The City of Johnson City operates as a home rule municipality and is governed by the City ManagerCommission form of government. The Board of Commissioners is the governing body of the City of Johnson City. Commissioners are elected at large for four-year staggered terms. Commissioners select the mayor from among their group following each election. The mayor serves as the ceremonial head of the City, presides over City Commission meetings, and represents the City of Johnson City at a variety of community and public functions. The Board of Commissioners hires a professional city manager to manage and direct day-to-day operations of city
government. City commissioners participate in a variety of boards, commissions and committees. Their involvement provides an important link between citizens, businesses, non-profits and municipal government. The City Commission ensures the provision of community services the people of Johnson City need and want. In carrying out its duties, the City Commission must address citizens’ concerns while planning for the community’s long-term growth and development. To this end, it is the responsibility of the City Commission to oversee costs and be as efficient as possible while managing the City’s infrastructure projects and investments.
Commissioner Dr. Todd Fowler
Mayor
John Hunter
Vice Mayor Greg Cox
Commissioner Joe Wise
Commissioner Jenny Brock
City Manager’s Message to Commission
DATE: May 6, 2025
TO: Mayor and Board of Commissioners
FROM: Cathy D. Ball, City Manager
SUBJECT:
Fiscal Year 2026 Budget
Annually, I present and recommend to you the fiscal year budget in accordance with the Johnson City Charter and applicable governing bodies. The Fiscal Year 2026 budget for the City of Johnson City reflects our commitment to our core services, education, and our employees. This budget is estimates expenditures and revenue while focusing on the commission’s strategic goals of Economic Vitality, Future-Ready Infrastructure, Quality of Place, and Excellence in Government.
This year’s budget presents a unique financial challenge to the city. A large legal settlement occurred in the same fiscal year when a significant drawdown on the city’s unassigned fund balance to pay for one-time capital equipment and projects was budgeted. The combined effects of the settlement and the budgeted capital expenses have resulted in our general fund balance going from $54.8 million total ($19.3 unassigned and $22.5 in emergency reserves at the end of FY 2024 per the latest audit) to an estimated $24.5 million total (no unassigned balance and an estimated $13.5 million in emergency reserves at the end of FY 2025).
Despite these obstacles, the City has seen significant achievements in Fiscal Year 2025:
• The Fire Department, in collaboration with Water and Sewer Services, achieved an ISO rating of 1, the highest possible score.
• Our Juvenile Court launched the Safe Baby Court program in collaboration with the State of Tennessee, powerfully impacting mothers and children across our community.
• The Main Street program was successfully brought in house and continues to positively impact the economic viability of downtown for resident and visitors.
• Our Development Services division launched JC Builds to improve the development process in our city.
• Participation and engagement is up versus the prior year in both Parks and Recreation programming and Senior Services programming.
• Pine Oaks Golf Course is on track to achieve an all-time high of 43,000 rounds of golf.
• Our homeless outreach coordinators have helped house 110 people with a 90% retention rate.
• The Police Department’s ‘Safer Drive in 25’ campaign, a continuation of the ‘Safer 26 in 24’ initiative, has resulted in a reduction of accidents and an increase in traffic stops, citations, and arrests on Interstate 26.
• In addition to the Distinguished Budget Presentation Award, the Budget Department received special recognition in the area of Strategic Goals and Strategies from Government Finance Officers Association (GFOA).
City Manager’s Message to Commission
The list goes on, and these accomplishments remind us that we can face challenges and experience incredible success at the same time.
This budget is a product of extensive examination, evaluation, and reevaluation of the areas that matter most to us as an organization, and prioritizing appropriate funding in order to continue our successes. As in prior years, those areas of prioritization remain a commitment to our employees, excellent core services, and education.
For Fiscal Year 2026, we are budgeting the total general fund revenues at $120.1 million, which represents a $1.33 million or 1.1% total growth versus the Fiscal Year 2025 projected total revenue amount of $118.77 million. While the FY 2026 budgeted revenue number may seem overly conservative, it’s important to keep in mind that the $118.77 million total projected revenue for Fiscal Year 2025 includes the one-time revenue of $1.6 million from the sale of Buffalo Valley Golf Course. Total revenue growth budget-to-budget is $2.8 million or 2.4%.
The total general fund expenditures for Fiscal Year 2026 are $120.1 million, a $1.7 million or 1.4% reduction from the $121.8 total general fund expenditures budgeted for Fiscal Year 2025. Due to the aforementioned legal settlement and budgeted drawdown, the total projected general fund expenditures for Fiscal Year 2025 are $149 million. The budget-to-budget reduction in total general fund expenditures allows for a truly balanced budget that prioritizes expenditures based on the following:
Employee Prioritization
Consistent with our employee-first culture, our largest investment this year is a proposed 4% pay increase for City employees. This initiative reflects our ongoing commitment to attract, retain, and support a dedicated workforce. The proposed adjustment is expected to increase total personnel costs within the General Fund by $1.8 million.
Education
A new Towne Acres Elementary School tops the list of projects for this budget. In the prior fiscal year, much of necessary preparation was undertaken in order to begin construction. This budget proposes officially issuing the debt for the new school and beginning construction on this crucial project for our community.
Core Services
Residents and service providers depend on safe and accessible infrastructure that is maintained and upgraded on schedule. We recommend $5.5 million for these efforts, which include street resurfacing, street reconstruction and pavement maintenance.
City Manager’s Message to Commission
With limited remaining funding after accounting for all operating expenses and no unassigned fund balance from which to draw, we are only able to recommend $499,000 of new spending toward capital equipment purchases and capital projects. There is, however, a significant amount of carryover capital equipment and capital projects in this year’s budget.
On the equipment side, we recommend $190,000 for Microsoft Windows and Office Licensing, $10,000 for Cisco phone services, and $16,000 for two crime scene scanners. Carryover equipment includes $626,000 for three large and two small school buses as well as $640,000 for a fire engine pumper.
For capital projects, this budget recommends $93,000 for re-plastering the pool at Memorial Park Community Center and $190,000 for the local portion of a federal grant that goes toward an expanded fiber optic network. Carryover capital projects include $1.2 million for Keefauver Farm Phase I, $209,000 for Carver Recreation Center HVAC, $265,000 for downtown cameras, and $1.2 million for the Gray Station/Bobby Hicks intersection.
Thank you for your dedication, leadership and direction.
With appreciation,
Cathy D. Ball City Manager
ORGANIZATIONAL CHART
Cathy D. Ball City Manager
LEADERSHIP TEAM
Aaron Ensor Director of Court Services
Brian Ross Facilities Director
Dustin Thompson Director of Budget and Performance Management
Eldonna Janutalo Transit Director
April Norris Director of Parks & Recreation
Keisha Shoun Director of Public Affairs
Stephanie Laos Finance Director
Melanie Rice Director of Human Resources
Mark Stone Civic Center General Manager
Tim Henley Director of Fleet Management
David Bell Fire Chief
David Eidson Director of Information Technology
Debbie Dillon Director of Purchasing
Jason Miles Director of Public Works
Billy Church Police Chief
Glenn Berry MPO Manager
Tom Witherspoon Director of Water & Sewer Services
BOARDS AND COMMITTEES
The City of Johnson City has established a variety of standing and advisory committees and boards intended to provide information, advice, and recommendations for consideration by the Johnson City Board of Commissioners on specific issues of civic concern. These boards and committees are typically made up of citizen representatives, Commission members, other elected officials and City staff. Appointments for the boards and committees take place semi-annually in January and July. Additional information, including agendas, meeting minutes and applications, can be found on the City’s website: www.johnsoncitytn.org/boards_and_committees.
WASHINGTON COUNTY – JOHNSON CITY ANIMAL CONTROL CENTER
D/B/A WASHINGTON COUNTY JOHNSON CITY ANIMAL SHELTER
ANIMAL CONTROL BOARD
5 Standing Positions I 5 At-Large Positions Staggered 1 or 3-year terms I Meetings: 2nd Tuesday at 5:30 p.m. Johnson City/Washington County Animal Shelter, 3411 N. Roan St.
To find a good home for every adoptable pet, reduce pet population growth through the adjoining spay and neuter clinic, end animal neglect and abuse, be a positive force in the community for animal welfare, and enforce state, city, and county laws regarding animal welfare. City or County residency required.
BOARD OF BUILDING CODES
7 Members I Staggered 1, 2 and 3-year terms I Meetings: As needed on the 1st Tuesday at 4:00 p.m. Municipal and Safety Building, 601 E. Main St.
Hears and decides appeals to code interpretation made by the Chief Building Official and regulates Johnson City contractor certification. Positions include a professional registered engineer, electrical contractor, plumbing contractor, mechanical/gas contractor, residential building contractor, commercial building contractor, and registered architect. City residency required.
BOARD OF DWELLING STANDARDS AND REVIEW
5 Members I 3-year terms I Meetings: 4th Thursday at 6:00 p.m. (except Nov. and Dec.)
Municipal and Safety Building, 601 E. Main St.
Investigate property conditions to determine which structures are unfit for human occupation or use and order the property into compliance. City residency required.
BOARD OF ZONING APPEALS
5 Members I 3-year terms I Meetings: 1st Tuesday at 6:00 p.m.
Municipal and Safety Building, 601 E. Main St.
Hears and decides appeals to provisions of the zoning code, considers applications for special exceptions and decides questions of interpretation of the code. City residency required.
JOHNSON CITY ENERGY AUTHORITY D/B/A BRIGHTRIDGE
BRIGHTRIDGE BOARD OF DIRECTORS
5 Standing Directors I 5 At-Large Directors 4-year terms I Meetings: 4th Tuesday at 4:15 p.m.
BrightRidge, 2600 Boones Creek Road
Serves as a liaison between BrightRidge’s customers and management. City residency required in order to apply for one of the five at-large positions representing Johnson City.
Boards and Committees
CIVIL SERVICE COMMISSION
5 Standing Members I Staggered 2-year terms I Meetings: as needed
Municipal and Safety Building, 601 E. Main St.
Addresses police and fire employees’ civil service matters and certifies entry level and promotional rosters. City residency required.
JOHNSON CITY CONVENTION AND VISITORS BUREAU, INC.
D/B/A VISIT JOHNSON
CITY
9 Directors I Staggered 3-year terms I Meetings: 3rd Wednesday at 12:00 p.m.
Visit Johnson City, 302 Buffalo St.
Showcase the uniqueness of and develops increased civic interest in Johnson City as an attraction to tourists, visitors and individuals; to solicit special events to take place in Johnson City; to promote the distinctive resources of Johnson City; and to increase the economic contribution of tourism in order to grow Johnson City and relieve the burdens of government. City residency or employment with City limits required.
WASHINGTON COUNTY – JOHNSON CITY EMERGENCY MEDICAL SERVICES, INC.
5 Standing Members I 4 At-Large Members Staggered 3-year terms I Meetings: 2nd Tuesday at 6:00 p.m. EMS, 296 Wesley St.
Manages Emergency Medical Services. Two members are appointed by the City Commission with one required to be a healthcare professional and the other a city resident.
HEALTH AND EDUCATIONAL FACILITIES BOARD OF JOHNSON CITY
7 Members I 6-year terms I Meetings: As needed; Annual meeting 2nd Monday in June at 7:00 p.m.; Municipal and Safety Building, 601 E. Main St.
Aids medical and educational facilities in obtaining tax-free loans as allowed by a combination of Federal and State of Tennessee Statutes. City residency required.
HISTORIC ZONING COMMISSION
7 Members I 5-year terms I Meetings: 4th Tuesday at 5:30 p.m. [except Nov. and Dec.)
Municipal and Safety Building, 601 E. Main St.
Establish procedures for processing applications for certificates of appropriateness for: changes in external appearance of existing structures; design of new structures; and for demolition of existing structures within the Johnson City Historic District.
HOUSING AND COMMUNITY DEVELOPMENT ADVISORY BOARD
10 Target Neighborhood Residential Members 4 At-Large Members I 3-year terms I Meetings: 4th Thursday at 12:00 p.m. [Jan., April, July & Oct.)
Municipal and Safety Building, 601 E. Main St.
Advises and makes recommendations concerning housing, community, and economic development issues. City residency required.
Boards and Committees
INDUSTRIAL DEVELOPMENT BOARD
7 Members I 6-year terms I Meetings: 3rd Thursday at 10:00 a.m. (Jan., April, July & Oct.)
Municipal and Safety Building, 601 E. Main St.
A means of financing business/industrial facilities that create employment and economic growth. City residency required.
JOHNSON CITY DEVELOPMENT AUTHORITY
7 to 13 Members I 2-year terms I Meetings: 4th Friday at 8:00 a.m.
Memorial Park Community Center, 510 Bert St.
Promotes and assists with the development and redevelopment of Johnson City, with specific emphasis on the downtown district and support for the local business community.. No residency requirement.
JOHNSON CITY HOUSING AUTHORITY
5 Members I 5-year terms I Meetings: 4th Wednesday at 12:00 p.m.
Johnson City Housing Authority, 901 Pardee St.
Establishes policy and procedures governing the operation of the housing authority. City residency required.
JOHNSON CITY PUBLIC LIBRARY BOARD
9 Members I 3-year terms I Meetings: 3rd Tuesday at 4:30 p.m.
Johnson City Public Library, 100 W. Millard St.
Governing body and controlling fiscal authority for the public library. City residency required.
JOHNSON CITY REGIONAL PLANNING COMMISSION
10 Members I 3-year terms I Meetings: 2nd Tuesday of the month at 6:00 p.m.
Municipal and Safety Building, 601 E. Main St.
The Planning Commission reviews all rezoning, annexations, and right-of-way abandonments, makes recommendations for approval or denial to the Board of Commission, and makes recommendations on land use policy issues through the subdivision regulations, zoning ordinance, and the comprehensive plan. City residency required for nine positions. The remaining position requires residency inside the Regional Planning Jurisdiction but outside the City Limits of Johnson City.
PARKS AND RECREATION ADVISORY BOARD
5 to 9 Members I 3-year terms I Meetings: 4th Thursday at 4:00 p.m. (except June, July, Aug., Nov. & Dec.)
Keystone Building Conference Room, 508 Cranberry St.
Makes recommendations regarding recreation services and facilities. City residency required.
Boards and Committees
PROPERTY MAINTENANCE BOARD OF APPEALS
5 members I 3-year terms I Meetings: 4th Thursday at 7:00 p.m. (except Nov. and Dec.)
Municipal and Safety Building, 601 E. Main St.
Hear and decide appeals on interpretation, the applicability of a provision and the satisfaction of the requirements of the International Property Maintenance Code.
PUBLIC ART COMMITTEE
5 to 15 members I 3-year terms I Meetings: 2nd Wednesday at 5:00 p.m.
Municipal and Safety Building, 601 E. Main St.
Considers matters concerning public art, monuments, murals, or other creative efforts of individuals or groups. No residency requirement.
SENIOR SERVICES ADVISORY COUNCIL
5 to 14 Members I 3-year terms I Meetings: 3rd Tuesday at 4:00 p.m. [except July, Aug. & Dec.)
Memorial Park Community Center, 510 Bert St.
Makes recommendations on matters affecting planning, support, and programming for the senior center. City residency required.
TRI-CITIES AIRPORT AUTHORITY BOARD
12 Members I 3-year terms I Meetings: 4th Thursday at 10:00 a.m. [Feb., April, June, Aug., Oct. & Dec.)
Tri-Cities Airport, 2525 TN-75, Blountville, TN
Manages and controls the business of the Tri-Cities Regional Airport. Three of the 12 members represent the City of Johnson City. No residency requirement.
WASHINGTON COUNTY BOARD OF EQUALIZATION
6 members I 2-year terms I Meetings: June as needed
Washington County Courthouse, 100 E. Main St., Jonesborough, TN
Reviews the tax assessment rolls, hears complaints and appeals of taxpayers within their jurisdiction. City residency and Washington County residency required.
History CITY OVERVIEW
Johnson City, Tennessee is a small city in the northeastern region of the state, located mostly in Washington County, with parts in Carter and Sullivan counties. The city has a rich history dating back to the late 1700s when it was first settled by European immigrants. Known in those early days at Blue Plum or Johnson’s Depot, the farming community only had a population of around 500 people.
Henry Johnson anticipated the hustle and bustle a new mode of transportation – the railroad – would bring and set up shop directly in its path before a single rail car made its way through the area’s mountains. The town of Johnson City was officially incorporated in 1869 with Henry Johnson elected as its first mayor.
During the early 1900s, Johnson City became a hub for the railroad industry, with several major rail lines passing through the city. Henry Johnson was the first in a line of entrepreneurs who established a variety of businesses and industries that made the railroad central to everyday life in Johnson City.
Johnson City continued to grow and prosper, with the construction of the National Soldiers Home in 1903, a campus for America’s veterans, and the establishment of East Tennessee State Normal School in 1911, the predecessor to East Tennessee State University. Appalachian Hospital also opened during this time. These institutions helped to establish Johnson City as a center for education and healthcare in the region, and the city’s economy continued to thrive. As a
result, the population of Johnson City grew rapidly, reaching over 20,000 by the 1930s.
Throughout the latter half of the 20th century, Johnson City underwent significant changes, with the growth of the retail industry, the expansion of the healthcare sector, and the establishment of several new industries. Today, Johnson City is home to a diverse array of businesses, including manufacturing, healthcare, education, and technology companies.
One of Tennessee’s fastest-growing cities, the City of Johnson City has evolved into a vibrant regional center that strives to honor the physical and cultural characteristics that provide much of its small-town charm and character. The city is home to several historic landmarks and attractions, including the Tipton-Haynes State Historic Site, which was once the home of early settler John Tipton, and the Tweetsie Trail, a popular hiking and biking trail that follows the path of an old railroad.
Johnson City has a rich and diverse history that has helped to shape its identity as a vibrant and thriving community. As the city continues to grow and evolve, local leaders and policymakers are committed to continuing their investment in the city’s infrastructure and resources, ensuring that Johnson City remains a great place to live, work, and visit for years to come.
73,635 POPULATION
3.6% growth since April 1, 2020
*U.S. Census Bureau, Quickfacts
ETHNIC MAKEUP
MEDIAN AGE
35.3
HOUSEHOLD INCOME
Under $25,000: 22%
$25,000 - $49,999: 23%
$50,000 - $74,999: 19%
$75,000 - $99,999: 14%
$100,000 - $149,999: 9%
$150,000 and above: 13%
$55,406 Median
Black or African American
Hispanic or Latino (any race)
Asian Some Other Race
Two or More Races
*U.S. Census Bureau, ACS 1-Year Estimate 2023
JOHNSON CITY DEMOGRAPHICS
33,526 HOUSING UNITS
City Overview
Largest Property Tax Payers Taxable
Glimcher Mall Johnson City, LLC
Walmart/Sam’s Real Estate
American Water Heater Co.
Mountain States Properties
Knob Creek Apts., LLC
Reserve Johnson City
The Villas at Mockingbird Lane RAF Johnson City, LLC (The Crossing)
Atmos Energy Corporation
$16,948,355
$13,857,065
$11,891,447
$11,301,440
$10,334,920 $10,238,041 $9,811,320 $8,732,880
City Overview
Ballad Health Corporation
Veterans Health Administration
CITI Commerce Solutions
Advanced Call Center Technologies, LLC
Washington Board of Education
Johnson City Board of Education A.O. Smith (American Water Heater Co.)
Sources: First Tennessee Development District, Business Journal, Tennessee Department of Labor & Workforce Development
STRATEGIC PLANNING
The City of Johnson City’s 2020-2025 Strategic Plan is goal-oriented and includes the City’s vision, mission, values, strategic goals and directions, as well as anticipated outcomes and results. This plan forms the foundation for all other long-range planning for the City, including the Budget and Capital Investment Plan other targeted plans for more specific goals. The Strategic Plan includes the following components:
Vision
Johnson City is a highly desirable community where people and businesses thrive.
Mission
We Go. All. Out. to enrich the quality of life in Johnson City.
Organizational Values
Organizational values form the foundation for the City’s decision-making framework and relationships with our stakeholders – employees, residents, and clients. The City of Johnson City strives to be an organization recognized for its excellence in city governance and employee, resident, and client relations.
We GET EXCITED to serve Johnson City through these values:
EXcellence
Customer Service
Integrity
Teamwork
Engagement
Dedication
Strategic Planning
Strategic Goals
The City of Johnson City has identified four strategic goals to support its vision:
ECONOMIC VITALITY QUALITY OF PLACE
FUTURE READY INFRASTRUCTURE
EXCELLENCE IN CITY GOVERNANCE
Strategic Planning Review Process
The Johnson City Board of Commissioners embarked on its strategic planning process in 2020. Commissioners along with city staff consulted numerous surveys, plans and other reports in addition to drawing on input from citizens, businesses and community partners to formulate the initial plan. In 2023, with new city management in place, the Board participated in a professionally led planning retreat that resulted in updated priorities to better reflect the current status of our community. The resulting plan is a combination of the initial research and existing issues facing Johnson City.
Monitoring Success and Performance
A strong governance model that is based on the principles of openness, fairness and accountability and that ensures informed decision-making throughout the organization and draws on the energies of citizen participation.
Strategic Planning
ECONOMIC VITALITY
What
we hope to achieve:
• Create an environment that empowers businesses and individuals to pursue their fullest potential
• Recruit and retain businesses and workforce talent
• Cultivate a local entrepreneurial ecosystem and prepare a workforce for 21st Century jobs
• Encourage economic development, with an emphasis on underserved areas
• Ensure a resilient economy
How we plan to achieve it:
• Determine new revenue streams for Freedom Hall (short term); assess future plans (long term).
• Collaborate with property owners to fulfill the vision of the West Walnut Street Corridor.
• Implement the extraordinary retail district at Boones Creek (pending certification).
• Assess City-owned properties for potential strategic redevelopment.
• Assess economic centers in the city (Growth Management Plan).
• South Johnson City
• East Johnson City
QUALITY OF PLACE
What we hope to achieve:
• Continue to support and grow “best in class” education systems for k-12, vocational, and higher education
• Protect our natural resources and enhancing outdoor amenities
• Prioritize a safe, vibrant, and family-friendly city;
• Advance a diverse mix of housing
• Make Johnson City the best place to live, work, and play
How we plan to achieve it:
• Focus on core service excellence — maintenance, cleanliness, and beautification throughout the city.
• In conjunction with public and private partners, develop a collaborative strategy to address homelessness.
Strategic Planning
FUTURE READY INFRASTRUCTURE
• Provide safe, secure, sustainable, and technologically advanced water, sewer, waste disposal, and broadband systems
• Proactively complete transportation improvements in anticipation of continued growth
• Position the community to withstand natural disasters
• Maintain and update all City and school facilities and amenities
• Work with partners to ensure critical emergency services are provided to our community
EXCELLENCE IN CITY GOVERNANCE
• Create an environment that empowers employees to provide excellent and accessible services
• Recruit and develop well-qualified employees
• Stay at the forefront of innovative technology
• Balancing the provision of existing services and infrastructure with planning for future needs to maintain the City’s strong financial position
• Making informed decisions
• Complete Growth Management Plan.
• Continue investment in maintenance and upgrade of infrastructure, including water, sewer, stormwater, sidewalks, streets, undergrounding of utilities, etc.
• Partner with other agencies in the region to conduct resiliency planning and emergency management planning.
• Develop public-private partnership models to finance infrastructure investments.
• Create a culture that empowers employees to thrive, fosters innovation and collaboration, and ensures employees feel valued.
• Uphold the values and principles of the City Commission.
Performance Management Report Strategic Planning
This report offers a quantitative analysis of the city’s performance and adherence over time to the Board of Commissioner’s Strategic Goals. It aims to provide transparency regarding areas where the city either meets or fails to achieve these goals. The benchmarks for each metric are set by federal or state guidelines, thirdparty industry standards, relevant comparisons to other municipalities, or internal policies. By measuring the city’s performance against these benchmarks, we can better assess Johnson City’s past performance, current state, and future trajectory.
The Board of Commissioners has four Strategic Goals:
1. Economic Vitality
2. Quality of Place
3. Future Ready Infrastructure
4. Excellence in City Governance
ECONOMIC VITALITY
The economic vitality of the Johnson City has continued to improve since the prior year as demonstrated by the growth in the Real GDP, and per capita income with a decline in unemployment. The city’s population growth shows potential signs of concern. Likewise, the city is struggling with housing affordability amid abrupt population growth and high interest rates.
Real GDP
Total Real GDP for Johnson City MSA 2001-2023
$9,000
$8,500
$8,000
$7,500
$7,000
$6,500
$6,000
$5,500
$5,000
Source: U.S. Bureau of Economic Analysis (BEA)
Strategic Planning
The previous chart looks at the Total Real Gross Domestic Product (GDP) for the Johnson City Metropolitan Statistical Area (Washington, Carter, and Unicoi counties) since 2001 until 2023, the first and last years of available data. Real means the amounts are adjusted for inflation. As the chart demonstrates, Johnson City had strong real GDP growth in the early 2000s before the Great Recession. Real GDP peaked in this period at $7.18 billion in 2008. It wasn’t until 2015 that the Real GDP was able to reach a new high of $7.24 billion. 2017-2020 saw a period of relatively steady average growth of $151 million per year. After the pandemic, from 2021-2023, Real GDP average growth erupted, more than doubling its previous rate to a new average growth rate of $322 million per year.
Median Household Income
Johnson City Median Household Income 2017-2023
Source: US Census ACS-1 Year, Data Not Available for 2020
Median Household Income in Johnson City shows a bit of a mixed bag of results. From 2017-2019, as shown in blue, median income was roughly $41,000 per year on average. From 2021-2023, the median household income was around $55,000 per year on average. That’s a significant improvement; however, as the chart also shows in orange, the real (inflation adjusted) income has fallen precipitously since 2021, from around $50,000 per year to round $45,000 per year in 2017 dollars. Stagnant wage growth from 2021 to 2023 means that the inflation adjusted value of 2023 median household income is roughly the same as it was in 2018, despite increasing $10,000 a year.
Strategic Planning
Employment numbers have remained strong since the pandemic as the chart below demonstrates:
Johnson City Seasonally Adjusted Unemployment Rate January 2020 - April 2025
Source: Tennessee Department of Labor & Workforce Development Monthly Reports
One particularly encouraging metric is that unemployment has not exceeded 4% since June 2022.
Strategic Planning
Population Growth
Johnson City Population
*Data not yet available after 2024
Source: US Census Population Estimates Program
The above chart is where we first start to see signs that give pause to a universally positive outlook. As the chart demonstrates, the city’s population increased substantially since after the pandemic from 2021-2024. However, the population growth slowed substantially from 2023-2024, increasing by fewer than 200 people. This could indicate that the period of expansive population growth has ended and we are entering a period of low to modest growth. Without substantial increases in population, Real GDP growth will likely come in much lower than the 3-year average of $322 million per year.
Strategic Planning
Housing Data
Johnson City MSA FHFA HPI All-Transaction Index
Source: US Federal Housing Finance Agency – House Price Index
Above is the Federal Housing Finance Agency House Price Index for the Johnson City MSA from 19922025. As the chart demonstrates, in the years prior to the COVID-19 pandemic, the Johnson City MSA saw extremely stable home prices with small incremental increases. From Q1 of 1995 until Q1 of 2019 the index only increased from 100 to 200, meaning it took 24 years for home values to double. However, from Q1 2019 to Q2 2022, the index increased from 200 to 300, meaning home values increased the same amount as the prior 24 years in the span of just over 3 years. This huge leap in home prices had a profound effect on home affordability as the next chart shows:
Strategic Planning
Housing Affordability Index, Quarterly, 2016
This affordability index is based on the one published by the National Association of Realtors. The National Association of Realtors does not publish data for the Johnson City MSA, but all of the data necessary to recreate their affordability index is available through different sources. This index calculates affordability based on median list price, median family income, estimated monthly payment assuming a 20% down payment, and assuming qualifying income as 25% of gross family income for housing expenses. One hundred (100) on the index indicates that the qualifying income and estimated mortgage costs are equal, while a score above 100 means qualifying income exceeds the estimated mortgage costs by that percentage (120 = 120%, 140 = 140%, etc.).
As the chart shows, from 2016-2021 the median family income in the Johnson City MSA was more than enough to afford a median priced home within the Johnson City MSA. However, in Q4 of 2022 the index dipped below 100 and has never recovered. This means in the Johnson City MSA, a median family income was no longer sufficient to purchase the median priced home since Q4 of 2022.
This strain on housing costs and options bears out in the National Community Survey results as well:
Strategic Planning
Survey on Economy Results
Despite the challenges with housing, the National Community Survey results were positive and similar to other municipalities in regard to Johnson City’s economy:
A significant point of emphasis is the Cost of Living result. Even though positive response rate fell from 70% in 2018 to 48% in 2024, the 48% positive response rate was higher than the typical municipality. Responses that are noted as higher or lower mean the response rate was 10-20 points higher or lower than the average response. So, despite the drop in positive responses, Johnson City still scores better in cost of living that most municipalities.
Source: National Community Survey – 2024
Source: National Community Survey – 2024
Strategic Planning
EXCELLENCE IN CITY GOVERNANCE
Maintenance of Fund Balance Requirement
General Fund Balance FY16 - FY26
70,000,000
FY25 is a projection and FY26 is the budgeted amount based on that projection *
Restricted Committed Assigned Unassigned
Source: Johnson City FY 2026 Budget
As the above chart shows, the settlement of the lawsuit against the city in FY 2025 had a significant effect on the city’s fund balance. The total fund balance has returned to FY 2016-FY 2017 levels. Rebuilding our financial position will be a multiyear effort.
Strategic Planning
City Governance Poll Results
Below are results from the National Community Survey about the quality of the services provided by Johnson City compared to the federal government:
The 2024 results are quite positive for Johnson City; 64% of citizens felt positively about the quality of the services provided by the city while only 35% felt the positively about the quality of the services provided by the federal government, a nearly 30% difference. These results are also similar to the results seen nationally.
Below are some additional responses to questions about the quality of services provided by Johnson City:
Overall, these responses are again good news for the city. Overall customer service had a positive response rate of 71% which is similar to other cities nationally. Value of services for taxes paid also had more positive responses than negative. While the responses to the question about the overall direction the city is taking trend downward, it’s important to note that the results were similar to other municipalities.
Source: National Community Survey – 2024
Source: National Community Survey – 2024
Value of services for the taxes paid to Johnson City
Strategic Planning
QUALITY OF PLACE
Public Safety
Public safety and crime are often the first things people think of when they consider the overall quality of place. TBI collects crime data for every municipality in the state. Of particular interest are the Group A crimes, which constitute the most frequently occurring and/or most serious crimes. The following chart, also displayed in the prior year’s budget book, shows the Group A offenses per 1,000 residents in Johnson City from 2017-2024:
As the chart shows, Johnson City has seen a substantial drop in the rate of Group A offenses since 2017, with the sharpest improvements occurring during the years 2022 and 2024. During these years, Johnson City has placed an increased emphasis on public safety and that increased emphasis appears to be paying off. Likewise, continuing a trend seen in prior years, the rate of Group A offenses continues to fall despite increases in population:
*Examples include theft, homicide, assault, fraud, etc.
Source: Tennessee Bureau of Investigation – Crime in Tennessee Annual Reports
Between Population & Crime with Trendline
Strategic Planning
Schools
Much like the prior year, schools continue to be a bright spot for Johnson City, so much so in fact that responses about the quality of Johnson City’s K-12 education had a higher positive response rate than most cities nationally:
The data available from the city schools also reflects this. In 2023, Johnson City Schools average ACT score continued to significantly outperform the state average:
Source: National Community Survey – 2024
Strategic Planning
Quality of Place Survey Results
Below are responses to the National Community Survey about the quality of life and living in Johnson City:
The results are extremely encouraging to the city. City officials can take pride in the fact that the overwhelming majority of respondents feels positively about living in Johnson City, plan to stay in Johnson City, and would recommend living here to someone else. It’s also noteworthy that there was a higher than average positive response when asked about retiring in Johnson City, a trend that’s continued since the 2021 survey results.
Source: National Community Survey – 2024
Strategic Planning
Parks and Recreation
Johnson City also offers a plethora of parks and recreation opportunities. Based on data from the National Recreation and Parks Association (NRPA), Johnson City averages far more acres of parkland per 1,000 residents than the typical jurisdiction of comparable size:
Additionally, while maintaining more acres of parkland per 1,000 residents than jurisdictions of similar size, Johnson City Parks and Recreation does so at a cost close to the median per capita.
The following charts depict the rounds of golf played at Pine Oaks Golf Course, senior citizen programming participants, the total parks and recreation participants, and results from the National Community Survey about the quality of the service from Johnson City Parks and Recreation:
Source: Johnson City Parks and Recreation and NRPA Agency Performance Review 2020-2024
Source: Johnson City Parks and Recreation and NRPA Agency Performance Review 2020-2024
Strategic Planning
Golf Rounds
FY19FY20FY21FY22FY23FY24FY25
Source: Johnson City Parks and Recreation Department
Senior Participants
FY19 FY20FY21FY22FY23FY24FY25
Source: Johnson City Parks and Recreation Department
Strategic Planning
Total Parks and Recreation Program Participants
Source: National Community Survey – 2024
As the charts demonstrate, the Parks and Recreation senior participation and total participation have both fully recovered from the effects of the COVID-19 pandemic. Senior program participant count totaled 85,043 and total parks program participants reached 236,349. Rounds of golf played at Pine Oaks Golf Course did not exceed the FY 2024 results, but still exceeded 43,000 total rounds played for the second year in a row. The 2024 National Community Survey results were also overwhelmingly positive with over eight out of 10 residents saying the quality of the parks and recreation services provided by Johnson City are good or excellent, a similar rate to the national benchmark.
Strategic Planning
FUTURE READY INFRASTRUCTURE
Utilities
Below are responses to the national community survey about the quality of the utility infrastructure in Johnson City:
Source: National Community Survey – 2024
The results are very encouraging; 74% of respondents felt positively about the overall quality of the city’s utility infrastructure, which includes many non-city services (internet, power, etc.) and respondents felt very positively about the utility services the city did offer.
Below are responses from the National Community Survey about the transportation system in Johnson City:
Transportation
While the results about the transportation system might seem disappointing, it’s important to note that these responses are not significantly different than other municipalities nationally. Additionally, 69% of respondents had a positive response when asked about the ease of travel by car.
Strategic Planning
Fire Department & Water Sewer Services
In 2024, the Johnson City Fire Department received an ISO rating of 1, the highest possible score. Because 40% of the score is related to the water system, this is also a huge accomplishment for our Water and Sewer Services department. The Water and Sewer Services department also passed the Water System Sanitary Survey administered by the Tennessee Department of Environment and Conservation, scoring well above the minimum approval score:
Source: Johnson City Water Sewer Services & Tennessee Department of Environment and Conservation
BUDGET OVERVIEW
Budget Message
The budget for Fiscal Year 2026 has been developed in accordance with city ordinances, state and federal laws, and the policies and procedures of the City. It has been prepared with the goal of maintaining a high level of service to our community, with as realistic as possible budget requests for expenditures, and with a reasonable level of conservative estimates on revenue.
The FY 2026 budget is a balanced budget. Total expenditures for all funds are $351,228,785 which includes the City Schools budgets.
General Fund
Total General Fund revenue is budgeted at $120,099,322, an increase of 2.4%, $2,862,691, on a budget-tobudget basis. When measured against projected revenues for the prior year, FY 2026 revenues are projected to increase by $1,330,491 or 1.1%.
For FY 2026, real and personal property taxes are budgeted to increase by 1.2% or $525,000 on a budget-tobudget basis. Overall, property tax collections account for approximately 36.6% of General Fund revenue.
Local option sales tax, the second largest General Fund revenue source at 28.1%, is budgeted to increase by approximately 1.3% on a budget-to-budget basis, and 3.1%, $1,018,000 on a projected-to-budget basis. This is due to lower than anticipated sales tax revenue in FY 2025. From FY 2021-2023, sales tax revenue benefited greatly from unexpectedly strong post-pandemic economic conditions, growing annually at 13.6%, 13.7%, and 7.7%, respectively. This was substantial compared to a 3.2% average growth rate from FY 2015-2020. This boom in sales tax revenue growth appears to have reached its end in FY 2024 as the growth rate for FY 2024 was 2.3% and projected at 2.1% for FY 2025.
Budget Overview
Hotel/motel tax collections are budgeted at $3,700,000, an increase of $300,000 (8.8%) budget-to-budget.
Licenses and permits, which reflect building activity, are budgeted at $1,339,300, an increase of 2.1% or $27,300 budget-to-budget. This mirrors the steady growth the city has been experiencing.
Intergovernmental revenues, which account for approximately 12.8% of General Fund revenue, are budgeted at $15,329,080, an increase of 4.4%, or $647,400, budget-to-budget. Intergovernmental revenues are mostly comprised of state shared revenue, such as state shared sales tax, state mixed drink tax, state gas tax, and state highway maintenance, as well as the SRO grant through the Tennessee Department of Safety and Homeland Security.
FY 2026
General Fund Revenue
Property Tax
Local Option Sales Tax
Other Local Taxes
Intergovernmental Other
Charges for service are budgeted at $5,956,522, an increase of $1,075,121 or 22% budget-to-budget. This is mostly due to an increase in administrative fees and computer services to the enterprise funds, as well as projected increases in Pine Oaks Golf Course and Parks and Recreation revenue.
There is no budgeted use of general fund balance in FY 2026.
Budget Overview
Expenditures & Transfers
The General Fund budget totals $120,099,322, a decrease of $1,727,048 (1.4%) over the FY 2025 budget. The General Fund budget includes $92,794,002 for personnel and operating expenditures, and $27,305,320 for operating transfers to support other funds.
Total operating expenditures increased by 0.3% or $315,271 budget-to-budget. Personnel, which accounts for 64% of operating costs, is budgeted at $59,345,875, an increase of $651,056 or 1.1%. Several vacant position were frozen as part of the effort to balance the budget. The FY 2026 budget includes a 3% pay plan adjustment, and a 0% - 1.5% merit adjustment.
FY 2026 General Fund
Departmental and other operating expenditures (excluding personnel costs) total $33,448,127, which is a decrease of $335,785 or 1%.
Major transfers from the General Fund include $499,000 for capital equipment, facilities, and infrastructure; $13,369,992 for debt service; and $11,626,736 for Johnson City Schools. The City transfer to assist with funding for the operation of the Johnson City Schools remained the same from FY 25. In the past 16 fiscal years the City’s appropriation to the Schools has increased seven times: FY 2011 - $400,000, FY 2013 - $350,000, FY 2014 - $375,000, FY 2015 - $500,000, FY 2016 - $963,061, FY 2019 - $500,000, and FY 2022 - $750,000.
Other transfers amount to $1,809,592 or 6.6% of total transfers.
Budget Overview
General Fund
Funding for the Johnson City Public Library is budgeted at $2,372,836 in total, which is an increase of $42,585 or 1.8%. This covers a cost of living adjustment for library employees. Total funding for the Imagination Library is $39,700. The Imagination Library also receives funding from Washington County.
Quasi-Governmental funding is budgeted at $5,066,549, a decrease of $209,590 or 4%.
Staffing / Salaries and Benefits
A total of 1,034 full-time and part-time (FTE) positions are budgeted in all city funds. In addition to the previously mentioned pay plan and merit adjustments, there are no adjustments in health insurance premiums in FY 2026. Health plan design changes went into effect in January 2025.
Enterprise Funds Budget Overview
WATER / SEWER FUND
Total revenues are budgeted at $45,987,195, an increase of $2,868,400 or 6.7% from the prior fiscal year budget.
Water and Sewer Fund expenses total $44,352,488, an increase of $2,525,693 or 6% compared to FY 2025 budget. Total staffing remains the same at 188.9 full-time equivalent.
Expenses for capital equipment replacement total $1,074,500, a decrease of $93,500 from the FY 2025 budget.
Budgeted water capital projects total $4,450,000. These projects are funded through cash, grants, and bond funding. Major projects include galvanized line replacement ($1,000,000), 2009 pressure zone improvements ($1,100,000), Washington County extension phase II ($1,000,000), and water tank rehabilitation ($850,000).
Budgeted sewer capital projects total $15,650,000. In similar manner to the water projects, the sewer capital projects are funded through a combination of cash, grants, and bond funding. These include Sinking Creek sewer lift station ($5,000,000), regional sewer capacity improvements ($3,000,000), H station replacement ($3,000,000), and C station replacement ($2,000,000).
Budgeted combined water and sewer capital projects total $2,270,000. Major projects include Knob Creek Road and bridge utility improvements ($1,600,000) and miscellaneous treatment and facility maintenance and line maintenance and construction improvements ($450,000).
SOLID WASTE FUNDS
Solid Waste operating expenses total $19,783,059, which includes $15,612,885 for the Municipal Solid Waste Fund and $4,170,174 for the Regional Solid Waste Fund.
The Municipal fund is budgeted to increase by $1,131,362 or 7.8% budget-to-budget due to operational increases.
The Regional fund is budgeted to increase by $183,716 or 4.6% budget-to-budget, once again to due operational increases.
Capital equipment is budgeted at $2,725,000 for Municipal equipment, including three front-load trucks, two automated trucks, and a brush/furniture truck.
Budget Overview
MASS TRANSIT FUND
The Mass Transit Fund expenses total $5,994,326, which is an increase of $219,083 (3.8%) from the prior year budget. This is the sixteenth year of operation for the New Freedom program, which is funded by a Federal Transportation Agency grant. This program allowed the City to establish two new routes that serve the Med Tech corridor and Boones Creek, and it has expanded ADA accessibility for job opportunities and to medical facilities. Federal and state grants account for approximately 80% of the fund’s total revenue. The transfer from the General Fund to support transit operations is budgeted at $1,282,467. This is required to meet federal and state grant matching requirements. Mass Transit capital is budgeted at $780,000.
STORM WATER FUND
The Storm Water Fund expenses total $2,686,348, which is an increase of $152,813 from the FY 2025 budget. Capital equipment is budgeted at $765,000 for a vacuum/jet truck and a skid steer loader. A total of $5,800,000 is budgeted for capital projects with $3,300,000 in federal grant funding for the West Walnut Street holding pond.
Capital Equipment/Projects & Debt Funds
The capital equipment fund is budgeted at $3,461,468, including a $216,000 transfer from the General Fund and $1,595,468 in funds from the capital equipment fund balance.
Capital facilities are budgeted at $4,772,000, including $2,650,000 in ARPA funding towards the fire training facility’s fire tower.
Capital infrastructure projects are budgeted at $17,115,000, including $11,000,000 (debt funded) for the following road projects: West Walnut improvements from State of Franklin to Antioch Rd., widening at Christian Church Rd. and Boones Creek Rd., new road between Suncrest Dr. and Roscoe Fitz Rd., and signalization and widening at Sam Jenkins Rd. and Suncrest Dr., Rockingham Rd. and N. Roan St., and Indian Ridge Rd. and Market St.
School facility capital projects are budgeted at $18,060,000, which is for the construction (year 1) of a new Towne Acres Elementary School ($18,000,000) and central office HVAC ($60,000).
The Debt Service Fund is budgeted at $13,918,963, which represents an increase of $2,486,595 or 21.7% from the prior year. This increase is due to the issuance of debt for the new Towne Acres Elementary School and various Public Works road projects. The Debt Service Fund includes the debt service for the City and School System. The City’s debt service is budgeted at $9,323,998. The School System’s debt service is budgeted at $4,594,965.
Budget Overview
Other Funds
FREEDOM HALL FUND
The Freedom Hall Fund expenses total $1,912,237, which is a decrease of $51,347 or 2.6% from the prior year budget. The General Fund transfer to support Freedom Hall is budgeted at $450,000.
POLICE DRUG, GRANTS, AND TECHNOLOGY FUNDS
The Police Drug, Grants, and Technology Funds are budgeted at $304,000, $230,125, and $192,778, respectively. The Drug Fund includes $214,000 for four unmarked SUVs, two K-9 Interceptor SUVs, and a drone. The Grant Fund includes funds for two victim services coordinator positions at the Family Justice Center.
MTPO - TRANSPORTATION PLANNING FUND
The MTPO – Transportation Planning Fund is budgeted at $438,255. MTPO is responsible for regional transportation planning and coordination.
POLICIES AND PROCEDURES
General Information
GOVERNMENT
Johnson City adopted the council-manager form of government in 1939. This form combines the benefits of elected legislative representation with a professionally managed government. Citizens elect, at large, five city commissioners who serve four-year terms. The Board of Commissioners hires a professional city manager to manage and direct the day-to-day operation of the City government, administer the budget, and employ all City employees with the exception of the Juvenile Court Judge, Juvenile Court Clerk, Municipal Court Judge, and City Attorney. The Juvenile Court Judge and Juvenile Court Clerk are elected by the municipal voters. The Municipal Court Judge and City Attorney are appointed by the City Commission.
The City Manager is the chief executive officer for the city. It is the responsibility of the City Manager to enforce the laws and ordinances of the city and attend all meetings of the governing body with the right to take part in the discussion. Having no vote, the City Manager can make a recommendation of measures to the governing body.
The City provides a wide range of services similar to other jurisdictions in the State, including public safety (both Police and Fire), municipal and regional solid waste services, municipal and regional water and sewer services, parks and recreation, a civic center, seniors’ center, one golf course, a mass transit system, public works, a school system, and economic development.
BUDGETARY AND FINANCIAL REPORTING
The City of Johnson City is implementing the recommended practices by the National Advisory Council on State and Local Budgeting (NACSLB). City staff has applied diligent effort into improving the process, decisions, and outcomes with each new budget year.
The budget process is not simply an exercise in balancing revenues and expenditures one year at a time, but is strategic in nature, encompassing a multi-year financial and operational plan that allocates resources on the basis of identified goals and objectives.
The budgetary, accounting, and reporting standards adopted by the City of Johnson City conform to generally accepted accounting principles applicable to government units. The accounts of the City are organized on the basis of funds and account groups, each of which is considered to be a separate entity. The operations of each fund are accounted for with a separate set of self-balancing accounts, recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purposes of carrying on specific activities or obtaining certain objectives in accordance with special regulations, restrictions, or limitations.
The funds included in this budget are as follows:
Policies and Procedures
GOVERNMENTAL FUNDS
General Fund
The General Fund is the general operating fund of the City. It is used to account for most of the basic government services, such as police, fire, parks and recreation, street maintenance, administration, and planning. General Fund revenues include property taxes, local option sales tax, business license fees, court fines and fees, and state and federal grants. The largest expense within the General Fund is personal services, which includes the cost of employee salaries and benefits.
Capital Projects and Capital Equipment Funds
The Capital Projects and Capital Equipment Funds account for capital purchases and improvements, such as land acquisition, fleet equipment replacement, construction of facilities, etc. Most of the items recorded in either of these funds are financed through borrowings or transfers from the General Fund.
Debt Service Fund
Included in a Debt Service Fund are general long-term principal and interest payments on bonds issued, as well as revenue sources to meet the payment obligation on the debt.
Special Revenue Fund
A Special Revenue Fund generates specific revenue sources. Expenses are legally restricted to specified purposes and are directly related to the revenue source. Freedom Hall Civic Center, Transportation Planning, and the Community Development Block Grant Fund are Special Revenue Funds for the City.
Enterprise Fund PROPRIETARY FUNDS
An Enterprise Fund is intended to be self-supporting in that expenditures are offset by revenues in the form of fees and charges to external customers for goods and services. Enterprise Funds included in this budget are the Water and Sewer Fund, Solid Waste Funds (Municipal and Regional), Mass Transit Fund, and Stormwater Fund.
Policies and Procedures
BASIS FOR BUDGETING
The budgets for all Governmental Funds are prepared on a modified accrual basis. This means that the obligations of the City are budgeted as expenses, but revenues are recognized only when they are actually received.
The Enterprise Funds are budgeted on a full accrual basis. Expenditures are recognized when a commitment is made, and revenues are recognized when they are obligated to the City. Debt interest payments are budgeted as an expense for Enterprise Funds. Not included in the budget are debt principal payments, which are reflected as a reduction in the liability only when payment is made, and capital equipment and improvements, which are funded through the Capital Equipment and Projects Funds or as an operating transfer from the General Fund.
BUDGET AND BUDGETARY
CONTROLS
The City’s financial plans are set forth in annual capital and operating budgets which reflect the projection of all receipts from and disbursements to all sources. The Board of Commissioners has the final responsibility for establishing program and fiscal policies, approving the annual operating budget and Capital Improvement Plan, amending the annual budget, and setting the property tax rate and fees for services.
Budgetary control is maintained in the individual funds at the department level in order to ensure compliance with legal spending appropriations as approved in the annual operating budget. Activities of the General Fund, Special Revenue Funds, Enterprise Funds, and Capital Projects and Equipment Funds are included in the annual appropriated budget.
BASIS OF ACCOUNTING
The modified accrual basis of accounting is used for all Governmental Funds. The revenues are recognized when they become measurable and available. Those revenues susceptible to accrual are property taxes, special assessments, interest income, and charges for services. Property taxes are levied and due in this fiscal year and also collected within 60 days after year end. Amounts not collected within those 60 days are recorded as deferred revenue. Expenditures are recorded when the related fund liability has been incurred. All Proprietary Funds use the accrual basis of accounting, where revenues are recognized as soon as they are earned and expenses are realized as soon as a liability is incurred. Proprietary Funds also display the assets and liabilities associated with the fund on the balance sheet. In Governmental Funds, fund balance is segregated into reserved, designated, and undesignated components. Enterprise Funds reflect a change in total net assets corresponding to the outcome of revenues and expenditures.
Financial Management Policies
The financial policy of the City of Johnson City is to provide a sufficient financial base and the resources necessary to sustain a high level of municipal services for the citizens of Johnson City.
Policies and Procedures
It is the goal of the City to achieve a strong financial condition with the ability to:
• Withstand local and regional economic impacts;
• Adjust efficiently to the community’s changing service requirements;
• Effectively maintain and improve the City’s infrastructure;
• Prudently plan, coordinate, and implement responsible community development and growth;
• Provide a high level of police, fire, and other protective services to assure public health and safety; and,
• Provide other services necessary to ensure quality of life for the community.
The City of Johnson City’s financial policies shall address the following fiscal goals:
• Keep the City in a fiscally sound position in both the long and short term;
• Maintain sufficient financial liquidity to meet normal operating and contingent obligations;
• Expect that service users pay their fair share of program costs;
• Operate utilities in a responsive and fiscally sound manner;
• Maintain existing infrastructure and capital assets;
• Provide a framework for the prudent use of debt; and,
• Direct the City’s financial resources toward meeting the goals of the City’s strategic plan.
OPERATING BUDGET POLICIES
The annual budget is the central financial planning document that embodies all operating revenue and expenditure decisions. It establishes the level of services to be provided by each department within the confines of anticipated municipal services.
The City Manager shall incorporate the Board of Commissioner’s priorities in the formulation of the preliminary and final budget proposal.
Adequate maintenance and replacement of the City’s capital infrastructure and equipment will be provided for in the annual budget.
The budget shall balance recurring operating expenses with recurring operating revenues.
The City shall adopt a balanced budget annually.
CAPITAL IMPROVEMENT POLICIES
The City will establish and implement a comprehensive five-year Capital Improvement Plan (CIP). This plan will be updated annually.
An annual Capital Improvement Budget will be developed and adopted by the Board of Commissioners as part of the annual budget. The City will make all capital improvements, in accordance with the CIP, for which there is available funding.
Unexpended capital project budgets shall be carried forward to future fiscal years to complete the intent of the original budget.
Policies and Procedures
Routine capital needs will be financed from current revenues as opposed to the issuance of long-term debt.
The City will maintain all assets at a level adequate to protect the City’s capital investment and to minimize future maintenance and replacement costs.
REVENUE POLICIES
The City will estimate annual revenues by a conservative, objective, and analytical process.
The City will consider market rates and charges levied by other public and private organizations for similar services in establishing tax rates, fees and charges.
The City will periodically review the cost of activities-supported user fees to determine the impact of inflation and other cost increases. Fees will be adjusted where appropriate to reflect these increases.
The City will set fees and user charges, for the Utility Funds, at a level that fully supports the total direct and indirect costs of operations, capital requirements, and ensures that adequate reserves are maintained.
The City will continue to identify and pursue grants and appropriations from Federal, State, and other agencies that are consistent with the City’s goals and strategic plan.
The City will follow an aggressive policy of collecting revenues.
INVESTMENT POLICIES
Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The portfolio shall remain sufficiently liquid to enable the City to meet daily cash flow demands and conform to all state and local requirements governing the investment of Public Funds.
The City will continue the current cash management and investment practices, which are designed to emphasize safety of capital first, sufficient liquidity to meet obligations second, and the highest possible yield, third.
Investments will be made in accordance with the policies set by Tennessee Code Annotated 6-56-106. Authorized investments include, but are not limited to, the following:
• Bonds, notes or treasury bills of the United States Government;
• Bonds, debentures, notes or other evidences of indebtedness issued or guaranteed by United States agencies;
• Certificates of deposit and other evidences of deposit at state and federally chartered banks, savings and loan associations;
• The local government investment pool created by title 9, chapter 4, part 7.
The City shall attempt to match its investment with anticipated cash flow requirements. Unless matches to a specific cash flow requirement, the City will not directly invest in securities maturing more than two (2) years from the date of issue. Investments maturing more than two years from date of issue require approval
Policies and Procedures
by the state director of local finance.
The City’s financial information system will provide adequate information concerning cash position and investment performance.
DEBT MANAGEMENT POLICIES
The City of Johnson is subject to debt limitations imposed by the City Charter. The total bonded indebtedness of the City shall not exceed 10% of the assessed valuation, for the preceding year, of the taxable property of the City. In determining the debt applicable to the legal debt limit, the following types of debt are excluded:
• Bonds payable out of funds derived from special assessments for public improvements;
• Bones primarily secured from revenue of other sources with the secondary backing of general tax revenues; and,
• Tax anticipation bonds and notes.
The City shall issue debt only when necessary to meet a public need and when funding for such projects is not available from current revenues, reserves, or other sources.
Long-term borrowing will be used to finance capital improvements as approved in the City’s Capital Improvement Plan.
Capital projects financed through issuance of debt shall be financed for a period not to exceed the expected useful life of the project.
The City will not incur debt to finance current operations.
The total debt service on tax supported debt of the City shall not exceed 20 percent of total General Fund operating expenditures. It shall be the long-term goal of the City to reduce this percentage to the ideal level of ten percent.
Lease-purchase obligations, capital outlay notes or other debt instruments may be used as a medium-term method of borrowing for the financing of vehicles, computers, other specialized types of equipment, or other capital improvements.
The City will maintain good communication with bond rating agencies in order to optimize its bond rating status.
Enterprise Funds will be established for City-operated utility services.
Enterprise Fund expenditures will be established at a level sufficient to properly maintain the Fund’s infrastructure and provide for necessary capital development.
Policies and Procedures
Each Utility Fund will maintain an adequate rate structure to cover the costs of all operations, including maintenance, depreciation, capital and debt service requirements, reserves, and any other costs deemed necessary. Ideally, reserves should approximate three months of operating costs.
The total outstanding debt of the Water/Sewer Fund shall not exceed 50 percent of the net capital assets of that fund.
Utility rate studies will be conducted periodically to update assumptions and make necessary adjustments to reflect inflation, construction needs, maintain bond covenants, and avoid significant periodic rate increases.
RESERVE FUND POLICIES
Adequate reserve levels are a necessary component of the City’s overall financial management strategy and a key factor in external agencies’ measurement of the City’s financial strength. Reserve funds provide the City with the resources to manage cash flow and deal with unanticipated emergencies and changes in economic conditions. In addition, reserve funds enable the City to take advantage of matching funds and other beneficial (but limited) opportunities.
The City shall place emphasis on increasing unrestricted fund balance in the General Fund to an amount equal to approximately 20 percent of the General Fund operating budget expenditures. This represents approximately two and one half months of operating expenditures.
At the close of each budget year, any excess of revenues over expenditures that will increase the cumulative unrestricted fund balance above the established target amount will be recorded as a restricted reserve account available for appropriation by the Board of Commissioners, for one-time capital expenditures.
Reversion of Bond Proceeds: Bond proceeds remaining (unspent) after the purpose for which the bonds were issued has been completed shall be returned to the respective bond funds for future appropriation. The balance of available bond proceeds will be reported to the Board of Commissioners on a monthly basis. Further use of these monies shall be consistent with provisions contained within the appropriate bond resolutions and inconformity with federal and state regulations.
Budget Procedure
PURPOSE AND SCOPE OF THE BUDGET
The budget is the City’s financial plan, covering a 12 month period that balances projected revenues with anticipated expenditures, related to City services. Upon adoption by the Board of Commissioners, the City of Johnson City’s budget becomes a major policy document of this community for the ensuing fiscal year.
Essentially, the City of Johnson City’s budget strives to achieve the following objectives:
1. Establish a legal basis for the expenditure of city tax dollars;
2. Establish a means of public accountability and control of expenditures;
Policies and Procedures
3. Provide a method for continuous review of city programs through established goals and departmental services;
4. Provide an operating plan of service for city departments;
5. Provide a basis for establishing policies, adopted by the Board of Commissioners, through recommendation by the City Manager;
6. Establish more effective communication between the citizens of Johnson City and City officials.
ANNUAL BUDGET PROCESS OF THE CITY OF JOHNSON CITY
The City’s annual budget process typically begins in September with the preparation of the five-year Capital Improvement Plan (CIP). In January, a budget kick-off meeting is held with department and division directors to distribute budget instructions and to highlight concerns, challenges, and goals that face the City in the upcoming fiscal year. Following this informational meeting, department/division heads prepare their budget requests over the next 30-day period.
From there, the budget calendar is followed through the remainder of the budget process:
• Revenue estimates are prepared for the next fiscal year for all City funds.
• Departmental budgets are reviewed and analyzed and budget hearings are conducted with each department. Following these meetings, a tentative budget is prepared in consideration of the projected revenues and policy guidelines established by the City Manager
• Budget work sessions are conducted with the Board of Commissioners, City Manager, and staff. These work sessions are open to the public.
• At the conclusion of these work sessions, the Board of Commissioners’ input is incorporated into the proposed budget. An appropriation ordinance is prepared and is required by the City Charter to be published for public review no later than 10 days prior to the first reading of the ordinance.
• By City Charter, the first reading of the budget ordinance and public hearing is required to occur at a regularly scheduled meeting of the Board of Commissioners, followed by two additional readings of the ordinance.
• The adopted budget takes effect July 1, the beginning of the new fiscal year.
BUDGET AMENDMENTS
Amendments which revise the total expenditure of any appropriated fund or department may occur at any time during the fiscal year after advertising and a public hearing before the Board of Commissioners. Three readings of the ordinance amending the budget are required.
September 13, 2024
CIP forms distributed to department/division heads
BUDGET CALENDAR
October 11, 2024
CIP forms due to Budget Office
Oct. 21 - Nov. 22, 2024
CIP work sessions with City Manager, Assistant City Manager, Budget Director, and Analyst
February 7, 2025
Large department budgets due to the budget office
January 31, 2025
Small department budgets due to the Budget Office
January 10, 2025
Budget kick-off
Feb. 10 - March 13, 2025
Budget hearings/reviews with the City Manager, Assistant City Managers, Budget Director, and Analyst
March 6 - April 25, 2025 Budget analysis and finalize budget
April 17 - May 15, 2025 Budget work sessions with Commission
May 29, 2025
Budget ordinance published in the Johnson City Press
May 6, 2025
Commission receives City Manager's budget proposal
May 3, 2025
Publish initial advertisement in the Johnson City Press
June 5, 2025
First reading and public hearing of budget ordinance
OTHER SOURCES - TRANSFERS IN SchoolFunds461,10286,10900000.0 SaleofEquipment0430,32500000.0 SubscriptionIssuance621,803160,29300000.0 CityGeneralFundTransfer-Operations11,626,73611,626,73611,626,73611,626,73611,626,73600.0 CityGeneralFundTransfer-Transportation2,354,2792,520,1883,043,4313,043,4313,037,269(6,162)(0.2)
NET POSITION (BEGINNING) 908,5361,238,3071,238,3071,444,5161,558,030113,5147.9 NET POSITION (ENDING) 1,238,3071,444,5161,346,5211,558,0301,868,030310,00019.9
CAPITAL
CAPITAL EQUIPMENT/PROJECTS FUNDS
Capital equipment purchases (General Fund) are budgeted at $3,461,468. This is funded through a $216,000 transfer from the General Fund, $950,000 in a future capital outlay note, $700,000 in ARPA funds, and $1,595,468 from the Capital Fund Balance.
Major capital equipment purchases from the general fund are spread across multiple departments including two engines for Fire totaling $1,590,000; completion of Police training upgrades totaling $729,468; and five buses for student transportation in the amount of $626,000. Other general fund capital equipment purchases include $200,000 for IT equipment, $16,000 for two Police Scanners, and $300,000 for a Public Works single axel patch truck.
Budgeted capital equipment for other funds include the following:
• Fleet Management Fund (internal service) - $140,000
• Mass Transit Fund - $650,000
• Police Drug Fund - $214,000
• Solid Waste Funds - $2,725,000
• Storm Water Fund - $765,000
• Water/Sewer Fund - $1,074,500
Capital facilities projects (General Fund) total $4,772,000, including $2,650,000 in re-budgeted ARPA funding for the new fire training facility tower. Other facilities projects include security upgrades at the Municipal and Safety Building and several ongoing Parks & Recreation projects. These include Keefauver Farm, Carver Recreation Center HVAC replacement, MPCC pool re-plaster, and Rotary Park play surface replacement.
Infrastructure capital projects total $17,115,000, including $11,000,000 in new bond funding for various Public Works road projects. In addition to these projects, funding for the downtown cameras and crosswalk lighting projects is included in this budget, as well as funding for improvements at the Gray Station Rd. and Bobby Hicks Highway intersection.
Budgeted capital projects for other funds include the following:
• Storm Water Fund includes $5,800,000 in funding for the West Walnut Street holding pond, bridge improvements on West Walnut St. from State of Franklin to Antioch Rd, and the Hickory Springs Bridge.
• Water/Sewer Fund capital projects total $22,370,000. Projects include 2009 water pressure zone improvements, ongoing galvanized waterline replacement, water tank rehabilitation, Washington County waterline extension phase II, C & H station replacement, regional sewer capacity improvements, Sinking Creek sewer lift station upgrades, and ongoing wastewater collection system rehabilitation.
School facility capital projects total $18,060,000. HVAC upgrades at Central Office total $60,000. Design completion and year 1 of construction for the new Towne Acres Elementary School is budgeted at $18,000,000. The entire Towne Acres Elementary School project is anticipated to cost approximately $45,000,000.
Please see the subsequent pages in this section for more detail on funding sources, etc., for capital equipment and projects for FY 2026.
CAPITAL SCHOOLS - FY 2026 FLEET MANAGEMENT FUND SUMMARY
CAPITAL SCHOOLS - FY 2026
DEBT SERVICE
Debt Service is the payment of principal and interest on all general obligation bonds issued for the City. The City of Johnson City is subject to debt limitations imposed by its charter. The total bonded indebtedness (excluding sales tax revenue debt) shall not exceed 10% of the assessed taxable value of the property with the corporate limits of the City.
The City of Johnson City’s General Obligation Bond ratings are as follows: Standard and Poor’s – AA; Fitch –AA, and Moody’s Aa2.
In FY 2026, a new general obligation debt issuance in the amount of $56,000,000 is planned. This amount funds the construction of a new Towne Acres Elementary School ($45,000,000) as well as various road projects ($11,000,000). Please refer to the Debt Service Fund Summary, found on page 100, for a detailed breakdown of each debt issue and corresponding payments. DEBT SUMMARY
DEBT SERVICE FUND $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000
The Debt Service Fund provides for the accumulation of resources necessary for paying the general obligation debt service payments of the City (excluding utility funds, internal service funds, and the City’s PEP fund). In FY 2026, principal and interest payments are budgeted at $13,918,963 which is a 21.7% increase, or $2,483,769, from the prior year budget-to-budget. The funding sources for the debt service payments include the following: General Fund transfer - $13,369,992; General Purpose School Fund transfer - $548,971.
General Obligation Bonds - Debt Service Payments
Debt Service
UTILITY FUND DEBT SERVICE
Principal and Interest Payments within the utility funds are accounted for in their respective funds, with the principal payments recorded as a reduction of the debt liability and the interest payments as an operating expense. All principal and interest payments are solely paid for by user fees.
In FY 2021, the Solid Waste Fund issued $1,000,000 in new debt to finalize construction for the new Solid Waste facility. No new debt is budgeted in the Solid Waste Fund for FY 2026. Total debt service for Solid Waste in FY 2026 is $195,400.
Solid Waste Fund - Debt Service Payments
$250,000
$200,000
$150,000
$100,000
$50,000
$0
FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31
The issuance of debt is built in to the Water and Sewer Fund rate model to facilitate continued major improvements within the system. The timing of debt issuances for the Water and Sewer Fund is evaluated on an annual basis. Total Water and Sewer Services debt service for FY 2026 is $8,378,642. In the latter half of FY 2022, the City Commission approved $25,000,000 in new debt for Water and Sewer projects to include the following:
• B Wastewater Station Forcemain
• C Station Wastewater Lift Station Replacement
• Lower Boones Creek Interceptor Phase II
• Service Center Replacement
• West Walnut Street Utility Improvements
$9,000,000
Debt Service
Water/Sewer Fund - Debt Service Payments
$8,000,000
$7,000,000
$6,000,000
FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31
The Storm Water Fund includes $2,000,000 in new debt for bridge improvements on West Walnut Street between State of Franklin and Antioch Rd. Total debt service for Storm Water in FY 2026 is $917,137.
Storm Water Fund - Debt Service Payments
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
FY21FY22FY23FY24FY25FY26FY27FY28 FY29FY30FY31
Debt Service
OTHER DEBT
The PEP Fund, sometimes referred to as the Educational Facilities Trust Fund, is a separate governmental fund dedicated to account for the principal and interest payments on debt issued to fund educational facility improvements. A designated percentage of the local option sales tax is the funding source for the debt service payments of this fund.
In FY 2022, the PEP Fund issued $2,100,000 in new debt. These bond proceeds fund the following school facility improvements: additional funds for the design, engineering, and construction for classroom additions at South Side Elementary, Woodland Elementary and Lake Ridge Elementary. Indian Trail field turf, and Science Hill track turf. Total PEP debt service for FY 2026 is $3,896,600.
PEP Bonds - Debt Service Payments
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31
The Fleet Management Fund issued new debt in the amount of $2,300,000 for Public Safety radio replacement in FY 2021. As an internal service fund, all expenses are recovered through charges to city departments for fleet services rendered during the fiscal year. Thus, the police and fire departments will be responsible for reimbursement to the Fleet Management Fund for any associated debt service payments related to the new issue. No new debt is budgeted for Fleet Management in FY 2026. Total debt service for FY 2026 in Fleet Management is $324,972.
Debt Service
Fleet Management Fund - Debt Service Payments
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31
QUASI-GOVERNMENTAL AGENCIES
Quasi-governmental agencies are supported by the City and the County, but are independently managed. Each agency is required to submit an application annually, along with a copy of their latest year-end financial statements or audit. The City Commission determines the level of funding each agency will receive as a part of the annual budget process. Financial support for these agencies is a portion of the General Government expenditures.
The following agencies received an appropriation in the FY 2026 budget:
Aerospace Park is a direct-airfield development at Tri-Cities Airport in Northeast Tennessee. The site offers 20 acres certified for immediate development and an additional 140 acres under preparation. It is a joint venture among local county and municipal governments including Johnson City. The appropriation is for Johnson City’s share of the debt service.
The mission of the Johnson City Development Authority is to promote and assist with the development and redevelopment of Johnson City, with specific emphasis on the downtown district and support for the local business community.
The Chamber of Commerce promotes business and works to enhance economic and community development efforts within the community. The funding for FY 2026 includes the Chamber’s initiative for a program centered on young professionals.
Quasi-Governmental Agencies
The mission of the Child Advocacy Center is to combat child sexual abuse and severe physical abuse by coordinating and providing services to children in a safe, caring environment.
The Convention & Visitors Bureau works to showcase the uniqueness of and develop increased civic interest in the City of Johnson City as an attraction to tourists, visitors and individuals. They solicit special events to take place in the City, promote the City’s distinctive resources, and increase the economic contribution of tourism in order to grow Johnson City.
The Industrial Development Board promotes industry, trade, commerce, tourism and recreation by inducing manufacturing, industrial, governmental, education, research and development, financial, service, commercial, medical-related, and recreational enterprises, to locate or remain in Johnson City and Tennessee.
The Tri-Cities Airport Commission is the Grantee of Foreign Trade Zone No. 204. The FTZ Committee was established by the Airport Commission to provide guidance in the areas of Zone marketing and administration. In addition to the City of Johnson City, membership in the FTZ No. 204 is comprised of the City of Kingsport; Sullivan County, TN; Washington County, TN; Bristol, TN; Bristol, VA; Washington County, VA; and the Tri-Cities Regional Airport. FTZ No. 204 is a vital component of our region’s economic development efforts. Communities use the FTZ to attract new business and industry, as well as retain existing businesses.
25,000
The mission of the Washington County Economic Development Council is to enhance job growth and increase the tax base of Washington County, Johnson City and Jonesborough by engaging the community and business leaders through nurturing existing businesses and actively recruiting new industries and commerce.
WASHINGTON COUNTY EMERGENCY COMMUNICATIONS DISTRICT (E-911)
This organization is responsible for answering all 9-1-1 calls and dispatching both emergency and nonemergency communications to all public safety agencies within Johnson City and Washington County. The goal of E-911 is to provide professional and prompt service to all citizens who contact 9-1-1, as well as to dispatch those calls to the appropriate agency in a quick and accurate manner.
WASHINGTON COUNTY/JOHNSON CITY
$ 1,375,000 $95,000
This organization is responsible for helping the city and county prepare for emergency situations.
Quasi-Governmental Agencies
WASHINGTON COUNTY/JOHNSON CITY
ANIMAL CONTROL SHELTER
This organization was created as a joint venture with Washington County and the City of Johnson City to enforce the animal control laws of the City and state. The Shelter is designed to protect individuals from the dangers of uncontrolled animals, as well as protect the animal population against abuse by people. The goal of the Shelter encompasses promoting, motivating, and enforcing responsible pet ownership. In addition to the operating appropriation, the City has pledged to contribute to the debt service payment on the new animal shelter facility. A separate appropriation for debt service in FY 2026 is $117,697.
WASHINGTON COUNTY/JOHNSON CITY EMERGENCY MEDICAL SERVICES (EMS)
This organization provides advanced and basic life support via ground ambulance transportation to the citizens of Johnson City and Washington County. In addition, EMS provides highly capable rescue personnel and equipment, along with support for specialized rescue teams. Quality patient care and timely response are the priorities of this agency.
WASHINGTON COUNTY/JOHNSON CITY HEALTH DEPARTMENT
$ 1,600,000 $ 70,476 $ 300,000
The mission of the Tennessee Department of Health is to promote, protect, and improve the health of persons living in, working in, or visiting the State of Tennessee. This branch was established in 1926 to provide quality health services to all citizens of Johnson City and Washington County. Services provided include, but are not limited to, dental health services, environmental health services, primary care, health promotion, immunizations, and nutrition education.
Quasi-Governmental
DEPARTMENT OVERVIEW
General Government
ADMINISTRATION
The Administration Division includes the City Manager, two Assistant City Managers, Economic Development Specialist, Director of Budget and Performance Management, Budget Analyst, and support staff.
The City Commission appoints the City Manager to serve as the Chief Executive Officer and the Chief Administrative Officer under the Commission’s leadership.
Key responsibilities of the City Manager:
• Implement the policies established by the City Commission by enforcing all adopted resolutions and ordinances
• Oversee the operations of the government within the guidelines of the City Charter
Key responsibilities Assistant City Managers:
• Support the City Manager in managing the dayto-day operations of the City of Johnson City
• Oversee various divisions/departments
Budget and Performance Management
These employees are responsible for guiding the annual budget process, which begins each October with the preparation of the Capital Improvement Plan. Departmental budgets are prepared in January and February, followed by work sessions with the City Manager, Deputy City Manager, and Assistant City Manager as well as the Board of Commissioners.
Key responsibilities:
• Generate budget forms for each department
• Compile budget requests for management review
• Prepare budget document
• Compile and prepare City’s 5-year Capital Improvement Plan
• Coordinate collection of performance measurement data
Department Overview
2025 ACCOMPLISHMENTS
Received the GFOA Distinguished Budget Presentation Award for FY 2025
Included new performance management report as part of the strategic planning section of the budget book. This report received special recognition from GFOA
2026 GOALS & OBJECTIVES
Receive GFOA’s Distinguished Budget Presentation Award for FY 2026
Continue improving the performance management program including development of an online dashboard
These employees promote economic growth and development throughout the City of Johnson City and serve as a resource for all types of businesses and entrepreneurial projects of various sizes and scope.
Key responsibilities:
• Develop and manage business retention, expansion and attraction programs
• Provide and manage financial incentives and other economic development assistance
• Serve as the City’s liaison to other government entities and organizations focused on regional and state economic development efforts
2025 ACCOMPLISHMENTS
MD Carts, a leading golf cart manufacturing distributor, will invest over $10 million in a major expansion, creating 200 new jobs in the region. The manufacturer had a ribbon cutting in early August of 2024
Recruited East Tennessee State University as a tenant for the Ashe Street Courthouse
Developed a workforce pipeline strategy with Johnson City Schools CTE programs and East Tennessee State University
2026 GOALS & OBJECTIVES
Finalize and implement the Johnson City Housing Strategic Plan to address current and future housing needs
Continue workforce development initiatives to enhance workforce pipelines
Assume full management responsibilities of the Johnson City Development Authority to ensure continued progress on the redevelopment of the John Sevier Center
Economic Development
Department Overview
Community Development Division
Key responsibilities:
• Plan and implement a diverse program with a primary goal of improving quality of life for low- and moderate-income citizens of Johnson City
• Develop a series of one-year plans with the assistance and input of the Housing and Community Development Advisory Board to meet the needs identified and that outlines the financial resources available
2025 ACCOMPLISHMENTS
Increased the availability of affordable housing options by providing funding to non-profit partners for the reconstruction or rehabilitation of eight homes
Increased the availability of shelter beds by providing funding for the acquisition of a 30+ bed shelter
Provided funding to non-profit partners to assist in homeless prevention and re-housing efforts
Provided technical assistance to partners to ensure program compliance
Worked with internal and external stakeholders to identify barriers to affordable housing development
Evaluated the City’s development of affordable/workforce housing priorities
2026 GOALS & OBJECTIVES
Continue working with internal and external stakeholders to develop a plan for affordable/workforce housing development
Continue supporting the rehabilitation and development of affordable housing in Johnson City Strengthen partnerships with community organizations, the housing authority, and developers to increase housing options
Legal
Department Overview
The City Attorney, Senior Staff Attorney, and Staff Attorney, along with support staff, serve as in-house legal counsel for the City. The Special Assistant to the U.S. District Attorney is also housed within the Legal Department.
Key responsibilities:
Prepare and review ordinances, leases, options, contracts, legal briefs, court documents, and other legal documents
• Oversee the acquisition of real estate
• Render advice on legal matters pertaining to inquiries of the City Commission and all City departments
• Render opinions and advice regarding personnel matters, civil rights, annexation, zoning, planning, utilities, and solid waste disposal
• Litigate in state and federal courts
• Provide assistance to various City-appointed boards and commissions
2025 ACCOMPLISHMENTS
Represented JC Police regarding 35 contested citations in Municipal Court.
Oversaw and processed 26 beer license applications and 23 temporary occasion beer license applications
Trained staff and implemented NextRequest platform. Over 182 public records requests have been processed since implementation
2026 GOALS & OBJECTIVES
Respond to internal and external questions in relation to the application process and requirements for Business Licenses, Beer Licenses and Temporary Occasions Beer Licenses as they arise
Review and approve Beer License Applications and Temporary Occasion Beer License
Applications, and prepare and publish Beer Board Agenda, and present completed beer license applications for consideration to the Beer Board
Draft and review all contracts, agreements, resolutions and other documents as it pertains to the interest of the City
Process and monitor all public records requests utilizing NextRequest platform and train new staff on the process as necessary
Assist Development Services in zoning code changes and Fire Department in fire codes changes in compliance with state law
Represent JC Police and Codes Enforcement regarding contested citations in municipal court and circuit court upon appeal
Represent City in condemnation and code violation cases as they arise
Assist in property transactions by drafting and reviewing purchase contract, deeds, releases, and ordinances, if required
Review all City employment policies from an employment law perspective and make revisions, as necessary
Department Overview
COMMUNICATIONS AND ENGAGEMENT
The Communications and Engagement Department strives to foster a positive relationship between our municipal government and the citizens it serves. Through a comprehensive communication program, media and employee relations, and special events, Communications and Engagement promotes a positive City image and public trust by telling our story.
Communications and Engagement oversees:
• Communications
• Media and Employee relations
• Special Events
• Grant Writing and Research
• Public Affairs
Key responsibilities:
• Strategize dissemination of information to external and internal stakeholders
• Educate the public about government activities and promotes City services
• Manage government relations
• Research and write grants
• Coordinate City events
• Enforce, manage and oversee brand standards and management
• Manage media requests
2025 ACCOMPLISHMENTS
As part of the Main Street Program, hosted 18 downtown community and merchant events
Launched first ever Junior Council
Monthly newsletter distribution increased by 61% since January 2024
Launched new employee intranet
Promoted ‘A Safer 26 in ‘24’ campaign and transitioned to ‘A Safer Drive in ‘25’
2026 GOALS & OBJECTIVES
As part of the Main Street Program, work in conjunction with Economic Development and Planning to establish plan for filling vacant downtown buildings
Work with inaugural cohort to lead Junior Council program into second year
Assist with implementation of parking study
Develop regular JC Builds newsletter with updates on initiatives
Conduct business/Corporate citizen survey
Enhance Parks and Recreation marketing efforts to ultimately increase participation
HUMAN RESOURCES
Department Overview
The Human Resources department strives to be the conduit between City administration and the workforce. The department provides services to two primary customers:
• Employees
• City management
The department also serves as the key contact for the Employee Health Center and assists both clinic staff and the employee population in the use thereof.
Key responsibilities:
• Administer benefits and compensation
• Create initiatives for employee relations
• Perform interview, selection and staffing services
• Develop opportunities for organization and employees
• Administer an annual Health Assessment Program
2025 ACCOMPLISHMENTS
The Johnson City Leadership Academy was established as a training program for first time or prospective supervisors Several outdated policies have been revised and approved
2026 GOALS & OBJECTIVES
Continue to work with the State of Tennessee to become certified as a CDL examination site
Monitor health plan programs to ensure desired outcomes are met
Department Overview
INFORMATION TECHNOLOGY
The Information Technology Department provides technical and computer solutions and support for business operations of the City. In the modern municipal workforce, every employee is a data collector, information curator/consumer, contributing to or making data-driven decisions. IT’s job is to empower the City workforce by maintaining the required uptime on digital infrastructure and applications and to deliver the end-user experience necessary for success in their job duties.
Key responsibilities:
• Design, implement, and maintain the City’s computer network infrastructure to ensure reliable connectivity and data transfer between various departments and locations
• Establish and enforce robust security measures to protect sensitive information, ensure compliance with data privacy laws, and prevent unauthorized access to City systems
• Implement reliable backup solutions and disaster recovery plans to safeguard critical data and systems in the event of hardware failure, cyberattacks, or natural disasters
• Provide technical support to employees, assisting with troubleshooting, resolving software and hardware issues, and answering IT-related questions
• Support the City’s Geographic Information Systems, which provide valuable spatial data for various planning and decision-making processes
2025 ACCOMPLISHMENTS
Continued working with our Oracle consultant to desired functionality
Continued cybersecurity improvements
2026 GOALS & OBJECTIVES
Utility billing software replacement
Implement new IT Service Management
Oracle ERP Enhancements
GIS re-architecture
Web infrastructure re-architecture
Department Overview
CITY COURT
The City Charter establishes a municipal court and the municipal judge. The Honorable Stan Widener is presiding over the court at this time. The court convenes in the Municipal Court chambers located in the Municipal and Safety Building, 601 E. Market St. The City judge is appointed by the City Commission for a term of two years.
Key responsibilities:
• Hear matters regarding city ordinances and violations of state law
• Set fees for traffic violations
JUVENILE COURT
The Johnson City Juvenile Court provides a forum for legal matters concerning children and youth within the geographic boundaries of Johnson City. According to the population estimates from the United States Census Bureau, the estimated population of Johnson City is approximately 73,000, with 18.4% of those persons being under 18 years old. The Johnson City Juvenile Court typically holds hearings involving approximately 1,500 children every year.
The types of legal proceedings within the jurisdiction of the Juvenile Court, under Tennessee law, include:
• Dependency and neglect, abuse of children, and termination of parental rights;
• Custody, visitation, and child support for children born outside of marriage;
• Juvenile delinquency and juvenile traffic violators; and
• Unruly children and youth (including truancy petitions filed by the Johnson City School System).
Key responsibilities:
• Provide probation supervision to juvenile offenders
• Provide diversion services for first-time offenders
• Active participation on the multi-disciplinary truancy intervention boards
• Partner with the Johnson City School System to remedy potential educational neglect and truancy of students
• Offer linkage to community resources essential for some children’s success
Department Overview
2025 ACCOMPLISHMENTS
The Safe Baby Court was successfully implemented New information management software was implemented
Safety and security improvements have been made to the building
The youth on probation through the Johnson City Juvenile Court completed 2069.25 hours of volunteer work for non-profit organizations, including the Salvation Army, One Acre Café, Girls Inc., God’s Corner, Carver Park, area churches, and elderly or disabled members of the community. Eighty-seven (87) youth were successfully released from probation during this time, and all of those youth completed all required community service hours
The Juvenile Court probation officers (in their role as intake officers) provided in-person non-legal assistance and information to 649 members of the public who sought information about procedures to initiate judicial proceedings concerning a child or children. Of those, 287 persons filed a petition to access the court without having an attorney. In addition to in-person conferences, the intake officers responded to 511 telephone inquiries from the public seeking procedural information about Juvenile Court without having an attorney
2026 GOALS & OBJECTIVES
Expand the reach and services of the Safe Baby Court
The Johnson City Juvenile Court will continue to monitor the effectiveness of community service as a tool of treatment and rehabilitation by youth who are assigned community service as a requirement of their probation. The successful release of a youth who successfully completes his/her community service requirement will be considered as evidence of this goal. The total number of hours of community service completed by youth and the community agencies which receive this service will also be documented
The Johnson City Juvenile Court will continue to ensure that all persons who need access to the Juvenile Court are able to access the court, regardless of their ability to hire an attorney, by offering non-legal assistance by intake officers to members of the public. The effectiveness of this goal will be measured by documenting the number of intake conferences/contacts between members of the general public and intake officers (probation officers) and the number of pro se petitions actually filed with the court
PURCHASING
The Purchasing Department’s primary objective is to provide professional services to acquire quality goods and services in a timely manner for departments of the City and Schools at the least possible cost, while ensuring an open and competitive environment consistent with the quality required and in compliance with all applicable procurement legislation.
Key responsibilities:
• Process contracts for goods and services
• Comply with procurement legislation
• Ensure an open and competitive environment
Department Overview
2025 ACCOMPLISHMENTS
Prepared 13 requests for proposals/qualifications and 117 bids/formal quotes
Seven (7) auctions have been completed
A system has been put in place to track turnarounds on issuing solicitations (formal quotes and solicitations) along with purchase order issuance
2026 GOALS & OBJECTIVES
Conduct a minimum of five (5) on-line vehicle/equipment auctions
Eligible Purchasing staff to maintain 100% certification. Pursue new Buyer certification
Prepare solicitation documents along with supporting documentation for approx. five (5) requests for proposals and 75 bids/formal quotes
Revise Purchasing and Pcard Manual’s then provide employee training events
Offer Oracle procurement workshops in collaboration with Accounts Payable to include receipting and submitting for payment
RISK MANAGEMENT
Risk Management administers a variety of insurance and safety programs designed to protect and maintain the financial integrity of City-owned assets and provide a safe environment for City employees and the general public.
Key responsibilities:
• Identify, minimize, and prevent risk exposures through a comprehensive loss prevention and safety program, including site inspections, employee training, departmental safety consultation services, and TOSHA compliance services
• Administer the City’s occupational health program, including the Respiratory Protection Program and Vaccination Program
• Manage the property insurance program, including loss prevention, boiler inspections, and evaluation of City-owned facilities to ensure that the proper level of insurance coverage is maintained.
• Manage the City’s casualty insurance programs, including management of the liability self-insurance program and associated litigation
• Manage the workers’ compensation self-insurance program, including claims for City and School employees
• Develop contract insurance specifications and analyzing contracts and coverage to ensure City requirements are achieved
• Recover expenditures for damage to City property caused by third parties
• Administer the return-to-duty program, ensuring employees safely return to work following a serious illness or injury
• Administer communicable disease mitigation strategies, including hazard assessment and identification of mitigation measures to ensure employee and customer safety
Department Overview
2025 ACCOMPLISHMENTS
Total Recordable Case Rate and Lost Time Case Rate are both below the U.S. Bureau of Labor Statistics benchmarks for Local Governments, 28% and 60%, respectively.
Develop the Municipal Safety Building’s Security Plan and Emergency Response Plan
Created first phase of development of Health & Safety Dashboard for trending analysis with specific Key Point indicators to allow leadership to make real-time impactful decisions.
2026 GOALS & OBJECTIVES
Keep OSHA incident rates below the U.S. Bureau of Labor Statistics benchmarks for Local Governments
Collaborate with each department on implementing their Health & Safety Plan
Collaborate with each department on continuing the completion of Position Analysis/Job Hazard Analysis/Task Analysis for each job position within the department
Continue to develop the Health & Safety Dashboard for all departments for trending analysis with specific Key Point indicators to allow leadership to make real-time impactful decisions. Leading Indicators will be the next dataset incorporated into the dashboard
$60,000
$50,000
$40,000
$30,000
Department Overview
Government
General Government
Department Overview
Department Overview
Planning and Development Services
The Planning and Development Services Department provides professional guidance and technical expertise to elected officials, six appointed boards and commissions, city departments, the development community, stakeholders and citizens to assist them in understanding and addressing development concerns and processes in the community.
BUILDING DIVISION
Key responsibilities:
• Accept plans and generate plans review on all phases of construction in Johnson City, including building, electrical, plumbing, gas/ mechanical and site plans
• Issue permits for each phase of construction
• Conduct inspections
• Issue certificates of occupancy for each project
CODES DIVISION
Key responsibilities:
• Enforce City codes and minimum housing concerns
• Act as liaison for the Board of Dwelling Standards and Review, and in accordance with this board, help resolve minimum and dilapidated housing and unsafe structures
• Cite, mitigate and potentially litigate action to help resolve outstanding code violations
Department Overview
PLANNING DIVISION
Key responsibilities:
• Develop and administer city-wide planning in accordance with the Comprehensive Plan, a legal document that reflects the community’s vision for its long-range development
• Develop and administer a neighborhood planning process, which guides future development of the City and its Urban Growth Boundary
• Provide development related guidance and support to those building or subdividing land within the City through the use of Subdivision Regulations and the Zoning Code
• Administer land use controls in the Zoning Code, as well as review requests for annexations, re-zonings, right-of-way abandonments, and text amendments to the Zoning Code
2024 ACCOMPLISHMENTS
Completed Horizon 2045 Growth Management Plan
Initiated JC Builds – task force, roundtable, and internal process improvements
2025 GOALS & OBJECTIVES
Adopt Horizon 2045 Growth Management Plan
Review and re-write historic guidelines
Review and update zoning code
Encourage and support professional development opportunities for staff
Implement JC builds strategy to streamline plan review, permit & inspection process
Development Services Department Overview
Administrative Specialist II (1)
Planning Development Coordinator (1)
Planner I (2)
Senior Planning Technician (1)
Planning Technician (1)
Director of Planning & Development Services (22) Employees
Code Enforcement
Chief Building Official (1)
Code Enforcement Supervisor (1)
Trade Inspector Supervisor (1)
Trade Inspector II (1)
Trade Inspector I (4)
Code Enforcement Officer (3)
Plans Examiner (1)
Permitting Coordinator (1)
Permitting Technician (2)
Department Overview
Department Overview
Facilities Management
The Facilities Management Department is responsible for building maintenance and improvements for more than 118 city-owned facilities.
Key responsibilities include:
• Oversees the design and construction of municipal and schools large capital projects, including new construction, renovations, complex HVAC systems, plumbing, electrical, operating systems, and roofing
• Preparation of annual operating and capital budgets
• Schedule facility modifications, to include providing estimates on equipment, labor, materials and other related costs
• Supporting all other city departments in planning and implementing projects according to their specific program needs
2025 ACCOMPLISHMENTS
Completed design for new Towne Acres Elementary School
Completed Commission Chambers Renovation
Completed interior renovations at Keystone
Completed transit center dispatch office renovations
2026 GOALS & OBJECTIVES
Begin construction on the new Towne Acres Elementary School
Continue City Hall improvements (security upgrades, etc.)
Complete police training center improvements
Complete construction of new fire training tower
Facilities Management Department Overview
Facilities Management Director (18) Employees
Administrative Specialist II (1)
Facilities Maintenance Manager (1)
Crew Supervisor (2)
Facilities Maintenance Technician II (3) Lead Custodian (1)
Facilities Maintenance Technician I (5) Custodian (3) Keystone Custodian (1)
Department Overview
Department Overview Finance
The Finance Department uses proper accounting procedures to ensure efficient and responsible management of official City records and related financial information in accordance with the City Charter and various state and federal governmental authorities.
Work is carried out by the following divisions:
Key responsibilities:
• Ensure all divisions of the Finance Department operate efficiently in accordance with the City Charter and proper accounting procedures
• Maintain official records of the City, providing financial information to City departments and citizens, preparing ordinances and resolutions
Key responsibilities:
• Ensure that all cash receipts and expenditures are properly authorized, valued, and recorded in the official books of record; that all related assets and liabilities, including accruals, are properly valued and recorded, and that all local, state, and federal reports are prepared in an accurate and timely manner
• Month-end close and prepare monthly financial statements for all departments of the City
• Process all disbursements related to school construction and ensure that all such transactions are properly authorized, valued, and reflected in the official books of record
• Conduct capital project tracing and fixed asset reporting for the City’s fixed assets, as well as school, land, and buildings
• Process approximately 24,000 invoices for goods and services purchased by the City
Department Overview
COLLECTIONS
Key responsibilities:
• Ensure adherence to various property tax laws
• Maintain business tax files for the Department of Revenue and working with them on sales tax collections
• Bill and collect real, personal, and public utility property taxes, wholesale liquor tax, wholesale beer tax, gross receipts tax, beer server permits, and other fees, licenses, permits, and special assessments
• Receive all utility payments and receipt collections for Parks and Recreation, the Senior Center, Police Records, Transit, Golf, and Freedom Hall
RECORDS
Key responsibilities:
• Preserve the official records of the City by scanning, filing, and storing them
2025 ACCOMPLISHMENTS
Implement partial payment acceptance on property taxes for the 2024 tax year beginning in October 2024.
Three (3) staff accountants completed Certified Municipal Finance Officer training.
2026 GOALS & OBJECTIVES
Participate in planning for implementation of new utility billing software to integrate with current ERP system.
Transition records management system from current platform which is no longer supported to a new method.
Improve the Accounts Payable process to include automation and invoice scanning.
Utilize current software to better track City issued licenses and permits (mobile food vendor, alcohol, etc.) as well as demolition liens received from Development Services.
Finance Department Overview
Dollars (In Thousands)
$2,300
$2,200
$2,100
$2,000
$1,900
$1,800
$1,700
$1,600
$1,500
$1,400
$1,300
Department Overview
Finance Expenditures
FY22FY23FY24FY25FY26
Department Overview
Department Overview
The Johnson City Fire Department’s mission is to embrace servant leadership, maintain a positive and active role in the community, and seek opportunities to help others in traditional and non-traditional fire rescue operations. The department accomplishes this mission through trust, education, teamwork, professionalism, and pride, while pursuing service excellence, and maintaining the highest standards of safety for those who face the loss of life, property, and livelihood.
The department’s nine fire stations and 12 emergency response apparatus are staffed by 137 personnel who provide fire suppression, emergency medical services, fire prevention inspection, public education, fire cause and origin determination, hazardous materials response, special rescue operations, training, and related support functions to approximately 73,000 citizens across Johnson City. In 2016, the department was recognized as a Class One Fire Department by the Insurance Service Office (ISO). In 2021 the department received International Accreditation through the Center for Public Safety Excellence (CPSE).
Work is carried out by the following divisions:
ADMINISTRATION
Key responsibilities:
• Plan, implement, and review department short-and long-range goals, train, professional development, logistics, records and reports, and budget development and monitoring
• Develop general policies for the direction of the department
• Conduct and evaluate needs assessments
• Make recommendations for the construction of fire stations and the purchase of apparatus and equipment, and conduct project management
• Develop recommendations for the protection of life and property in the City
• Coordinate and communicate with other City services and divisions to accomplish the overall mission of the City
Department Overview
PROTECTION
Key responsibilities:
• The day-to-day provision of emergency services to City residents and guests
• Respond to all calls for emergency medical assistance
• Provide service to the community 24 hours a day, 365 days a year
• Maintain proficiency through in-service and outside training objectives
• Participate in neighborhood community events, such as fire safety education, smoke detector programs, CPR training, Community Emergency Response Team (CERT) training, homeowners’ association meetings, demonstrations, community gatherings, etc.
• Conduct routine equipment maintenance, coordinate apparatus maintenance with Fleet Management, maintain Insurance Service Office (ISO) components, accomplish hose testing, and implement organizational programs.
2025 ACCOMPLISHMENTS
Phase one of the Johnson City Fire Department Training Complex was completed.
In conjunction with Washington County EMS, trained and licensed 14 emergency medical technicians (EMTs).
Purchased and is in the last phase of implementing a new comprehensive records management system (RMS).
Completed a review of policies and standard operating guidelines related to the management and operations of our Hazardous Materials (HazMat) Response Team.
Completed development of a draft response guideline for Active Shooter and Active Assailant incidents.
Completed the organizational structure for our Technician Rescue Team (TRT).
The Fire Prevention Division had two additional personnel complete the International Association of Arson Investigators' Fire Investigation Technician (FIT) Certification.
The Fire Training Division added a Training Lieutenant and Shift Training Officers (STOs).
2026 GOALS & OBJECTIVES
In conjunction with Facilities Management, complete construction of the fire training tower at the new fire training complex
The department will Increase tactical training for fire officer to improve their skills in handling the first alarm assignment's tactical decisions to improve efficiency and effectiveness, decreasing property losses.
The department will install response timers and status monitors at stations with software to help display times and incident locations upon dispatch.
The department and Hazmat Team leadership will develop a standardized training model and deployment procedures.
The department and Hazmat Team Leadership will continue to pursue TEMA Level 2 credentialing.
The department will continue to prioritize training for all the technical rescue disciplines (swift water, urban search and rescue, confined space, rope, etc.) to move the department toward being an all-hazards competent department.
The department will work to initiate a new pre-plan program. This will provide personnel with the opportunity to get out in their respective zones and be familiar with businesses they serve.
Department Overview
Dollars (In Thousands)
$16,500
$15,500
$14,500
$13,500
$12,500
$11,500
$10,500
$9,500
$8,500
Department Overview
Fire Department Expenditures
FY22FY23FY24FY25FY26
Department Overview
Department Overview
Parks & Recreation
The Parks and Recreation Department provides a wide range of programming, services and facilities for people of all ages to gather, celebrate, and participate in activities that promote their engagement in health, wellness, lifelong learning, community, and the environment. Parks and Recreation staff provide leadership, strategic planning, financial management and administrative support to meet citizens’ expectations for service delivery, quality customer service, diverse programming, and well-managed facilities.
Work is carried out by the following divisions:
ADMINISTRATIVE
Key responsibilities include providing leadership to all divisions within the department.
ATHLETIC SERVICES
Key responsibilities:
• Coordinate adult and youth league and tournament play for over 300 teams and 5,100 participants
• Provide athletic facilities and maintenance of those facilities, and coordinate schedules for the following Johnson City Schools’ programs: 1) Seventh grade baseball; 2) Eighth grade baseball, football, and soccer; 3) two middle school programs; and 4) freshman, junior varsity, varsity, and events for football, baseball, tennis, soccer, softball and lacrosse.
BY THE NUMBERS
• 24 public parks
• 23 lighted tennis courts
• 19 playgrounds + 1 inclusive playground
• 2 inclusive splash pads
• 5 indoor basketball courts
• 6 sand volleyball courts
• 1 18-hole disc golf course
• 1 18-hole golf course
• 9 outdoor basketball courts
• 11 youth baseball fields
• 10 softball fields
• 4 turf diamond fields
• 2 turf soccer fields
• 12 rectangular fields
• 34 miles of walking and hiking trails
• Winged Deer Park Mountain Bike Park
• Tannery Knobs Mountain Bike Park with Pump Track
• 2 dog parks
• 1 football stadium + 1 baseball stadium
• 4 recreation centers
• 1 multi-generational community center with amphitheater
• 5 swimming pools
• A lakefront area with two boat ramps, an amphitheater, boardwalk, plaza, and pavilion
• 30 rentable picnic pavilions
• The historic Robert Young Cabin
Department Overview
PARK SERVICES
Key responsibilities:
• Manage the daily schedule of events and services to park patrons and participants in programmed sporting leagues.
• Maintain all City park system structures, athletic fields, and common landscaped areas.
RECREATION SERVICES
Key responsibilities:
• Coordinate and deliver of a range of community recreation programs and services across the City targeting children, youth, adults and seniors as well as other specialized populations
• Support local community and cultural groups, include a range of arts, culture and heritage initiatives
• Maintain the health, safety and reliability of City facilities.
2025 ACCOMPLISHMENTS
Program participation increased through various events and efforts in Community Engagement, Athletics, and the community center (MPCC, Carver, Langston)
MPCC launched a highly successful after school program and achieved maximum participation
2026 GOALS & OBJECTIVES
Continue the Keefauver Farm project
Completion of the Borne Learning Trail at Carver Recreation
Establish Beeson Hall as the Athletics base of operations and activate the space for community use
Create a Summer Swim League Program
Finish walking portion of the Black History Trail project and begin the process of developing online content for the non-walking areas of West-Davis, Carnegie, and Roan Hill
Department Overview
Johnson City Senior Services, a division of the Parks and Recreation Department, operating as the Johnson City Senior Center at Memorial Park Community Center, provides recreational programs, leisure services and educational opportunities for adults 50 and over. Nationally accredited through the National Institute of Senior Centers/National Council of Aging the division is led by its mission of engaging adults in active life through active living operating from a philosophy of whole person wellness.
Key responsibilities:
• Offer a broad range of education and enrichment opportunities in the areas of health awareness, active lifestyle, functional fitness, lifelong learning, social enrichment, volunteers, transportation, travel, and social services
• Provide affordable quality programs and activities to enrich the lives of adults in our community from all economic and social backgrounds
2025 ACCOMPLISHMENTS
Hosted an Aging Well conference
2026
GOALS & OBJECTIVES
Increase participation in outings and transportation services by 25% over FY25
Offer five Lunch and Learn programs with sponsored meals and guest speakers
Complete at least one program off-site each month at assisted and independent living communities, local parks, or civic organizations to highlight the different activities offered at the center
SENIOR
Department Overview
Pine Oaks Golf Course, a division of the Parks and Recreation Department, provides services, programming and facilities for golfers of all levels to enjoy the game. In addition to daily play opportunities, the course offers a practice range, a stocked golf shop, annual pass options and gift certificates.
2025 ACCOMPLISHMENTS
2026 GOALS & OBJECTIVES
Key responsibilities include:
• Coordinate adult, youth and tournament play
• Maintain all structures, practice areas, turf, and landscaped areas
Continue to realize high levels of round play through new events, outside fundraiser events, hosting junior events, middle and high school teams, and daily business
Parks and Recreation Department Overview
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
Department Overview
Department Overview
Department Overview
Police
The Johnson City Police Department currently consists of 174 budgeted sworn officers providing law enforcement services to citizens and visitors. Operating as the eighth largest police department in the eighth largest city in Tennessee, the U.S. Census Bureau estimated Johnson City’s population at nearly 73,000 in 2023. JCPD’s jurisdiction spans 44 square miles with more than 600 miles of roadway through Washington, Carter, and Sullivan counties. In addition to law enforcement officers, the FY 2026 budget includes 18 full-time civilian employees.
Many of the Police Department’s activities are made possible through the acquisition and management of grant funding from federal and state agencies. Other funding sources support the Police Department’s mission and include the Technology Fund, a municipal court set-aside percentage of citation revenue, defensive driving fees, and the Drug Fund funded through fines and forfeitures.
Work is carried out by the following divisions:
ADMINISTRATIVE
Key responsibilities:
• Oversee the Office of Professional Standards, Accreditation Unit, Planning and Research, Crime Analysis Unit, Juvenile Court officer, Property and Facilities Unit/Evidence, Records Unit, School Resource Unit, and Training Unit
• Interact with other city staff and manage policy, budgets, personnel, fleet, and technology
Department Overview
CRIMINAL INVESTIGATIONS
Key responsibilities:
• Investigate criminal activity and follow up on reports generated by other divisions
• Collect, analyze and preserve evidence
• Coordinate search and arrest warrants and arrest suspects as necessary.
• Coordinate with other law enforcement agencies to more effectively address public safety issues
OPERATIONS
Key responsibilities:
• Respond to calls for service involving traffic accidents, ordinance violations, crimes against persons and property, and other calls for assistance
• Enforce laws
• Special event policing, crime prevention programs, community outreach and education, and involvement in community projects and programs designed to improve citizen partnerships for a safer community
• Prevent crimes by maintaining a highly visible presence and enforcing proactive community enforcement measures
• Staff special operations units to include bicycle unit, canine unit, crisis intervention team, crisis negotiations unit, explosive ordnance unit, and SWAT unit
2025 ACCOMPLISHMENTS
Maintained recruitment efforts to improve staffing
Increased storage for property and evidence
Prioritized traffic enforcement & roadway safety
Provide education to the community on criminal activity & the department’s approach to address this activity
2026 GOALS & OBJECTIVES
Reduce the number of crimes committed within the downtown footprint with targeted patrol and effective collaboration with businesses
Maintain or decrease the serious (injury and fatal) crash rate on I-26
Decrease Group A criminal offenses throughout the city
Continued support and utilization of the Department’s sexual assault protocol to increase sex crimes-related arrests
Continue to address illegal drug and gun related crimes throughout Johnson City
Prioritize aggressive recruitment objectives
Department Overview
JOHNSON CITY/WASHINGTON COUNTY FAMILY JUSTICE CENTER
Key responsibilities:
• Provide both direct and indirect services to victims of domestic violence, sexual assault and human trafficking
• Provide outreach, education and presentations to the community
Department Overview
Police Department Expenditures
Dollars (In Thousands)
$22,000
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
FY22FY23FY24FY25FY26
Fiscal Year
Department Overview
EXPENDITURE SUMMARY
Department Overview
Department Overview
Public Works
Services provided by the Public Works Department are instrumental in addressing environmental, public health, and local transportation issues. Public Works manages the maintenance of streets with services including stormwater infrastructure, asphalt paving, pothole and cut/patch repair, the removal of snow and ice from bridges and streets, as well as street sweeping.
Work is carried out by the following divisions:
STREET
Key responsibilities:
• Pavement maintenance (patch, resurface, traffic calming and alley maintenance)
• Right-of-way maintenance (mow, street sweep, and snow removal)
• Landscape and urban forestry
• Maintenance of public spaces in the downtown area
• Construction and maintenance of sidewalks, roadways and public parking lots
TRAFFIC
Key responsibilities include:
• Install and maintain all traffic control signage, pavement markings and signalization
Department Overview
ENGINEERING
Key responsibilities:
• Perform development plan reviews
• Oversee public and private construction
• Design and manage construction projects
• Review street light requests
The General Fund supports the streets, traffic and engineering divisions.
Key responsibilities:
• Maintain and upgrade the Stormwater system
The Stormwater Fund supports the Stormwater division.
2025 ACCOMPLISHMENTS
Substantial completion of West Walnut Street improvements
Designed completed for West Walnut Street holding pond
Completed 100% of resurfacing program
Substantial completion of Oakland Avenue bridge
2026 GOALS & OBJECTIVES
Complete 100% of resurfacing program
Manage consultant W Walnut Street (SOF to Antioch) Design
Complete design of widening and signal at Rockingham and N Roan
Complete design of widening and signal at Sam Jenkins and Suncrest
Complete design of widening and signal at Indian Ridge and Market
Complete design and begin construction of new road between Suncrest and Roscoe Fitz
Complete 50% Downtown Camera installation
Complete design and begin construction of upgraded downtown crosswalk lighting
Complete Oakland/ Mountainview Upgrade
Dollars (In Thousands)
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
Department Overview
Public Works Expenditures
FY22FY23FY24FY25FY26
Department Overview
Public Works
OTHER FUNDS:
Department Overview
Department Overview
SOLID WASTE
Solid Waste, a division of Public Works, is responsible for the collection of residential, commercial, and industrial refuse in Johnson City and Washington County. The division’s 65.6 employees service an area of 320 square miles, operating an average of 32 routes daily, and travel approximately 800,000 miles per year. Additional brush and leaf collection is provided up to 34 weeks annually.
Key responsibilities:
• Collect residential, commercial and industrial refuse within Johnson City and Washington County
• Collect brush and leaves
• Process recyclable material from the curbside recycling program and five drop-off sites throughout the City
2025 ACCOMPLISHMENTS
Began rate study to ensure continued financial sustainability
2026 GOALS & OBJECTIVES
Complete and implement results of rate study
Implement software for industrial rolloff management
Research software for commercial collection to produce more efficiencies and increase productivity
Department Overview
Solid Waste
Department Overview
* Other includes debt service interest, depreciation, admin fees, and other fees/transfers TOTAL
Department Overview
Fleet Management
Fleet Management’s primary objective is to ensure all city departments have the resources available in vehicles, equipment and radios to provide efficient services to the citizens of Johnson City. Fleet Management is one of only 12 organizations in the state to have earned a Blue Seal of Excellence from the National Institute for Automotive Service Excellence.
Key responsibilities:
• Maintain two fuel sites and an automated fueling system
• Provide effective management, maintenance and repair of fleet assets in a timely, cost effective manner
• Perform preventive maintenance and repairs on all city vehicles, equipment and radios
• Responsible for the communication system and tower sites
• Oversee 700 radios
2025 ACCOMPLISHMENTS
Achieved 100% safety rating on school buses and fire trucks
Performed over 17,200 services and repairs
Earned a Blue Seal of Excellence from the National Institute for Automotive Service Excellence
2026 GOALS & OBJECTIVES
Achieve fleet availability of 95%, which defined as the percentage of vehicles/equipment available for use and not out of service due to repair or maintenance.
Maintain 100% safety rating for all School and Fire vehicles.
Maintain 85% of all repairs performed in-house.
Maintain 100% compliance of all fuel sites with the Department of Environmental Protection guidelines.
Evaluate the productivity and efficiency of each technician, striving to maintain an 80% production rating for each technician.
Continue training for all personnel to maintain ASE Certification, with a goal of 60% of the technicians have a Master ASE Certification.
Achieve a minimum of 75% of all vehicle/equipment preventative maintenance performed on schedule, which will reduce down time, cost, and safety issues.
Achieve 70% of all repairs/maintenance completed within one workday of being scheduled in the shop.
To provide Fleet employees with a unique work environment that balances exceptional customer service, hard work, personal growth and gratification.
Department Overview
Fleet Management
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
FY22FY23FY24FY25FY26
Department Overview
Department Overview
Freedom Hall
Freedom Hall Civic Center is a multipurpose arena that opened on July 5, 1974, providing assembly, cultural, sports, entertainment facilities and services to the Johnson City schools, community and region. FHCC is located on the Liberty Bell campus and is adjacent to the Liberty Bell Middle School.
Over the last 50 years, Freedom Hall Civic Center has entertained millions of visitors with ice performances, circuses, horse shows, sporting events, conventions, music concerts, lecturers, bull riding, rodeos and other events.
Key responsibilities:
• Schedule events, performances and lectures
• Maintain a facility that has a fixed seating capacity of 5,368 and a maximum capacity of 6,868
• Promote shows to maximize growth and sales
• Produce events at the Civic Center
2025 ACCOMPLISHMENTS
Hosted the Big South conference tournaments Installed improved lighting
2026
GOALS & OBJECTIVES
Host 20 or more ticketed events, 16 basketball events, and 12 local events
Develop a sponsorship/partnership plan for added income of 25,000 to 50,000
Continue working with the Visitor’s Bureau to develop opportunities for Freedom Hall
Department Overview
Department Overview
Department Overview
MTPO
The Metropolitan Transportation Planning Organization (MTPO) serves as the regional transportation planning and coordination agency for the Johnson City Urban Area. The urbanized area includes Johnson City, Jonesborough, Elizabethton, Bluff City, a portion of the town of Unicoi, and Carter, Sullivan, and Washington counties. It should be noted that the urban area is defined by the U.S. Census Bureau. Federal law requires an MTPO to be established for any urbanized area over 50,000.
The current population of the Johnson City Urban Area is 128,519, which is considered a small urban area by Federal Highway Administration. The City of Johnson City is the lead jurisdiction for the MTPO and is the largest jurisdiction in the MTPO. Per the MTPO bylaws, the mayor of Johnson City or their proxy is the chairman of the MTPO executive board and the city manager or their proxy is the chairman of the executive staff.
Johnson City, being the lead agency, is responsible to ensure all federal laws and regulations are met in carrying out transportation planning activities. This is accomplished through the MTPO staff who are employees of Johnson City.
Key responsibilities:
• Tasks associated with the development and maintenance of the Metropolitan (Long Range) Transportation Plan and the Transportation Improvement Program
Department Overview
2025 ACCOMPLISHMENTS
Hired a consultant to complete corridor study on State Route 75 in Gray
The new MTPO website was completed and launched
The draft of the new Unified Planning Work Program was submitted to TDOT
2026 GOALS & OBJECTIVES
Continue to facilitate coordination between TDOT, Washington County, and the City of Johnson City on the transportation issues in the Gray community through the completion of the State Route 75 Corridor Study
Work with TDOT for greater assistance with the development, maintenance, and use of the Travel Demand Forecast Model. This will be a multi-year process
Update the Johnson City Urbanized Area Coordinated Public Transit-Human Services Transportation Plan. This will allow Johnson City Transit to remain eligible for Section 5310 grant funding
Finish the review process for the Fiscal Years 2026-2027 Unified Planning Work Program (UPWP). This document will cover MTPO planning activities over a two-year period
Finish the state and federal review process for the new Fiscal Years 2026-2029 Transportation Improvement Program (TIP)
Work with TDOT over the next year to implement the new cloud-based e-TIP software platform for MPOs, TDOT, and FHWA. Local jurisdictions and the public should also be able to view the projects
Select a contractor to begin the update to the Metropolitan Transportation Plan. The update process will cover a two-year period. This is required by federal law.
Department Overview
MTPO Manager (1)
MTPO (2) Employees
Senior Transportation Planner (1)
MTPO
Department Overview
Department Overview
Transit
STUDENT TRANSIT
The Student Transportation division operates a total of 49 large and small school buses. These buses operate along 206 routes within the corporate boundaries of Johnson City. School bus service is provided for eight elementary schools, two middle schools, one alternative school and one high school. Service for Special Education students is provided for ages 3 to 21 throughout the system.
Key responsibilities:
• Provide bus service to schools
• Transport 5,100 passengers per day; 912,257 passengers annually
• Cover 439,167 miles annually
2025 ACCOMPLISHMENTS
The state inspection rate for school buses was 100%
Emergency evacuation training for all elementary students and teachers was completed
Continue replacing the aging bus fleet. Three (3) small buses and two (2) small buses with wheelchair lifts were ordered. Delivery time is 12 to 18 months
2026 GOALS & OBJECTIVES
Maintain a 100% state inspection rate for 100% of the school bus fleet as part of the annual fleet inspection
Continue emergency evacuation training for students and teachers
Continue to hire and train new drivers for replacement and expansion of services based on demand. Explore new ways to recruit and retain school bus drivers
Continue to replace buses that will age out of service
(In
$3,200
$3,000
Department Overview
Student Transportation Expenditures
Department Overview
MASS TRANSIT
Johnson City Transit began operations in October 1979. JCT receives federal grant funding through the Federal Transit Administration and state grant funding through the Tennessee Department of Transportation. As a grant recipient, Johnson City Transit falls under and complies with various federal and state requirements, including Title VI of the Civil Rights Act of 1964 and the Americans with Disabilities Act of 1990, as amended.
Work is carried out by the following divisions:
Key responsibilities include:
• Oversee 15 fixed routes
• Originate and terminate route at the Johnson City Transit Center
• Maintain and operate Johnson City Transit Center
Key responsibilities include:
• Maintain program funds to support new transportation services, beyond those required by the Americans with Disabilities Act
• Assist individuals with disabilities with transportation, including transportation to and from jobs and employment support services
• Provide the Orange Route fixed-route service to Boones Creek and Med-Tech areas
Key responsibilities include:
• Partner with East Tennessee State University
• Shuttle service to campus and adjacent housing during fall and spring semesters
• Oversee three BucShot routes
• Maintain ADA accessibility
Key responsibilities include:
• Provide curb-to-curb paratransit service for mobility-impaired individuals
Key responsibilities include:
• Connect welfare recipients, disabled individuals and low-income persons to a job and related employment activities
BucShot
Regular Fixed Route
Paratransit
Job Access
New Freedom
Department Overview
2025 ACCOMPLISHMENTS
Completed renovation of the old Greyhound space that will be utilized by JCT dispatch and
2026 GOALS & OBJECTIVES
Replace vehicle camera systems
Replace bus lot video surveillance system
Completed successful Federal Transit Administration triennial review
Continue working with TDOT and local representatives on identifying other types of funding for
Department Overview
Mass Transit Expenditures
$6,500
$6,000
$5,500
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
Dollars (In Thousands) Fiscal Year
FY22FY23FY24FY25FY26
Department Overview
Department Overview
Water & Sewer Services Department Overview
The City of Johnson City Water and Sewer Services Department began its operations in the early 1900s, providing potable water service to the citizens and businesses of the city. Treatment of wastewater began in the mid-1950s. Over the years, the department has expanded to serve residents in parts of four counties that surround the corporate limits of Johnson City. As of December 2023, the department serves 47,775 water accounts, of which 29,186 are inside the city limits and 18,589 are outside the city limits, and 30,543 wastewater customers, of which 25,524 are inside the city limits and 5,019 are outside the city limits. The system serves a total population of approximately 118,000 individuals.
The department has two water treatment plants with the capacity to produce 28 million gallons of potable water per day. The Unicoi Water Treatment Plant, located to the south of the city with Unicoi Springs being the source of raw water, can produce an average of 4 million gallons per day. The Watauga Water Treatment Plant, located on the eastern edge of the city with the Watauga River being the source of raw water, can provide 24 million gallons per day. There are 953 miles of water transmission lines dispersed throughout the service area, along with 63 booster stations.
The department also operates three wastewater treatment plants with the total capacity to treat 26 million gallons of wastewater per day. The Brush Creek Wastewater Treatment Plant, located on the eastern edge of the city, can treat 16 million gallons per day. The Knob Creek Wastewater Treatment Plant, located in the northeastern part of the city, has the capacity to treat 4 million gallons per day. The Regional Wastewater Treatment Plant, located near the Tri-Cities Regional Airport, can treat 6 million gallons per day. There are currently 753 miles of wastewater collection lines and 97 lift stations throughout the system.
Key responsibilities:
Department Overview
• Provide potable water service to the citizens and businesses of Johnson City
• Treat wastewater
• Serve 47,775 water accounts
• Serve 30,543 wastewater accounts
• Maintain two water treatment plants
• Operate three wastewater facilities
2025 ACCOMPLISHMENTS
Achieved full compliance with all federal and state Drinking Water Standards
Achieved full compliance with each of the three major wastewater NPDES permits
Achieve full compliance with the one minor wastewater NPDES permit
Internally cleaned and televised 10% of the gravity sanitary sewer system
Performed contract leak detection on 1/3 of the potable water system
Completed construction on the Phase I architectural improvements to the Brush Creek Wastewater Treatment Plant
Began design for Phase VIII sewer rehab work
Began design Phase XII galvanized water line replacement
Completed construction for West Walnut St. utility water and sewer line replacements
Continued replacement of galvanized and small diameter water lines
Continued rehabilitation and replacement of lines in the sewer collection system
2026 GOALS & OBJECTIVES
Achieve full compliance with all applicable regulatory agencies
Begin the design for the Phase VIII rehab work generated from the annual TV assessment work
Complete final design of Knob Creek Wastewater Treatment Plant aeration project
Begin design on the next Lift Station Phase-Out project for the phase-out of the Timberlake sewer lift station
Complete easement acquisition, accept bids, and begin construction for the Lower Boones Creek Interceptor, C Station Replacement, and B Station Forcemain projects
Continue construction of Sinking Creek Sewer Pump Station upgrade project
Complete construction on the Phase I architectural improvements to the Brush Creek Wastewater Treatment Plant Equipment Building, and Pump and Blower Buildings
Finalize design on the necessary interior architectural improvements to the Brush Creek Wastewater Treatment Plant Administration Building
Begin design for the Phase XII galvanized water line replacement project
Begin design for the next phase of the Washington County Water Line Extensions project
Begin design for the West Walnut Street waterline project beginning near LP Auer Road
Complete construction for the Utility Relocation Highway 107 TDOT project – Unicoi County
Department Overview
Water and Sewer
Department Overview
$45,000
$40,000
Water & Sewer Expenditures
Dollars (In Thousands) Fiscal
$35,000
$30,000
$25,000
$20,000
$15,000
FY22FY23FY24FY25FY26
Department Overview
Department Overview
Johnson City Schools Department Overview
Johnson City Schools Expenditures
$106,000
$102,000
$98,000
$94,000
$90,000
$86,000
$82,000
$78,000
$74,000
$70,000
Dollars (In Thousands) Fiscal Year
$110,000 FY22FY23FY24FY25FY26
Johnson City Schools
Department Overview
BUDGET ORDINANCE
Ordinance No. 4918-25
An Ordinance to Establish the Property Tax Rates, Appropriate Funds, and Adopt a Budget for the Fiscal Year July 1, 2025 through June 30, 2026
SECTION 5. The following funding amounts for the proprietary funds shall be and hereby are adopted as appropriations for the operation of the City of Johnson City, Tennessee, along with revenue projections for the fiscal year 2026:
Bridge-W.WalnutImprovementsSOFtoAntiochBondIssue2,000,000 HickorySpringsBridgeStormWaterFund500,000 WWalnutStreetHoldingPondFederal-Grant3,300,000 Total
Accrual Basis of Accounting – A basis of accounting in which revenues and expenditures are recorded at the time they are earned or incurred as opposed to when cash is actually received or spent.
Appropriation – Authorization for spending a specific amount of money for a specific purpose during a fiscal year.
Approved Budget – The budget as formally adopted by the City Commission for the upcoming fiscal year, beginning July 1.
Assessed Valuation – A value that is established for real or personal property for use as a basis for levying property taxes.
Balanced Budget – Occurs when planned expenditures equal anticipated revenues. In Tennessee, it is required that the budget be approved by the City Commission be balanced.
Bond Rating – A rating (made by an established bond rating company) from a schedule of grades indicating the probability of timely repayment of principal and interest on bonds issued.
Budget – A comprehensive financial plan of operation for a fiscal year that matches all planned revenues and expenditures with various municipal services. The City’s budget is adopted annually.
Budget Calendar – The schedule of key dates or milestones which the City staff follows in the preparation and adoption of the budget.
Budget Document – The official written statement prepared by the City staff which reflects the decisions and allocations made by the City Commission.
Budget Ordinance – The formal legal documentation of budgeted appropriations approved by the City Commission. The adoption of the budget ordinance requires approval on three readings.
Capital – Category of expenditures for capital acquisitions that include: land, buildings, infrastructure, and equipment over $5,000, which have useful lives extending beyond a single reporting period.
Capital Equipment Fund – Used to account for acquisition of major capital equipment including vehicles, mowers, large trucks, etc.
Capital Improvements Plan – Issued separately, but in coordination with the budget document, the CIP is the plan or schedule of project expenditures for public facilities, infrastructure, and equipment with estimated project costs, sources of funding, and timing of work/purchases over a five year period. Generally, projects and/or equipment over $15,000 are included in the CIP.
Capital Projects Fund – Used to account for acquisition and/or construction of major capital projects, including buildings, parks, streets, and other City facilities.
Glossary
City Commission – The five member governing body of the City of Johnson City.
City Manager – The Chief Executive Officer of the City of Johnson City, hired by the City Commission.
Community Development Block Grant (CDBG) – A federal entitlement program designed to benefit low and moderate income persons, specifically in the areas of housing.
Cost-of-Living Adjustment (COLA) – An increase in salaries to offset the adverse effect of inflation on compensation.
Debt Limit – The maximum amount of gross or net debt that is legally permitted.
Debt Service Fund – The fund established for the purpose of accumulating resources to repay the principal and interest on long-term general obligation debt, excluding debt payable for the Enterprise Funds of the City (Golf, Solid Waste, and Water/Sewer).
Deficit – An excess of expenditures over revenues or expenses over income.
Department – A major administrative or operational division of the City, which is responsible for a group of related activities.
Depreciation – A decrease in value of property through wear, deterioration, or obsolescence.
Drug Fund – A fund used to account for drug related fines and confiscations received, as well as usage of these monies to further drug investigations.
Enterprise Fund – A grouping of activities whose expenditures are entirely offset by revenues collected from user fees or charges. This is a business-like activity. Enterprise Funds for the City of Johnson City are Golf, Mass Transit, Solid Waste (Municipal and Regional), Storm Water, and Water/Sewer.
Estimated Revenue – The amount of projected revenue to be collected during the fiscal year.
Expenditure – The money spent by the City for programs and projects included within the approved budget.
Fiscal Year – The time period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year.
Fixed Assets – Equipment and other capital items used in governmental type operations, which are intended to be held and have long-term value, such as land, buildings, machinery, vehicles, and other equipment.
Full-Time Equivalent – A part-time position converted to the decimal equivalent of a full-time position based on 2080 hours.
Glossary
Fund – An accounting entity which has a set of self-balancing accounts and where all financial transactions for special activities or governmental functions are recorded.
Fund Balance – Amounts shown as fund balance represent monies remain unspent after all budgeted expenditures have been made.
General Fund – The general operating fund of the City used to account for all financial resources except those required to be accounted for in another fund. Most department operations of the City are funded by the General Fund, including Police, Fire, Administration, Parks & Recreation, Senior Center, Risk Management, Information Technology, and Public Works.
Generally Accepted Accounting Principles (GAAP) – The rules and procedures that serve as the guide for the fair presentation of Financial Statements.
General Obligation Bonds – Bonds issued by a government that are backed by the full faith and credit of its taxing authority.
Goal – A statement of specific direction, purpose, or intent to be accomplished by staff within a program.
Grants – A contribution of cash or other assets from another government or non-profit foundation to be used for a specific purpose.
Infrastructure – Long-lived capital assets that normally are stationary in nature, including streets, bridges, water/sewer line and treatment facilities, storm drainage, traffic signals, etc.
Intergovernmental Revenue – Funds received from federal, state, and local government sources.
Internal Service Fund – Fund used to account for the furnishings of goods or services by one department to other departments or agencies on a cost-reimbursement basis. The Motor Transport Fund and Insurance Fund are internal service funds for the City of Johnson City.
Line Item – A budgetary account representing a specific object of expense.
Long-Term Debt – Debt issued with a maturity of more than one year after the date of issuance.
Merit Increase – An amount of money set aside to reward employees who have performed with excellence throughout the fiscal year.
Modified Accrual Basis of Accounting – Basis of accounting to which: 1) revenues are recognized in the accounting period in which they become available and measurable and 2) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable.
Glossary
Objective – A statement of specific direction, purpose, or intent to be accomplished by staff within a program.
Operating Budget – The City’s financial plan which outlines proposed personnel and operating expenditures for the coming fiscal year, as well as revenue estimates which will be used to finance them.
Payment in Lieu of Taxes – Payment that a property owner not subject to taxation makes to a government to compensate for services that the property owner receives, which are normally financed through property taxes.
Personal Services – Category of expenditures which include employees, salaries and wages, and employee benefits.
Property Tax – A tax levied on the assessed value of real and personal property.
Property Tax Rate – The amount of tax levied for each $100 of assessed valuation.
Public Hearing – An open meeting or portion of the regularly scheduled meeting of the City Commission for the purpose of obtaining public comment or input on a particular issue.
Reserved Fund Balance – A portion of the City’s fund balance that is legally restricted for a specific purpose and is not available for general appropriation.
Retained Earnings – An equity account reflecting the accumulated earnings of an enterprise or internal service fund.
Revenue – Income received from various sources used to finance government services.
Revenue Bonds – Bonds usually sold for constructing a project that will produce revenue for the City. The revenue is then used to pay the principal and interest on the bond.
Special Revenue Fund – A fund used to account for resources that are subject to certain spending restrictions, where specific revenue sources are used to finance certain activities.
Supplemental Budget – A budget that is prepared to meet unexpected needs or to spend revenues not anticipated at the time the original budget was adopted.
Transfer – An amount distributed from one fund to finance activities in another fund. Transfers are shown as an expenditure in the originating fund and a revenue in the receiving fund.
Unreserved Fund Balance – The portion of fund balance that is not restricted for a specific purpose and is available for general appropriation.
