Johnson City adopts FY2026 budget after public questions on tax levies and reserves

The Johnson City Commission approved the fiscal year 2026 budget (Ordinance 49-18-25) on third and final reading Thursday, after a public commenter asked for explanations of differing property tax levies by county and the drop in the city’s general fund reserve.

At a public comment before the vote, resident Sylvan Birney told the commission, “budgets are moral documents,” and asked four questions about the budget documents, including why the property tax levy varies by county, the sources of $15.3 million in intergovernmental revenues, the reasons for increases in development services and facilities management spending, and how the city plans to replenish general fund reserves following a projected decline.

The questions underscored the central points of the public discussion: different assessed-value calculations across Sullivan, Carter and Washington counties that produce different effective levies for Johnson City properties, and a projected decrease in the city’s general fund reserves. City staff and commissioners addressed the first concern by explaining that counties perform property reappraisals on different schedules, which affects assessed values and, therefore, the effective levy residents see. Commissioner Wise noted that reappraisal timing, not a city decision on rates, produces the apparent discrepancies.

City staff recommended approval on third reading with no proposed changes. During discussion, a commissioner reiterated that the reappraisal schedules set by counties drive the differing levy figures and said the state comptroller has been encouraging more frequent reassessments to reduce such variation.

The budget documents referenced during the meeting show an estimated decrease in the general fund reserve: the transcript cites reserve figures falling from $54,800,000 at the end of 2024 to $24,600,000 at the end of 2025, a change the public commenter highlighted and asked the commission to explain.

The final voice vote recorded “yes” from Commissioner Brock, Dr. Fowler, Commissioner Wise and Mayor John Hunter; the ordinance passed. The commission made no additional amendments or conditions during the meeting.

Looking ahead, staff said detailed questions about line-item allocations and intergovernmental revenue breakdowns are best handled by finance staff, who can provide department-level explanations outside the meeting.

Votes at a glance Ordinance 49-18-25 (FY2026 budget) — Approved on third and final reading; recorded yes votes: Commissioner Brock; Dr. Fowler; Commissioner Wise; Mayor John Hunter.

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