KNOXVILLE, Tenn. (WATE) — Knoxville Mayor Indya Kincannon delivered her balanced budget for the upcoming fiscal year at the 2026 State of the City address Friday morning.
This year, Kincannon’s proposed budget was a total of $499 million, which included strategic investments while covering core services without locally increasing taxes or introducing new taxes. Property taxes in Knoxville remain at $2.1556 per $100 of assessed value, which Kincannon shared was the lowest tax rate since 1974. The budget will be presented to the Knoxville City Council for first reading on April 28.
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The budget is $51 million higher than the City of Knoxville’s budget for the 2025-2026 fiscal year, which was $447.3 million. Kincannon said the increase was a reflection of inflation, rising operation expenses, and slowing revenues. One example she shared was that although sales tax revenues are expected to grow by 2.2%, inflation is anticipated to hover around 3%.
The largest item on the proposed budget, Kincannon is looking to direct $102.1 million for salaries and benefits for police officers and firefighters. Other big ticket items include $4.5 million going to support the $200 million Transforming Western project, $2.5 million for the Affordable Rental Development Fund, and $2 million to prevent homelessness and aid individuals experiencing housing instability…