ITEM:

CONSENT CALENDAR

11.

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

Meeting Date:

From:

Darby Fuerst,

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 5, 2008 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  The third quarter of Fiscal Year (FY) 2007-08 came to a conclusion on March 31, 2008.  Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 11-A and 11-B.  Exhibit 11-C presents the same information in a table format.  The following comments summarize District staff's observations:

REVENUES

The revenues graph compares revenues received through the third quarter of FY 2007-08 to the amounts budgeted for that same time period.  Revenues received during the first nine months of the FY are typically less than the amount budgeted. Total revenues collected were $3,883,410, or 64% of the budgeted amount of$6,043,275.  Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $189,486, or about 84% of the amount budgeted for this period. • Connection charge revenues amounted to$486,823, which is approximately 118% 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 $53,127, or approximately 94% of the budget for the period. • User fee revenues were$1,996,482, or about 88% of the amount budgeted.  This is slightly under budget because collections for the month of March were not received until April.
• Property tax revenues were $755,915 which is about 73% of the budget for the period. This amount is under budget because the amount represents only the first of two large annual installments. • Grant funds proceeds of$272,788, or 119% of budget, were received during the period.
• Project reimbursements of $92,986 were considerably less than the budgeted amount; however, large amounts are pending collection during the remainder of the FY. • The “Other” revenue category totaled$35,803, or about 5% of the budgeted amount.  This is well below budget because this category includes potential use of reserves which will not be reflected until year end.

EXPENDITURES

Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past fiscal years.  Total expenditures of $3,913,602 were about 65% of the budgeted amount of$6,043,275 for the first nine months of the FY.  Variances within the individual expenditure categories are described below:

• Personnel costs of $2,261,715 were just below 100% of the budget for the period. • Expenditures for supplies and services were$533,626, or about 77% of the budgeted amount.
• Capital assets purchases of $47,587 represented only 24% of the budgeted amount; however, these purchases are typically sporadic during each FY. • Funds spent for project expenditures were$1,055,532, or approximately 39% of the amount budgeted for the period.  This trend of being considerably under budget has been typical for the first nine months in recent FYs.
• No funds were expended for election expenditures during the period, however, the billing from Monterey County for the November 2007 election is still pending.
• There was an expenditure of \$15,142 from the Contingencies/Reserves category during the period.

### LIST OF EXHIBITS:

11-A    Revenue Graph

11-B    Expenditure Graph

11-C    Revenue and Expenditure Table

U:\staff\word\boardpacket\2008\2008boardpackets\20080616\ConsentCal\11\item11.doc