ITEM:

CONSENT CALENDAR

12.

RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2005-06

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 June 12, 2006 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  March 31, 2006 marked the conclusion of the third quarter of fiscal year 2006-07.  Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 12-A and 12-B.  Exhibit 12-C presents the same information in a table format.  The following comments summarize District staff's observations:

REVENUES

Permit revenues in the amount of $185,422 were about 10% under budget, while connection charges in the amount of$441,666 were about 14% over the amount budgeted due to continued higher than anticipated activity.   Interest revenues of $64,141 for the period were approximately 43% over budget due primarily to increased interest rates and higher than anticipated reserves. User fees revenues in the amount of$1,399,557 were approximately 21% under the budgeted amount due to the fact that the year-to-date revenue does not include receipts for the month of March.  Also, the California Public Utilities Commission has not yet ruled on Cal-Am’s pending rate increase request that will be retroactive to January 1, 2006.  The first installment of property tax revenues in the amount of $533,133 was received during this period. No grant funds were actually received as of the end of the third quarter. Project reimbursements of$14,873 were only approximately 8% of the amount budgeted for the period, mostly due to pending increased conservation measures awaiting the decision on Cal-Am’s rate increase.  The “Other” category revenues were $46,009 or about 26% over budget due to unanticipated miscellaneous revenues. Overall, total revenues received during the first nine months of the fiscal year totaled$2,717,801, which represented 72% 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 expenditures of $2,005,440 were about 99% of budgeted amount. Expenditures for supplies and services amounted to$1,573,346 or about 12% percent over the budgeted amount.  Capital assets purchases totaled $6,540 or only 13% of the budgeted amount. Included in this category is$50,000 for the conference room upgrade, and it is anticipated most of those funds will be expended by the end of the fiscal year.  Outlay for Project expenditures were $318,839 representing 28% of the amount budgeted for the period. Election expenses of$118,545 were incurred and paid during the period.  The Contingencies/Reserves category, which consists of a $73,050 contingency, had no expenditures during this period. Overall, expenditures of$4,774,875 for the nine months of the fiscal year totaled approximately 84% of the amount budgeted for the same period.

### EXHIBITS

12-A    Revenue Graph

12-B    Expenditure Graph

12-C    Revenue and Expenditure Table

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