ADMINISTRATIVE COMMITTEE
6.	RECEIVE AND FILE FOURTH QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2009-10
Meeting Date:		October 12, 2010	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 October 12, 2010 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: Fiscal Year (FY) 2009-10 came to a conclusion on June 30, 2010. 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. 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 2009-10 to the amounts budgeted for the FY. Total revenues collected were $6,275,623, or 75% of the budgeted amount of $8,424,200. Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $282,000, or about 103% of the amount budgeted for the period.
• Connection charge revenues amounted to $462,837, which is approximately 108% of the budgeted amount.
• Interest revenues were $9,456, or only about 24% of the budget for the period. This large variation is due to much lower than anticipated interest rates during the fiscal year.
• User fee revenues were $2,879,934, or about 78% of the amount budgeted. Revenues were below budget because of delays in approval and implementation of rate increases for California American Water (CAW), as well as decreased water sales by CAW.
• Property tax revenues totaled $1,322,095, or 97% of budget.
• Project reimbursements of $1,274,671, which is about 85% of the budgeted amount. This variance is due mostly to conservation activities and related reimbursements being lower than anticipated.
• The “Other” revenue category totaled $44,630, or about 4% of the budgeted amount. This is well below budget because reserves used during the FY were considerably less than the budgeted amount, and budgeted proceeds from the District’s line of credit were not utilized.

EXPENDITURES

Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past fiscal years. Total expenditures of $6,606,207 were about 78% of the budgeted amount of $8,424,200 for the year. Variances within the individual expenditure categories are described below:

• Personnel costs of $3,197,695 were 101% of the budget for the period. These costs were slightly over budget due to the fact that funding for limited-term positions is budgeted in the Project Expenditures section of the budget, while actual amounts paid are charged to Salaries and Wages.
• Expenditures for supplies and services were $950,283, or about 97% of the budgeted amount.
• Capital assets purchases of $45,108 represented around 29% of the budgeted amount. This category was under budget mainly because three vehicles were budgeted, but not purchased during the fiscal year.
• Funds spent for project expenditures were $2,367,555, or approximately 61% of the amount budgeted for the period. These expenditures were less than the budgeted amount mainly due to some Phase 1 Aquifer Storage and Recovery project expenditures being delayed until FY 2010-11, and because conservation activities were lower than anticipated.
• There were expenditures of $45,566 from the Contingencies/Reserves category during the period. This is about 19% of the amount budgeted.

EXHIBITS

6-A Revenue Graph

6-B Expenditure Graph

6-C Revenue and Expenditure Table

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