Rate increase to grow city property tax revenue by nearly $10M

Johnson City administration projects a 9.8% increase in local tax income and 6.4% increase in expenses compared to fiscal 2026, according to the city's final fiscal 2027 budget. With a now-approved 28-cent rate increase, the budget projects the city will bring in $52.4 million in property taxes, up $9.7 million (22.9%) from last year. Property tax revenue makes up around half of all of the city's projected local tax revenue. All tax revenue combined makes up 81% of the city's total revenue. Other budgeted general fund revenue Sales tax dollars, which make up about a third of the city's local tax revenue, are budgeted to grow by $1.01 million (3%) this year. Decreases are projected for wholesale beer tax by $120,000 (5.9%) and liquor tax by $90,000 (8.2%). Gross receipts tax and hotel-motel tax revenues are each planned to grow by $100,000 each, representing around a 3% increase for each. When it comes to other income sources, the city has budgeted a $94,500 (6.1%) decrease in license and permit revenues. Slight increases are projected for intergovernmental revenues, which includes various state taxes, and city service charges. General fund expenses This year, the city repurposed funds from its development services and facilities management departments to restructure and create its economic development and building services departments. The combined operating budgets for the old departments totals $4,030,391, while the combined operating budgets for the new building services and economic development departments is $4,682,621. This is a $652,230 (16%) increase in funding. Information Technology (IT) saw the largest sole, departmental percent increase in operating expenses in the city's fiscal 2027 budget with $485,946 (12.9%). Public Works saw the largest dollar amount increase with $1,594,806 (9.4%) in additional expenses budgeted. The police department projected expenses grew by $1,385,815 (7.1%). The parks and recreation department represents the next highest dollar amount increase in expenses with $535,144 (6.6%). In total, the general fund represents $130 million of the city's total $406 million operation across all funds. It does not include enterprise funds, such as water and sewer, or capital projects.