Valley News -

By Tony Ault
Staff Writer 

San Jacinto City's annual financial report seen favorable

 

Last updated 3/1/2019 at 2:25am



San Jacinto City Council received their annual financial report Tuesday, Feb. 12, showing the city’s net cash position increased by $511,598 from the prior fiscal year, attributed to increased program revenues.

The annual financial report prepared by Rogers, Anderson, Malody and Scott certified public accountants said the “total assets and deferred inflows of resources at the close of the recent fiscal year by $152,372,814.” Of the amount, the firm said $13,980,380 represents the unrestricted net position that could be used to meet the government’s ongoing obligations to citizens and creditors.

The city’s improved financial position, according to the report, is showing “very positive” signs since the “Great Recession” of a few years ago.

“Residential development and home sales have increased dramatically to its best numbers in a decade. Commercial development has returned as well, with several projects scheduled to open in fiscal year 2018-2019. The city’s ordinances on marijuana cultivation hope to add much needed revenues, which in turn will fund additional public safety staffing,” the accounts said.

The report cautioned, however, “public service costs continue to increase at a faster rate than revenues. The city continues to focus on potential commercial growth, bringing the businesses necessary for the residents of the city.”

The auditors showed the city’s general fund budget for 2018-2019 appropriates $23,542,521 in operating and capital expenditures, an increase of 3.7 percent from the prior year, primarily due to public safety costs.

City utility rates for water were last increased by 5 percent in July 2009, and sewer rates were increased 3 percent in July 2011. In March 2014, the city’s solid waste enterprise was taken over by the franchised operator. In April 2018, the city started operations as a community choice aggregation, providing its citizens and businesses with an alternative to the major electric utility for electricity generation, with a greater focus on renewable energy sources at a discounted rate.

Finally the city’s total revenue, excluding transfers, was $39,438,829 for the year ending June 30, 2018. Revenue from governmental activities, excluding transfers, totaled $32,283,255 and revenue from business-type activities totaled $7,155,574, excluding transfers.

During 2018, capital grants and contributions, restricted to the construction of capital assets, comprised 16 percent of the total revenue of the city, taxes and other general revenues provided 30 percent of the total revenue of the city, and charges for services and operating grants and contributions provided 54 percent of the total revenue of the city. Most of the revenues remained stable from 2017 to 2018, with minor increases due to an increase in development and overall activity.

The city’s expenses totaled $38,927,231 for the year. Governmental activity expenses totaled $31,663,072, or 81 percent of total expenses. Business-type activities incurred $7,264,159 of expenses during the year, or 19 percent of total expenses. Increases in almost all expenditure categories relate to an increase in overall activity, according to the report.

The report was accepted and filed by the city council.

In other business, the city council adopted an amended Conflict of Interest Code pursuant to the Political Reform Act of 1974.The amended code added a number of new city positions, and included new conflict of interest rules of all other city officers, employees and consultants of the city as outlined in the PRA Act.

The conflict of interest code for the city was first amended in 2014, but many conflict of interest rules both federal and state have changed since then.

Historically, conflict of interests have often been the cause for elected and appointed government officials for losing their posts or forcing their early retirement. City councilmen or other elected officials, under the conflict of interest rules, must recuse themselves from voting on any issue where they may have a monetary interest.

The city council on the recommendation of the Planning Commission extended the conditional use permit for Mountain States Development who is still considering constructing 49 single family homes located on east side of Lyon Avenue, north of Seventh Street and bordered by the Flood Control Channel to the north and east.

The original zoning change and conditional use permit was issued in 2007 but had since expired.

Tony Ault can be reached by email at [email protected]

 

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