ADMINISTRATIVE COMMITTEE
8.	RECEIVE AND FILE FIRST QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2017-2018
Meeting Date:		December 5, 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 December 5, 2017 and recommended ____________.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: The first quarter of Fiscal Year (FY) 2017-2018 came to a conclusion on September 30, 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 first quarter of FY 2017-2018 to the amounts budgeted for that same time period. Total revenues collected were $838,273, or 25.7% of the budgeted amount of $3,260,200. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $0, or 0.0% of the budget for the period. The first installment of this revenue is expected to be received in December 2017.
• Property tax revenues were $0, or 0% of the budget for the period. The first installment of this revenue is expected to be received in December 2017.
• User fee revenues were $541,849, or about 63.3% 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. Also, Cal-Am portion of the User Fee revenue is billed and collected in arrears, and Cal-Am has not paid for the August & September.
• Connection Charge revenues were $123,780, or 198.0% 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. There was more connection charge received than budgeted for the first quarter.
• Permit Fees revenues were $61,537, or 106.6% 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 ($190), or -3.8% of the budget for the period. This is due to first quarter interest revenue for LAIF is not received until October 2017. The negative figure includes accruals reversed from last fiscal year.
• Reimbursements of $107,392, or 23.7% 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 $0, or 0.0% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $3,905 or about 34.3% of the budgeted amount. This is lower than budget as this category includes reimbursement revenues from legal and other miscellaneous services which are based on actual receipts.
• 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 $1,899,517 were about 58.3% of the budgeted amount of $3,260,200 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $1,031,893 were about 114.9% of the budget. This was slightly higher than the anticipated budget due to CalPERS employer portion of the unfunded liability paid upfront for the fiscal year.
• Expenditures for supplies and services were $212,625, or about 62.3% of the budgeted amount. This was slightly below the anticipated budget.
• Fixed assets purchases of $8,483 represented around 3.9% of the budgeted amount as most of the purchases were deferred to next quarter. The largest portion of this line item is the Water Demand Division database project which will start in January 2018.
• Funds spent for project expenditures were $639,653, or approximately 39.7% of the amount budgeted for the period. This is due to most projects spending being deferred to next quarter.
• Debt Service included costs of $0, or 0% of the budget for the period. Debt service is paid semi-annually, in December and June.
• Election Expense were $6,863, or 100% of the budget for the period. This expenditure was related to the moving of the election from odd to even year. This was not budgeted as the expenditure was not anticipated.
• 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

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