ITEM:		INFORMATIONAL ITEMS/STAFF REPORTS
31.	RECEIVE AND FILE FIRST QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2015-2016
Meeting Date:			November 16, 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 November 9, 2015 and recommended approval.
CEQA Compliance: N/A

SUMMARY: The first quarter of Fiscal Year (FY) 2015-2016 came to a conclusion on September 30, 2015. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 31-A. Exhibits 31-B and 31-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 and conclusion of FY 2015-2016 to the amounts budgeted for that same time period. Total revenues collected were $285,477, or 8.5% of the budgeted amount of $3,352,875. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were ($1,528), or -0.2% of the budget for the period. The first installment of this revenue is expected to be received in December 2015. Negative balance reflects refunds issued during the current quarter.
• Mitigation revenue was $0, or 0% of the budget. Mitigation revenue is billed and collected in arrears. Cal-Am has not paid for the first quarter.
• 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 2015.
• User fee revenues were $12,431, or about 66.3% 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 $44,578, or 101.9% of the budget for the period. Actual collection was slightly higher than anticipated budgeted figure as the forecasted figures are based on estimated number of customers pulling permits.
• Permit Fees revenues were $72,607, or 125.7% of the budget for the period. Actual collection was slightly higher than anticipated budgeted figure as the forecasted figures are based on estimated number of customers pulling permits.
• Interest revenues were $2,151, or 57.4% of the budget for the period. This is due to first quarter interest revenue for LAIF is not received until October 2015.
• Reimbursements of $132,158, or 26.7% of the budget. This is based on actual spending and collection of reimbursement project funds. This is considerably less than the budgeted amount as many projects were deferred and continued to next quarter.
• Grant revenue of $10,471, or 15.2% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $12,609 or about 126.1% of the budgeted amount. This is higher than budget as 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, 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 $1,941,233 were about 57.9% of the budgeted amount of $3,352,875 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $956,980 were about 112.4% of the budget. This was slightly higher than the anticipated budget due to CalPERS employer portion of the unfunded liability was paid upfront for the year.
• Expenditures for supplies and services were $253,901, or about 94.6% of the budgeted amount. This was slightly below the anticipated budget.
• Fixed assets purchases of $4,853 represented around 13.4% of the budgeted amount as most of the purchases were deferred to next quarter.
• Funds spent for project expenditures were $725,499, or approximately 36.7% of the amount budgeted for the period. This is due to most project spending being deferred to next quarter.
• Debt Service included costs of $0, or 0% of the budget for the period. Debt service is paid semi-annually, in December and June.
• Election expenditures were $0, or 0% of the budgeted amount. This is due to election being held in second 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 fiscal year.
• 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

31-A Revenue and Expenditure Table

31-B Revenue Graph

31-C Expenditure Graph

U:\staff\Boardpacket\2015\20151116\InfoItems\31\Item31.docx