ITEM:

CONSENT CALENDAR

3.

RECEIVE AND FILE REPORT ON FOURTH QUARTER FINANCIAL ACTIVITY 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 October 9, 2009 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  Fiscal Year (FY) 2008-09 came to a conclusion on June 30, 2009.  Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 3-A and 3-B.  Exhibit 3-C presents the same information in a table format.  Please note that the final numbers for the fiscal year are subject to change as additional entries and/or adjustments may be made during the annual audit process which is currently under way.    The following comments summarize District staff's observations:

REVENUES

The revenues graph compares amounts received through the end of FY 2008-09 to the amounts budgeted for that same time period.  Total revenues collected were $5,514,776, or 66% of the budgeted amount of$8,349,800.  Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $293,388, or about 146% of the amount budgeted for the period. • Connection charge revenues amounted to$482,214, which is approximately 107% 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 $43,047, or about 86% of the budget for the period. This is due to lower than anticipated interest rates during the fiscal year. • User fee revenues were$2,653,826, or about 72% of the amount budgeted.  This is below budget because of the delayed decision in the rate increase case for California American Water (CAW) by the California Public Utilities Commission, and decreased water sales by CAW.
• Property tax revenues totaled $1,428,186, or 99.7% of budget. • Project reimbursements of$572,016 were considerably less than the budgeted amount, mostly due to conservation activities and related reimbursements being lower than anticipated.
• The “Other” revenue category totaled $42,099, or about 3% of the budgeted amount. This is well below budget because reserves used during the FY were considerably less than the budgeted amount. EXPENDITURES Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past fiscal years. Total expenditures of$5,797,719 were about 69% of the budgeted amount of $8,349,800 for the year. Variances within the individual expenditure categories are described below: • Personnel costs of$3,025,321 were 99.7% of the budget for the period.
• Expenditures for supplies and services were $1,032,354, or about 96% of the budgeted amount. • Capital assets purchases of$167,962 represented around 69% of the budgeted amount.  This category was under budget mainly because two vehicles were budgeted, but not purchased during the fiscal year.
• Funds spent for project expenditures were $1,536,712, or approximately 40% of the amount budgeted for the period. These expenditures were less than the budgeted amount mainly due to Phase 1 Aquifer Storage and Recovery project expenditures being delayed until FY 2009-10, and because conservation activities were lower than anticipated. • There was an expenditure of$35,370 from the Contingencies/Reserves category during the period.  This is about 26% of the amount budgeted.

### EXHIBITS

3-A      Revenue Graph

3-B      Expenditure Graph

3-C      Revenue and Expenditure Table

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