2026 2 20 Strategic Summit Packet

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City Population Growth Factors (continued) 
Strategy Based on Population Growth (continued) 
✓ outsource city services to the private sector where it makes economic sense or the city is having 
difficulty providing those services efficiently 
✓ renovate existing city facilities and parks in accordance with a master plan to keep those facilities 
in good working condition for the future, replace existing outdated vehicles and equipment, 
enhance the city's existing stormwater system for safety, resurface/improve existing streets/traffic 
signals, complete existing sidewalk gaps and install new sidewalks for better walkability, and keep 
the city's IT infrastructure updated, modern, and safe 
✓ make city gateways, main travel corridors, and the downtown area more attractive to developers 
and tourists 
✓ do not add or increase any service capacities/facilities/employees or acquire additional vehicles or 
major equipment if no additional housing units are forecasted 
✓ be mindful of offering economic/financial incentives to attract new industrial developments and 
jobs if those new employees need housing the city does not have, forcing those new employees to 
live and shop outside the city and not increasing the city's property tax or sales tax base 
✓ determine the needs of TWU students as those needs relate to the city to satisfy that student 
experience and expectations 
These strategies would result in a higher quality of life for existing city residents, protect the city's budget 
from senseless and unproductive increases, add needed housing, and would build confidence so private 
developers would invest in the community, without or minimal additional tax burdens. 
City Economic Growth Factors 
The city's local sales tax collections have increased from $7,427,784 in FY 2020-21 to $9,102,748 in FY 
2024-25, an increase of 22.5% over five years significantly outpacing population growth spending. For FY 
2025-26, sales tax collections are higher than in the same month as the previous year. It appears the city is 
becoming a regional economic hub. 
The city's hotel/motel tax collections (4%) have increased from $410,451 in FY 2022-23 to $488,071 in 
FY 2024-25 without additional room capacity or increasing the tax rate, an increase of 18.9% over 3 years 
significantly outpacing population growth. For FY 2025-26, hotel/motel tax collections are lower than in 
the same month as the previous year. But overall, it appears the I-75_ exit 49 area is becoming a popular and 
convenient spot for tourists and will be even more popular once the baseball/softball tournament season 
begins at Regional Park with new artificial turf. 
The interest rate the city earns on its excess funds at the TN LGIP has decreased from 5.35% in January 
2024 to 3.71 % in January 2026, a decrease of 30.6% over two years resulting in lower interest earned on 
excess city funds, which is a budgetary issue. The 30-year fixed rate mortgage has also decreased from 
6.69% in January 2024 to 6.15% in December 2025, a decrease of 8.07% over two years resulting in more 
affordable mortgage payments and incentive for home builders to construct additional housing. 
On the downside, consumer sentiment is very low with a rating of 55.1 and a 20-year average of 78.9. 
Student loans, credit card payments, auto loans, and mortgage delinquency rates are increasing. 
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