Kingsport finances receive clean audit for fiscal year 2024
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 week 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, 2023, to June 30, 2024.
The ACFR is a detailed review of city government (including schools, utilities, and economic development). The document covers 37 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 $24.76 million. Kingsport aims to keep 15% to 20% of its general fund budget in reserves. Currently, the reserve sits at 25%.
- Kingsport collected $57.8 million in property taxes (down from $64.5 million in 2023) and $49.8 million in sales tax (down from $49.9 million in 2023). Kingsport’s property tax rate is $1.9983 per $100 of assessed value.
- Kingsport made $14.8 million in general fund debt service payments during fiscal year 2024. Kingsport’s governmental fund debt stood at $135 million.
- Kingsport issued 695 building permits with an estimated value of $147 million during fiscal year 2024. In fiscal year 2023, Kingsport issued 819 building permits with an estimated value of $160.7 million.
- Moody’s Investor Service and Standard and Poor reaffirmed their Aa2 and AA ratings for the city respectively. Kingsport’s unemployment rate was 3.8% as of June 2024.
- For the 26th year, Kingsport finances received a clean opinion – the highest opinion offered – and for the 24th straight year the city’s ACFR received a certificate of achievement for excellence in financial reporting.
To view the entire ACFR, visit https://bit.ly/2024ACFR or go to www.kingsporttn.gov and select “Finance” under the “Government” link.