ITEM:		ADMINISTRATIVE COMMITTEE
8.	RECEIVE AND FILE SECOND QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2015-2016
Meeting Date:			February 10, 2016	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 February 10, 2016 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: The second quarter of Fiscal Year (FY) 2015-2016 came to a conclusion on December 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 present the same information in a bar graph format. The following comments summarize District staff's observations:

REVENUES

The revenues graph compares amounts received through the second quarter and conclusion of FY 2015-2016 to the amounts budgeted for that same time period. Total revenues collected were $4,061,842, or 60.6% of the budgeted amount of $6,705,750. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $1,985,810, or 116.8% of the budget for the period. The first installment of this revenue was received in December 2015.
• Mitigation revenue was $394,537, or 32.7% of the budget. Mitigation revenue is billed and collected in arrears. Cal-Am has been behind in remitting the payment.
• Property tax revenues were $942,259, or 120.0% of the budget for the period. The first installment of this revenue was received in December 2015.
• User fee revenues were $24,340, or about 64.9% 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 $121,028, or 138.3% of the budget for the period. Budget figures are forecasted based on estimated number of customers pulling permits.
• Permit Fees revenues were $108,124, or 93.6% of the budget for the period. Budget figures are forecasted based on estimated number of customers pulling permits.
• Interest revenues were $8,585, or 114.5% of the budget for the period. This is due to interest rates on investment CD’s higher than budgeted estimates.
• Project reimbursements of $313,521, or 31.7% of the budget. This is based on actual spending and collection of reimbursement project funds.
• Grant revenue of $148,788, or 108.2% of the budget. This is due to grant funded projects from previous quarter completed and billed this quarter.
• The “Other” revenue category totaled $14,850 or about 74.3% of the budgeted amount. This line 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 for which allocations 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 $4,068,924 were about 60.7% of the budgeted amount of $6,705,750 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $1,752,229 were about 102.9% 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 fiscal year.
• Expenditures for supplies and services were $607,249, or about 113.1% of the budgeted amount. This was slightly higher than anticipated budget due to increase in legal services.
• Fixed assets purchases of $29,641 represented around 41.0% of the budgeted amount as some of the purchases were deferred to next quarter.
• Funds spent for project expenditures were $1,609,735, or approximately 40.8% of the amount budgeted for the period. This is due to project spending being deferred to next quarter.
• Debt Service included costs of $70,070, or 60.9% of the budget for the period. Additional debt service costs will be paid in fourth quarter of the fiscal year.
• Contingencies/Other expenditures $0, or about 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 allocations being 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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