ADMINISTRATIVE COMMITTEE
ITEM:		ACTION ITEM
3.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2020-2021
Meeting Date:			May 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 May 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 third quarter of Fiscal Year (FY) 2020-2021 concluded on March 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 third quarter and conclusion of FY 2020-2021 to the amounts budgeted for that same time period. Total revenues collected were $12,571,790, or 68.6% of the budgeted amount of $18,316,350. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,028,469, or 82.0% 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 80.4% 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 $4,012,701, or about 125.9% of the amount budgeted. This is higher than budgeted due to collections being higher than anticipated budgeted amount.
• Connection Charge revenues were $329,358, or 109.8% 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 nine months.
• Permit Fees revenues were $140,375, or 94.5% of the budget for the period. The actual was slightly lower than the budgeted figure.
• Interest revenues were $20,578, or 13.7% 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 $3,657,587, 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 $1,054,483, or 57.2% 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 $82,253, or 4.4% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $9,959 or about 88.5% of the budgeted amount. This category includes reimbursement revenues from 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 $12,133,413 were about 66.2% of the budgeted amount of $18,316,350 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,822,650 were about 93.2% of the budget. This was slightly lower than the anticipated budget for the current fiscal year due to vacant positions filled later during the year.
• Expenditures for supplies and services were $909,095, or about 80.8% 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 20.8% of the budgeted amount. This was due to some of the fixed asset purchases deferred to next quarter.
• Pure Water Monterey Water Purchase was $3,790,999, 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 $4,514,168, or approximately 36.2% of the amount budgeted for the period. This is due to most projects spending being deferred to next quarter.
• Debt Service included costs of $62,231, or 36.1% of the budget for the period. Debt service is paid semi-annually, in December and June.
• Election Expenses $0, or 0% of the budgeted amount. This was due to the election bill not received through March 2021.
• 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

3-A Revenue and Expenditure Table

3-B Revenue Graph

3-C Expenditure Graph

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