July 1 marks the start of a new fiscal year for the City of Knoxville, with a budget that supports continuing recovery and advances longer-term priorities.
The City enters the new budget cycle on sound financial footing, as summarized in this infographic:
https://knoxvilletn.gov/government/city_departments_offices/finance/budget
Of note, there are no new taxes. In fact, the City tax rate is near a 30-year low. City debt, which has shown a decade-long downward trend, is 30% lower than it was twenty years ago.
“The City of Knoxville is fiscally healthy,” Mayor Indya Kincannon said. “We’ve been careful stewards of public dollars. At the same time, we’ve strategically invested to improve our quality of life and create equitable opportunity in our neighborhoods. We’re leveraging new private-sector jobs. We’re enhancing public safety. And we’re also building a clean and resilient future.”
The City’s strong financial position mirrors a solid local economy, despite the pandemic.
One key measurement: Building permits in the city are up. Projects valued at $697 million were issued permits in 2020, notably during a pandemic. Despite supply chains being globally impacted, people are still investing, building and expanding homes and businesses across the community.
The spree of new construction happening in Knoxville reflects stability and economic growth, said Deputy to the Mayor Stephanie Welch, Chief of Economic and Community Development.
“It’s clear that families are investing in their homes, which strengthens our neighborhoods,” Welch said. “It’s also clear that business owners and developers are confident and enthusiastic about investing in Knoxville. And that’s translating into new jobs and economic opportunity.”
Further evidence of the City’s healthy fiscal position:
- The City enjoys its best bond ratings ever in its 230-year history: Fitch, AAA; Moody’s, Aa1; and Standard & Poor’s, AA+.
- The City's tax rate is 27 cents lower than it was 5 years ago – near a 30-year low.
- Debt obligation is 30 percent lower than it was 20 years ago.
- The 2021-22 budget maintains the tax rate of $2.46 per $100 of assessed value – a flat rate for the fifth consecutive year.
- The City also has a healthy savings account. As of June 30, 2021, the City’s estimated total General Fund balance is expected to be roughly $87 million.
- The number of permits issued by the City of Knoxville for privately-funded projects valued over $1 million has grown by more than 400 percent in a decade.