An air conditioning system and a method of operating the same to improve system performance is provided. The air conditioning system includes an outdoor heat exchanger, an indoor heat exchanger, and a reheat heat exchanger. A reheat temperature sensor positioned proximate an upstream end of the reheat heat exchanger in a cooling mode for measuring a reheat coil saturation temperature. A controller adjusts at least one operating parameter, such as a compressor or fan speed, in response to the reheat coil saturation temperature and/or one of an outdoor coil vapor temperature, an indoor coil vapor temperature, an outdoor coil saturation temperature, and an indoor coil saturation temperature.