FINANCE AND ADMINISTRATION COMMITTEE
ITEM:		ACTION ITEM
4.	RECEIVE AND FILE SECOND QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2024-2025
Meeting Date:			February 18, 2025	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Nishil Bali	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: The Finance and Administration Committee reviewed this item on February 18, 2025 and recommended ____________.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: The second quarter of Fiscal Year (FY) 2024-2025 concluded on December 31, 2024. Tables comparing budgeted and actual year-to-date revenues and expenditures for the period are included in Exhibit 4-A. Exhibits 4-B and 4-C present the same information in bar graph format. The following comments summarize District staff's observations:

REVENUES

The revenue table compares amounts received through the second quarter of FY 2024-2025 to the amounts budgeted for that same time period. Total revenues collected were $16,974,854, or 79.2% of the year-to-date (YTD) original budgeted amount of $21,429,859. Variances within the individual revenue categories are described below compared to the YTD budget.

• No revenues were received for the Water Supply Charge (WSC). The budget for WSC is being rescinded in the mid-year budget update.
• Property tax revenues were $1,572,150 or 116.5% of the budget for the period. The first installment of this revenue was received in December 2024. The second installment is expected to be received in April 2025.
• User fee revenues were $3,652,523 or about 110.7% of the amount budgeted due to higher water utility fee collections.
• Pure Water Monterey Water Sales revenue was $6,968,781 or 95.3% 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.
• Capacity Charge revenues were $282,702, or 188.5% of the budget for the period. Actual collection was higher than the anticipated budgeted figure as the forecasted figures are based on the estimated number of connections for the permits filed.
• Permit Fees revenues were $101,203, or 102.2% of the budget for the period. Actual collection was slightly higher than budgeted as the forecasted figures are based on the estimated number of customers pulling permits.
• Interest revenues were $307,996, or 157.9% of the budget for the period. Actual interest was higher than budgeted as interest rates continue to remain high.
• Reimbursements were $4,037,744 or 70.4% of the YTD budget. This is based on actual spending and collection of reimbursement project funds tied to the Pure Water Monterey Expansion project, Aquifer Storage and Recovery, and District rebates.
• Grant revenue was $15,807, or 1.2% of the budget. This is due to delays in project sponsor spending related to Integrated Regional Water Management (IRWM) grant-funded projects.
• The Other revenue category totaled $35,948 or about 95.9% of the budgeted amount. This category includes refunds, recording fees, and miscellaneous reimbursements.
• The Reserves category totaled $0 or about 0.00% of the budgeted amount. This category includes potential use of reserves during the fiscal year for which adjustments will be made at the end 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 $11,387,145 were about 53.1% of the original budgeted amount of $21,429,859 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,744,037 were about 107.7% of the budget. This was higher than the anticipated budget due to salary and benefit increases from the adoption of the new Memoranda of Understandings (MOUs) negotiated with the unions after the original budget, as well as the payment of the CalPERS employer portion of the unfunded liability paid upfront for the fiscal year.
• Expenditures for supplies and services were $908,949 or about 92.9% of the budgeted amount. This was lower than the anticipated budget due to lower expenditures for legal services and fee charges.
• Fixed assets purchases of $12,119 represented around 28.5% of the budgeted amount. This was due to a vehicle purchase being deferred this fiscal year.
• Funds spent for project expenditures were $7,722,040, or approximately 45.1% of the amount budgeted for the period. This is lower than budgeted due to lower spending for the PWM project and lower-than-expected purchases of water from Monterey One Water.
• There are no Contingencies/Other expenditures in the first half of the fiscal year. This was due to the contingency budget not being spent during this quarter.
• There are no Reserve expenditures in the first half of the fiscal year. Adjustments to reserves are made at the end of the fiscal year.

EXHIBITS

4-A Revenue and Expenditure Table

4-B Revenue Graph

4-C Expenditure Graph

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