ADMINISTRATIVE COMMITTEE
8.	RECEIVE AND FILE FOURTH QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2008-09
Meeting Date:		October 14, 2008	Budgeted:	N/A
From:		Darby Fuerst,	Program/	N/A
		General Manager	Line Item No.:
Prepared By:		Rick Dickhaut	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed this item on October 14, 2008 and recommended ____________________.
CEQA Compliance: N/A

SUMMARY: The fourth quarter of Fiscal Year (FY) 2007-08 came to a conclusion on June 30, 2008. 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. 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 revenues received through the fourth quarter of FY 2007-08 to the amounts budgeted for that same time period. Revenues received during the FY were less than the amount budgeted. Total revenues collected were $6,122,646, or 76% of the budgeted amount of $8,057,700. Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $279,581, or about 93% of the amount budgeted for the FY.
• Connection charge revenues amounted to $604,420, which is approximately 110% of the budgeted amount. The higher than expected collections were due to continued above average activities including entitlement transfers within the Del Monte Forest.
• Interest revenues were $86,949, or approximately 116% of the budget for the FY.
• User fee revenues were $2,945,384, or about 97% of the amount budgeted.
• Property tax revenues were $1,347,342 which is about 98% of the budget for the twelve-month period.
• Grant funds proceeds of $299,870, or 98% of budget, were received during the period.
• Project reimbursements of $512,137 were considerably less than the budgeted amount, mostly due to deferral of the intake retrofit project at Sleepy Hollow and expenditures for water conservation related activities being considerably below the budgeted amount.
• The “Other” revenue category totaled $46,963, or about 5% of the budgeted amount. This is well below budget because this category included potential use of reserves which did not materialize mostly due to the above mentioned project delays.

EXPENDITURES

Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past fiscal years. Total expenditures of $6,034,839 were about 75% of the budgeted amount of $8,057,700 for the FY. Variances within the individual expenditure categories are described below:

• Personnel costs of $3,003,383 were just below 100% of the budget for the FY.
• Expenditures for supplies and services were $893,279, or about 97% of the budgeted amount.
• Capital assets purchases of $162,894 represented only 62% of the budgeted amount. Most of difference is due to the deferral of the replacement of two vehicles that were included in the budget.
• Funds spent for project expenditures were $1,845,995, or approximately 51% of the amount budgeted for FY. The variance is largely due to delays in the completion of the Phase 1 Aquifer Storage and Recovery Project, deferral of the intake retrofit project at Sleepy Hollow and expenditures for water conservation related activities being considerably below the budgeted amount.
• Expenses for the November 2007 election were $97,112, or about 86% of the budgeted amount.
• There was an expenditure of $32,276 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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