ADMINISTRATIVE COMMITTEE
6.	RECEIVE AND FILE FIRST QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2016-2017
Meeting Date:		November 7, 2016	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 November 7, 2016 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: The first quarter of Fiscal Year (FY) 2016-2017 came to a conclusion on September 30, 2016. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 6-A. Exhibits 6-B and 6-C presents the same information in bar graph format. The following comments summarize District staff's observations:

REVENUES

The revenue table compares amounts received through the first quarter and conclusion of FY 2015-2016 to the amounts budgeted for that same time period. Total revenues collected were $240,793, or 7.7% of the budgeted amount of $3,140,163. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were ($2,376), or -0.3% of the budget for the period. The first installment of this revenue is expected to be received in December 2016. Negative balance reflects refunds issued during the current quarter.
• Mitigation revenue was $0, or 0% of the budget. Mitigation revenue is billed and collected in arrears. Cal-Am has not paid for the first quarter.
• Property tax revenues were $0, or 0% of the budget for the period. The first installment of this revenue is expected to be received in December 2016.
• User fee revenues were $8,815, or about 37.1% 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 $74,523, or 140.3% 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 quarter.
• Permit Fees revenues were $64,279, or 111.3% 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 permit fees received than budgeted for the first quarter.
• Interest revenues were ($5,756), or -115.1% of the budget for the period. This is due to first quarter interest revenue for LAIF is not received until October 2016. The negative figure includes accruals reversed from last fiscal year.
• Reimbursements of $95,344, or 15.9% 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 $0, or 0.0% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $5,964 or about 62.8% of the budgeted amount. This is higher than budget as 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, water supply carry forward balance and the line of credit during the fiscal year for which adjustments are 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 $1,641,439 were about 52.3% of the budgeted amount of $3,140,163 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $969,306 were about 113.0% of the budget. This was slightly higher than the anticipated budget due to CalPERS employer portion of the unfunded liability paid upfront for the fiscal year.
• Expenditures for supplies and services were $228,655, or about 82.5% of the budgeted amount. This was slightly below the anticipated budget.
• Fixed assets purchases of $13,542 represented around 46.9% of the budgeted amount as most of the purchases were deferred to next quarter.
• Funds spent for project expenditures were $429,936, or approximately 25.5% of the amount budgeted for the period. This is due to most projects spending being deferred to next quarter.
• Debt Service included costs of $0, or 0% 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

6-A Revenue and Expenditure Table

6-B Revenue Graph

6-C Expenditure Graph

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