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<br /> - 4 - <br /> PROPERTY TAX COLLECTIONS. Each year the City Counci 1 <br /> approves a tax ordinance that requires all tax collections be <br /> split between General Operating and Debt Service Funds in a <br /> ratio established by the amount allocated to each fund in <br /> relationship to the total tax rate. Presently, all tax <br /> collections are deposited in the General Fund and cash is <br /> transferred to the Debt Service Fund only when bond principal <br /> or interest payments are due. <br /> This past year the transfer of taxes to the Debt <br /> Service Fund was less than the tax ordinance requirement by <br /> approximately $86,000. We recommend that tax collections be <br /> " sp lit" or divided with each deposit or on a monthly basis to <br /> maintain the proper allocation between funds. <br /> TAX COLLECTOR BOND. The City currently has a fidelity <br /> bond of $50,000 for the tax collector. During the months of <br /> December and January, daily tax collections frequently exceeded <br /> $50,000, exposing the City to possible uninsured losses. <br /> Because of the continual growth of the City, this exposure will <br /> continue to increase. We recommend that the City consider <br /> increasing this coverage for peak periods of collections. <br /> The foregoing conditions were considered in determining <br /> the nature, timing, and extent of audit tests to be applied in <br /> our examination of the financial statements, and this report of <br /> such conditions does not modify our report dated December 21, <br /> 1982, on such financial statements. <br /> We would like to take this opportunity to express our <br /> appreciation for the courtesy and cooperation extended to us <br /> during the course of our examination. <br /> Sincerely, <br /> f/~~~ ; ~ <br /> HAROLD V. SIMPSON & COMPANY <br /> CERTIFIED PUBLIC ACCOUNTANTS <br /> Harold V. Simpson & Company, Certified Public Accountants, Austin, Texas <br />