FINANCE AND ADMINISTRATION COMMITTEE
ITEM:		ACTION ITEM
5.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2022-2023
Meeting Date:			May 8, 2023	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 Finance and Administration Committee reviewed this item on May 8, 2023 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) 2022-2023 concluded on March 31, 2023. 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 current quarter of FY 2022-2023 to the amounts budgeted for that same time-period. Total revenues collected were $21,306,360, or 86.9% of the budgeted amount of $24,521,550. Variances within the individual revenue categories are described below:

• Water Supply Charge revenues were $2,022,764, or 79.3% of the budget for the period. The first installment of this revenue was received in December 2022. The second installment will be received in April 2023.
• Property tax revenues were $1,429,959, or 76.3% of the budget for the period. The first installment of this revenue was received in December 2022. The second installment will be received in April 2023.
• User fee revenues were $3,862,124, or about 93.6% of the amount budgeted. This is slightly lower than the budgeted amount.
• Pure Water Monterey Water Sales revenue was $11,149,051, or 121.8% of the budget for the period. This is water sales revenue for water purchased from Monterey One Water and sold to California American Water and is a pass-through to the District.
• Connection Charge revenues were $280,635, or 74.8% of the budget for the period. Actual collection was lower than anticipated budgeted figure as the forecasted figures are based on estimated number of customers pulling permits. There were less connections received than budgeted for the current quarter.

• Permit Fees revenues were $153,957, or 103.7% 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 were more permits received than budgeted for the current quarter.
• Interest revenues were $115,544, or 192.6% of the budget for the period. Actual interest was higher than budgeted as there has been a rise in interest rates.
• Reimbursements of $1,944,210 or 92.2% of the budget. This is based on actual spending and collection of reimbursement project funds. This is due to projects being deferred and continued to next quarter. Additionally, $1.5 million of reimbursement from M1W related to PWM project is included in this line.
• Grant revenue of $333,785, or 12.8% of the budget. This is due to grant funded projects being deferred and continued to next quarter.
• The Other revenue category totaled $14,331 or about 127.4% of the budgeted amount. This category includes insurance refunds, miscellaneous reimbursements, and other miscellaneous services. Actual collections were higher than anticipated.
• 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 $16,859,412 were about 68.8% of the budgeted amount of $24,521,550 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $3,193,077 were about 94.9% of the budget. This was slightly lower than the anticipated budget.
• Expenditures for supplies and services were $1,148,433, or about 88.0% of the budgeted amount. This was lower than the anticipated budget due to legal and consulting services being lower than anticipated for the current quarter.
• Fixed assets purchases of $325,826 represented around 96.5% of the budgeted amount. This was due to some of the fixed asset purchases deferred to next quarter.
• Funds spent for project expenditures were $12,143,067, or approximately 67.2% of the amount budgeted for the period. This is lower than budgeted due to some of the project spending being deferred to next quarter. This line also includes water purchased from Monterey One Water.
• Debt Service included costs of $49,009, or 9.0% 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 quarter.
• 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

U:\staff\Board_Committees\FAC prev Admin\2023\20230508\05\Item-5.docx