December 27, 2018
Two recent financial reports point to the positive financial health of the City of Kannapolis.
A recent audit report of the City of Kannapolis’ finances shows the City is financially sound and therefore received a “clean” or “unmodified” opinion. The unmodified opinion from the auditors of Martin and Starnes, an independent auditing firm, means the City has no weaknesses, no issues and no findings that would signal any problems with the financial health of the City.
The audit report found the City has a healthy fund balance (savings account). The state requires Kannapolis have a minimum of eight percent of the general fund in the fund balance in case of emergencies or unexpected expenses. Kannapolis currently has 22% of operating expenses in the fund balance account. This represents nearly three times the minimum amount recommended by the State.
The City receives an audit each year in order to meet legal requirements, to be transparent and to ensure there are no issues with the accounting procedures of the municipality.
The City also recently received new ratings from Standard and Poor’s (S&P). The City received a AA- credit rating and an A+ limited obligation bond rating. The City was positively recognized by the firm for its strong management, with good financial policies and practices; strong budgetary performance, very strong budgetary flexibility; very strong liquidity; very weak debt and very strong institutional framework.
With a healthy financial status, the City is able to move forward with capital projects, secure funding for joint projects, solicit economic development initiatives and more.