ITEM:		CONSENT CALENDAR
4.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2019-2020
Meeting Date:			May 18, 2020	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 May 12, 2020 and recommended approval.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: The third quarter of Fiscal Year (FY) 2019-2020 concluded on March 31, 2020. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 4-A. Exhibits 4-B and

4-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 third quarter to the amounts budgeted for that same time period. Total revenues collected were $9,102,880, or 67.3% of the budgeted amount of $13,529,513. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $1,951,463, or 76.5% of the budget for the period. The first installment of this revenue was received in December 2019. The second installment will be received in April 2020.
• Property tax revenues were $1,139,505, or 74.1% of the budget for the period. The first installment of this revenue was received in December 2019. The second installment will be received in April 2020.
• User Fee revenues were $3,371,226, or about 89.9% of the amount budgeted. This is lower than budgeted since the actual collections are 2 months behind.
• Connection Charge revenues were $468,681, or 156.2% 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 nine months.
• Permit Fees revenues were $158,196, or 91.3% of the budget for the period. The actual was in line with the budgeted figure.
• Interest revenues were 159,651, or 118.3% of the budget for the period. Actual interest received was significantly higher than budgeted for the first nine months due to higher interest rates on Certificate of Deposits and higher cash balance.
• Reimbursements of $1,587,859, or 147.7% of the budget. This is based on actual spending and collection of reimbursement project funds. This is considerably higher than the budgeted amount due to the Pure Water Monterey reimbursement from State Revolving Fund which was received in first half of the fiscal and not reflected in the budget. This reimbursement amount was $698,416.
• Grant revenue of $260,078, or 74.1% of the budget. The actual collection was lower than the budgeted amount due to deferral in grant billing.
• The Other revenue category totaled $6,221 or about 55.3% of the budgeted amount. This category includes 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 $7,808,043 were about 57.7% of the budgeted amount of $13,529,513 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,892,722 were about 95.1% of the budget. This was slightly lower than the anticipated budget due to unfilled positions vacated during the year.
• Expenditures for supplies and services were $921,795, or about 89.7% of the budgeted amount. This was lower than the anticipated budget due to the consulting services and legal expenses coming in lower than the expected budgeted numbers.
• Fixed assets purchase of $30,653 represented around 19.1% of the budgeted amount. This was slightly lower than the anticipated budget due to deferral of fixed asset purchases into the second half of the fiscal year.
• Funds spent for project expenditures were $3,899,125, or approximately 45.0% of the amount budgeted for the period. This is due to most project spending being deferred to next quarter.
• Debt Service included costs of $63,748, or 37.0% 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 category includes potential use of reserves during the fiscal year for which adjustments will be made at the conclusion of the fiscal year.

EXHIBITS

4-A Revenue and Expenditure Table

4-B Revenue Graph

4-C Expenditure Graph

U:\staff\Boardpacket\2020\20200518\ConsentCalendar\04\Item-4.docx