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Approving FY2020 2nd Quarter Operating Financial Reports
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Submitted to the Board for review and informational purposes are the financial reports for the quarter ended December 31, 2019. The reports provide a year-to-date comparison between the approved FY20 budget and actual expenses through December 31, 2019. The reports also include revenue and expense projections to June 30, 2020. The projections are based on actual, trend, and historical information. As with any estimates, this information is subject to change.
These reports have been reviewed and approved by the State Department of Finance and Administration Local Government Division.
Fund 21 General Operating Fund
Revenues:
Second Quarter rate revenues are $2.2 million above the actuals for the same period in FY19; the revenues reflect the increase of 492 MG of water produced during the first two quarters. Revenues are projected be at the FY20 budgeted amount. This projection is based upon five and one-half months of actual consumption, and is subject to change.
Second Quarter other revenue, which includes miscellaneous revenue, is $0.7 million below the actuals for the same period in FY19.
Revenue budget amounts were derived with the expectation of very limited growth in the service area for the next several years coupled with a GCPD goal of 127 for FY20.
Expenses:
Second Quarter total expenses are $8.5 million above the actuals for the same period in FY19; primarily due to the increase in the transfers to the capital and debt service funds. The projected total expense at June 30, 2020 is estimated to be $0.5 million under the FY20 budgeted amount.
Working capital or fund balance is projected to be $49.4 million, compared to a beginning balance in FY20 of $53.6 million. The Rate Reserve balance for FY20 is $9.0 million. The fund balance trend has reversed as planned and will meet the target of 1/12 of operating expenditures.
FISCAL IMPACT:
The reduction in consumption is a positive result ...
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