The City of Johnson City has received results from the annual audit for the fiscal year ending June 30, 2018. Results of the audit include the following:

• For the 18th consecutive year, the City received a “clean” opinion for the FY2018 audit with no significant deficiencies reported by the auditors.
• The City’s overall net position increased by $29 million.

• The City’s governmental funds increased by $20 million, due mainly to strong tax collections and principal payments on long-term debt. Business-type activities reported a $9 million increase due mainly to principal payments on long-term debt and positive operational performance by the utility funds.
• The City’s total outstanding long-term debt decreased by $16 million (7.6 percent) due to principal payments. No new debt was issued during the year.
• General Fund revenues were $900,000 over projections, and – thanks to lower spending by City departments and healthy growth in taxes and building permits – expenditures came in $2 million below budget. The strong performance resulted in a $1.6 million surplus that was set aside for economic development and the rainy day fund.
• Total fund balance in the general fund grew from $25.4 to $27 million, $7.4 of which is unassigned, $13.9 million of which is restricted, $2.1 million of which is committed for specific purposes, and $3.6 of which is assigned.
• Current property taxes continued a pattern of steady growth, experiencing an increase of 2.2 percent, with no property tax rate increase. The City’s property tax rate continues to be the lowest in the Tri-Cities.
• Local and state sales tax collections experienced growth of 2 percent.
• The City invested $31 million in capital improvements including the renovation of Freedom Hall Civic Center concessions and restrooms; the completion of the Mountainview Road and Browns Mill Road traffic circle; culverts for stormwater management on Boone and Sevier streets; and the completion of numerous water and sewer line extensions, replacements and upgrades.         
• 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, 2017. This was the City’s 17th consecutive year receiving the award.
• Standard & Poor’s upgraded the City’s credit rating from AA- to AA during the fiscal year; the City maintains a Aa2 rating from Moody’s Investors Service and a AA rating from Fitch Ratings.

 “Under the guidance and direction of the Board of Commissioners and with the hard work of our dedicated employees, the City of Johnson City remains in a solid financial position,” said City Manager Pete Peterson. “This report is a direct reflection of our collective commitment to providing quality services to our citizens in an affordable way while positioning us for the future.” 

CONTACT:    Janet Jennings, director
                             Finance
                             423-434-6033

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