Washington County estimates increase in property, sales tax revenue for FY27

The Washington County Budget Committee met on Friday to discuss and begin the process for the fiscal year 2027 budget. The committee discussed major revenue assumption, a 1% salary increase for all county departments, Hurricane Helene recovery bonds and sales and property tax estimates. The meeting was one of three meetings the committee will have to discuss the budget and take possible action. Helene recovery Washington County borrowed more than $74 million in bonds in June of 2025 to aid the recovery after the flood of Hurricane Helene. The state has been and will pay interest on the bonds until June of 2028 at a 5% rate. After three years, the county will begin to pay the interest on the bonds if it has not received reimbursement from both the Federal Emergency Management Agency and Tennessee Emergency Management Agency. The county hopes to be reimbursed by FEMA and TEMA before June 2028 but Washington County Mayor Joe Grandy said that is "optimistic." More than $10 million has already been received by the county from FEMA and TEMA but it is not reflected on the total amount borrowed said Mitch Meredith, the director of finance and administration for Washington County. If the county does not receive reimbursements on the bonds before the state stops paying interest, the county is prepared to pay the interest with the Helene debt retirement fund. This fund was created specifically to pay back bonds taken out for Helene recovery and it is made up of state grants and FEMA reimbursement money. Property and sales taxes The county budgeted for 97% of property taxes to be collected but Meredith said property tax collections are above 97% for 2025 allowing for an increase in projections. He also said sales tax has increased since last year. In 2025, rural Washington County collected $9.1 million in sales tax and this year the rural county collected $9.9 million. The total amount of sales taxes collected for all of Washington County is more than $88 million but it is split amongst Johnson City, Jonesborough and rural Washington County with 80% of the sales tax goes to Johnson City. After it is split into these three categories, Washington County Schools and Johnson City Schools will be allotted 1.25% of the sales tax to split. The Washington County Trustee Rick Storey will divide the money between the two school districts based on average daily attendance. Meredith said he estimates the county to receive $5,004,581.99 in sales tax revenue for FY27. No actions were taken at this meeting and the FY27 budget will not be finalized until the end of June. The committee will meet next Wednesday at 9 a.m. in the Washington County Courthouse to discuss the budget further before bringing it in front of the County Commission on Monday, April 27 at 5 p.m. in the George P. Jaynes Justice Center. The committee will also meet on Wednesday, April 29 at 9 a.m. in the Washington County Courthouse.