Kingsport adopts FY2026 budget with 33¢ property tax increase after contentious debate

The Kingsport Board of Mayor and Alderman adopted a $110,874,600 general fund budget for fiscal 2026 on June 3, approving a property tax increase that the city manager said is necessary to restore lost revenue and fund paving, employee pay and capital projects. The ordinance passed on its first reading by a 5-1 vote.

City Manager Chris, presenting the plan, said the recommended general fund budget “is $110,874,600.” He told the board that the city lost about $3.8 million in revenue after a recent state ratio appraisal and that, with sales tax revenue largely plateaued, “in order to generate that money, there has to be a tax increase.” The budget would reset property-tax revenue for the Kingsport portion of Sullivan County to cover operating needs, preserve the paving program and maintain competitive employee pay.

The vote followed a public hearing that included one speaker, resident Jay Schlage of Lynn Garden, who urged the board to consider impacts on elderly residents and people…