ITEM:		CONSENT CALENDAR
9.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2010-2011
Meeting Date:			June 20, 2011	Budgeted:	N/A
From:			Darby Fuerst,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Rick Dickhaut	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on June 13, 2011 and recommended approval.
CEQA Compliance: N/A

SUMMARY: The third quarter of Fiscal Year (FY) 2010-11 came to a conclusion on March 31, 2011. Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 9-A and 9-B. Exhibit 9-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 2010-11 to the amounts budgeted for that same time period. The activity as depicted on the revenue graph is similar to patterns seen at the end of the third quarter in past fiscal years. Total revenues collected were $3,943,334, or 51% of the budgeted amount of $7,752,750. Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $226,460, or about 101% of the amount budgeted for the period.
• Connection charge revenues amounted to $250,340, which is approximately 83% of the budgeted amount.
• Interest revenues were $2,215, or only 25% of the budget for the period. This is due to low interest rates and because interest payments from the Local Agency Investment Fund are not received until after the end of each quarter.
• User fee revenues were $2,201,993, or about 79% of the amount budgeted. This is below the budgeted amount because California American Water’s sales revenues have been less than anticipated this FY. Additionally user fee receipts lag by one month throughout the year.
• Property tax revenues were $793,176, or 72% of the budget for the period. This is under budget because these revenues are received on a semi-annual basis in December and April of each FY.
• Project reimbursements of $433,375 were considerably less than the budgeted amount. This is typically the case until the end of each FY because most items are billed on a quarterly or semi-annual basis.
• The “Other” revenue category totaled $35,775 or about 14% of the budgeted amount. This is well below budget because this category includes potential use of reserves and the line of credit during the FY.

EXPENDITURES

Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past fiscal years. Total expenditures of $5,705,237 were about 74% of the budgeted amount of $7,752,750 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,471,285 were about 102.1% of the budget for the period.
• Expenditures for supplies and services were $627,542, or about 80% of the budgeted amount.
• Capital assets purchases of $27,414 represented around 16% of the budgeted amount. This amount is significantly under budget because capital purchases have been deferred, including the purchase of two budgeted vehicles.
• Funds spent for project expenditures were $2,577,496, or approximately 61% of the amount budgeted for the period. This is due to some project expenditures being deferred to next FY.
• Only $1,500 was spent from the Contingencies/Reserves category during the period.

EXHIBITS

9-A Revenue Graph

9-B Expenditure Graph

9-C Revenue and Expenditure Table

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