Title
Consider receiving the Monterey County Water Resources Agency FY 2025-26 Financial Status Report through June 30, 2026. (Staff: Nan Kim)
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Finance & Administration Committee:
Consider receiving the Monterey County Water Resources Agency FY 2025-26 Financial Status Report through June 30, 2026 (Period 14).
SUMMARY/DISCUSSION:
The Monterey County Water Resources Agency (Agency) FY 2025-26 (FY26) Budget was adopted with totals of $43.21 million in expenditures and $38.43 million in revenue. In September 2025, the Budget was amended to increase appropriations by $400,000 and increase revenue by $1,001,606 for Groundwater Monitoring Program (GMP) activities, resulting in an amended FY26 Budget of $43.61 million in expenditures and $39.44 million in revenue.
Actual revenue received between July 1, 2025, and June 30, 2026, totaled $36.95 million, or 93.7% of the FY26 amended revenue budget. Total revenue includes $24.1 million in Ad Valorem taxes and assessments, $2.8 million in water delivery & service fees, $3.6 million of grant revenue and $0.8 million in GMP revenue paid by the Salinas Valley Basin Sustainability Agency. It also includes a $1.0 million settlement paid by Monterey One Water.
Actual expenditures between July 1, 2025, and June 30, 2026, totaled $35.12 million, or 80.5% of the FY26 amended expenditure budget. Total expenditures include $7.68 million in salaries and benefits, $12.21 million in consultant and professional services across all categories, $4.17 million for debt payments, $1.84 million in insurance costs, $0.42 million in county-provided services, $0.92 million in other services and supplies, $0.38 million in facility maintenance and repair, and $0.78 million for equipment and vehicles. Fund transfers and debt transfers totaled $0.70 million and $3.23 million, respectively.
The FY26 ending available fund balance totaled $24.99 million compared with the amended budget estimate of $18.99 million. The FY26 beginning fund balance was $23.16 million. Total revenues of $36.95 million and total expenditures of $35.12 million resulted in a net increase of $1.83 million to the available fund balance by June 30, 2026. The final fund balance reflects the combined effect of revenue received and expenditures incurred across all Agency funds.
Summary of Agency’s consolidated fund balance estimate for FY26 is as follows:
Amended Budget Year-To-Date Amount
FY26 Beg. Fund Balance $23,155,538 $23,155,538
FY26 Revenues 39,437,279 36,952,438
FY26 Expenditures (43,605,541) (35,116,236)
FY26 Fund Balance (use) ( 4,167,868) 1,836,202
FY26 Est. Available Fund Balance $18,987,277 $24,991,741
OTHER AGENCY INVOLVEMENT:
None
FINANCING:
There is no financial impact to receive this report.
The Agency ended FY26 in a strong financial position, with revenues closely aligned to budget, expenditures below plan, and a significantly higher ending fund balance than anticipated. Total revenues reached 93.7% of the amended budget, while expenditure came in at 80.5% of budget.
FY26 ending available Fund Balance is $24.99M, compared to the amended budget projection of $18.99M, which is a $6M positive variance, driven largely by underspending and stable revenue inflows.
Prepared by: Nan Kyung Kim, Finance Manager III, (831) 755-4861
Approved by: _________________________________________________
Ara Azhderian, General Manager, (831) 755-4860
Attachments:
1. FY26 Financial Status Report through Period 14, June 30, 2026