City finances in good shape for next year | News

By CLIFF HIGHTOWER

KINGSPORT — The Town of Kingsport is in a strong financial position for the 2022-2023 fiscal year.

For the second consecutive year, Kingsport has posted a budget surplus of more than 2% growth.

“We’re in pretty good financial shape and once we’ve paid off some year-end projects, we should be in excellent shape for the rest of the year,” said budget director John Morris.

City records show a budget surplus of more than $2.75 million for the next fiscal year. That’s after the city ended the previous fiscal year with a $2.1 million surplus.

City officials said property tax collections rose by $1.58 million, while sales tax collections rose by more than $1.9 million and hit record highs.

John Morris, the city’s budget director, said sales tax collections in December topped $2 million for the first time ever.

Much of the growth in tax collection comes from the growth in the number of people moving into the city, inflation and the collection of sales tax on internet sales, officials said. from the city.

Kingsport estimates it will collect $41.7 million in property taxes for fiscal 2022, as well as $18.7 million in local option sales taxes. Together, these two sources of revenue represent 72.31% of the city’s total revenue for the fiscal year.

Property taxes are expected to be over budget by approximately 2%, while local option sales tax collections are over budget by 10%.

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

City officials say certain challenges will play a role in any budget estimate for 2023, including ongoing supply chain issues, rising inflation, any growth in the city’s population, and expanding services. municipal services.

“As we will experience population growth over the next five years, it will also increase our sales tax collections in Kingsport,” Morris said. “This growth, coupled with strong financial management, will put Kingsport on a solid footing for the future.”

The city, however, also finds itself on the brink of an influx of federal funds, more than $10 million in money from the American Rescue Plan Act.

The city planned late last year how to use the first part of the money that arrived last May. Many of the expenditures agreed to by the council included improvement projects for fire, police and other capital improvement projects.

These included the completion of the fire training facility, repaving of the Lynn Garden improvements in Allandale and the Senior Center, and storm water improvements along Main Street.

The board met once again in February to iron out the next round of funding, which is expected to arrive in May.

During this meeting, many council members discussed using the money to fund a larger project that normally the city wouldn’t be able to fund right away. The list of projects to be considered included library renovations, completion of parks and Brickyard Park and Cement Hill, general improvements to the park, further development of the University Village and construction of a new fire station No. 2.

Comments are closed.