ADMINISTRATIVE COMMITTEE
10.	RECEIVE AND FILE SECOND QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2020-2021
Meeting Date:		February 10, 2021	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 10, 2021 and recommended ____________.
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) 2019-2020 concluded on December 31, 2020. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 10-A. Exhibits 10-B and 10-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 and conclusion of FY 2020-2021 to the amounts budgeted for that same time period. Total revenues collected were $8,541,960, or 70.0% of the budgeted amount of $12,210,900. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,028,469, or 122.9% of the budget for the period. The first installment of this revenue was received in December 2020. The second installment will be received in April 2021.
• Property tax revenues were $1,236,027, or 120.6% of the budget for the period. The first installment of this revenue was received in December 2020. The second installment will be received in April 2021.
• User Fee revenues were $2,778,314, or about 130.7% of the amount budgeted. This is higher than budgeted due to collections being higher than anticipated budgeted amount.
• Connection Charge revenues were $236,357, or 118.2% 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 six months.
• Permit Fees revenues were $90,040, or 90.9% of the budget for the period. The actual was slightly lower than the budgeted figure.
• Interest revenues were ($15,290), or -15.3% 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 FY.
• Pure Water Monterey Water Sales revenue was $1,515,641, or 100.0% 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.
• Reimbursements of $655,461, or 53.3% 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 $7,274, or 0.6% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $9,667 or about 128.9% of the budgeted amount. This category includes reimbursement revenues from legal and 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 $8,267,456 were about 67.7% of the budgeted amount of $12,210,900 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,021,557 were about 100.1% of the budget. This was slightly higher than the anticipated budget as CalPERS unfunded liability for the current fiscal year is paid up front in July.
• Expenditures for supplies and services were $590,608, or about 78.8% 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 $34,270 represented around 31.2% of the budgeted amount. This was due to some of the fixed asset purchases deferred to next quarter.
• Pure Water Monterey Water Purchase was $1,649,053, or 100.0% of the budget for the period. This is water purchased from Monterey One Water and sold to California American Water which is a pass-through to the District.
• Funds spent for project expenditures were $3,909,660, or approximately 47.0% of the amount budgeted for the period. This is due to most projects spending being deferred to next quarter.
• Debt Service included costs of $62,308, or 54.2% 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

10-A Revenue and Expenditure Table

10-B Revenue Graph

10-C Expenditure Graph

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