JC Water, Sewer projects $49.2 million FY27 budget

The Johnson City Water and Sewer Services department has proposed a $49.2 million budget for Fiscal Year 2027, a 6% increase from its current budget. The department's budget is wholly enterprise, which means the department is not requesting dollars from the city's general fund. Water and Sewer Services Director Jon Lane said the key drivers behind this year's budget are personnel costs, rising materials costs and population growth impacts. $16.6 million of the department's proposed $49.2 million budget covers personnel costs for its 189 employees. Another $18.2 million covers supplies, materials and chemical costs. Materials costs have increased dramatically over the past five years due to inflation. Lane said these rises have made for a new status quo in his department's budgeting process. "What we've noticed on our side is the inflationary impacts year over year are kind of smoothing out and not that significant," Lane said. "It is a significant difference when you go back five years ago compared to now." "We've had multiple budgets to see that now, where we're at, is kind of the new normal, and so we're kind of preparing for that as part of the budget process every year now," Lane said. The city's water and sewer services operate in Johnson City, and in portions of Washington Sullivan, Carter and Unicoi counties. According to a slide deck Lane presented to the city commission at its last work session, the department's infrastructure spans over 1,500 miles of water and sewer lines with six treatment plants. Across the department's approximate service area population of 130,000, Lane said he's certain revenue projections will cover the proposed FY27 expenses. "Right now, our revenue projections are showing a little over $49 million. So we'll make sure that our expenses side matches at least, and is no more than $49.2 million as well," Lane said.