City of Kingsport finances receive clean audit
Kingsport’s finances received a clean bill of health last year with auditors finding no significant deficiencies or instances of noncompliance.
City finance officials earlier this month presented the Board of Mayor and Aldermen with an overview of Kingsport’s latest audit. The Annual Comprehensive Financial Report (ACFR) is a review of the city’s finances for the prior fiscal year, which ran from July 1, 2022, to June 30, 2023.
The ACFR is a detailed review of city government (including schools, utilities, and economic development). The document covers 36 separate funds and all manner of financial issues from cash flow to long-term debt to governmental assets.
Auditors offered a “clean opinion” again this year on Kingsport’s finances, the highest opinion they can issue. They found no significant deficiencies or instances of noncompliance during their review of the city’s financial controls and operations.
Some highlights from this year’s ACFR include:
- A rainy-day fund of $24.9 million – the highest level ever. Kingsport aims to keep 15% to 20% of its total fund balance in reserves. Currently, Kingsport sits at 26%.
- Kingsport collected $64.5 million in property taxes (up from $61 million in 2022) and $49.9 million in sales tax (up from $46.5 million in 2022).
- Kingsport made $13.7 million in general fund debt service payments during fiscal year 2023. Kingsport’s governmental fund debt stood at $104.3 million.
- Kingsport issued 819 building permits with an estimated value of $160 million during the fiscal year 2023. In the fiscal year 2022, Kingsport issued 840 building permits with an estimated value of $156 million.
- Moody’s Investor Service and Standard and Poor reaffirmed their Aa2 and AA ratings for the city, respectively.
- For the 25th year, Kingsport finances received a clean opinion – the highest opinion offered – and for the 23rd straight year the city’s 2022 ACFR received a certificate of achievement for excellence in financial reporting.
To view the entire ACFR, visit https://bit.ly/acfr2023 or go to www.kingsporttn.gov and select “Finance” under the “Government” link.
