2026-2027 Budget - City of Knoxville
BudgetAI Summary
Mayor Indya Kincannon proposed a balanced, $499 million net budget for fiscal years 2026-2027 with no new taxes, maintaining the city's property tax rate at $2.1556 per $100 of assessed value—the lowest since 1974. The budget prioritizes public safety ($102.1 million for police and firefighter salaries and benefits), affordable housing ($8 million investment including support for the Transforming Western partnership), and parks and quality-of-life services, while withdrawing $6 million from reserves to address inflationary pressures that are outpacing revenue growth. Despite budgetary challenges from 2.2 percent sales tax growth forecasts against 3 percent anticipated inflation, Knoxville maintains strong financial reserves of $114.6 million in its General Fund Balance and holds all-time high bond ratings with the lowest debt per capita among Tennessee's six largest cities.
Topics
Full text
Kincannon Proposed Budget Prioritizes People, Public Safety, Parks and Housing Mayor's 2026 State of the City Address Event Program State of the City Video by Knoxville Community Media 2026-2027 Proposed Operating Budget [PDF] Kincannon Proposed Budget Prioritizes People, Public Safety, Parks and Housing Knoxville Mayor Indya Kincannon today proposed a balanced, no-new-taxes $499 million net budget that invests strategically while emphasizing core services. “I am proposing a budget that’s lean but continues to prioritize public safety, affordable housing, parks, and high-quality people-focused services,” Mayor Kincannon said. “At the same time, this budget represents a forward-looking commitment to great public spaces, quality of life, job creation, and proven partnerships that get results.” Mayor Kincannon presented her seventh budget and State of the City Address at the Urban Wilderness Gateway Park. The nexus of trails and the unique playscape with boulders and native plantings at the gateway park paired well with the Mayor’s give-away of pine saplings in celebration of Arbor Day. The City’s property tax rate remains unchanged at $2.1556 per $100 of assessed value – the lowest tax rate since 1974. Kincannon’s proposed budget reflects the realities of inflation, rising operational expenses, and slowing revenues. Examples of the budgetary challenges: Sales tax revenues are forecast to grow by 2.2 percent, while inflation is anticipated to hover at 3 percent. Inflation-fueled rising costs and flat sales tax revenue are driving a 6.5 percent increase in the proposed General Fund operating budget, while $6 million is being withdrawn from the City’s $30.6 million Unassigned Fund Balance, which are easily accessible reserve funds. Despite the lean budget, there’s much good news: • The City’s General Fund Balance reserves currently total approximately $114.6 million. Knoxville’s bond ratings are at an all-time high, and the City’s debt per capita is the lowest of Tennessee’s six largest cities. • Public safety remains Job #1 – and competitive pay for first responders is a top priority. Kincannon’s proposed budget directs $102.1 million to salaries and benefits for police officers and firefighters. It’s the single largest item in the proposal. • Historic support for affordable housing remains another high priority. Kincannon is proposing to invest more than $8 million – including $4.5 million to support the $200 million Transforming Western partnership project, $2.5 million to the Affordable Rental Development Fund, and $900,000 in City and philanthropic funds to foster affordable home ownership. That includes nearly $500,000 to help Habitat for Humanity build a new Knoxville community. • Keeping her promise to continue the transformation of Chilhowee Park, Kincannon is proposing to add four new employees as a Public Service Department crew assigned full-time to the historic park. This is in keeping with Chilhowee Park transitioning away from an event venue and being managed through Parks and Recreation. Kincannon is also budgeting $2 million for as-yet-unspecified Chilhowee Park capital improvements – an advisory group has been formed to recommend park priorities. • More than $2 million is allocated in Kincannon’s proposed budget to prevent homelessness and aid those experiencing housing instability. The City’s support for warming centers would increase by $200,000 to a total of $500,000 – and, with a Knox County match, that support totals $1 million. Read Full News Release • $9.5 million – roads, bridges and other transportation safety upgrades and repairs • $1.6 million – Vision Zero programs, such as sidewalk repairs, ADA curb cuts, traffic calming, intersection improvements, modernization of school zone flashers • $2.7 million – renovation of Fire Station No. 15 in Fountain City, upgrades in Fire Department life-saving equipment, radios, and defibrillators • More than $2 million – toward violence interruption and prevention, as well as support for community groups that empower youth • Five new Police Department positions, which reflects the first increase in KPD’s authorized staffing level in decades • $26.5 million – City’s combined six-year commitment to Transforming Western • $7.1 million – improvements to parks and recreation facilities, greenways, pools, playgrounds and ballfields, in response to the recently-adopted Parks & Recreation Master Plan • $1.4 million – Zoo Knoxville capital projects, including support for the Rhino Exhibit, which is addition to supporting operational funding • $2.35 million – energy-efficiency upgrades to roofs and heating/ventilation systems at City buildings; these investments that will pay for themselves over time by reducing utility bills, while also cutting greenhouse emissions • $1 million – sustainability innovations and community charging stations • $3.3 million – support for Knoxville’s key economic development partners (Knoxville Chamber, KCDC, Visit Knoxville, Knoxville Entrepreneur Center) • $150,000 – support for KEC’s move to larger space to accommodate its expanding community • $2 million – Community Agency Grants to support local arts and social service non-profits • $900,000 – support for non-profits addressing issues ranging from food insecurity to housing instability to after-school and summer programs (such as Legal Aid, Second Harvest, Senior Citizens Home Assistance Service, Community Schools, Boys and Girls Clubs) • $338,000 – support for health, mental health, and addiction service providers (River Valley Health, Kim Health, McNabb Center) • $500,000 – matched by Knox County for a $1 million total – to support operations at the EmPATH facility in North Knoxville • Thanks to a $25 million lump sum payment on Convention Center debt last year, the City is paying $4.1 million less in FY 2026-27 for bond debt payment; over time, the lump sum paydown will save taxpayers $30.2 million • The City’s debt load is relatively small: 15.7 cents on the $2.1556 tax rate goes to debt service, while almost $2 goes to the General Fund to pay for services and operations • 2026-2027 Budget Information • 2026-2027 Proposed Operating Budget [PDF] (coming soon) • 2025-2026 Six Month Financial Report [PDF] • Budget Archive (budgets from years 2001-current) January 20-22, 2026 - Capital Budget Hearings / Meetings with Departments February 13, 2026 - City of Knoxville Budget Retreat and Six Month Financial Report released March 5-6, 2026 - Mayor's Budget Hearings April 24, 2026 - Mayor's State of the City Address and Proposed Annual Operating Budget released April 28, 2026 - City Council First Reading of Proposed Budget & Tax Ordinances May 2026 - Knoxville-Knox Planning Commission Hearing on CIP May 2026 - Legislative Budget Hearings & Public Hearing May 26, 2026 - City Council Second Reading of Proposed Budget & Tax Ordinances June 15 2026 - Last Day to Approve Budget & Tax Ordinances July 1, 2026 - New Fiscal Year Begins
More budgets from Knoxville
The City of Knoxville, Tennessee's Comprehensive Annual Financial Report for fiscal year ending June 30, 2010 presents the city's complete financial statements, prepared by the Finance Department under Director James York and Comptroller Clyde Cole. The report includes government-wide and fund financial statements, an independent auditor's report, and management's discussion and analysis of the city's financial position and activities during the fiscal year. The document was published under the administration of Mayor Bill Haslam and received the Government Finance Officers Association Certificate of Achievement.
AI summary