FY 2026 27 ANNUAL BUDGET website

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FY 2026-27 BUDGET OVERVIEW 
 
Budget Overview 
The city’s all -fund proposed budget totals $ 38,557,100 ($41,233,000 for all funds less transfers of 
$2,675,900), a de crease of $ 2,661,000 or (6.45%) from the previous fiscal year. The proposed budget 
contains a 3% cost of living allowance effective July 1, 2026 at a cost of $250,000 and 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 using the state plan with minimal plan changes. The 
proposed budget includes two new full-time positions (IT Technician and Stormwater Coordinator) and two 
new part -time/seasonal positions in the Parks & Recreation Department. The proposed budget  does not 
include a property tax increase or any increases in user fees. The entire budget, which is prepared on a cash 
basis of accounting, is detailed by Fund as follows:  
 
General Fund 
General Fund expenses total $23,110,000, an increase of $514,000 or (2.3%) from the previous fiscal year. 
The budget priorities 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 $107,500, an increase of $72,500 or 207.1% from the previous fiscal year.  
 
The Hotel/Motel Tax Fund’s expenses total $522,300, a decrease of $41,000 or (7.28%) from the previous 
fiscal year. The budget priorities 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 and the General 
Obligation Bond, Series 2021. The USDA Community Facilities Loan’s expenses total $1,529,000, the same 
as last year.  
 
The General Obligation Bond, Series 2021’s expenses total $380,000, a decrease of $1,500 or (0.39%) from 
the previous fiscal year. The budget priorities of these Funds are listed in their budget sections.  
 
This section also contains a debt schedule of the two forms of debt detailing the principal and interest owed 
each fiscal year until full repayment . The USDA Community Facilities Loan debt  totals $56,470,436 
(principal and interest) and the General Obligation Bond, Series 2021 debt totals $7,593,700 (principal and 
interest) for a total debt of $64,064,136. For FY 2026-27, debt payments will be $1,908,000 (principal and 
interest). The city enjoys a Aa3 credit rating from Moody’s Investment Services as of September 2021. 
 
Capital Project Fund 
The Capital Project Fund consists of the Capital Improvement Fund. This Fund’s expenses total $11,478,000, 
a decrease of $ 5,197,000 or (31.2%) from the previous fiscal year. The budget priorities of this Fund are 
listed in its budget section.  
 
Enterprise Funds 
The Enterprise Funds consist of the Sanitation Fund and the Southeast Tennessee Trade & Conference Center 
Fund. The Sanitation Fund’s expenses total $1,290,700, an increase of $ 51,400 or 4.1% from the previous 
fiscal year.  
 
The Southeast Tennessee Trade & Conference Center Fund’s expenses total $109,500, a decrease of $63,400 
or (36.7%) from the previous fiscal year. The budget priorities of these Funds are listed in their budget 
sections.  
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