News Article

Feb 14, 2018

City receives clean audit

The City of Johnson City has received results from the annual audit for the fiscal year ending June 30, 2017. Results of the audit include the following: 

• For the seventeenth consecutive year, the City received a “clean” opinion for the FY2017 audit with no significant deficiencies reported by the auditors.

• The City’s overall net position decreased by $151 million. This decrease was due to the transfer of Johnson City Power Board operations to the Johnson City Energy Authority, effective March 31, 2017. Without this transfer, the City’s overall net position would have reflected an increase of $26 million. 

• The City’s governmental funds reported a year increase of $9.7 million.

• The City’s total outstanding long-term debt decreased $39.7 million (15.7%), a large portion of which was attributable to the defeasance of Power Board bonds.

• Revenue growth exceeded the amended budget by $3.4 million, resulting in $2.9 million net change in the General Fund balance. Healthy tax growth, both local and state-shared, accounted for these favorable results.

• At the end of FY2017, unassigned fund balance for the General Fund was $7.6 million, an increase of $2.7 million.  

• Current property taxes continued a pattern of steady growth, experiencing an increase of 1.5%, with no property tax rate increase. The City’s property tax rate continues to be the lowest of all the surrounding areas. 

• Sales tax collections experienced healthy growth of 2.9%.

• The City made approximately $16 million in principal payments on debt outstanding and invested $40 million in capital improvements. Approximately 40% of the investment was in the utility funds (Water/Sewer and Stormwater). The balance was invested in road and trail improvements, civic center upgrades, school maintenance facility, school energy improvements, playground equipment and the acquisition of departmental vehicles and equipment.  

• The Government Finance Officers’ Association of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Johnson City for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2016. This was the City’s sixteenth consecutive year for receiving the award.

City Manager Pete Peterson said he is proud to maintain a AA- debt rating from Standard and Poor’s, a Aa2 rating from Moody’s Investor’s Service, and a AA rating from Fitch. 

“This report reflects our excellent financial condition and is a direct result of guidance and direction from the Board of Commissioners and the hard work of our very dedicated staff,” he added. “While this is a great position to be in, we remain cautiously optimistic about what the future may bring. We remain dedicated to delivering quality services in an affordable manner.”

CONTACT: Janet Jennings, director

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