04012008 Regular Meeting - Laserfiche WebLink

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Conference Center opens at the same time, further adding to San Marcos tourist potential. More than 1,200 retail shops and boutiques are located throughout the City and a selection of over 125 restaurants is available. These services and facilities, complemented by the mild winter, have made San Marcos a popular vacation spot for tourists and winter visitors. Hotel /motel occupancy tax receipts increased 8.07 percent in FY 2006/07 over the previous year — the fourth straight year of solid revenue growth after anemic post 9/11 levels. The current assessment for FY 2007/08 is that tourism will continue to experience positive gains, reflected by continued increases in occupancy, available rooms and room rates. Major Initiatives The City of San Marcos' FY 2007/08 budget reflects continuing strength in the City's economy, reinforced by positive trends at the state and national levels. Significant improvements projected for the City's key revenue sources, combined with savings achieved in FY 2006/07, provide a balanced budget to meet pressing needs and fund the City's highest priorities for FY 2007/08. These needs include cost -of- living increases for personnel, additional police officers and emergency dispatchers, a Fire Trainer, additional capital outlay funding, infrastructure funding, and staffing for the new Permit Center. Many accomplishments have been achieved with the FY 2007/08 budget. The tax rate was increased by six cents to fund capital projects approved by voters in November 2005. Long -Term Strategic Financial Planning Financial policies approved by the City Council guide the City's financial management in planning for the future. Sufficient resources and adequate reserve levels will protect the City in the event of revenue shortfalls or increased expenditure needs. Fiscal integrity is the cornerstone upon which the City plans, monitors, and reports its financial activities. Particular emphasis is placed on maintaining the financial stability of the City. Each fiscal year, the budget is developed with this objective. Goals for financial stability enable the City to manage revenue shortfalls and cash flows to ensure continued operations, and to provide for unforeseen contingencies without impairing the level of quality service needed to respond to the community. Internal Controls The Finance Department is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles for local governments as prescribed by GASB and the American Institute of Certified Public Accountants (AICPA). The internal controls structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the evaluation of costs and benefits requires estimates and judgments by management. Financial Rating The City's bond rating for Moody's Investor Service and Standard & Poor's is as follows: General Obligation Bonds and Certificates of Obligation Revenue Bonds Moody's Investor Service Al A2 Standard & Poor's A+ A Financial Reporting The City utilizes a computerized financial accounting system to capture all financial transactions and provide data for the preparation of this CAFR, including the audited financial statements. These statements present information on the financial position of the City and whether resources were adequate V