ITEM:		CONSENT CALENDAR
10.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2017-2018
Meeting Date:			May 21, 2018	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 14, 2018 and recommended approval.
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) 2017-2018 came to a conclusion on March 31, 2018. 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 third quarter and conclusion of FY 2017-2018 to the amounts budgeted for that same time-period. Total revenues collected were $11,121,317, or 87.0% of the budgeted amount of $12,785,850. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,059,657, or 80.8% of the budget for the period. The first installment of this revenue was received in December 2017. The second installment will be received in April 2018.
• Property tax revenues were $1,057,937, or 80.6% of the budget for the period. The first installment of this revenue was received in December 2017. The second installment will be received in April 2018.
• User fee revenues were $2,856,300, or about 93.0% of the amount budgeted.
• Connection Charge revenues were $412,457, or 183.3% 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 nine months.
• Permit Fees revenues were $208,414, or 120.3% 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 permit fees received than budgeted for the nine months.
• Interest revenues were $17,150, or 76.2% of the budget for the period. Actual interest received was slightly lower than budgeted as most of the interest is received in fourth quarter.
• Reimbursements of $4,435,119, or 100.7% of the budget. This is based on actual spending and collection of reimbursement project funds. This line includes reimbursements from the Pure Water Monterey project.
• Grant revenue of 38,043, or 11.3% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $36,240 or about 73.7% 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 $5,884,393 were about 46.0% of the budgeted amount of $12,785,850 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,708,710 were about 100.3% of the budget. This was in line with the anticipated budget.
• Expenditures for supplies and services were $834,095, or about 84.0% of the budgeted amount. This was lower than the anticipated budget due to the professional fees and legal expenses coming in lower than the expected budgeted numbers.
• Fixed assets purchases of $175,654 represented around 27.0% of the budgeted amount as most of the purchases were deferred to next quarter. The largest portion of this line item is the Water Demand Division database project which started in February 2018 and will conclude next fiscal year.
• Funds spent for project expenditures were $2,092,052, or approximately 48.7% of the amount budgeted for the period. This is due to most projects spending being deferred to next quarter.
• Debt Service included costs of $67,019, or 38.9% 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 was due to the adjustments 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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