The City of Kingsport expects to see its tax revenues for the current fiscal year come in significantly higher than what was originally budgeted.

According to city finance officials, Kingsport’s property tax revenues are projected to increase by $1.1 million by the end of the current fiscal year (June 30, 2022). During that same time, local option sales tax collections are expected to come in more than $2 million over the original budget estimates.

In all, total city revenues for the current fiscal year are expected to be 2% higher than the original budget estimates or by approximately $2.75 million.

This is information that was presented to the Board of Mayor and Aldermen during a day-long, strategic planning session held Friday (Feb. 25) at city hall.

“We’re in pretty good shape financially and once we pay off some end of year projects, we should be in great shape for the rest of the year,” said Budget Director John Morris.

During Friday’s meeting, the BMA heard updates from staff on the city’s finances, economic development efforts and goals for the coming year. In addition, city leaders got a first look at the 2023 budget, reviewed a list of possible ARPA-funded projects and went over the city’s long range strategic plan.

Kingsport is estimating it will collect $41.7 million in property taxes for the 2022 fiscal year, along with $18.7 million in local option sales taxes. Combined, these two revenue sources account for 72.31% of the city’s total revenue for the fiscal year.

Property taxes are projected to come in about 2% over budget ($1.58 million), while local option sales tax collections are coming in 10% over budget ($1.9 million).

According to information provided to the BMA, Kingsport can expect to see revenue growth in the 2% to 4% range ($1.7 million to $3.5 million) for the upcoming 2023 fiscal year. The new fiscal year begins July 1, 2022.

City officials say some challenges will play a role in any budgetary estimates for 2023, including the continuing supply chain issues, rising inflation, any growth in the city’s population and the expansion of city services. “As we experience population growth over the next five years, that will also grow our sales tax collections in Kingsport,” Morris said. “That growth, coupled with strong financial management, will put Kingsport on sound footing for the future.”

To read the National Community Survey in its entirety, click here.

A majority of residents see Kingsport as a good place live, raise a family and retire, while appreciating the ease of travel and the quality of parks and recreational opportunities found within the city.

At the same time, a majority believe the local economy should be a top priority, safety should remain a concern and more should be done with code enforcement and taking care of the city’s vulnerable residents.

These were just some of the results from a National Community Survey of Kingsport conducted in the fall of 2021.

The National Research Center at Polco conducted the survey from Oct. 12 to Nov. 30, randomly selecting 2,700 households in Kingsport to participate. There were 442 responses to the survey which yielded about a 17% response rate. Polco has indicated this is an average response rate.

The survey captured residents’ opinions on 10 central facets of the community – Economy, Mobility, Community Design, Utilities, Safety, Natural Environment, Parks and Recreation, Health and Wellness, Education, Arts and Culture, and Inclusivity and Engagement.

“We wanted to hear from residents how they felt about Kingsport and the services the city offers,” said Jessica Harmon, assistant to the city manager. “What we’ve learned is Kingsport is at or above the national benchmark in a majority of these facets. In the areas where we’re not, this survey will help guide us on what the city should focus on in the coming years.”

According to the survey, about 75% of respondents gave positive ratings to Kingsport as a place to live, raise children and retire. A strong majority (72%) said the overall quality of life in Kingsport was excellent or good, as was the overall image of Kingsport (65%). About 8 in 10 residents would also recommend living in Kingsport to someone who planned to remain in the city for the next five years.

When compared to other communities, 69% of survey respondents said traffic flow on major streets was excellent or good, as was bus or transit services (66%), and ease of travel by public transportation (54%). Strong marks were also given to the ease of travel by car (82%), ease of public parking (72%), snow removal (71%), and street lighting (70%).

About two-thirds of residents gave favorable marks to street cleaning, traffic enforcement and sidewalk maintenance.

Parks and recreational opportunities were two of the most consistently well-performing areas in Kingsport, with a majority of residents (about 8 in 10) giving positive ratings to each. About 7 in 10 respondents had positive views toward fitness and recreational opportunities, recreation centers or facilities, and recreation programs or classes.

“The survey results reinforced some of the things we’ve known about Kingsport for years – that the city has long been a good place to live, raise a family and retire,” said City Manager Chris McCartt.

Virtually all respondents (97%) said the overall economic health of Kingsport was essential or very important and is an issue the city should focus on over the next two years. Only 46% of respondents rated the economic health of Kingsport as excellent or good and about 4 in 10 described downtown as being vibrant.

However, 60% of respondents had favorable views toward the cost of living in Kingsport and about half of the respondents gave positive marks to the Model City as a place to visit, on economic development, employment opportunities and the variety of businesses in town.

“While we believe national stories on the economy and COVID-19 had some impact on the survey results, we’re not blaming the pandemic for all of the negative responses,” said John Rose, economic development director for the city. “The economy remains a top priority for city and elected officials and all of us are working every day to make sure Kingsport’s economy is on track to grow and strengthen as we come out of this pandemic.”

After the economy, safety was the next most important issue from nearly all survey respondents (95%) with approximately 63% saying the overall feeling of safety in Kingsport was excellent or good.

About 9 in 10 respondents reported feeling very or somewhat safe in their neighborhood during the day, from fire, flood, and other natural disasters, as well as in Kingsport’s downtown during the day. The lowest-performing safety questions dealt with emergency preparedness (60%) and crime prevention (56%).

The information gained by the National Community Survey will be incorporated into Kingsport’s strategic plan and budget adjustments will be considered to better address the facets in need of improvement. Kingsport is planning to conduct the survey again in three years to see what progress has been made in the eyes of its citizens.