ADMINISTRATIVE COMMITTEE
4.	RECEIVE AND FILE FIRST QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2011-2012
Meeting Date:		February 13, 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 February 13, 2012 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: The first quarter of Fiscal Year (FY) 2011-2012 came to a conclusion on September 30, 2011. Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the period are included as Exhibits 4-A and 4-B. Exhibit 4-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 first quarter and conclusion of FY 2011-2012 to the amounts budgeted for that same time period. Total revenues collected were $147,179, or 6.1% of the budgeted amount of $2,418,550. Variances within the individual revenue categories are described below:

• Administrative permit fee revenues totaled $53,552, or about 122.4% of the amount budgeted for the period.
• Connection charge revenues amounted to $65,461, which is approximately 69.8% of the budgeted amount.
• Interest revenues were $53, or only 4.2% of the budget for the period. This is due to low interest rates received from the financial institutions. Currently, the interest rates are set below ½ percent. Also, first quarter interest revenue for LAIF was not received until October 2011.
• User fee revenues were $11,607, or about 2.8% of the amount budgeted. This is below the budgeted amount because California American Water’s User Fee was not received until November 2011. The User Fees under the interim agreement is billed in arrears.
• Property tax revenues were $0, or 0% of the budget for the period. The first installment of Property Tax was paid in December 2011.
• Project reimbursements of $0, or 0% of the budget. This is considerably less than the budgeted amount as many projects were deferred and continued to next quarter.
• The “Other” revenue category totaled $16,507 or about 3.6% 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 $1,092,257 were about 45.2% of the budgeted amount of $2,418,550 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $814,587 were about 100% of the budget for the period.
• Expenditures for supplies and services were $135,748, or about 53.4% of the budgeted amount.
• Fixed assets purchases of $16,842 represented around 213.9% of the budgeted amount. This amount is significantly over budget because capital purchases were made in the first quarter, including the purchase of computers and licenses, signage, etc.
• Funds spent for project expenditures were $125,080, or approximately 9.8% of the amount budgeted for the period. This is due to some project expenditures being deferred to next quarter.
• Contingencies/Other included costs of $0, or 0% of the budget for the period.

EXHIBITS

4-A Revenue Graph

4-B Expenditure Graph

4-C Revenue and Expenditure Table

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