ADMINISTRATIVE COMMITTEE
8.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2016-2017
Meeting Date:		May 8, 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 May 8, 2017 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: The third quarter of Fiscal Year (FY) 2016-2017 concluded on March 31, 2017. 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 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 2016-2017 to the amounts budgeted for that same time-period. Total revenues collected were $5,133,374, or 52.5% of the budgeted amount of $9,781,909. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,037,436, or 79.9% of the budget for the period. The first installment of this revenue was received in December 2016. The second installment will be received in April 2017.
• Mitigation revenue was $1,228,444, or 65.0% of the budget. Mitigation revenue is billed and collected in arrears.
• Property tax revenues were $988,762, or 82.4% of the budget for the period. The first installment of this revenue was received in December 2016. The second installment will be received in April 2017.
• User fee revenues were $34,784, or about 48.8% 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 $215,529, or 135.2% 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 $183,281, or 105.8% 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 permit fees received than budgeted for the first quarter.
• Interest revenues were $1,954, or 13.0% of the budget for the period. This is due to second quarter interest revenue for LAIF is not received until April 2017. Additional interest from investment accounts will not be received until last quarter of 2017.
• Reimbursements of $425,846, or 26.1% 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 $18,143 or about 63.7% 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, 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 $6,531,715 were about 66.8% of the budgeted amount of $9,781,909 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,553,052 were about 99.2% of the budget. This was slightly below the anticipated budget.
• Expenditures for supplies and services were $765,530, or about 88.9% of the budgeted amount. This was slightly below the anticipated budget.
• Fixed assets purchases of $35,364 represented around 38.8% of the budgeted amount as some of the purchases were deferred to next quarter.
• Funds spent for project expenditures were $3,107,345, or approximately 57.7% of the amount budgeted for the period. This is due to most projects spending being deferred to next quarter.
• Debt Service included costs of $70,424, or 40.8% 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

8-A Revenue and Expenditure Table

8-B Revenue Graph

8-C Expenditure Graph

file:///U:\staff\Board_Committees\Admin\2017\20170508\08\Item-8.docx