ADMINISTRATIVE COMMITTEE
7.	RECEIVE AND FILE FOURTH QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2018-2019
Meeting Date:		October 14, 2019	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 October 14, 2019 and recommended ____________.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: The fourth quarter of Fiscal Year (FY) 2018-2019 concluded on June 30, 2019. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 7-A. Exhibits 7-B and 7-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 and conclusion of FY 2018-2019 to the amounts budgeted for that same time-period. Total revenues collected were $14,296,787, or 85.1% of the budgeted amount of $16,803,000. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $3,401,940, or 100.1% of the budget for the period. This was in line with the expected budgeted figure.
• Property tax revenues were $2,054,056, or 105.3% of the budget for the period. This was higher than anticipated due to increase in property values resulting in higher property tax allocation for the District.
• User fee revenues were $4,862,354, or about 108.1% of the amount budgeted. The User Fee was implemented from April 19, 2017. This was the second full year of User Fee collections, and thus the budgeted figures are not in line with the actual collections since the District did not have historical figures on collections.
• Connection Charge revenues were $591,241, or 131.4% 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 fiscal year.
• Permit Fees revenues were $251,850, or 109.0% 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 fiscal year.
• Interest revenues were $292,581, or 162.5% of the budget for the period. Actual interest received was higher than budgeted due to increase in fund balance and investment strategies.
• Reimbursements of $1,153,911, or 65.9% of the budget. This is based on actual spending and collection of reimbursement project funds. The actual collections were lower tha the expected budgeted figure.
• Grant revenue of 1,675,836, or 78.0% of the budget. This was slightly lower due to grant reimbursement projects being deferred and continued to next fiscal year.
• The Other revenue category totaled $13,018 or about 25.5% of the budgeted amount. This category includes reimbursement revenues from legal and other miscellaneous services. Actual collections were lower 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 were not made due to actual revenues coming in higher than the expenditures.

EXPENDITURES

Expenditure activity as depicted on the expenditure table is similar to patterns seen in past fiscal years. Total expenditures of $11,208,122 were about 66.7% of the budgeted amount of $16,803,000 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $3,789,751 were about 97.8% of the budget. This was in line with the anticipated budget.
• Expenditures for supplies and services were $1,205,997, or about 90.0% of the budgeted amount. This was lower than the anticipated budget primarily due to the professional fees and legal expenses coming in lower than the expected budgeted numbers.
• Fixed assets purchases of $425,271 represented around 77.5% of the budgeted amount as some of the purchases were deferred to next quarter.
• Funds spent for project expenditures were $5,437,138, or approximately 63.1% of the amount budgeted for the period. This is due to most projects spending being deferred to next fiscal year.
• Debt Service included costs of $128,961, or 56.1% of the budget for the period. Debt service is paid semi-annually, in December and June. Principal paid on the debt was recorded against the outstanding liability.
• 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

7-A Revenue and Expenditure Table

7-B Revenue Graph

7-C Expenditure Graph

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