City and school officials say PEP funds will cover $860,000 to keep Town Acres classrooms, clarifying furnishings gap

Johnson City officials briefed the Johnson City Board of Education that $860,000 from the city's PEP sales-tax account will be used to retain planned classrooms and clerestory windows in the Town Acres school construction project, and that the district and city will continue negotiating funding for furnishings.

Brian Ross of the city of Johnson City told the board the Town Acres project is moving forward and that demolition is complete at Market Street School and work is underway there. Ross said the city will present refined numbers to the city commission at a called meeting on Oct. 16.

“The city administration agreed to kick in a little bit more money,” Ross said, noting the $860,000 figure as the amount the city will add from PEP funds so the district need not remove classrooms or certain design features. He said construction allowances were also reduced to help make the project fit within budget.

Board chair Jonathan Kinnick confirmed the board had learned of the city's decision only a few hours earlier. Kinnick said that with the city’s PEP contribution the district can keep the four classrooms and the clerestory windows and remain on a schedule for a November groundbreaking and a June 2027 opening.

Board members and staff acknowledged furnishings remain unresolved. During the discussion a board member referenced furnishing costs, and the superintendent and city staff said furnishing dollars would be addressed separately because they are not needed until later in the schedule.

Leah Valley later briefed the board on the PEP account balance and transfers; she said deposits for August included a city deposit of $296,000 and the school's deposit of $175,000, and that the August PEP balance was $9,564,000 after a transfer for fencing at Indian Trail. Valley said the city had budgeted additional deposits and planned withdrawals tied to other projects, and that she expected a roughly $3,000,000 buffer to remain in PEP after planned uses.

No formal vote on Town Acres funding was taken at the board meeting; Ross said he would present the plan formally to the city commission on Oct. 16.

The board requested additional detail on furnishing estimates and agreed staff and city officials would continue negotiating funding for finishings and equipment. The district’s timeline — groundbreaking in November and school opening in June 2027 — remained in place.

Ending: Board members thanked Ross for the update and signaled comfort with the city moving forward to the city commission for formal approval on Oct. 16.