City officials applauded the city’s clean audit report that was accepted by the city commission at Tuesday’s meeting.
“This clean audit confirms what we strive for each day as a local government. Our residents deserve responsible stewardship of public funds and a commitment to transparency,” said Mayor Brad Staton in a prepared statement.
The audit, prepared by the firm ATA, shows the city received an “unqualified, clean audit,” which is the highest opinion an auditor can issue, according to a news release from the city.
ATA’s Mac Neel, who presented a report to the city commission Tuesday, said there is a “very solid financial position in Henderson.”
One key takeaway from Neel’s report is that the city’s tax revenues have increased each of the past five years.
Another significant point is that the city’s fund balance sits at a level that represents 221 days of expenditures—much higher than the three-month minimum of operating expenses a fund balance is suggested to have. That’s down from FY 2024’s 245 days of operating expenses, but according to Neel, “pretty solid.”
Additionally, the city saw its eighth consecutive year of growth with the General Fund balance increasing by $866,066 during FY 2025, according to the city’s release. Neel’s report showed the general fund balance sitting at $25.267 million at the end of the last fiscal year.
The city is also assessed with an Aa3 Moody’s bond rating, which is a high grade, according to Moody’s website.
City officials also pointed out the city’s total bonded debt stands at $105.008 million, representing 71% of its legal debt limit of $148.347 million. Of the $105 million in bonded debt, 74.5% of that debt, approximately $78.9 million, has been issued on behalf of the city’s publicly owned utilities, Henderson Municipal Power & Light and Henderson Water Utility, said the city.
Both utilities have issued general obligation bonds through the city—instead of revenue bonds through their own utilities—and according to the leaders of both of the utilities, that has allowed them to keep rates lower.
Bart Boles, the general manager of HWU, said that by using the city’s bonding capacity, the water utility has been able save customers money by refinancing older bonds at lower interest rates and funding critical capital improvements.
“Those savings allow us to maintain and improve our infrastructure while keeping rates as low as possible for our customers,” Boles said in the city’s release.
Similarly, Brad Bickett, HMP&L’s general manager, said the electric utility has been able to save $2 million in financing costs because of its issuing bonds through the city.
“That kind of savings is what gives us the ability to reinvest in our system and minimize the cost of our electric rates to customers,” Bickett said in the release.
Finally, the city’s release highlighted its Government Finance Officers Association’s Triple Crown Award. This recognition honors governments that demonstrate excellence in financial reporting by achieving three specific awards in the same fiscal year: the Certificate of Achievement for Excellence in Financial Reporting, the Popular Annual Financial Reporting Award, and the Distinguished Budget Presentation award. The release said the city has received this award every year since 2018.
