Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Knoxville proposes balanced FY2026 budget with $25M convention-center paydown; no tax increase
Summary
Mayor and finance officials presented a $606.7 million all‑funds proposed budget they called “responsible, balanced,” and said it does not require a tax increase. The plan includes a $25 million lump sum payment on convention‑center debt, modest staff increases and targeted investments in housing, deferred maintenance and roadway safety.
Mayor Indya Kincannon and Chief Financial Officer Boyce Evans presented Knoxville's proposed fiscal year 2026 budget at a city council legislative hearing, describing a plan that does not include a property tax increase and that prioritizes debt reduction, reserves and targeted investments.
Evans said the total proposed budget across all funds is $606,700,000, with a net (operating) budget of $477,300,000 and a general fund of $323,000,000. He described the year ahead as "a tighter FY. Revenues are flatter than what we've seen in the past," and said the budget does not use any unassigned general fund balance.
The proposal includes a $25,000,000 lump‑sum payment to reduce the convention center's principal from about $59,000,000 to $34,000,000 and — if tourism revenues hold — could permit the city to rely primarily on Tourism Development Zone receipts for future convention center debt service. Evans and other administration officials said the paydown would lower annual debt service and save roughly $30,200,000 over the life of the bonds.
The budget also proposes a series of targeted investments: about $8,200,000 for affordable housing (including funds for the Transforming Western initiative, a rental development fund and permanent supportive housing), just over $1,400,000 for homelessness prevention and roughly $350,000 for warming shelters. Transportation and public‑works priorities include $11,300,000 proposed for roadway safety improvements and more than $1,800,000 for Vision Zero (sidewalk and ADA curb improvements). Capital funding includes a multi‑million dollar parks and recreation package and an allocation to begin addressing deferred maintenance.
Evans also discussed pension contributions and operating pressures. The city's pension contribution is projected to rise by about $2,100,000 as the pension plan lowered its expected rate of return; Evans cited a multi‑year change that reduced the assumed return from 7.25% toward 7.0% as part of actuarial adjustments. Personnel costs remain a major share of spending; the proposed plan includes modest, funded pay adjustments for employees and specific market adjustments for fire department roles.
The administration emphasized reserves: a stabilization target equal to 20% of the general fund (approximately $64,600,000) and an assigned fund balance target of 5% (about $16,200,000). Council will review the full orders and allocations during the legislative budget hearings and subsequent budget votes.
Ending: Council members pressed staff for additional details — including the capital plan and the source of the $25 million convention‑center payment — and administration officials said they would follow up on detailed questions. The hearings will continue with department‑level presentations and public comment before the council adopts a final budget.
