Lenoir City council approves FY2026–27 budget first reading after debate over $83,000 for county 911

The Lenoir City Council approved on first reading the fiscal 2026–27 budget ordinance and certified tax rate (62.91). City administration said the budget uses fund balance to support priorities including capital investment in a new training center and includes a proposed $5,000 plus 3% increase for public safety and $1,000 plus 3% for other employees.

Councilmember Miss McNav moved to amend the budget to add $83,000 for the Lowden County Emergency Communications District (the county 911/dispatch agency), arguing the district needs help after anticipated state funding did not materialize. The amendment prompted extended debate. Opponents questioned whether Lenoir City taxpayers should directly fund county positions and pointed to an existing agreement that had previously set an annual contribution at $10,000 unless changed by agreement of the parties. Supporters said the ECD dispatches for Lenoir City and performs NCIC and other services that benefit city residents and that an $82,000 contribution—calculated based on call volume—would be a relatively small cost compared with bringing dispatch services in-house.

The amendment failed on a council vote, and the council then proceeded to approve the budget on first reading. Several other routine and consent items were handled the same night, including:

Votes at a glance

- Ordinance vacating unimproved roads on West 10th Avenue (second/final reading): approved (second/final reading passed). - Fiscal year 2026–27 city budget and tax rate (first reading): approved on first reading. - FY25/26 budget amendment (fund balance decrease of $1,439,371 for capital investment): approved. - Lenoir City Schools budget (first reading) and related federal projects fund amendments: presented and approved on first reading/roll calls as recorded. - Resolution to re-enter the Certified Tennessee Downtowns re-certification process: approved. - Street closure for downtown event (Depot Street, June 27, 2026): approved. - Authorization to apply for FEMA grants for the fire department (including possible apparatus and turnout gear funding): authorized. - Declaration of 143 IT items as surplus for donation/repurpose: approved. - Permission to advertise/bid for stormwater/drainage work at Bank and Depot Street: authorized. - Several personnel hires (three lateral police hires and a fire lateral transfer) and routine personnel items: approved. - Motion to pay bills: approved.

Several speakers raised questions about the legal status of the agreement between the city and Lowden County ECD, whether the city has an ongoing obligation beyond the previously agreed $10,000 annual contribution, and the equity of city taxpayers funding a county-operated service. The council and administration noted the possibility of future negotiations or litigation but did not reach a binding agreement to change the city’s ongoing contractual responsibilities that night.

Next steps: the budget ordinance will return for subsequent readings and final adoption in accordance with the city’s schedule for fiscal-year enactment.