Lenoir City Council adopts 2026-27 budget, approves employee pay increases

Lenoir City Council on June 22 approved the city's fiscal 2026-27 budget and a related amendment, putting raises for city employees at the center of the spending plan.

Finance presenter Miss Norris told the council the budget, unchanged from its first reading, prioritizes employee compensation: "public safety, receiving a $5,000 increase plus 3%, and on non public safety, a $1,000 increase plus 3%," she said. The council moved to adopt the annual budget and tax rate, then approved a separate amendment to increase the budget by $130,455 to address additional or unforeseen expenses.

The council also heard and adopted the Lenoir City Schools budget presented by Dr. Melissa Smith, who said the school budget remained the same as previously presented. Amber from finance presented a report required by the Tennessee Comptroller's office noting a $25,000,000 electric system revenue bond, Series 2026A, which the council accepted for the record.

Councilmembers asked whether the budget continued funding two police chiefs for part of the year; staff said funds were included to cover the position(s) for as long as they were in place and that the current chief's retirement (farewell scheduled July 30) would free salary funds later in the fiscal year. Miss Norris said final payout amounts for accrued leave and exact savings would be calculated and shared when available.

A motion to adopt the annual budget and tax rate was made, seconded and approved by roll call. The council later approved the budget amendment and the school budget by voice/roll-call motions. The meeting record shows council approval of motions to pay properly approved bills, and the meeting adjourned after those votes.

Next steps: council minutes and the adopted ordinances will be posted in the official record and the city will implement the compensation changes in the coming pay cycles as personnel actions and payroll adjustments are finalized.