% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $23,224 or about 101.9% of the budgeted amount. This category includes reimbursement revenues from legal and other miscellaneous services.
• The Reserves category totaled $0 or about 0.00% of the budgeted amount. This category includes potential use of reserves and the water supply carry forward balance during the fiscal year for which adjustments will be made at the conclusion of the fiscal year.

EXPENDITURES

Expenditure activity as depicted on the expenditure table is similar to patterns seen in past fiscal years. Total expenditures of $3,748,114 were about 57.5% of the budgeted amount of $6,520,400 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $1,816,424 were about 101.1% of the budget. This was slightly higher than the anticipated budget.
• Expenditures for supplies and services were $503,044, or about 73.8% of the budgeted amount. This was lower than the anticipated budget due to the professional fees and legal expenses coming in lower than the expected budgeted numbers.
• Fixed assets purchases of $8,483 represented around 2.0% of the budgeted amount as most of the purchases were deferred to next quarter. The largest portion of this line item is the Water Demand Division database project which will start in February 2018.
• Funds spent for project expenditures were $1,346,281, or approximately 41.8% of the amount budgeted for the period. This is due to most projects spending being deferred to next quarter.
• Debt Service included costs of $67,019, or 58.3% of the budget for the period. Debt service is paid semi-annually, in December and June.
• Contingencies/Other expenditures $0, or 0% of the budgeted amount. This was due to the contingency budget not spent during this fiscal year.
• Reserve expenditures of $0, or 0% of the budgeted amount. This was due to the adjustments made at the conclusion of the fiscal year.

EXHIBITS

5-A Revenue and Expenditure Table

5-B Revenue Graph

5-C Expenditure Graph

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