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 on a large tax increase and called for alternative solutions. Judy Johnson, a Kingsport resident, urged a localized safety study: “I would like to propose that a study be conducted to consider a sidewalk along Stratford Road between Memorial Drive and Shipley Street,” she told the board, citing pedestrians forced into traffic on a road with no shoulder.

Tim Sanders, a resident of Bloomingdale, urged the city to pursue lower-cost maintenance options before raising taxes. “If you raise something, open your mind, think outside the box, and cut something,” Sanders said, recommending more regular ditch cleaning and stronger enforcement of post-construction road repairs by contractors.

Others voiced concerns about the burden on people on fixed incomes and renters. Ellen Yeager, a Kings Road resident, said, “A lot of us are on fixed budgets,” and urged the board to consider how increased property taxes would affect those households. James Scott Walker, a Maple Oaks resident, warned higher property taxes could be shifted into higher rents. Jerome Hurtgen, also speaking on the tax measure, urged the board to prioritize essential needs and revisit budget line items to reduce the proposed increase.

Board members discussed technical limits created by separate reassessment schedules: Sullivan County recently completed a reappraisal while Hawkins County has not revalued since 2021, producing unequal assessment timing for households in different parts of the city. Several aldermen asked staff to study available options for addressing the misalignment and for ways to better explain the difference to Hawkins County residents who live inside the city limits.

Vice Mayor Duncan, who moved the ordinance, and Alderman Cooper, who seconded it, both spoke to the months of meetings and budget reductions that produced the final proposal. The board repeatedly emphasized that the budget and tax-rate decisions followed multiple work sessions and one-on-one meetings with staff prior to the formal vote.

The board approved the property tax ordinance by a 6-1 vote. The general fund budget ordinance also passed on second reading with a 6-1 vote. Separate water and sewer budgets and multiple smaller budget and grant ordinances were adopted by unanimous votes at the same meeting (see “Votes at a glance” article for a full list).

Why it matters: City leaders said the revenue increase is intended to restore recurring funds that were cut in prior years, to make the city more competitive for recruiting and retaining police and fire personnel, and to resume a sustainable paving program that staff and residents identified as a top priority. Residents at the hearing urged the board to consider targeted measures to protect fixed-income households and to explore lower-cost maintenance and permitting enforcement before adopting large revenue increases.

What’s next: City staff will move forward on implementing the FY2026 budget, prepare for the planned capital bond later this year, and pursue follow-up work the board requested on possible options for aligning county reassessments or otherwise explaining differences to Hawkins County residents. The tax-rate ordinance took effect upon adoption; additional budget and grant items passed at the meeting set appropriations for the new fiscal year beginning July 1, 2025.

Speakers quoted in this article are identified in the official meeting transcript and appear in the meeting record. Exact vote totals and fund allocations are recorded in the ordinances and resolutions the board approved on June 17.