San Benito builds cash reserves

SAN BENITO — The city is working to build up its cash reserves to operate in case of an emergency.

The annual financial audit shows the city has built a cash reserve fund of $3.85 million, enough to operate the city for 110 days.

“City reserve is a very hot topic in case we have a catastrophic event,” City Manager Manuel De La Rosa told city commissioners as the certified public accounting firm of Pattillo, Brown & Hill presented the city’s audit in a meeting earlier this week.

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

Last year, commissioners and De La Rosa set their goal on building the city’s reserve fund.

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

“The economic outlook for the City of San Benito continues to be favorable,” the auditors wrote.

But the audit included information showing falling residential and commercial construction.

Building permits show commercial construction projects dropped from $11.1 million in 2015 to $4.29 in 2016.

Meanwhile, new home construction projects fell from $3.7 million in 2015 to $580,000 in 2016.

The audit noted the importance of solid infrastructure in charting the city’s future.

“The future and development of the city continues to depend primarily on the status of its infrastructure — from street maintenance to water distribution and everything in between,” the auditors wrote.

“Public works facilities serve as the heart of the city, providing vitally-needed services for our daily use and ensuring quality water, wastewater disposal, sanitation and street repairs and improvements.”