Meeting Date:           March 15, 2004                                  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: December 31, 2003 marked the conclusion of the second quarter of the District's 2003-2004 fiscal year.  Exhibit 32-A and Exhibit 32-B are graphs showing both budgeted and actual year-to-date revenues and expenditures for the period.  Exhibit 32-C presents the same information in a table format.  The following comments summarize District staff's observations.



The revenues graph compares actual revenues received during the first six months of Fiscal Year 2003-2004 with the amounts budgeted for that same time period.  As the graph shows, revenues for permits were 54% over the budgeted amount while connection charges were 28% less than budgeted amount.  The “Other” category is about 9% under budget and interest revenues for the period were approximately 88% under budget due to the timing of receipts, continued low interest rates and use of reserve funds for capital projects.  User fees collected were approximately 8% over budget and do not include receipts for the month of December.  Taxes received during the period were about 16% over the budgeted amount.  No grants revenues were anticipated or received during the period.  Project reimbursements receipts were 16% over budget for the period due to unbudgeted receipts of approximately $61,200 from Cal-Am related to their dam application for the period July 1, 2003 to August 18, 2003.  Overall, total revenues received during the first quarter of the fiscal year represented 101% of revenues budgeted for the same period.



Expenditure activity as depicted on the expenditure graph is similar to patterns seen in the past several years. Personnel expenses are 11% below budget, with the majority of the variance attributable to the unexpended personnel contingency of $59,000.  Expenditures for supplies and services were about 27% over budget for the period.  Purchases of capital assets were 15% less than the budget, however, these expenditures typically fluctuate throughout the year.  Expenditures for Project costs were approximately 65% of the budgeted amount for the quarter.  The “Other” category includes items such as $159,600 for payback on the Harris Court office building and $72,000 for contingencies.  These funds are generally not utilized until later in the fiscal year.  Overall, expenditures for the first quarter totaled approximately 77% of the amount budgeted for the fiscal year.