ITEM:

CONSENT CALENDAR

13.

RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2008-09

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 8, 2009 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  The third quarter of Fiscal Year (FY) 2008-09 came to a conclusion on March 31, 2009.  Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 13-A and 13-B.  Exhibit 13-C presents the same information in a table format.  The following comments summarize District staff's observations:

REVENUES

The revenues graph compares amounts received through the third quarter of FY 2009-10 to the amounts budgeted for that same time period.  Total revenues collected were $3,434,393, or 55% of the budgeted amount of$6,262,350.  Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $204,003, or about 136% of the amount budgeted for the period. • Connection charge revenues amounted to$452,909, which is approximately 134% of the budgeted amount.  The higher than expected receipts were due largely to fees collected in July 2008 for an assisted living facility and a vehicle dealership.
• Interest revenues were $27,363, or about 73% of the budget for the period. This is due to lower than anticipated interest rates, and the timing of interest receipts from the California Local Agency Investment Fund. • User fee revenues were$1,763,990, or about 64% of the amount budgeted.  This is below budget partly because user fee revenues for a given month are not received until the following month.  Other factors include the delay in the rate increase decision for California American Water (CAW) by the California Public Utilities Commission and decreased water sales by CAW.
• Property tax revenues totaled $814,655, or approximately 76% of budget. Year-to-date receipts are under budget because they are received from the County of Monterey on a semi-annual basis in December and April of each FY. • Project reimbursements of$138,600 were considerably less than the budgeted amount as they are typically billed and collected later in each FY.
• The “Other” revenue category totaled $32,873, or about 3% of the budgeted amount. This is well below budget because this category includes potential use of reserves during the FY. EXPENDITURES Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past fiscal years. Total expenditures of$4,103,668 were about 66% of the budgeted amount of $6,262,350 for the period. Variances within the individual expenditure categories are described below: • Personnel costs of$2,245,099 were about 99% of the budget for the period.
• Expenditures for supplies and services were $719,632, or about 89% of the budgeted amount. • Capital assets purchases of$103,952 represented around 57% of the budgeted amount.  This category is under budget mainly due to three vehicles that are budgeted, but not yet purchased.
• Funds spent for project expenditures were $1,014,827, or approximately 35% of the amount budgeted for the period. These expenditures are less than the budgeted amount mainly due to Phase 1 Aquifer Storage and Recovery project expenditures being delay until FY 2009-10. • There was an expenditure of$20,158 from the Contingencies/Reserves category during the period.  This is about 20% of the amount budgeted for the period.

### EXHIBITS

13-A    Revenue Graph

13-B    Expenditure Graph

13-C    Revenue and Expenditure Table

U:\staff\word\boardpacket\2009\20090615\ConsentCal\13\item13.doc