ADMINISTRATIVE COMMITTEE
11.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2018-2019
Meeting Date:		May 13, 2019	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 13, 2019 and recommended ____________.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: The third quarter of Fiscal Year (FY) 2018-2019 came to a conclusion on March 31, 2019. Table comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibit 11-A. Exhibits 11-B and 11-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 current quarter and conclusion of FY 2018-2019 to the amounts budgeted for that same time period. Total revenues collected were $8,133,869, or 64.5% of the budgeted amount of $12,602,250. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $1,930,663, or 75.7% of the budget for the period. The first installment of this revenue was received in December 2018. The second installment will be received in April 2019.
• Property tax revenues were $1,062,370, or 72.6% of the budget for the period. The first installment of this revenue was received in December 2018. The second installment will be received in April 2019.
• User fee revenues were $3,117,128, or about 92.4% of the amount budgeted. This is slightly lower than budgeted and the actual collections are 2 months behind.
• Connection Charge revenues were $496,776, or 147.2% 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 9 months.
• Permit Fees revenues were $204,484, or 118.0% 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 permit fees received than budgeted for the 9 months.
• Interest revenues were $150,583, or 111.5% of the budget for the period. Actual interest received was slightly lower than budgeted for the 9 months. Additional interest income would be received in the fourth quarter.
• Reimbursements of $470,348, or 35.8% 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 $693,990, or 43.1% of the budget. This is considerably less than the budgeted amount as some of the grant revenues are expected to be received next quarter.
• The Other revenue category totaled $7,527 or about 19.7% 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 and the water supply carry forward balance during the fiscal year for which adjustments will be 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 $7,862,522 were about 62.4% of the budgeted amount of $12,602,250 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,811,203 were about 96.7% of the budget. This was slightly lower than the anticipated budget.
• Expenditures for supplies and services were $929,589, or about 92.5% of the budgeted amount. This was lower than the anticipated budget due to the consulting services and legal expenses coming in lower than the expected budgeted numbers.
• Fixed assets purchases of $293,860 represented around 71.4% of the budgeted amount. This was slightly lower than the anticipated budget due to purchases deferred to next quarter.
• Funds spent for project expenditures were $3,762,470, or approximately 58.3% of the amount budgeted for the period. This is due to most projects spending being deferred to next quarter.
• Debt Service included costs of $65,400, or 37.9% of the budget for the period. Debt service is paid semi-annually, in December and June.
• Election expenditures $0, or 0% of the budgeted amount. These costs were billed by the election department in April 2019.
• 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

11-A Revenue and Expenditure Table

11-B Revenue Graph

11-C Expenditure Graph

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