The Kingsport Times-News article, Fiscal year 2008 audit OKs Kingsport financial health does some explaining on the recent audit of Kingsport’s finances.
However there seems to be some things left out or a press release issued by the city that never made it into the newspaper.
The press release below in the last two paragraphs state that the five enterprise funds had $16.3 million in cash.
Enterprise funds have to be self-supporting and we know that the Cattails Golf Course does not make any money and the MeadowView Convention Center ended the year with a $1.3 million loss
This would mean that the city is running a profit center in the water and sewer departments. The raising of water and sewer rates each year has helped this cash position. How else could they have gotten all of this extra cash?
If the City of Kingsport is doing so well, then how come they did not want to refund the 1/4 percent regional sales tax, back to the citizens when the MeadowView Convention Center was paid off? Alderman Marsh and Shull tried to get the regional sales tax refunded back to the citizens but was voted down by Mayor Phillips, Vice Mayor Mallicote, Aldermen Munsey, Joh, and Shupe.
Press Release
KINGSPORT – Kingsport garnered a clean opinion of its financial statement for fiscal year 2008 from auditors Blackburn, Childers & Steagall, and rectified all four findings reported in the prior year.
“This audit represents what the citizens of Kingsport expect from their local government, transparency in financial reporting and responsibility with the taxpayer dollar,” Kingsport Audit Committee Chair and Alderman Larry Munsey said Tuesday. “I’m pleased to note that city finance staff corrected four items identified in last year’s audit, while auditors, whose job it is to go over things with a fine-tooth comb, only found three items in need of some work going forward into 2009. By any measure, our city continues to stand on firm financial ground.”
Auditors noted in their 2008 findings the need for a change in the way property purchases and sales are recorded by the Kingsport Industrial Development Board; better record keeping on the disposition of city capital assets; and better segregation of duties within payroll processing.
“We’re very pleased with this report, and already have projects underway to address the findings on capital asset recording and payroll processing,” Kingsport Finance Director Jim Demming said Tuesday. “The third finding on KIDB is just a matter of changing from net reporting to include all costs related to property acquisitions and sales.”
Demming also noted that the addition of a new internal auditor position and realignment of finance staff duties should quickly correct the findings.
Meanwhile, as of June 30, Kingsport posted $14.84 million in its unrestricted fund balance for 2008, with another $3 million to be added over the next few years as the general fund is repaid funding it advanced for the construction of Cattails Golf Course. Board policy is to maintain a minimum of $11.4 million at all times.
City Manager John Campbell said the pace of city government has quickened with regards to a number of key areas, including the development of a higher education center; greater internal support for job recruitment and retention efforts; expansion of commercial and tourism development; and implementing technology to increase efficiency.
“We have the staff in place to ensure we offer the greatest transparency possible,” Campbell said. “At the same time, we continue to operate well within the self-imposed debt limit of 10 percent of assessed property value, with new capital projects funded by the debt service roll-off as old debt is paid off.
“Without a doubt, the Board of Mayor and Aldermen is making sound investments that position our community for continued growth, which is how we keep property taxes low for everyone.”
Kingsport City Government is organized into six reporting units, starting with the general fund which covers emergency services, development services, leisure services and administration.
Five enterprise funds include the water fund, for the production and distribution of clean water, funded solely by user fees; a sewer fund, again self-supporting through user fees; a solid waste fund for garbage collection and disposal, reported separately but funded through property taxes; and two funds that cover MeadowView Conference Center and the golf course.
Collectively, enterprise funds reported $16.3 million in cash as of June 30, a strong cash position Campbell said he intends to maintain.
King College laid out their plans for a $150 million school of medicine to be located in Kingsport and Bristol.