JCDA Finance Committee

AGENDA Johnson City Development Authority Finance Committee Meeting Wednesday, July 15, 2026 @ 8:30 AM Municipal and Safety Building, Administrative Conference Room 1. CALL TO ORDER 1.1. Call to Order and Quorum Confirmation: 3 of 5 of Current Members Required Member Present Absent Freddie Malone, Finance Committee Chair Jack Simpson, JCDA Chair and Committee member Bob Cooper, JCDA Vice-Chair and Committee member Chris Hyder, Committee member Daniel Tackling, Committee member 2. FINANCIALS 2.1. ACTION: Review and Approval of the JCDA General Fund Financials for the fiscal year ended June 30, 2026, as prepared by John Steadman, City of Johnson City General Fund Financial Statements June 2026 2.2. ACTION: Review and Approval of the JCDA Special Revenue TIF Fund Financials for the fiscal year ended June 30, 2026, as prepared by John Steadman, City of Johnson City Special Revenue-TIF Fund Financial Statements June 2026 2.3. ACTION: Review and Approval of the JCDA John Sevier Center Financials for the fiscal year ended June 30, 2026, as prepared by John Steadman, City of Johnson City Page 1 of 15  John Sevier Center Fund Financial Statements June 2026 3. OTHER BUSINESS 3.1. INFORMATIONAL: General Fund Expense Comparison between FY25 and FY26 General Fund Expense Comparison 3.2. INFORMATIONAL: John Sevier Center Fund Monthly Expense Comparison John Sevier Center Expense Comparison 4. RECOMMENDATIONS 5. ADJOURNMENT Page 2 of 15 Agenda Item #2.2.1. JOHNSON CITY DEVELOPMENT AUTHORITY GENERAL FUND BALANCE SHEET June 30, 2026 ASSETS Cash HomeTrust Savings Account $ 1,044,050 HomeTrust Operating Account 88,494 HomeTrust Operating Debit Card 2,444 Total Cash $ 1,134,989 Other Current Assets Accounts Recievable $ 76,598 Lease Income Receivable 183,144 Total Other Current Assets $ 259,742 Total Assets $ 1,394,731 LIABILITIES Current Liabilities Accounts Payable Deferred Revenue - Leases 171,364 Total Current Liabilities $ 171,364 FUND BALANCES Unassigned $ 1,223,367 Total Fund Balances $ 1,223,367 Total Liabilities and Fund Balances $ 1,394,731 Page 3 of 15 Agenda Item #2.2.1. JOHNSON CITY DEVELOPMENT AUTHORITY GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended June 30, 2026 REVENUE Operating Revenue - City of JC $ 130,000 Lease Income - Downtown Centre 126,000 Interest Income & Admin Fee 84,593 Misc. Revenue 670 Total Revenue $ 341,263 EXPENSE Salaries $ 73,340 Audit Fee 24,500 Office Rent 18,493 Downtown Centre Contract Labor Other 23,457 Property and Liability Insurance 11,115 Fire Alarm System Monitoring and Maintenance 9,663 ISP Service 1,980 Flood Insurance 1,502 Permits & Fees 55 Payroll Taxes 5,610 Health Insurance 4,989 Insurance - Directors & Officers 4,232 Printing Services 3,074 Software Purchase or Lease 2,844 Accounting Fees 1,000 Legal Services 1,000 Employee Parking 1,000 Payroll Service Fee 670 Internet 406 PO Box 276 Computer/IT Support 236 Late Fee 213 Dental Insurance 207 Meals & Entertainment 194 Office Phones 143 Bank Fees 40 Vision Insurance 29 Membership/Dues/Subscriptions 20 Worker's Compensation Insurance 10 Total Expenses $ 190,297 Excess (Deficiency) of Revenues Over (Under) Expenditures $ 150,966 Unusual Item - Downtown Improvement Grant Reimbursement* 76,598 Page 4 of 15 Agenda Item #2.2.1. Unusual Item - Downtown Improvement Grant Disbursement* (76,598) Unusual Item - Grant Administration Fee* (5,000) Net Change in Fund Balance 145,966 Fund Balances, Beginning of Fiscal Year $ 1,077,401 Fund Balances, End of Fiscal Year $ 1,223,367 *After discussion with the auditors, it was determined that the Downtown Improvement Grant disbursements and reimbursements needed to flow through the General Fund and not the TIF Fund as originally planned. Page 5 of 15  Agenda Item #2.2.1. JOHNSON CITY DEVELOPMENT AUTHORITY GENERAL FUND BUDGET TO ACTUAL For the Year Ended June 30, 2026 June June June Variance June Actual FY26 FY26 FY26 Variance FY 26 Actual Actual Budget (Actual - Budget) as % of Budget Actual Budget - Amended (Actual - Budget) as % of Budget REVENUE Operating Revenue - City of JC $ - $ 10,833 $ (10,833) 0.0% $ 130,000 $ 130,000 $ - 100.0% Lease Income - Downtown Centre 10,500 21,000 (10,500) 50.0% 126,000 126,000 - 100.0% Interest Income & Admin Fee 50,889 7,042 43,847 722.7% 84,593 84,500 93 100.1% Misc. Income - - - 100.0% 670 - 670 100.0% Total Revenue $ 61,389 $ 38,875 $ 22,514 157.9% $ 341,263 $ 340,500 $ 763 100.2% EXPENSE Salaries $ - $ - $ - 0.0% $ 73,340 $ 73,340 $ (0) 100.0% Payroll Taxes - - - 0.0% 5,610 5,610 0 100.0% Benefits - - - 0.0% 5,225 5,225 (0) 100.0% Administration/Operations 421 875 (454) 48.1% 10,426 10,505 (79) 99.2% Professional Services 2,403 4,242 (1,839) 56.6% 50,626 50,900 (274) 99.5% Page 6 of 15 Insurance 4,803 1,375 3,428 0.0% 16,859 16,500 359 102.2% Property Expense 55 2,350 $ (2,295) 2.3% 28,211 28,200 11 100.0% Total Expenses $ 7,682 $ 8,842 $ (1,160) 86.9% $ 190,297 $ 190,280 $ 17 100.0% Excess (Deficiency) of Revenues Over (Under) Expenditures 53,707 30,033 23,674 100.0% $ 150,966 $ 150,220 $ 746 0.0% Unusual Item - Downtown Improvement Grant Reimbursement 27,098 - 27,098 0.0% 76,598 76,598 - 100.0% Unusual Item - Downtown Improvement Grant Disbursement (27,098) - (27,098) 0.0% (76,598) (76,598) - 100.0% Unusual Item - Grant Administration Fee (5,000) - (5,000) 0.0% (5,000) (5,000) - 100.0% Net Change in Fund Balance 48,707 30,033 77,870 162.2% 145,966 303,416 746 100.0% Agenda Item #2.2.2. JOHNSON CITY DEVELOPMENT AUTHORITY SPECIAL REVENUE FUND-TIF BALANCE SHEET June 30, 2026 ASSETS Cash HomeTrust Bank Money Market $ 3,083,033 Home Trust Bank Downtown Centre 227,298 Eastman Credit Union Savings 625 Total Cash $ 3,310,956 Total Assets $ 3,310,956 LIABILITIES Current Liabilities Accounts Payable $ - Total Current Liabilities $ - FUND BALANCES Restricted for Tax Increment Financing Projects $ 3,310,956 Total Fund Balances $ 3,310,956 Total Liabilities and Fund Balances $ 3,310,956 Page 7 of 15 Agenda Item #2.2.2. JOHNSON CITY DEVELOPMENT AUTHORITY SPECIAL REVENUE FUND-TIF STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended June 30, 2026 REVENUE City of Johnson City Funding $ 960,445 Washington County Funding 665,060 Dividend/Interest Income 94,490 Total Revenue $ 1,719,995 EXPENSE Administrative Legal Fees $ 1,766 Bank Fees 45 Tax Increment Administrative Fee 48,022 Downtown Development - Facade Grants 82,091 TIF Projects University Edge 235,618 Debt Service Downtown Centre - Principal $ 172,662 Downtown Centre - Interest 26,846 Downtown Pavilion - Principal 115,500 Downtown Pavilion - Interest 19,126 Model Mill - Principal 60,000 Model Mill - Interest 33,610 Triple G - Principal 27,273 Triple G - Interest 7,604 MMM Enterprises - Principal 17,270 MMM Enterprises - Interest 4,596 Cherry St - Principal 15,157 Cherry St - Interest 3,002 Total Expenses $ 870,188 Excess (Deficiency) of Revenues Over (Under) Expenditures $ 849,807 Fund Balances, Beginning of Fiscal Year $ 2,461,149 Fund Balances, End of Fiscal Year $ 3,310,956 Page 8 of 15  Agenda Item #2.2.2. JOHNSON CITY DEVELOPMENT AUTHORITY SPECIAL REVENUE FUND-TIF BUDGET TO ACTUAL For the Year Ended June 30, 2026 June June June Variance June Actual FY 26 FY 26 Variance FY 26 Actual Actual Budget (Actual - Budget) as % of Budget Actual Budget - Amended (Actual - Budget) as % of Budget REVENUE Tax Increment TIF $ 830,458 $ 135,459 $ 694,999 613% $ 1,625,505 $ 1,625,505 $ 0 100.0% Interest TIF 8,699 7,741 959 100% 94,490 92,890 1,600 100.0% Total Revenue $ 839,157 $ 143,200 $ 695,958 586% $ 1,719,995 $ 1,718,395 $ 1,600 100.1% EXPENSE University Edge $ - $ 19,635 $ (19,635) 0% $ 235,618 $ 235,618 $ - 100.0% Downtown Centre - 16,626 (16,626) 0% 199,508 199,508 - 100.0% Downtown Pavilion - 11,219 (11,219) 0% 134,626 134,626 - 100.0% Cherry Street - 1,513 (1,513) 0% 18,159 18,159 - 100.0% Model Mill - 7,801 (7,801) 0% 93,610 93,610 - 100.0% Triple G - 2,906 (2,906) 0% 34,877 34,877 - 100.0% MMM Enterprises - 1,822 (1,822) 0% 21,866 21,866 - 100.0% Page 9 of 15 Facade Grants - 6,841 (6,841) 0% 82,091 82,091 - 100.0% Legal and Admin Fee 48,022 4,153 43,869 1156% 49,834 49,834 - 100.0% TIF Capital Projects Restricted - - - #DIV/0! - - - 0.0% Total Expenses $ 48,022 $ 72,516 $ (24,493) 66% $ 870,188 $ 870,188 $ - 100.0% - Excess (Deficiency) of Revenues Over (Under) Expenditures $ 791,135 $ 70,684 $ 720,451 1119% $ 849,807 $ 848,207 $ 1,600 100.2% Agenda Item #2.2.3. JOHNSON CITY DEVELOPMENT AUTHORITY JOHN SEVIER CENTER STATEMENT OF NET POSITION June 30, 2026 ASSETS Cash HomeTrust Checking Operating 15,876 HomeTrust Checking Security Deposits 45,793 HomeTrust Checking Replacement Reserve 126,612 Total Cash $ 188,281 Other Current Assets Tenant A/R $ - Prepaid Expenses 5,411 Prepaid Insurance - Total Other Current Assets $ 5,411 Noncurrent Assets Land $ 79,300 Buildings 5,560,411 Furniture for Project Use 34,952 Misc Fixed Assets 10,741 Accumulated Depreciation (934,752) Total Noncurrent Assets $ 4,750,652 Total Assets $ 4,944,344 LIABILITIES Current Liabilities Accounts Payable $ - Accrued Expenses 3,500 Accrued Audit Fees 24,000 Refunds Due 108 Total Current Liabilities $ 27,608 Noncurrent Liabilities Mortgage Payable $ 3,633,875 Noncurrent Liabilities $ 3,633,875 Total Liabilities 3,661,483 NET POSITION Net Position in Capital Assets $ 1,252,810 Unrestricted 482,757 Net Profit (Loss) (452,707) Total Net Position $ 1,282,860 Page 10 of 15 Agenda Item #2.2.3. JOHNSON CITY DEVELOPMENT AUTHORITY JOHN SEVIER CENTER STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN NET POSITION For the Year Ended June 30, 2026 REVENUE Tenant Rent Revenue $ 241,788 HUD Assistance 861,034 Special Claims Vacancy 9,046 Special Claims Damages 347 Apartment Vacancy (51,022) Laundry & Vending Revenue 808 Misc Tenant Charges 2,876 Late Fees 1,293 Damages 300 Other Income 1,198 Total Revenue $ 1,067,668 EXPENSE Conventions & Meetings $ 39 Screening Expense 1,950 Tenant Promotions 1,802 Office Payroll 17,107 Office Payroll CC 15,252 Office Equipment-Lease & Maint 1,505 Office Supplies 2,636 Postage 610 Telephone/Data/Cable/Answering Svc 5,139 Management Fees 61,283 Manager Payroll 36,104 Legal Exp-Collection/Evictions 2,507 Audit Expense 22,000 Bookkeeping Fees 3,500 Rent Expense 129,466 Bad Debts 24,327 Bad Debts - Admin 3,122 Allowance for Bad Debts (17,015) Misc Admin Expense 2,908 Meals & Entertainment 784 Computer Expense 8,022 Travel Expenses 258 Bank Charges 3,288 Dues & Subscriptions 125 Professional Fees 230 Payroll Processing Fees 463 Electricity 69,072 Electricity-Vacants 5,513 Water 12,040 Gas 1,814 Sewer 17,458 Repairs & Maint Payroll 56,492 Page 11 of 15 Agenda Item #2.2.3. Supplies 1,195 Janitorial Supplies 4,221 Maintenance Supplies 9,114 Decorating Supplies 494 Painting & Paint Supplies 2,056 Plumbing Supplies 2,522 Electrical Supplies 898 Contract-Exterminating 42,247 Contract-Elevator 15,074 Contract-Labor 18,478 Contract-Fire Alarm 11,489 Contract-Plumbing 3,028 Contract-Cable TV 37,895 Contract-Other 20,061 Garbage & Trash Removal 19,163 Contract-Security 197,441 HVAC R & M 1,059 Appliances 67 Carpentry 1,108 Uniform Expense 290 Payroll Tax Expense 10,903 Property & Liability Insu 184,434 Flood Insurance 2,006 Workers Compensation Insu 2,760 Employee Benefits & Insur 26,216 License & Permits 580 Mortgage Interest-1st 236,809 Interest - Other 22 Convenience Fee 12 Late Fee 30 Mileage 4,350 Depreciation 174,554 Total Expenses $ 1,520,375 Excess (Deficiency) of Revenues Over (Under) Expenditures (452,707) Net Position, Beginning of Fiscal Year $ 1,735,567 Net Position, End of Fiscal Year $ 1,282,860 Page 12 of 15  Agenda Item #2.2.3. JOHNSON CITY DEVELOPMENT AUTHORITY JOHN SEVIER CENTER BUDGET TO ACTUAL For the Year Ended June 30, 2026 June June June Variance June Actual FY26 FY26 FY26 Variance FY 26 Actual Actual Budget (Actual - Budget) as % of Budget Actual Budget - Amended (Actual - Budget) as % of Budget REVENUE Rental Income $ - $ 91,902 $ (91,902) 0.0% $ 1,102,822 $ 1,102,822 $ - 100.0% Other Income 536 $ (536) 0.0% 6,475 6,434 $ 41 100.6% Vacancy Loss - (3,469) $ 3,469 0.0% (41,629) (41,629) $ - 100.0% Bad Debt - (869) 869 0.0% (10,434) (10,434) - 100.0% Total Revenue $ - $ 88,099 $ (88,099) 0.0% $ 1,057,234 $ 1,057,193 $ 41 100.0% EXPENSE Utilities $ 5,345 $ 8,750 $ (3,405) 61.1% $ 105,897 $ 105,000 $ 897 100.9% Contract Services 1,658 14,583 (12,925) 11.4% 167,435 175,000 (7,565) 95.7% Contract - Security 17,631 16,458 1,173 107.1% 197,441 197,500 (59) 100.0% Repairs & Maintenance - 2,083 (2,083) 0.0% 23,022 25,000 (1,978) 92.1% Page 13 of 15 Turnover - - - #DIV/0! - - - 0.0% Administrative 3 13,500 (13,497) 0.0% 162,392 162,000 392 100.2% Audit - 1,833 (1,833) 0.0% 22,000 22,000 - 100.0% Bookkeeping Fee - 292 (292) 0.0% 3,500 3,500 - 100.0% Marketing - 313 (313) 0.0% 3,752 3,752 0 100.0% Payroll - 13,736 (13,736) 0.0% 164,835 164,835 (0) 100.0% Licenses and Permits 110 24 86 455.2% 580 290 290 200.0% Insurance 15,010 14,583 426 102.9% 186,440 175,000 11,440 106.5% Management Fee - 5,107 (5,107) 0.0% 61,283 61,283 (0) 100.0% Development Costs - 3,167 (3,167) 0.0% - 38,000 (38,000) 0.0% Total Expenses $ 39,756 $ 94,430 (54,674) 42.1% $ 1,098,578 $ 1,133,160 (34,582) 96.9% Debt Service $ 21,873 19,583 $ 2,290 0.0% $ 236,809 $ 235,000 $ 1,809 100.8% Depreciation 14,546 14,546 (0) 0.0% 174,554 174,555 (1) 0.0% Capital Expense - 8,854 (8,854) 0.0% 106,250 106,250 - 100.0% Replacement Reserve - (8,854) 8,854 0.0% (106,250) (106,250) - 100.0% Excess (Deficiency) of Revenues Over (Under) Expenditures $ (76,175) $ (40,460) $ (35,715) 100.0% $ (452,707) $ (485,522) $ 32,815 93.2% Agenda Item #3.3.1. JOHNSON CITY DEVELOPMENT AUTHORITY GENERAL FUND STATEMENT EXPENDITURES CURRENT YEAR VERSUS PRIOR YEAR For the Year Ended June 30, 2026 FY 2025 FY 2026 Variance COMPARABLE EXPENSES Salaries $ 140,500 $ 73,340 $ (67,160) Audit Fee 20,500 24,500 4,000 Office Rent 23,196 18,493 (4,703) Downtown Centre Contract Labor Other 25,853 23,457 (2,396) Fire Alarm System Monitoring and Maintenance 1,314 9,663 8,348 Property and Liability Insurance 10,126 11,115 988 Flood Insurance 1,510 1,502 (8) ISP Service 2,340 1,980 (360) Permits & Fees 60 55 (5) Payroll Taxes 10,832 5,610 (5,222) Health Insurance 8,713 4,989 (3,723) Directors and Officers Insurance 3,966 4,232 266 Printing Services 2,630 3,074 444 Software Purchase or Lease 2,841 2,843 3 Accounting Fees 14,255 1,000 (13,255) Legal Services 250 1,000 750 Employee Parking 1,200 1,000 (200) Payroll Service Fee 1,205 670 (535) Internet 600 406 (194) PO Box 268 276 8 Computer/IT Support 2,962 236 (2,726) Late Fee - 213 213 Dental Insurance 413 207 (207) Meals & Entertainment 1,076 194 (882) Office Phones 1,043 143 (900) Bank Fees 9,294 40 (9,254) Vision Insurance 58 29 (29) Membership/Dues/Subscription 40 20 (20) Worker's Compensation Insurance 602 10 (592) TOTAL COMPARABLE EXPENSES $ 287,648 $ 190,297 $ (97,351) REDUCED EXPENESES Conference/Education 271 - (271) Transportation/Mileage 70 - (70) Marketing/Advertising 567 - (567) Legal Advertising JCDA 248 - (248) Office Supplies 772 - (772) Postage and Shipping 228 - (228) Other Expenses 35 - (35) Cell Phone(s) 534 - (534) Cleaning Services and Supplies 3,000 - (3,000) Computer/Hardware/Devices 40 - (40) Outside Contract Services 100 - (100) Contract Labor HVAC 935 - (935) Contract Labor Property Management 1,339 - (1,339) Camera & IT Equipment 6,990 - (6,990) HVAC Equipment 13,524 - (13,524) General Supplies 516 - (516) TOTAL REDUCED EXPENESES 29,169 - (29,169) TOTAL EXPENSES 316,817 190,297 (126,521) Page 14 of 15  Agenda Item #3.3.2. JOHNSON CITY DEVELOPMENT AUTHORITY JOHN SEVIER CENTER MONTHLY EXPENSE COMPARISON May June Future Projected Actual Actual Monthly Average Utilities 10,614 Utilities 5,345 Utilities 6,620 Electricity 10,193 Electricity 5,130 Electricity 6,000 Water 305 Water 90 Water 500 Gas 117 Gas 125 Gas 120 Contract Services 1,658 Contract Services 1,658 Contract Services 2,320 Contract-Exterminating 190 Contract-Exterminating 190 Contract-Exterminating 870 Contract-Elevator 1,148 Contract-Elevator 1,148 Contract-Elevator 350 Contract-Fire Alarm 320 Contract-Fire Alarm 320 Contract-Fire Alarm 1,000 Contract-Other - Contract-Other - Contract-Other 100 Contract - Security 13,888 Contract - Security 17,631 Contract - Security 16,500 Repairs & Maintenance - Repairs & Maintenance - Repairs & Maintenance 3,000 Maintenance Supplies - Maintenance Supplies - Maintenance Supplies 1,500 Page 15 of 15 Supplies - Supplies - Supplies 1,500 Administrative 8 Administrative 3 Administrative 100 Telephone/Data/Cable/Answering Svc - Telephone/Data/Cable/Answering Svc - Telephone/Data/Cable/Answering Svc - Misc Admin Expense 8 Misc Admin Expense 3 Misc Admin Expense 100 Insurance 15,010 Insurance 15,010 Insurance 15,010 Management Fee - Management Fee - Management Fee - Licensing and Permits - Licensing and Permits 110 Licensing and Permits 10 Development Costs - Development Costs - Development Costs - Total Expenses 41,179 Total Expenses 39,756 Total Expenses 43,560 Debt Service 21,167 Debt Service 21,873 Debt Service 20,815 Depreciation 14,546 Depreciation 14,546 Depreciation 14,546 Capital Expense - Capital Expense - Capital Expense - Replacement Reserve - Replacement Reserve - Replacement Reserve - Total Expenses 76,892 Total Expenses 76,175 Total Expenses 78,920 Total Expenses Less Depreciation 62,346 Total Expenses Less Depreciation 61,629 Total Expenses Less Depreciation 64,374