2025 5 6 Budget Work Session Website 1

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FY 2025-26 BUDGET OVERVIEW 
Outcome of the 2025 Strategic Summit 
The 2025 Strategic Summit was held on February 21, 2025 at the Tennessee College of Applied Technology 
and facilitated by the Southeast Tennessee Development District (SETD) to discuss and outline the general 
goals for the upcoming fiscal year. The top ten priorities that emerged from the daylong session were: 
1) I nst
all artificial turf on the five infields at Regional Park to enhance sports tourism, attract more regional
and state-wide sports tournaments, and increase local hotel/motel taxes (included in budget).
2) Design and construct a new F ire Station #3 on property previously purchased on Elizabeth Street
(included in budget).
3) Add an additional full-time traffic officer for the Police Department.
4) Increase the part-time IT Tech to full-time status.
5) Build a homeless shelter.
6) Discuss the feasibility of contracting with and housing an EMS ambulance/crew at Fire Station #2 to
improve medical emergency response time.
7) Add an additional full-time Fire Marshal position for the Fire Department.
8) Complete the Southeast Tennessee Trade & Conference Center (plan included in budget).
9) Replace the pool at Ingleside Park.
10) Construct a new amphitheater at Market Park.
Budg
et Overview 
The city’s all -fund proposed budget totals $ 40,778,100 ($43,45 8,000 for all funds less transfers of 
$2,679,900), an increase of $9,460,797 or 30. 2% from the previous fiscal year. The proposed budget contains 
a 3% 
cost of living allowance effective July 1, 2025 at a cost of $275,000 a nd a longevity allowance of $100 
per year of 
service with a three-year vesting schedule at a cost of $ 100,000. The city will retain its 
employee health care plan 
with Blue Cross/Blue Shield with minimal plan changes. The proposed budget 
does not include any new positions, does not anticipate a property tax increase, but does anticipate 
increases in
 certain fees in various departments as outlined in the Fee Schedule section. It needs to be 
noted that th e property tax revenue experienced a $400,000 decrease due to state property reevaluation. 
The entire budget, which is prepared on a cash basis of accounting, is detailed by Fund as follows:  
General Fu
nd 
The General Fund totals $22,306,000, a decrease of $1,144,000 in expenditures or (4.9%) from the previous 
fiscal year. The budget prio rities of this Fund are listed in its budget sections.   
Special Revenue Funds 
The Special Revenue Funds consist of the Drug Fund and the Hotel/Motel Tax Fund. The Drug Fund’s 
expenses total $35,000, an increase of $1,000 or 2.9% from the previous fiscal year. The Hotel/Motel Tax 
Fund’s expenses total $563,300, an increase of $153,300 or 37.4% from the previous fiscal year. The budget 
prio
rities of these Funds are listed in their budget sections.  
Debt Service Funds 
The Debt Service Fund consists of two forms of debt, the USDA Community Facilities Loan Fund and the 
Gene
ral Obligation Bond, Series 2021 Fund. The USDA Community Facilities Loan Fund’s expenses total 
$1,529,000, a decrease of $5,286,000 or (77.6%) from the  previous fiscal year. The General Obligation 
Bond, Se
ries 2021 Fund’s expenses total $381,500, a decrease of $4,500 or (1.2%) from the previous fiscal 
yea
r. The budget priorities of these Funds are listed in their budget sections.  
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