HENDERSON, KY, January 13, 2026– The City of Henderson has received an unqualified, clean audit for the Fiscal Year 2025 following an independent review conducted by ATA of Henderson, Kentucky. This is the highest opinion an auditor can issue and is a direct reflection of the City’s strong financial practices.
The results of the audit highlight the City’s continued financial stability. The City saw its eighth consecutive year of growth with the General Fund balance increasing by $866,066 during Fiscal Year 2025. This trend reflects conservative budgeting practices and well-ordered financial planning that allow the City to prepare for future needs while maintaining stable services.
“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. “The community deserves to know their tax dollars are being managed carefully, and this report reflects the hard work and professionalism of our City staff.”
The City’s strong financial management is further reflected in its Aa3 bond rating which is a testament to the City’s healthy reserves, manageable debt profile, and moderate reliance on economically sensitive payroll taxes.
As of Fiscal Year 2025, the City’s total bonded debt stands at $105,008,000, representing 71% of its legal debt limit of $148,347,000. Importantly, 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 (HMP&L) and Henderson Water Utility (HWU).
The utilities use the City’s bonding capacity to allow them to secure lower interest rates than those they would receive through separate revenue bonds. The savings they receive through this help keep utility costs more affordable for customers and it reduces the need for recurrent rate increases.
“By using the City’s bonding capacity in previous years, we’ve been able to save our customers money by refinancing older bonds at lower interest rates and funding critical capital improvements,” said Bart Boles, General Manager of HWU. “Those savings allow us to maintain and improve our infrastructure while keeping rates as low as possible for our customers.”
Brad Bickett, General Manager of HMP&L, points out recent examples of the benefits of using the City’s bonding capacity. “By issuing bonds through the City in recent years, HMP&L saved approximately $2 million in financing costs,” Bickett said. “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.”
To further prove the City’s financial strength, it was recently announced that the City has earned the 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. Receiving these awards requires the City to showcase a top performance in comprehensive financial reporting, transparent budgeting, and easy-to-understand financial summaries for the public. The City has received the Triple Crown Award consecutively since 2018.
Residents who would like to learn more about the City’s finances can view past budgets on the City’s website, along with the award-winning Popular Annual Financial Report. This report is designed to present the City’s financial information in a clear, easy-to-understand format so residents can better understand how public funds are collected and managed.