San Benito audit shows boost in cash reserves

SAN BENITO — The city’s cash reserves are growing.

Earlier this week, the annual comprehensive financial report for the 2016-2017 fiscal year found officials have saved up enough money to operate the city for 3.3 months in case of emergency, Tony Juarez, an auditor with the firm of Patillo, Brown & Hill, told city commissioners earlier this week.

Meanwhile, Finance Director Belen Peña said her department has amassed $3.8 million, capable of operating the city for 110 days.

Soon, cash reserves are expected to grow to $4.6 million, capable of running the city for 120 days, Peña told commissioners.

City Manager Manuel De La Rosa called the 120-day mark the “recommended goal” in city government.

The city has steadily increased its cash reserve fund in recent years.

By 2012, its reserve fund stood at $2.4 million, capable of operating the city for 94 days.

Then two years ago, commissioners and De La Rosa set their goal on building the city’s reserve fund.

The audit reviewed the city’s $12.6 million general fund budget and other revenues and expenditures.

“This is the highest clean opinion,” Juarez said during Tuesday night’s meeting. “We did not find any significant deficiencies in the internal controls of the city.”

The city’s $12.6 million general fund budget included $4.3 million in property tax revenue while service fees accounted for $1.8 million, according to the audit.

Public safety made up the city’s top expenditures, with $3.5 million going to the police department and $2.2 million to the fire department.

The city spent $1.7 million on street maintenance while $97,131 went toward parks and recreation.

Meanwhile, increases in service charges helped boost the city’s revenues, the auditors wrote.

The auditors pointed to a 3-percent increase in sales tax revenue along with 20-percent boost in business permits as indicators of “a healthy financial standing.”

“The city is seeing steady growth and is on track to experience even greater economic well-being into the future,” the auditors wrote.