Kingsport adopts FY2026 budget and property tax rate after public hearing; board votes 6-1 on tax measure

The Board of Mayor and Aldermen of Kingsport voted June 17 to adopt the city’s fiscal 2025–26 general fund budget and to set a new property tax rate after a public hearing and extended budget deliberations. The property tax ordinance passed 6-1.

City Manager Chris McCart told the board the administration had identified roughly $9,800,000 in additional recurring revenue needed to support proposed expenses in the FY2026 budget. McCart said the city received equalized rates from the Tennessee Comptroller’s office after reassessments by county assessors and used that data to calculate the tax rate the board set that evening.

The board and staff framed the new revenue as intended to restore losses to recurring revenues, maintain competitive pay for employees and reinvest in capital needs. McCart said the budget will restore revenue lost in fiscal 2024—including a roughly $3.8 million decline in personal property tax collection—and direct money back into paving and infrastructure. He described a plan for a nearly $10 million capital bond later this year to fund roads, intersections, bridges and school facilities.

The public hearing drew multiple speakers who urged caution…