ADMINISTRATIVE COMMITTEE
5.	RECEIVE AND FILE FOURTH QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2016-2017
Meeting Date:		November 6, 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 November 6, 2017 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: The fourth quarter of Fiscal Year (FY) 2016-2017 concluded on June 30, 2017. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 5-A. Exhibits 5-B and 5-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 fourth quarter and conclusion of FY 2016-2017 to the amounts budgeted for that same time-period. Total revenues collected were $10,557,512, or 80.9% of the budgeted amount of $13,042,545. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $3,401,626, or 100.0% of the budget for the period. This was in line with the budgeted figure.
• Mitigation revenue was $2,039,913, or 81.0% of the budget. Mitigation revenue was replaced by the User Fee. This line includes Mitigation revenue billed through April 18, 2017.
• Property tax revenues were $1,820,413, or 113.8% of the budget for the period. This was higher than anticipated due to increase in property values resulting in higher property tax allocation for the District.
• User fee revenues were $1,156,363, or about 1217.2% of the amount budgeted. The User Fee was implemented from April 19, 2017. District did not anticipate the start date in this fiscal year and thus it was not budgeted.
• Connection Charge revenues were $370,255, or 174.2% 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 fiscal year.
• Permit Fees revenues were $243,787, or 105.5% 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 fiscal year.
• Interest revenues were $22,359, or 111.8% of the budget for the period. Actual interest received was slightly higher than budgeted.
• Reimbursements of $1,390,565, or 63.9% 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 fiscal year.
• Grant revenue of 89,276, or 27.0% of the budget. Actual revenue received was lower than budgeted due to grant funded projects being deferred and continued to next fiscal year.
• The Other revenue category totaled $22,955 or about 60.4% of the budgeted amount. This category includes reimbursement revenues from legal and other miscellaneous services. Actual collections were lower than anticipated.
• 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 $9,248,774 were about 70.9% of the budgeted amount of $13,042,545 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $3,370,673 were about 98.2% of the budget. This was slightly below the anticipated budget.
• Expenditures for supplies and services were $1,045,938, or about 91.1% of the budgeted amount. This was slightly below the anticipated budget.
• Fixed assets purchases of $114,821 represented around 94.5% of the budgeted amount. This was slightly below the anticipated budget.
• Funds spent for project expenditures were $4,580,256, or approximately 63.7% 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 $137,086, or 59.6% of the budget for the period. Principal paid on the debt was recorded against the outstanding liability.
• 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

5-A Revenue and Expenditure Table

5-B Revenue Graph

5-C Expenditure Graph

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