ITEM:		CONSENT CALENDAR
8.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2014-2015
Meeting Date:			May 18, 2015	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 11, 2015 and recommended approval.
CEQA Compliance: N/A

SUMMARY: The third quarter of Fiscal Year (FY) 2014-2015 came to a conclusion on March 31, 2015. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 8-A. Exhibits 8-B and 8-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 2014-2015 to the amounts budgeted for that same time period. Total revenues collected were $6,097,259, or 67.9% of the budgeted amount of $8,982,851. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,013,997, or 79.0% of the budget for the period. The first installment of this revenue was received in December 2014. The second installment is expected to be collected in April 2015.
• Mitigation revenue was $1,141,068, or 71.5% of the budget. Mitigation revenue is billed and collected in arrears.
• Property tax revenues were $887,592, or 78.9% of the budget for the period. The first installment of this revenue was received in December 2014. The second installment is expected to be collected in April 2015.
• User fee revenues were $38,165, or about 67.8% 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.
• Connection Charge revenues were $90,978, or 69.3% of the budget for the period. Budget figures are forecasted based on estimated number of customers pulling permits.
• Permit Fees revenues were $149,697, or 86.4% of the budget for the period. Budget figures are forecasted based on estimated number of customers pulling permits.
• Interest revenues were $13,656, or 121.4% of the budget for the period. This is due to investments placed with Wells Fargo Securities yielding a higher interest rate than budgeted.
• Project reimbursements of $1,572,443, or 92.8% of the budget. This is based on actual spending and collection of reimbursement project funds.
• Grant revenue of $169,214, or 49.0% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $20,449 or about 71.8% of the budgeted amount. This is below budget as this category includes reimbursement revenues from legal and other services.
• The Reserves category totaled $0 or about 0.00% of the budgeted amount. This category includes potential use of reserves, water supply carry forward balance and the line of credit during the fiscal year for which adjustments are 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 $6,410,578 were about 71.4% of the budgeted amount of $8,982,851 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,315,992 were about 96.4% of the budget. This was slightly below the anticipated budget.
• Expenditures for supplies and services were $693,726, or about 90.8% of the budgeted amount. This was slightly below the anticipated budget.
• Fixed assets purchases of $43,067 represented around 28.9% of the budgeted amount as some of the purchases were deferred to next quarter.
• Funds spent for project expenditures were $3,280,249, or approximately 62.8% of the amount budgeted for the period. This is due to some project spending being deferred to next quarter.
• Debt Service included costs of $77,544, or 45.0% of the budget for the period. The second installment on the loan will be due in June of this fiscal year.
• Election expenditures were $0, or 0% of the budgeted amount. This was due to the elections expenses paid in last quarter of the fiscal year.
• 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

8-A Revenue and Expenditure Table

8-B Revenue Graph

8-C Expenditure Graph

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