Title
Receive and accept the Monterey County Water Resources Agency (MCWRA) 2nd Quarterly Financial Status report through December 2014.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
Receive and accept the Monterey County Water Resources Agency (MCWRA) 2nd Quarterly Financial Status report through December 2014.
SUMMARY/DISCUSSION:
Revenues for most Agency funds are anticipated to meet budget estimates. The Nacimiento Hydro-electric Power Plant has exceeded budgeted estimates by 152% due to the receipt of delayed insurance reimbursements of which $600,000 will be paid back to Agency Fund 303 - Rate Stabilization Reserve. In addition, the Agency anticipates deeper decreases in Hydro-electric Power revenue due to continued drought conditions that keep it from operating. In addition, anticipated business interruption insurance in the amount of $400,000 has not been received to date. The Salinas River Diversion Facility O&M Fund 134 has exceeded budget by 130% due to the receipt of unexpected prior year revenues in the amount of $866,158 which was offset by $335,774 of FY 2013-14 O&M costs to the Monterey Regional Pollution Control Agency. In addition, Fund 119 Zone 6 Castroville Seawater Intrusion Project Transfer Fund exceeded budget by 777% of which $1,900,000 will be transferred to pay the projects debt service payments in Fund 303.
A budget amendment in September authorized the Agency to adjust expenditures in Funds and Programs due to timing differences between FY 2013-14 and FY 2014-15. The impacts of the drought has caused a need to appropriate additional fund balance of $192,074 for increased usage and repairs to the Santa Rita pump from Fund 122 - The Reclamation Ditch, the Espinosa Booster Pump in Fund 131 - CSIP O&M, $180,000 in Fund 134 - The Salinas River Diversion Facility for filter screens. In addition, $120,000 in Fund 130, Nacimiento Hydro-electric Power Plant, is needed for Power Purchase Agreement management assistance and electrical/control system engineering assistance. Overall, this budget amendment reduces the ending fund balance in all funds and reduced the ending FY 2014-15 Fund 111 - Administration to zero. On a consolidated basis the Agency financial performance is projected as follows:
FY 2014-15 Beginning fund balance $ 16,501,891
FY 2014-15 Projected Revenues 20,609,988
Total Estimate FY 2014-15 Available funds $37,111,880
Less: 2014-15 Projected expenditures (24,396,223)
FY 2014-15 Projected Ending Fund Balance $ 12,715,656
OTHER AGENCY INVOLVEMENT:
WRA Board of Directors
FINANCING:
There is no financial impact in receiving this report.
Prepared by:
Cathy Paladini, Finance Manager, (831) 755-4861
Approved by:
David E. Chardavoyne, General Manager, (831) 755-4860
Attachments:
WRA Summary of Agency Administrative Fund 111
WRA Financial Status Report FY 2014-15