ADMINISTRATIVE COMMITTEE
2.	RECEIVE AND FILE SECOND QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2011-2012
Meeting Date:		March 12, 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 March 12, 2012 and recommended ____________.
CEQA Compliance: N/A

SUMMARY: The second quarter of Fiscal Year (FY) 2011-2012 came to a conclusion on December 31, 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. The following comments summarize District staff's observations:

REVENUES

The revenues graph compares amounts received through the second quarter of FY 2011-2012 to the amounts budgeted for that same time period. Total revenues collected were $1,481,259, or 30.6% of the year-to-date budgeted amount of $4,837,100. Variances within the individual revenue categories are described below:

• Permit fee revenues totaled $105,558, or about 82.8% of the amount budgeted for the period.
• Connection charge revenues amounted to $105,942, which is approximately 56.5% of the budgeted amount.
• Interest revenues were $639, or only 25.6% 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 $412,690, or about 49.7% 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 108.8% of the budget for the period. The first installment of Property Tax was received in December 2011.
• Project reimbursements of $0, or 0% of the budget. This is less than the budgeted amount as all of the reimbursements are billed in arrears. The July – December 2011 reimbursements invoices will be billed and collected in first quarter of 2012.
• Grants revenues were $38,861, or 4.8% 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 $20,605 or about 2.3% 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 $2,916,747 were about 60.3% of the year-to-date budgeted amount of $4,837,100 for the period. Variances within the individual expenditure categories are described below:

• Personnel costs of $1,622,982 were about 99.7% of the budget for the period.
• Expenditures for supplies and services were $339,013, or about 66.7% of the budgeted amount.
• Fixed assets purchases of $32,704 represented around 207.6% 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 $922,048, or approximately 36.2% 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 $0, or 0% 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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