Lenoir City Council approves FY2025-26 city and school budgets, keeps tax rate at 0.9455; schools outline safety and staffing investments

Lenoir City Council on Monday approved the city and Lenoir City Schools budgets for fiscal year 2025-26 and confirmed the property tax rate at 0.9455, actions council members passed by roll call during the meeting.

The approvals come as city staff told councilors that modest revenue growth is expected from property taxes and state-shared revenues while overall expenditures are rising largely because of inflation and personnel costs. "We have adequate reserves to cover that," a city staff member, Sean, said in presenting the budget, adding the city gave a 3% wage increase to employees this year and will begin providing retirement benefit adjustments tied to TCRs.

Why it matters: The combined votes fund municipal services and the school district for the coming fiscal year and preserve the current tax rate for residents while committing local funds to school safety, staffing and phased construction. Keeping the tax rate unchanged was raised repeatedly during deliberations.

City budget details: Presenters said revenue lines will see "slight growth in property taxes and in-lieu-of taxes" and that permitting and building-related fees remain healthy as the city grows. Expenditure increases were attributed primarily to inflation and the personnel steps noted above. Councilors moved and passed the budget-related motions in multiple roll-call votes recorded during the meeting.

School budget and priorities: Lenoir City Schools Superintendent Dr. Smith presented the school system's budget to the council and said the board's spending plan aligns with a newly approved five-year strategic plan. "The mission of Lenoir City Schools is building Lenoir City's future 1 student at a time," Dr. Smith said, and described priorities that include student safety, managing growth and investments in facilities.

On safety, Dr. Smith said the district will add three weapons-detection systems after a successful trial and is piloting Syntegix safety badges in summer programs. The district has also geo-mapped school buildings for 911 response. Dr. Smith said the district is providing a 4% pay increase for all employees — including support staff — funded by higher state base funding estimates (TISA) and local budgeting decisions.

Facilities and growth: The superintendent told councilors the district is land-constrained and has prioritized a facilities use study to map existing property and guide future decisions. Construction priorities include phasing a new intermediate (grades 3–5) and separate middle school (grade 6) on existing property; because a recent local sales tax referendum failed, the board will phase amenities such as a gymnasium and athletic facilities over time.

Council and board interaction: Council members asked for a copy of the school district's five-year strategic plan; Dr. Smith said it is already posted on the district website and that staff will provide copies. Councilors thanked school leaders for the presentation; one councilor called it the best budget presentation he had heard since 1999 and said he would support the school budget.

Next steps: The council approved the motions on the budget and related items in roll-call votes during the meeting. Further formal ordinance readings and steps (where required) will follow the standard public-notice process.

Ending: Officials said they will continue coordinating city and school planning as specific projects move from concept to engineering and permitting.