ITEM: INFORMATIONAL ITEMS/STAFF REPORTS
16. REPORT ON FOURTH QUARTER FINANCIAL ACTIVITY FOR FISCAL YEAR 2002-2003
Meeting Date: October 20, 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: June 30, 2003 marked the conclusion of the fourth quarter of the District's 2002-2003 fiscal year. Exhibits 16-A and 16-B are graphs showing both budgeted and actual revenues and expenditures for the fiscal year. Exhibit 16-C presents the same information in a table format. The information presented does not include any audit adjustments that may be made as a result of the annual audit that is currently underway. The following comments summarize District staff's observations.
The graph on Exhibit 16-A compares actual revenues received during of Fiscal Year 2002-2003 with the amounts budgeted for that same time period. As the graph shows, revenues for permits were slightly more than the budgeted amount while connection charges were 38% over the budgeted amount. While the “Other” category appears significantly under budget, the principal component of the category is a transfer from the capital asset reserve which will be made during the year-end audit process. Interest revenues for the period were approximately 70% under budget due to continued declining interest rates and use of reserve funds for capital projects. User fees collected exceeded the budget by about 4% and tax revenues received were less than 1% under the budget for the fiscal year. Project reimbursements were approximately 30% less than projected due to the capital project changes that resulted in a smaller percentage of the costs being reimbursable by Cal-Am. Grant funds collected during the year were about 75% of the budgeted amount. Overall, total revenues received during the fiscal year represented 93% of revenues budgeted for the same period.
Expenditure activity as depicted on Exhibit 16-B is similar to patterns seen in the past several years. Personnel expenses are 8% below budget, with the majority of the variance attributable to the unexpended personnel contingency of $59,500. Expenditures for supplies and services were about 7% percent over budget due to higher than expected professional fees and legal expenses. Purchases of capital assets were 18% less than the budget, while expenditures for Project costs were approximately 71% of the budgeted amount. The “Other” category includes items such as $159,500 for payback on the Harris Court office building and $126,800 for contingencies. While it appears considerably under budget, contributions totaling $65,900 to the capital equipment and flood/drought reserves will be made during the year-end audit process. Overall, expenditures for the year totaled approximately 83% of the amount budgeted for the fiscal year.