ADMINISTRATIVE COMMITTEE
6.	RECEIVE AND FILE FOURTH QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2015-2016
Meeting Date:		September 12, 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 September 12, 2016 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: The fourth quarter of Fiscal Year (FY) 2015-2016 came to a conclusion on June 30, 2016. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 6-A. Exhibits 6-B and 6-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 2015-2016 to the amounts budgeted for that same time period. Total revenues collected were $9,873,394, or 70.9% of the budgeted amount of $13,930,850. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $3,391,535, or 99.8% of the budget for the period. Actual collection was slightly lower than the budgeted figure.
• Mitigation revenue was $2,412,553, or 100.0% of the budget. Actual collection was in line with the anticipated budgeted figure.
• Property tax revenues were $1,746,910, or 111.3% of the budget for the period. Actual collection was higher than the anticipated budgeted revenue due to increase in home values.
• User fee revenues were $79,019, or about 105.4% of the amount budgeted. Actual collection came in slightly higher than the anticipated budgeted figure.
• Connection Charge revenues were $502,298, or 287.0% 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. The increase in fees was mainly related to projects from Malpaso and Pebble Beach area.
• Permit Fees revenues were $224,624, or 97.2% of the budget for the period. Actual collection was slightly lower than anticipated budgeted figure as the forecasted figures are based on estimated number of customers pulling permits.
• Interest revenues were $29,093, or 194.0% of the budget for the period. This is due to investments placed with Wells Fargo Securities yielding a higher interest rate.
• Reimbursements of $1,259,885, or 91.8% of the budget. This is based on actual spending and collection of reimbursement project funds.
• Grant revenue of $197,519, or 71.8% of the budget. This is based on actual spending and collection of grant funded projects.
• The Other revenue category totaled $29,958 or about 74.9% 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 $11,333,856 were about 81.4% of the budgeted amount of $13,930,850 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $3,299,522 were about 95.8% of the budget. This was slightly lower than the anticipated budget due to new hire position remaining vacant for the fiscal year.
• Expenditures for supplies and services were $1,192,521, or about 111.0% of the budgeted amount. This was slightly higher than the anticipated budget due to increase in legal costs.
• Fixed assets purchases of $130,822 represented around 75.1% of the budgeted amount as some of the purchases were deferred to next fiscal year.
• Funds spent for project expenditures were $6,527,758, or approximately 77.8% of the amount budgeted for the period. This is due to some project spending being deferred to next fiscal year.
• Debt Service included costs of $138,627, or 60.3% of the budget for the period. Principal paid on the debt was recorded against the outstanding liability.
• Election expenditures were $44,606, or 74.3% of the budgeted amount. This was slightly lower than the anticipated budget due to actual costs being higher than estimated figure.
• 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

6-A Revenue and Expenditure Table

6-B Revenue Graph

6-C Expenditure Graph

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