ADMINISTRATIVE COMMITTEE
12.	RECEIVE AND FILE THIRD QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2006-07
Meeting Date:		June 7, 2007	Budgeted:	N/A
From:		David A. Berger,	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 June 7, 2007 and recommended ____________________.
CEQA Compliance: N/A

SUMMARY: March 31, 2006 marked the conclusion of the third quarter of fiscal year 2006-07. Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 12-A and 12-B. Exhibit 12-C presents the same information in a table format. The following comments summarize District staff's observations:

REVENUES

The revenues graph compares revenues received through the third quarter of fiscal year 2006-07 to the amounts budgeted for that same time period. Total revenues collected were $3,175,712, or 50% of the budgeted amount of $6,316,650. Variances within the individual revenue categories are described below:

• Permit fee revenues totaled $217,547, or about 105% of the amount budgeted for this period.
• Connection charge revenues amounted to $454,033, which is approximately 110% of the budgeted amount.
• Interest revenues were $51,264, or only 85% of the budget for the period. This is due primarily to timing of receipts from the Local Agency Investment Fund which are only paid after the end of each quarter.
• User fee revenues were $1,659,771, or about 84% of the amount budgeted. This reduced amount is due to the fact that the year-to-date revenue does not include user fees for the month of March.
• Property tax revenues in the amount of $714,128 consist of the first of two annual installments to be received during the fiscal year.
• No grant funds proceeds were anticipated or received during the first quarter.
• Project reimbursements of $45,768 were considerably less than the budgeted amount, mostly due to pending increased conservation measures that were delayed by the belated decision of the California Public Utilities Commission on California American Water’s 2006 and 2007 rate increases.
• The “Other” category revenue was $33,201, or 105% of the budgeted amount for the nine month period.

EXPENDITURES

Expenditure activity as depicted on the expenditure graph shows that total expenditures of $3,190,774 were about 51% of the budgeted amount of $6,316,650. Variances within the individual expenditure categories are described below:

• Personnel costs of $2,168,553 were about 99% of the budget for the period.
• Expenditures for supplies and services were $504,414, or about 72% of the budgeted amount.
• Capital assets purchases in the amount of $70,212 equaled approximately 61% of the budgeted amount.
• Funds spent for project expenditures were $447,595, or approximately 14% of the amount budgeted for the period. It is anticipated that project expenditures will increase significantly during the fourth quarter due to funds expended for Phase 1 of the Aquifer Storage & Recovery Project and the Integrated Groundwater Management Plan.
• No debt service funds were anticipated to be spent during the first quarter of the fiscal year.
• There were no expenditures from the Contingencies/Reserves category during the period.

EXHIBITS

12-A Revenue Graph

12-B Expenditure Graph

12-C Revenue and Expenditure Table

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