ADMINISTRATIVE COMMITTEE
6.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2011-2012
Meeting Date:		May 14, 2012	Budgeted:	N/A
From:		David J. Stoldt,	Program/	N/A
		General Manager	Line Item No.:
Prepared By:		Suresh Prasad	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on May 14, 2012 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: The third quarter of Fiscal Year (FY) 2011-2012 came to a conclusion on March 31, 2012. Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 6-A and 6-B. Exhibit 6-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 2011-2012 to the amounts budgeted for that same time period. Total revenues collected were $2,604,382, or 41.5% of the year-to-date budgeted amount of $6,268,500. Variances within the individual revenue categories are described below:

• Permit fee revenues totaled $170,852, or about 111.1% of the amount budgeted for the period.
• Connection charge revenues amounted to $131,568, which is approximately 63.8% of the budgeted amount.
• Interest revenues were $1,085, or only 28.9% of the budget for the period. This is due to low interest rates received from the financial institutions and continually use of reserves to fund the District’s operations. Currently, the interest rates are set below ½ percent.
• User fee revenues were $948,733, or about 76.1% of the amount budgeted. This is below the budgeted amount because the User Fees under the interim agreement is billed in arrears.
• Property tax revenues were $796,964, or 75.7% of the budget for the period. The first installment of Property Tax was received in December 2011. The second installment of the Property Tax was received in April 2012.
• Project reimbursements of $473,792, or 31.4% of the budget. This is less than the budgeted amount as all of the reimbursements are billed in arrears. The January – June 2011 reimbursements activities will be billed in fourth quarter of 2012.
• Grants revenues were $66,610, or 9.6% of the budget. This is less than the budgeted amount as most of the grant related works were deferred during the fiscal year.
• The “Other” revenue category totaled $14,777 or about 1.1% of the budgeted amount. This is well below budget because this category includes potential use of reserves and the line of credit during the fiscal year.

EXPENDITURES

Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past fiscal years. Total expenditures of $4,925,589 were about 78.6% of the year-to-date budgeted amount of $6,268,500 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,443,810 were about 100.3% of the budget for the period.
• Expenditures for supplies and services were $590,123, or about 77.6% of the budgeted amount. Some of the expenses have been deferred to next quarter.
• Fixed assets purchases of $33,412 represented around 130.7% of the budgeted amount. This amount is significantly over budget because capital purchases were made in the first quarter, including the purchase of computers, licenses and signage, etc.
• Funds spent for project expenditures were $1,854,787, or approximately 65.2% of the amount budgeted for the period. This amount is less than the budget due to some project expenditures being deferred to next quarter.
• Contingencies/Other included costs of $3,457, or 1.7% of the budget for the period.

EXHIBITS

6-A Revenue Graph

6-B Expenditure Graph

6-C Revenue and Expenditure Table

U:\staff\Board_Committees\Admin\2012\20120514\06\item6.docx