3.	RECEIVE AND FILE FIRST QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2024-2025
Meeting Date:		November 18, 2024	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 November 12, 2024 and recommended approval.
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) 2024-2025 concluded on September 30, 2024. A table comparing budgeted and actual year-to-date revenues and expenditures for the period is included as Exhibit 3-A. Exhibits 3-B and 3-C present the same information in bar graph format. The following comments summarize the observations of District staff:

REVENUES

The revenue table compares amounts received through the first quarter of FY 2024-2025 to the amounts budgeted for that same time-period. Total revenues collected were $4,950,743, or 46.2% of the year-to-date (YTD) budgeted amount of $10,714,930. Variances within the individual revenue categories are described below:

• 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 2024.
• User fee revenues were $1,504,325, or about 91.2% of the amount budgeted for YTD. This is lower than the budgeted amount as collections for September were received after close of fiscal quarter.
• Pure Water Monterey Water Sales revenue was $3,039,895, or 83.2% 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 $150,777, or 201% of the budget for the period. Actual collection was higher than the anticipated budget as the forecasted figures are based on the estimated number of customers pulling permits.
• Permit Fee revenues were $49,278, or 99.6% of the budget for the period.
• Interest revenues were $74,942 or 76.9% of the budget for the period. This excludes the first quarter interest payment from the Local Agency Investment Pool which is received in the second quarter.
• Reimbursements were $114,028, or 4.0% of the budget. This is based on actual spending and collection of reimbursement project funds, mostly tied to grants for Pure Water Expansion.
• Grant revenue for the Integrated Resource Water Management grants was $0. Grant payments received in the first quarter belonged to FY23-24 and were posted to prior fiscal year.
• The Other revenue category totaled $17,497, or about 93.3% of the YTD budgeted amount. This category includes reimbursement revenues from legal and other miscellaneous services and recording fees.
• No Reserves were booked in the first quarter. This category includes potential use of reserves for the entire 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 $4,266,162 were about 39.8% of the budgeted amount of $10,714,930 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $1,551,947 were about 121.8% 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 $421,949 or about 86.2% 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 asset related purchases of $12,119, represented around 57% of the YTD budgeted amount. This was due to some of the fixed asset purchases being deferred to next quarter.
• Funds spent for project expenditures were $2,280,146, or approximately 26.6% of the amount budgeted for the period. This is lower than budgeted due to some of the project spending being deferred to next quarter.
• Contingencies/Other expenditures were 0% of the budgeted amount as no contingency budget spent during this quarter.
• Reserve expenditures were 0% of the budgeted amount. Adjustments to reserves are made at the end of the fiscal year.

EXHIBITS

3-A Revenue and Expenditure Table

3-B Revenue Graph

3-C Expenditure Graph

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