ITEM:

CONSENT CALENDAR

5.

RECEIVE AND FILE FIRST QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2006-07

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 December 1, 2006 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  September 30, 2006 marked the conclusion of the first 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 5-A and 5-B.  Exhibit 5-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 quarter of fiscal year 2005-06 to the amounts budgeted for that same time period.  Revenues received during the first quarter of each fiscal year are typically considerably less than the amount budgeted. Total revenues collected were $529,991, or 37% of the budgeted amount of$1,424,975.  Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $62,063, or about 90% of the amount budgeted for this period. • Connection charge revenues amounted to$185,897, which is approximately 135% of the budgeted amount.  The higher than expected collections are due to increased activities, mostly due to entitlement transfers within the Del Monte Forest.
• Interest revenues were 24,546, or approximately 164% of the budget for the period.  This is because of increasing interest rates and higher than expected reserves.
• User fee revenues were $243,690, or about 37% of the amount budgeted. This reduced amount is due to the fact that only two months of user fees were received during the period. • No property tax revenues were anticipated to be received during the first quarter. • No grant funds proceeds were anticipated to be received during the first quarter. • Project reimbursements were considerably less than the budgeted amount, which is typical early in a new fiscal year. • The “Other” revenue category was 10,470, or 81% of the budgeted amount for the first quarter. EXPENDITURES Expenditure activity as depicted on the expenditure graph is similar to patterns seen early in past fiscal years. Total expenditures were about 54% of the budgeted amount of$2,035,900.  Variances within the individual expenditure categories are described below:

• Personnel costs of $733,659 were about 5% over budget for the period. • Expenditures for supplies and services were$155,431, or about 67% of the budgeted amount.
• Capital assets purchases equaled approximately 135% of the budgeted amount; however, these purchases are typically sporadic during each fiscal year.
• Funds spent for project expenditures were \$177,386, or approximately 17% of the amount budgeted for the period.  This trend of being considerably under budget is typical for the first quarter in previous fiscal years.
• No debt service funds were anticipated to be spent during the first quarter of the fiscal year.
• There were no expenditures from the Contingencies/Reserves category during the period.

### EXHIBITS

5-A      Revenue Graph

5-B      Expenditure Graph

5-C      Revenue and Expenditure Table

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