Fiscal Year 2025/26 Third Quarter Financial Update

Review and file Fiscal Year 2025/26 Third Quarter Financial Update

The intent of the quarterly financial report is to provide the Commission with an update on LAFCo's financial performance during the prior quarter as compared to the adopted budget and to discuss any issues as appropriate. This practice was recommended during a previous audit as an additional safeguard to ensure sound financial management, given the small size of the LAFCo staff. In accordance with LAFCo Administrative Policies and Procedures, the Commission adopts the final budget and is authorized to make adjustments as appropriate.

The LAFCo FY 2025/26 budget was adopted on May 22, 2025. As of the end of the third quarter, LAFCo remains on track with respect to both revenues and expenditures.

REVENUE
LAFCo has received 101% of its budgeted revenue with the addition of $5,557 of investment earnings. Additional revenue received during the third quarter that was not originally budgeted is $6,498, which includes LAFCo fees related to the Esparto Community Services District annexation proposal and completion of contracted services for Yolo County Department of Community Services.

EXPENDITURE
During the third quarter of FY 2025/26, LAFCo's expenditures totaled $444,044 (64.2%) of the budgeted $691,291. LAFCo expended $370,343 (68.4%) under Salaries and Benefits and $73,701 (61.3%) under Services and Supplies. For Salaries and Benefits, the workers' comp insurance remains slightly over budget due to a rate increase. Otherwise, everything is on budget (61.3%). The majority of expenditures for professional services, publishing notices, and a staff workshop are anticipated to occur in the final quarter of the fiscal year.

BUDGET REPORTS
The Budget Status Summary (Attachment A) is an easy-to-read summary of the budget. The General Ledger Report (Attachment B) shows a running balance of all transactions, including both revenue and expenditure amounts.