Case Study: Kingsport, Tennessee
Upon meeting with the City administration, we gained an understanding of Kingsport’s need for a long-term financial planning tool to assist with capital reinvestment in facilities and infrastructure.
After being engaged as a special advisor, Davenport developed a Multi-Year Capital Planning and Forecasting Model that incorporated a variety of tax base, revenue, capital spending, and debt assumptions. The Model was built to analyze the City’s debt capacity in relation to its policies, as well as, the City’s debt affordability in relation to its budgeted revenues for debt service. The Model also incorporates the added complexity of separate reassessment cycles on the City’s projected tax rates and revenue base resulting from the two independent jurisdictions where Kingsport is located.
This planning tool allows the City administration to assess in real-time the projected impact of debt funding capital projects on the City’s revenue needs and future budgets over a ten-year planning horizon.