Meeting Date:           October 20, 2003                                Budgeted:  N/A

Program/Line Item No.:  N/A

Staff Contact: Rick Dickhaut                                    Cost Estimate:  N/A


General Counsel Approval:  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.