Bud Emerson | Klish Way
Del Mar’s excellent financial capability was affirmed at the February 7 City Council meeting by three sources.
1.The annual outside audit of Del Mar’s financial statements conducted by Mayer Hoffman McCann was completely clean, “We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses.”
2.The second quarter financial report from City Treasurer Theresa McBroom showed “positive financial results after being economically challenged the last two fiscal years.” With a revenue increase of $169k and expenditure adjustments of $45k, our contingency reserve is now at 18.61%, up from 10.54%
- *TOT (hotel taxes) were up 15% over the prior fiscal year.
- *Sales taxes were up 2%
- *Property taxes (highest in County) were up 3%
3.And most impressively, Del Mar received a letter from highly regarded Wedbush Securities in San Francisco, the firm that has managed all prior financing related to the Del Mar Racetrack and is therefore very familiar with racetrack and fair operations, “affirming the viability of Del Mar’s proposed financing to acquire the Del Mar Fairgrounds and Racetrack property...the bonds would be rated investment grade...Wedbush Securities believes the City has the management expertise and financial and business acumen to partner with the appropriate operatonal experts to run the property successfully and to retire the proposed debt in accordance with its terms.”