City of Kingsport presents its Fiscal Year 2027 budget
The City of Kingsport began the new fiscal year with a balanced budget, no increase to the property tax rate and a strong general fund balance of $28 million. This despite lower than expected revenue growth and an increase in expenses due to inflation.
City staff developed the budget during a challenging financial environment characterized by slow revenue growth, persistent and record inflationary pressures, international uncertainty and increasing operational costs.
During two public worksessions held in May, the Board of Mayor and Aldermen heard presentations from city and school officials about estimated revenues and expenditures, capital projects, utilities and budget challenges for the coming year.
The BMA approved the Fiscal Year 2027 budget unanimously in June and the new budget went into effect July 1.
“This year’s budget has been one of the more challenging budgets to finalize in recent memory, but we’re pleased to have been able to balance the budget without an increase to the property tax rate,” said City Manager Chris McCartt. “I’d like to thank our staff, especially in the finance department, for their hard work and commitment throughout this year’s budget process.”
Kingsport’s general fund stands at $114 million with a general fund balance of approximately $28 million. Kingsport’s property tax rate remains at $1.67 per $100 of assessed value.
Paving will continue to receive significant funding in Fiscal Year 2027 with $4.7 million coming from the city, $1.5 million in MTPO (Metropolitan Transportation and Planning Organization) funds and $13.2 million from the Tennessee Department of Transportation.
Other budget highlights include:
- A 3% cost of living adjustment for all employees.
- Step increases to be re-evaluated later in the fiscal year.
- Bond ratings remain strong at Aa2.
- A restructuring of the fire department to decrease overtime.
- Purchasing body cams for the police department.
- Just over $21 million in debt roll-off.
Kingsport’s budget is the guiding financial document for the city and includes many parts – the general fund (main operating and capital fund for the city), water and sewer funds, the school fund and several smaller funds such as solid waste, the Aquatic Center and MeadowView.
Beginning in August, Kingsport’s interactive budget book will be available online and allow residents to explore the city’s budget and see how their tax dollars fund the services and investments that keep the city running every day.
For more information and a link to the digital budget book (available in August), please visit https://www.kingsporttn.gov/government/city-budget/
