ITEM:		CONSENT CALENDAR
3.	RECEIVE AND FILE SECOND QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2021-2022
Meeting Date:			February 24, 2022	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 16, 2022 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 second quarter of Fiscal Year (FY) 2021-2022 concluded on December 31, 2021. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 3-A. Exhibits 3-B and 3-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 second quarter of FY 2021-2022 to the amounts budgeted for that same time-period. Total revenues collected were $11,604,411, or 78.4% of the budgeted amount of $14,801,850. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,031,182, or 119.5% of the budget for the period. The first installment of this revenue was received in December 2021. The second installment will be received in April 2022.
• Property tax revenues were $1,297,364, or 117.9% of the budget for the period. The first installment of this revenue was received in December 2021. The second installment will be received in April 2022.
• User fee revenues were $2,268,622, or about 90.7% of the amount budgeted. This is slightly lower than the budgeted amount as collections for December was received after close of fiscal quarter.
• Pure Water Monterey Water Sales revenue was $4,605,096, or 93.7% of the budget for the period. This is water sales revenue for water purchased from Monterey One Water and sold to California American Water and is a pass-through to the District.
• Capacity Fee revenues were $313,234, or 156.6% 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 were more connections received than budgeted for the current quarter.
• Permit Fees revenues were $128,002, or 129.3% 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 were more permits received than budgeted for the current quarter.
• Interest revenues were $116, or 0.2% of the budget for the period. Actual interest includes accrual reversals from prior year. Most of the interest income revenue is realized in fourth quarter of the fiscal year.
• Reimbursements of $677,703 or 74.1% of the budget. This is based on actual spending and collection of reimbursement project funds. This is due to projects being deferred and continued to next quarter.
• Grant revenue of $263,972, or 22.6% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $19,120 or about 254.9% of the budgeted amount. This category includes insurance refunds, miscellaneous reimbursements, and other miscellaneous services. Actual collections were higher than anticipated.
• 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 $9,177,991 were about 62.0% of the budgeted amount of $14,801,850 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,149,783 were about 106.1% 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 $724,584, or about 87.3% of the budgeted amount. This was lower than the anticipated budget due to legal and consulting services being lower than anticipated for the current quarter.
• Fixed assets purchases of $35,278 represented around 23.6% of the budgeted amount. This was due to some of the fixed asset purchases deferred to next quarter.
• Funds spent for project expenditures were $6,216,038, or approximately 57.1% of the amount budgeted for the period. This is lower than budgeted due to some of the project spending being deferred to next quarter. This line also includes water purchased from Monterey One Water.
• Debt Service included costs of $52,308, or 45.5% 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 quarter.
• 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

3-A Revenue and Expenditure Table

3-B Revenue Graph

3-C Expenditure Graph

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