ITEM:

CONSENT CALENDAR

8.

RECEIVE AND FILE FIRST QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2007-08

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 January 15, 2008 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  The first quarter of fiscal year 2007-08 came to a conclusion on September 30, 2007.  Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 8-A and 8-B.  Exhibit 8-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 2007-08 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 $853,340, or 50% of the budgeted amount of$1,713,675.  Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $68,441, or about 91% of the amount budgeted for this period. • Connection charge revenues amounted to$181,304, which is approximately 132% of the budgeted amount.  The higher than expected collections are due to continued above average activities, including entitlement transfers within the Del Monte Forest.
• Interest revenues were only 2,280, or approximately 12% of the budget for the period.  This low amount is due to the fact that interest earnings on most invested funds are paid on a quarterly basis.
• User fee revenues were $576,327, or about 81% of the amount budgeted. This reduced amount is due to the fact that only two months of user fees were actually 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 totaled$8,536, or 155% 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 of $1,000,116 were about 47% of the budgeted amount of$2,130,625.  Variances within the individual expenditure categories are described below:

• Personnel costs of $746,643 were about 2% over budget for the period. • Expenditures for supplies and services were$134,848, or about 60% of the budgeted amount.
• Capital assets purchases of $20,305 were only 31% of the budgeted amount; however, these purchases are typically sporadic during each fiscal year. • Funds spent for project expenditures were$93,320, or approximately 9% of the amount budgeted for the period.  This trend of being considerably under budget is typical for the first quarter as in previous fiscal years.
• No debt service funds were anticipated to be spent during the first quarter of the fiscal year.
• There was an expenditure of \$5,000 from the Contingencies/Reserves category during the period.

### EXHIBITS

8-A      Revenue Graph

8-B      Expenditure Graph

8-C      Revenue and Expenditure Table

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