ADMINISTRATIVE COMMITTEE
2.	RECEIVE AND FILE FOURTH QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2010-11
Meeting Date:		October 10, 2011	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 October 10, 2011 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: The fourth quarter of Fiscal Year (FY) 2010-11 came to a conclusion on June 30, 2011. Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 2-A and 2-B. Exhibit 2-C presents the same information in a table format. Please note that the final figures for the fiscal year are subject to change as adjusting entries could 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 fourth quarter and conclusion 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 fourth quarter in past fiscal years. Total revenues collected were $7,378,998, or 71% of the budgeted amount of $10,337,000. Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $296,525, or about 99% of the amount budgeted for the period.
• Connection charge revenues amounted to $319,729, which is approximately 80% of the budgeted amount.
• Interest revenues were $4,409, or only 37% of the budget for the period. This is due to low interest rates received from the Local Agency Investment Fund. Currently, the interest rates are set below ½ percent.
• User fee revenues were $3,048,992, or about 82% of the amount budgeted. This is below the budgeted amount because California American Water’s sales revenues have been lower than anticipated this fiscal year.
• Property tax revenues were $1,386,269, or 95% of the budget for the period. We continue to see decline in property tax revenue due to continuing trend in reduction of property values.
• Project reimbursements of $2,274,196, or 55% of the budget. This is considerably less than the budgeted amount as many projects were deferred and continued to next fiscal year.
• The “Other” revenue category totaled $48,878 or about 15% 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 $8,000,829 were about 77% of the budgeted amount of $10,337,000 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $3,255,859 were about 101% of the budget for the period.
• Expenditures for supplies and services were $1,067,514, or about 102% of the budgeted amount.
• Fixed assets purchases of $73,137 represented around 32% 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 $3,533,435, or approximately 63% of the amount budgeted for the period. This is due to some project expenditures being deferred to next fiscal year.
• Contingencies/Other included costs of $70,884, or 32% of the budget for the period.

EXHIBITS

2-A Revenue Graph

2-B Expenditure Graph

2-C Revenue and Expenditure Table

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