Sullivan County committee reviews tentative 2026 budget; proposes 9.12% property tax increase

County budget staff presented the tentative 2026 budget to the Management & Budget committee, saying the package was filed by the county manager and reflects a difficult fiscal climate driven by declining sales tax revenue and rising wage- and benefit-related costs. "The 2026 tentative budget was filed by the county manager on October 29," the presenter told the committee. To limit the impact on taxpayers, the budget proposes using $5,500,000 from the county's available fund balance, producing a proposed property tax increase of 9.12%, or roughly $114 a year for every $100,000 of assessed value.

The presenter described timing and accounting constraints tied to GASB 75 valuation requirements and said contingent budget modifications were used to cover expected sales tax shortfalls. Two public hearings on the tentative budget were announced: Dec. 2 at 5:00 PM and Dec. 4 at 10:45 AM; the manager and legislature must adopt the capital plan, any amendments and the 2026 Sullivan County budget before adopting the 2026 tax levy.

During committee discussion, members and staff emphasized the need for caution. Nancy, who provided a receipts update, said recent sales tax payments are down about $100,000 from last year and identified construction-related receipts as a major contributor to the decline. A public commenter urged clearer presentation of the tax-calculation for taxpayers and urged the committee to reconsider a proposed $7.5 million line item tied to relocating staff and possibly vacating the Liberty campus, warning of negative local business impacts.

No final levy was approved at the meeting; the committee approved routine budget-related resolutions and moved the process forward to the scheduled public hearings and subsequent legislative action. The committee is expected to reconvene work on budget amendments before any final adoption deadlines.