ADMINISTRATIVE COMMITTEE
5.	RECEIVE AND FILE FIRST QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2021-2022
Meeting Date:		November 8, 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 November 8, 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 first quarter of Fiscal Year (FY) 2021-2022 concluded on September 30, 2021. 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 2021-2022 to the amounts budgeted for that same time-period. Total revenues collected were $3,015,809, or 40.7% of the budgeted amount of $7,400,925. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $0, or 0.0% of the budget for the period. The first installment of this revenue is expected to be received in December 2021.
• 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 2021.
• User fee revenues were $615,019, or about 49.2% of the amount budgeted. This is lower than the budgeted amount as collections for August & September were received after close of fiscal quarter.
• Pure Water Monterey Water Sales revenue was $2,076,685, or 84.5% 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.
• Connection Charge revenues were $147,689, or 147.7% 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 were more connections received than budgeted for the current quarter.
• Permit Fees revenues were $71,642, or 144.7% 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 were more permits received than budgeted for the current quarter.
• Interest revenues were ($22,372), or -68.8% of the budget for the period. Actual interest includes accrual reversals from prior year. Most of the interest income revenue is realized in Quarter 4 of the fiscal year.
• Reimbursements of $108,207 or 23.7% 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 $0, or 0% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $18,939 or about 505.0% 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 $3,864,358 were about 52.2% of the budgeted amount of $7,400,925 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $1,213,084 were about 119.8% 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 $310,743, or about 74.9% of the budgeted amount. This was lower than the anticipated budget due to legal and consulting services being lower than anticipated for the current quarter.
• Fixed assets purchases of $0 represented around 0.0% of the budgeted amount. This was due to some of the fixed asset purchases deferred to next quarter.
• Funds spent for project expenditures were $2,340,531, or approximately 43.0% of the amount budgeted for the period. This is lower than budgeted due to some of the project spending being deferred to next quarter.
• 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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