ADMINISTRATIVE COMMITTEE
5.	RECEIVE AND FILE FIRST QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2019-2020
Meeting Date:		November 13, 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 November 13, 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 first quarter of Fiscal Year (FY) 2019-2020 concluded on September 30, 2019. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 5-A. Exhibits 5-B and 5-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 of FY 2019-2020 to the amounts budgeted for that same time-period. Total revenues collected were $807,463, or 17.9% of the budgeted amount of $4,509,838. 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 2019. Actual amount reflects water charge refunded to customers.
• 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 2019.
• User fee revenues were $508,012, or about 40.6% 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. Also, Cal-Am portion of the User Fee revenue is collected in arrears, and Cal-Am has not paid for the months of August & September.
• Connection Charge revenues were $82,990, or 83.0% of the budget for the period. Actual collection was lower than anticipated budgeted figure as the forecasted figures are based on estimated number of customers pulling permits. There were fewer connections received than budgeted for the fiscal year.
• Permit Fees revenues were $56,464, or 97.8% of the budget for the period. Actual collection was lower than anticipated budgeted figure as the forecasted figures are based on estimated number of customers pulling permits. There were fewer permits received than budgeted for the fiscal year.
• Interest revenues were $18,233, or 40.5% of the budget for the period. Actual interest received was lower than budgeted due to LAIF interest income received in the following quarter.
• Reimbursements of $78,280, or 22.2% 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 $50,979, or 43.6% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $14,881 or about 160.9% of the budgeted amount. This category includes reimbursement revenues from legal 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 $2,177,579 were about 48.3% of the budgeted amount of $4,509,838 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $1,206,352 were about 119.0% 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 $308,647, or about 90.1% of the budgeted amount. This was lower than the anticipated budget.
• Fixed assets purchases of $0 represented around 0.0% of the budgeted amount. This was due to fixed asset purchases deferred to next quarter.
• Funds spent for project expenditures were $662,580, or approximately 22.9% 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 $0, or 0.0% 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 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

5-A Revenue and Expenditure Table

5-B Revenue Graph

5-C Expenditure Graph

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