Res 2006-035 - Laserfiche WebLink

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5. Administration - The benefits of a revenue source should exceed the cost of levying and collecting that revenue. The cost of collection should be reviewed I annually for cost effectiveness as a part of the indirect cost of service analysis. Where appropriate, the administrative processes of state, federal or local governmental collection agencies will be used in order to reduce administrative cost. 6. Diversification and Stability - A diversified revenue system with a stable source of income should be maintained. This will help avoid instabilities in similar revenue sources due to factors such as fluctuations in the economy and variations in the weather. B. Issues - The following considerations and issues will guide the City Finance Department in its revenue policies concerning specific sources of funds: 1. Cost/Benefit and Financial Impact Analysis for Tax and Fee Abatements - A cost/benefit and financial impact analysis should be performed to assess tax or fee abatement economic development incentives. 2. Accounts Receivable - Accounts receivable procedures will target collection for a maximum of 30 days from service. Accounts past due more than 120 days will be sent to a collection agency. The Director of Finance is authorized to write-off non-collectible accounts that are delinquent for more than 180 days. 3. Non-Recurring Revenues - One-time or non-recurring revenues should not be used to finance current ongoing operations. Non-recurring revenues should be used only for non-recurring expenditures and not be used for budget balancing purposes. I 4. Deferrals or Short - T erm Loans - Deferrals or short-term loans will not be used for budget balancing purposes. 5. Property Tax Revenues - All real and business personal property located within the City is valued at 100% of the fair market value for any given year based on the current appraisal supplied to the City by the Hays County Tax Appraisal District (HCT AD). A visual reappraisal and reassessment of all real and business personal property will be done every third year. The HCT AD reappraises real and business personal property every year as a standard practice. Conservatism will be used to estimate property tax revenues. The Hays County Tax Assessor Collector will furnish an estimated property tax collection rate to the Director of Finance. The Finance Department will endeavor with the Tax Assessor Collector to collect one hundred percent (100%) of property taxes levied in each fiscal year. I City of San Marcos Financial Policy - Revised April 2005 Page 4