Touting “the power of teamwork” at the new Covenant Health Park stadium, Knoxville Mayor Indya Kincannon today proposed her $477.3 million net budget.
Her proposal prioritizes high-quality City services and public safety while strategically investing in key capital projects and tackling critical, long-standing deferred maintenance.
Kincannon’s budget also continues an unprecedented and historic investment in affordable housing and increases the City’s support for services aimed at easing homelessness – including more funding for winter warming centers and increased shelter beds.
The proposed budget is balanced, and the City’s property tax rate remains unchanged at $2.1556 per $100 of assessed value – the lowest tax rate since 1974.
“This budget allocates money and resources to address our most pressing shared community priorities, while also compassionately extending a lifeline to our most vulnerable residents,” Mayor Kincannon said.
The Mayor delivered her sixth State of the City Address at Covenant Health Park because the stadium project exemplifies her faith in the enduring strength of collaboration. Many partners worked together to build the publicly-owned stadium; Kincannon has long emphasized that it belongs to the people of Knoxville and improves the quality of life of residents citywide, while also creating jobs and hundreds of millions of dollars in new investments and new economic opportunities.
Mayor Kincannon’s proposed budget continues to prioritize the core values of her administration – ensuring public safety; enhancing healthy and connected communities; realizing a clean, resilient future; creating thriving businesses and good jobs; and providing high-quality efficient City services.
Highlights of the Mayor’s proposed budget include:
PUBLIC SAFETY
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By far, the largest expense in Kincannon’s proposed budget is for police and firefighters – $101.2 million, or 21.2 percent of the total net City budget.
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In addition to 4.2 percent step raises for firefighters and police officers and annual cost-of-living increases for general government employees, this budget also proposes $225,000 in targeted salary increases to bring firefighters up to market-level salaries. The budget also contains funds to cover stipends for the growing number of firefighters who are obtaining advanced EMT and paramedic training to best meet the needs of Knoxville residents.
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Earlier this spring, City Council approved $4.5 million to move ahead with a new state-of-the-art Burlington fire station. The cost of the new station over several years will total more than $8 million.
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Roughly $350,000 is proposed for a Knoxville Police Department explosives-removal robot. Last fall, police officers and firefighters helped evacuate more than 1,000 Northwest Knoxville residents – and officers disabled by hand more than 200 sticks of commercial-grade explosives found smoldering at a Lonsdale recycling business.
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A total of $1.1 million for the City’s Violence Interruption Fund will continue to support evidence- and community-based strategies to reduce homicides. Crime statistics are down across the board in Knoxville for the third year in a row.
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More than $14 million is proposed for road safety – everything from repairs to roads, bridges, guardrails and traffic signals; $1.8 million for the Vision Zero program; sidewalk repairs and maintenance; and ADA curb cuts.
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More than $2.7 million is dedicated to supporting partners and initiatives that supplement the City’s public safety programs – partners such as ChildHelp, the Metro Drug Coalition, and Young-Williams Animal Center.
HEALTHY AND CONNECTED NEIGHBORHOODS
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In her first year in office, Mayor Kincannon and City Council committed to invest a minimum of $50 million over 10 years in affordable housing. Each year, they have exceeded that commitment.
Kincannon’s proposal for Fiscal Year 2025-26 continues that trend: A total of $8.2 million would be allocated. That includes $4.2 million to Transforming Western (part of a six-year $26.2 million City commitment), $2.5 million to the Affordable Rental Development Fund, and $1.5 million to support permanent supportive housing projects.
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The Mayor’s proposed budget also continues to support the Knoxville-Knox County Office on Housing Stability. More than $1 million is allocated to prevent homelessness and aid those experiencing housing instability.
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The City last year provided in-kind support – facilities, transportation services and staff – to help the Office on Housing Stability, churches and volunteers operate cold-weather warming centers. In the 2025-26 FY, Kincannon is proposing roughly $350,000 in additional funding – to be matched by Knox County – to increase the total number of shelter beds serving those in need as well as the winter warming centers.
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Mayor Kincannon is proposing $3.1 million in parks and community center improvements, including money for Lakeshore Park, community playgrounds and ballfields, and pool improvements across the City.
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Her proposal also chips away at some much-needed maintenance: $12 million for projects at the Convention Center, the Knoxville Coliseum and Auditorium (including a new marquee), and a complete $7 million-plus make-over of the World's Fair Park Amphitheater.
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An estimated $1.4 million is proposed over a two-year period to support Zoo Knoxville’s upgrades to animal exhibits and guest amenities. Specifically, this includes expanding the raptor exhibit, renovating and relocating nearby guest restrooms, and repurposing the former Tiger Tops restaurant into a versatile space for guest services and educational programming.
A CLEAN, RESILIENT FUTURE
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Kincannon is proposing almost $2.5 million for repairs and upgrades to City building roofs and heating/ventilation systems – investments that will pay for themselves over time by reducing utility bills, while also cutting greenhouse emissions.
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The proposed budget also continues to fund sustainable innovation and community charging stations; a total of $500,000 is proposed.
THRIVING BUSINESSES, GOOD JOBS
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A total of $3 million is proposed to support Knoxville’s key economic development Partners, such as the Knoxville Chamber, Knoxville’s Community Development Corp. (KCDC), Visit Knoxville, and the Knoxville Entrepreneur Center.
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Continued funding will support business development in Knoxville’s Latino/Hispanic community in partnership with Centro Hispano, and funding for the Knoxville Entrepreneur Center supports the launch and expansion of small businesses.
GOOD GOVERNANCE
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Mayor Kincannon is proposing a $25 million lump-sum payment on the remaining debt for the Convention Center in the FY 2025-26 budget. A $25 million payment will lower the amount owed on outstanding Convention Center construction bonds to $29.7 million.
This is important, because the City’s annual debt payments will decrease from the current $9.8 million a year to $5.7 million a year. This $4.1 million annual savings will total $30.2 million in total debt service payments over time – plus, the City will pay off the Convention Center in 2030, two years ahead of schedule.
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Mayor Kincannon has long embraced the power of partnerships. Her budget includes Community Agency Grants funding for local arts organizations, social service non-profits, youth-development service providers, and health-care providers:
- $560,000 – arts and culture community organizations
- More than $1 million – local non-profits providing community and social services to those in need, such as Legal Aid, Second Harvest and Nourish Knoxville
- $520,000 – agencies directly engaged in the critical work of responding to local health needs, including mental health and addiction, such as Cherokee Health Systems, InterFaith Health Center, Kim Health Center, and the Mental Health Association of East Tennessee
- $300,000 from opioid remediation class-action legal settlements – service providers such as Positively Living, Volunteer Ministry Center, the Salvation Army, Metro Drug Coalition, and the University of Tennessee Medical Center
- $329,000 – support to groups that offer education and youth development programs, such Emerald Youth Foundation, Girl Talk Inc., 100 Black Men, and A1 Learning Connections
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In 2020, City Council created the African American Equity Restoration Task Force to identify and establish opportunities to build generational wealth and reduce economic disparities in the Black community. Kincannon’s budget continues to directly support the work of this task force by funding support staff and professional services totaling $300,000.
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In addition, Mayor Kincannon’s proposed budget funds a $100,000 contract with the Beck Cultural Exchange Center to celebrate Black Knoxvillians and their impact on the City’s history and culture. Last fall, the City provided $500,000 in support for the Beck Center’s restoration of the family home of renowned artists Beauford and Joseph Delaney.
Mayor Kincannon’s proposed net budget totals $477,342,250. Of that, the General Fund – the City’s main operating fund – is $323 million.
Mayor Kincannon’s proposed budget will be presented to City Council for first reading on April 29, 2025, followed by a legislative budget hearing and public hearing on May 13. Council's second reading of the budget currently is scheduled for May 27. The new fiscal year begins on July 1, 2025.
Mayor Kincannon’s State of the City Address and supporting budget documents can be found here:
www.KnoxvilleTN.gov/Budget.