FINANCE
AND ADMINISTRATION COMMITTEE
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ITEM:
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ACTION
ITEM
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4.
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RECEIVE AND FILE SECOND QUARTER
FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2023-2024
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Meeting
Date:
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February 5, 2024
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Budgeted:
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N/A
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From:
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David J.
Stoldt,
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Program/
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N/A
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General Manager
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Line Item No.:
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Prepared
By:
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Nishil
Bali
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Cost
Estimate:
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N/A
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General Counsel Review: N/A
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Committee Recommendation: The Finance and Administration Committee
reviewed this item on February 5, 2024 and
recommended ____________.
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CEQA Compliance: This action does not constitute a project
as defined by the California Environmental Quality Act Guidelines Section
15378.
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SUMMARY: The second quarter of Fiscal Year (FY) 2023-2024
concluded on December 31, 2023. Tables
comparing budgeted and actual year-to-date revenues and expenditures for the
period are included as 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 2023-2024 to the
amounts budgeted for that same time period. Total revenues collected were $11,083,506, or
45.8% of the year-to-date (YTD) budgeted amount of $24,219,125. Variances within the individual revenue
categories are described below compared to the YTD budget.
- Potential revenues for the Water Supply Charge are $1,859,306
for the period. These have been
placed in a reserve account pending the results of a retrial lawsuit by
the District concerning these revenues.
- Property tax revenues were $1,503,617, or 115.7% of
the budget for the period. The
first installment of this revenue was received in December 2023. The
second installment will be received in April 2024.
- User fee revenues were $3,085,241, or about 102.8% of
the amount budgeted.
- Pure Water Monterey Water Sales revenue was $5,432,289
or 81.8% 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 $138,059, or 55.2% of
the budget for the period. Actual
collection was lower than the anticipated budgeted figure as the
forecasted figures are based on the estimated
number of connections for the permits filed. There were fewer connections for permits
filed than budgeted for the current quarter.
- Permit Fees revenues were $114,557, or 115.7% 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 customers pulling permits.
There were more permits received than budgeted for the current
quarter.
- Interest revenues were $133,404, or 177.9% of the
budget for the period. Actual
interest was higher than budgeted as there has been a rise in interest
rates.
- Reimbursements were $486,808 or 75.3% of the YTD budget. This is based on actual spending and
collection of reimbursement project funds. This is due to projects being
deferred and continued to subsequent quarters.
- Grant revenue was $182,652, or 1.9% of the
budget. This is due to grant-funded
projects being deferred and continued to subsequent quarters.
- The Other revenue category totaled $6,879 or about 91.7%
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 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 $9,349,532 were about 38.6% of the budgeted amount
of $24,219,125 for the period. Variances
within the individual expenditure categories are described below:
- Personnel costs of $2,370,050 were about 105.7% of
the budget. This was slightly higher than the anticipated budget due to payment
of the CalPERS employer portion of the unfunded liability paid upfront for
the fiscal year.
- Expenditures for supplies and services were $720,221
or about 78.7% 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 $36,827
represented around 32.0% of the budgeted amount. This was due to some of
the fixed asset purchases being deferred to the next quarter.
- Funds spent for project expenditures were $6,222,434,
or approximately 34.0% of the amount budgeted for the period. This is lower than budgeted due to some
of the project spending being deferred. This line also includes water
purchased 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. Reserve adjustments
are made at the conclusion of the fiscal year.
EXHIBITS
4-A Revenue
and Expenditure Table
4-B Revenue
Graph
4-C Expenditure Graph
U:\staff\Board_Committees\FAC prev Admin\2024\20240205\Action Items\04\Item-4.docx