ITEM:		CONSENT CALENDAR
10.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2024-2025
Meeting Date:			May 19, 2025	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Nishil Bali	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: The Finance and Administration Committee reviewed this item on May 12, 2025, 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) 2024-2025 concluded on March 31, 2025. Tables comparing budgeted and actual year-to-date revenues and expenditures for the period are included in Exhibit 10-A. Exhibits 10-B and 10-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 third quarter of FY 2024-2025 to the amounts budgeted for that same time period. Total revenues collected were $26,703,273, or 79.5% of the year-to-date (YTD) budgeted amount of $33,607,626. Variances within the individual revenue categories are described below compared to the YTD budget.

• No revenues were received for the Water Supply Charge (WSC). The budget for WSC was rescinded during the mid-year budget.
• Property tax revenues were $1,572,150 or 72.3% of the budget for the period. The first installment of this revenue was received in December 2024. The second installment was received in April 2025 and is not included in this third quarter financial report.
• User fee revenues were $5,262,595 or about 94.8% of the amount budgeted. Water utility fee collections were lower in the first half of the year when the rate case was pending approval.
• Pure Water Monterey Water Sales revenue was $11,575,762 or 105.6% of the budget for the period. This is water sales revenue for water purchased from Monterey One Water and sold to California American Water.
• Capacity Charge revenues were $386,875, or 129% of the budget for the period. Actual collection was higher than YTD budget due to higher revenues from connections for permits filed.
• Permit Fees revenues were $150,092, or 101.1% of the budget for the period. Actual collection was slightly higher than budgeted, as the forecasted figures are based on the estimated number of customers pulling permits.
• Interest revenues were $544,687 or 103.7% of the budget for the period. Actual interest was higher than budgeted, as interest rates have continued to remain high.
• Reimbursements were $875,503 or 86.0% of the YTD budget. This is based on actual spending and collection of reimbursement project funds tied to the Aquifer Storage and Recovery, Watermaster, and District rebates. (Note: Expenses for the Pure Water Monterey (PWM) Expansion project, formerly included under reimbursements in last quarter's financial report, have been moved to the Grants category below to be consistent with the categorization shown in the Statement of Revenues and Expenditures that is part of the Treasurer’s report).
• Grant revenue was $6,280,958, or 66.3% of the YTD budget. This is due to lower-than-expected reimbursements due to delays in project sponsor spending for the Integrated Regional Water Management projects and lower reimbursements based on actual spending for the PWM project.
• The Other revenue category totaled $54,651 or about 85.7% of the budgeted amount. This category includes refunds, recording fees, and miscellaneous reimbursements.
• The Reserves category totaled $0 or about 0.00% of the budgeted amount. This category includes potential use of Water Supply Charge reimbursement and other reserves during the fiscal year for which entries will be made at the end of the fiscal year.

EXPENDITURES

Expenditure activity as depicted on the expenditure table, is similar to patterns seen in past fiscal years for operating expenditures. Total expenditures of $21,025,801 were about 62.6% of the budgeted amount of $33,607,626 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $3,827,604 were about 91.6% of the amended YTD budget. These include salary and benefit changes from adoption of the new Memoranda of Understanding for the unions updated in the mid-year budget. The slight reduction is due to lower spending in the staff development budget and potential savings from a delay in the start date for the AGM position.
• Expenditures for supplies and services were $1,444,280 or about 74.6% of the budgeted amount. This is lower than the anticipated budget, mostly due to lower expenditures for legal services and Measure J acquisition-related charges.
• Fixed assets purchases of $12,119 represented around 23.1% of the budgeted amount. Lower spending is due to pending payments for a new transformer, deferred to quarter 4 of the fiscal year.
• Funds spent for project expenditures were $15,741,739, or approximately 64.8% of the YTD budget. This is due to lower-than-expected construction spending for the PWM project till the third quarter.
• No Contingencies/Other expenditures were spent until the third quarter of this fiscal year.
• There were no Reserve expenditures in the first half of the fiscal year. Adjustments to District reserves will be made at the end of the fiscal year.

RECOMMENDATION: The Finance and Administration Committee recommends that the Board receive the Third Quarter Fiscal Year 2024-2025 Investment Report.

EXHIBITS

10-A Revenue and Expenditure Table

10-B Revenue Graph

10-C Expenditure Graph

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