36. REPORT ON THIRD QUARTER FINANCIAL ACTIVITY FOR FISCAL YEAR 2002-2003
Meeting Date: June 16, 2003 Budgeted: N/A
Program/Line Item No.: N/A
Staff Contact: Rick Dickhaut Cost Estimate: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A
SUMMARY: March 31, 2003 marked the conclusion of the third quarter of the District's 2002-2003 fiscal year. Exhibits 36-A and 36-B are graphs showing both budgeted and actual revenues and expenditures for the first nine months of the fiscal year. Exhibit 36-C presents the same information in a table format. The following comments summarize District staff's observations.
The graph on Exhibit 36-A compares actual revenues received during the first nine months of Fiscal Year 2002-2003 with the amounts budgeted for that same time period. While budgeted amounts are shown as three-fourths of the annual budget, actual revenues can differ greatly due to timing differences in the actual collection of funds. As the graph shows, revenues for permits were approximately equal to the budgeted amount while connection charges were 24% over the budgeted amount. While the “Other” category appears significantly under budget, the principal components of the category are revenues derived from outside sources for projects undertaken by the District, including items such as reimbursements from Cal-Am. Consultant effort, and therefore billing, on this type of work is not equally apportioned among the fiscal quarters. In addition, there is typically a lag between the completion of a project and the receipt of reimbursement. Interest revenues for the period were approximately 49% under budget due to continued declining interest rates. User fees are slightly less than the budgeted amount, however, the actual receipts do not include user fees collected by Cal-Am or the Seaside Municipal Water System for March. Tax revenues are received in two installments during each fiscal year, therefore, actual receipts were under budget at the end of March. It is anticipated that actual revenues received will exceed the amount budgeted. No grant funds were anticipated or received during this period. Overall, total revenues received during the nine-month period represent 80% of revenues budgeted for the same period.
Expenditure activity as depicted on Exhibit 36-B is similar to patterns seen in the past several years. Personnel expenses are 14% below budget. Most of this variance is attributable to a vacant position (Engineering Technician), the unexpended personnel contingency ($59,500) and under expended staff development budget ($24,700). Expenditures for supplies and services were below budget by 12%. Project costs, which are significantly below the budget, as is typical, currently represent only 55% of the six-month budget. The “Other” category includes items such as $159,500 for payback on the Harris Court office building and $126,800 for contingencies. Overall, the nine-month expenditures total approximately 71% of the budgeted amount.