ADMINISTRATIVE COMMITTEE
7.	RECEIVE AND FILE SECOND QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2016-2017
Meeting Date:		February 15, 2017	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 15, 2017 and recommended ____________.
CEQA Compliance: No CEQA Required

SUMMARY: The second quarter of Fiscal Year (FY) 2016-2017 came to a conclusion on December 31, 2016. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 7-A. Exhibits 7-B and 7-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 2016-2017 to the amounts budgeted for that same time period. Total revenues collected were $4,347,048, or 69.2% of the budgeted amount of $6,280,325. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,037,436, or 119.8% of the budget for the period. The first installment of this revenue was received in December 2016.
• Mitigation revenue was $818,963, or 65.0% of the budget. Mitigation revenue is billed and collected in arrears.
• Property tax revenues were $988,762, or 123.6% of the budget for the period. The first installment of this revenue was received in December 2016.
• User fee revenues were $25,216, or about 53.1% 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 $137,871, or 129.8% 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 first quarter.
• Permit Fees revenues were $117,157, or 101.4% 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 first quarter.
• Interest revenues were ($595), or -6.0% of the budget for the period. This is due to second quarter interest revenue for LAIF is not received until January 2017. The negative figure includes accruals reversed from last fiscal year.
• Reimbursements of $213,372, or 17.8% 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 ($805), or -0.5% of the budget. This is due to grant funded projects being deferred and continued to next quarter. The negative figure includes accruals reversed from last fiscal year.
• The Other revenue category totaled $9,671 or about 50.9% 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, 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 $3,637,769 were about 57.9% of the budgeted amount of $6,280,325 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $1,702,227 were about 99.2% of the budget. This was slightly below the anticipated budget.
• Expenditures for supplies and services were $527,550, or about 95.2% of the budgeted amount. This was slightly below the anticipated budget.
• Fixed assets purchases of $15,935 represented around 27.6% of the budgeted amount as most of the purchases were deferred to next quarter.
• Funds spent for project expenditures were $1,321,633, or approximately 39.2% of the amount budgeted for the period. This is due to most projects spending being deferred to next quarter.
• Debt Service included costs of $70,424, or 61.2% 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

7-A Revenue and Expenditure Table

7-B Revenue Graph

7-C Expenditure Graph

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