Johnson City finance director reports $33.9 million fund balance, $21 million drop since June 2024
Loading...
Summary
Finance Director Stephanie Louse presented unaudited results for nine months ending March 31, 2025, reporting a $33.9 million fund balance (down $21 million from June 2024), an expense recognition of a $27 million settlement, and sales‑tax trends that staff expect will result in meeting budget but not exceeding it.
Finance Director Stephanie Louse presented unaudited financial statements to the Johnson City Commission on April 17, 2025 covering the nine months ended March 31.
Louse reported a general‑fund balance of $33.9 million as of March 31, a decrease of $21 million from June 2024. "Our fund balance right now as of March 31 is 33,900,000.0," she said. The report reflects a February settlement the city recorded in full as an expense of $27 million; Louse said about $21 million of that payment has been disbursed and the remainder remains as an accrual in payables.
Why it matters: The drop in fund balance reduces the city’s unassigned reserves and leaves the restricted‑fund policy about $1.5 million short of the target two months of expenditures; Louse said departments are tightening budgets to help close that gap.
Key details: Louse said year‑to‑date general‑fund revenues are at about 81.2% of budget and property‑tax collections are strong (she said property taxes were at 95.5%, with 97.4% of a roughly $43 million levy collected). Sales tax receipts trailed earlier expectations and were at about 74.3% of budget for the reporting period; staff said a two‑month reporting lag and recent declines from the prior December temper earlier growth trends and led the finance director to expect sales tax to come in at budget but not above.
Lodging and special events: Louse noted occupancy taxes benefited from a strong month in October tied to activity after Hurricane Helene and that the Big South tournament may influence related collections; the city planned to review final numbers at an upcoming Convention and Visitors Bureau meeting.
Enterprise funds and other items: The water and sewer enterprise was slightly ahead of budget, with a change in net position about $2.5 million (about $1 million ahead of plan) that staff said will help fund capital. Regional and city solid waste and stormwater funds were at or above budget expectations. Louse reported Freedom Hall remained materially behind due to event losses tied to Helene and had a year‑to‑date shortfall she estimated at about $710,000.
Action and next steps: The presentation was informational; commissioners asked questions and thanked staff. Louse said she expects some one‑time items and seasonal receipts to normalize as the fiscal year closes.
Ending: Commissioners did not take formal action on the presentation; finance staff will continue to monitor collections and departmental spending through the fiscal year.
