KNOXVILLE, Tenn. — Knox County Mayor Glenn Jacobs unveiled his proposed roughly $1.1 billion budget for the new fiscal year, a no-frills spending plan that covers essential county and school system needs and requests.
As has been the practice for years now in the conservative county government, no tax increase is envisioned.
One of the main highlights for county employees is a proposed 2% raise. It would take effect in January. Last year's proposed budget included a 5 percent raise for general employees.
The spending plan incorporates Knox County Schools' $684 million plan, including about $41 million to boost staff pay. The school's budget makes up about two-thirds of the total county budget.
Jacobs presented the 2024/25 budget to county officials, including Knox County commissioners, in the Main Assembly Room of the City-County Building downtown.
In general, it presents a general slowing or flattening in money sources that previously grew at a higher rate in more flush economic times, Knox County finance chief Chris Caldwell said. With no tax increase envisioned, the county property rate will stay steady at $1.554 per $100 of assessed value.
The county budget for the upcoming financial year rises a relatively low $32 million, or about 3 percent from last year's plan. That's much lower than last year's approximately 9.5 percent increase.
It was just this year -- 2023/24 -- that Knox County reached the billion-dollar mark.
Budget highlights include:
*There's about $8.8 million in new general budget spending, accommodating $2.3 million for the county's new ambulance services contract with AMR; the 2 percent employee raises; and more money to fund a county pension plan.
*Hotel-motel tax collections continue to increase, with monthly collections averaging about $1 million a month as downtown visitor traffic thrives.
*The county's Engineering and Public Works Department would get $87 million to address infrastructure including ongoing road projects such as Schaad Road.
*The county capital budget for the next five years imagines about $369 million in spending. For 2025, it includes money for a Farragut school and projects envisioned for the Mechanicsville-Lonsdale-Beaumont area and for South Knoxville. KCS in its budget has signaled it anticipates development of some kind in South Knoxville for which it wants to set aside several million dollars.
Besides the school system, the county budget covers the Knox County Sheriff's Office, parks and recreation and public works, among other government functions.
Knox County Commission ultimately approves the budget. It will take effect July 1, the start of the fiscal year.
Property tax collections make up about 30 percent of the county's budget revenue and sales tax collections represent about 25 percent of budget revenue. Another big chunk comes from state support of Knox County Schools.
Property tax revenue - due basically to growth - has risen about $64 million over the past 12 years. Sale tax collections have risen about $130 million in that same time period, Caldwell said, in part because of the institution of online sales tax collections.
