ITEM:

INFORMATIONAL ITEMS/STAFF REPORTS

28.

REPORT ON FISCAL YEAR 2004-05 FINANCIAL ACTIVITY FOR THE SIX- MONTH PERIOD ENDED DECEMBER 31, 2004

Meeting Date:

From:

David A. Berger,

Program/

N/A

General Manager

Line Item No.:

Prepared By:

Rick Dickhaut

Cost Estimate:

N/A

## Committee Recommendation:The Administrative Committee reviewed this item on April 4, 2005 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  December 31, 2004 marked the conclusion of the first half of fiscal year 2004-05.  Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 28-A and 28-B.  Exhibit 28-C presents the same information in a table format.  The following comments summarize District staff's observations:

REVENUES

The revenues graph compares revenues received during the first half of Fiscal Year 2004-05 to the amounts budgeted for that same time period.  Revenues for permits and connection charges, in the amounts of $113,894 and$303,256 respectively, were well over the amounts budgeted due to higher than anticipated activity during the first half of the fiscal year.   Interest revenues for the period were approximately 40% under budget due to continued low interest rates, additional use of reserves, and the timing of the actual receipt of the funds, i.e., interest on funds invested with the Local Agency Investment Fund are only paid on a quarterly basis.  User fees revenues were approximately 6% under the budgeted amount due to the fact that the year-to-date revenue does not include receipts for the month of December.  Tax revenues totaled $526,502 which is 25% over the amount budget. No grants were anticipated or received during the period. Project reimbursements were approximately 95% of the amount budgeted for the period. The “Other” category is about 102% over budget due to unanticipated miscellaneous revenues. Overall, total revenues received during the first half of the fiscal year represented 111% of revenues budgeted for the same period. EXPENDITURES Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past years. Personnel expenses are 11% below budget, with the majority of the variance attributable to the unexpended personnel contingency of$63,100.  Expenditures for supplies and services were about 50% percent over the budgeted amount mostly due to much higher than anticipated legal expenditures.  Capital assets purchases equaled 48% of the budgeted amount and expenditures for Project expenditures were 47% of the amount budgeted for the period.  The “Other” category includes items such as $159,600 for payback on the Harris Court office building,$68,400 for contributions to the capital asset reserve and \$86,200 for contingencies.  No funds were expended during the period as most of these items are not utilized or recorded until later in the fiscal year.  Overall, expenditures for the first half of the fiscal year totaled approximately 79% of the amount budgeted for the same period.

### EXHIBITS

28-A    Revenue Graph

28-B    Expenditure Graph

28-C    Revenue and Expenditure Table

U:\staff\word\boardpacket\2005\2005boardpackets\20050418\InfoItems\28\item28.doc