ITEM:

CONSENT CALENDAR

3.

RECEIVE AND FILE FOURTH QUARTER FINANCIAL ACTIVITY REPORT FOR FISCAL YEAR 2005-06

Meeting Date:

From:

David A. Berger,

Program/

N/A

General Manager

Line Item No.:

Prepared By:

Rick Dickhaut

Cost Estimate:

N/A

Committee Recommendation:The Administrative Committee reviewed this item on October 4, 2006 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  June 30, 2006 marked the conclusion of fiscal year 2005-06.  Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the year are included as Exhibits 3-A and 3-B.  Exhibit 3-C presents the same information in a table format.  Please note that the final numbers are subject to change as additional entries and/or adjustments will be made during the annual audit.   The following comments summarize District staff's observations regarding the budget:

REVENUES

Permit revenues in the amount of $251,310 were about 9% under budget. Connection charges in the amount of$622,669 were about 21% over the amount budgeted due to continued higher than anticipated activity.   Interest revenues of $89,587 for the year were approximately 49% over budget due primarily to increased interest rates and higher than anticipated reserves. User fee revenues in the amount of$2,163,295 were 9% less than the amount budgeted amount due to the fact that the California Public Utilities Commission has not yet made a final ruling on Cal-Am’s pending rate increase request that will be retroactive to January 1, 2006.  Those retroactive user fee amounts will not be received until fiscal year 2006-07.  Tax revenues received during the year were slightly less than 100% of the budgeted amount.  Grant receipts totaled just $1,987, because most of the budgeted Proposition 50 grant funds will not actually be received until fiscal year 2006-07. Reimbursements of$49,452 were only 21% of the amount budgeted for the period, mostly due to pending increased conservation measures awaiting the decision on Cal-Am’s rate increase.  The “Other” category revenues were $55,414 or about 14% over budget due to unanticipated miscellaneous revenues. Overall, total revenues received during the fiscal year totaled$4,240,775, which represented 84% of revenues budgeted for the fiscal year.

EXPENDITURES

Expenditure activity as depicted on the expenditure graph is similar to patterns seen in past years. Personnel expenditures of $2,685,780 were 1% less than the budgeted amount. Expenditures for supplies and services amounted to$1,759,443 or about 6% percent under budget.  Capital assets purchases totaled $16,532 or 76% under the budgeted amount. Included in this category was$50,000 for the conference room upgrade, most of which will be expended in fiscal year 2006-07.  Outlays for Project expenditures were $501,835, representing only 33% of the amount budgeted. This is mostly due to activities related to aquifer storage & recovery phase II being delayed to fiscal year 2006-07; and expenditures for various new water conservation efforts being delayed due to the pending decision in the Cal-Am rate case. Election expenses of$118,545 were budgeted and paid during the period.  The Contingencies/Reserves category, which consists of a $97,400 contingency, had expenditures of only$8,745 during the fiscal year.  Overall, expenditures of \$5,090,880 for the fiscal year totaled approximately 80% of the amount budgeted.

EXHIBITS

3-A     Revenue Graph

3-B     Expenditure Graph

3-C    Revenue and Expenditure Table

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