New Tax Revenue to Allow Completion of Several Projects

Communications Director

Eric Vreeland
evreeland@knoxvilletn.gov
(865) 215-3480

400 Main St., Room 654A
Knoxville, TN 37902

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New Tax Revenue to Allow Completion of Several Projects

Posted: 09/12/2014
September 12, 2014 - Mayor Madeline Rogero is proposing to use $4.3 million in unexpected tax revenue from the recently ended fiscal year to complete or accelerate several planned capital projects. A budget amendment will go to City Council for approval on first reading at the Sept. 16 Council meeting.

The revenue comes primarily from the Hall income tax, a State of Tennessee tax on interest and dividend income from investments. Collections from the tax can fluctuate greatly from year to year, making it hard to predict in each budget. For the 2013-14 fiscal year, which ended June 30, the City had budgeted $4.9 million in expected Hall tax revenues. Collections for last year actually totaled just under $9.2 million.

"Because of the unpredictability of this revenue stream, we always budget cautiously," Mayor Rogero said. "We have a healthy fund balance in our operating budget, which allows us to use these funds to address deferred maintenance needs and to begin or continue work on several of our long-identified capital projects."

The proposed items include:

  • -- $350,000 for Promenade Roof demolition and patio renovations at the Promenade Garage;
  • -- $600,000 for Phase 1 streetscaping along East Jackson Avenue, from the foot of the Jackson Avenue ramps east through the Central Street intersection;
  • -- $1 million to incorporate City Fleet services and operations into Phase 1 of the City's new Public Works Complex;
  • -- $200,000 in matching funds for an Advanced Traffic Management System, part of the complete modernization of the City's traffic signal system.;
  • -- $1.72 million for reconstruction of the overhead pedestrian bridge from Locust Street across Henley Street to the Knoxville Convention Center, as well as new streetscaping on the Clinch Avenue viaduct;
  • -- and $480,000 for repaving of cart paths at the City's two municipal golf courses.