KNOXVILLE — The Knoxville City Council approved Mayor Indya Kincannon's $499 million budget for the 2026-27 fiscal year during its meeting on Tuesday night. The budget includes no tax increase, with the property tax rate remaining unchanged at $2.1556 per $100 of assessed value—the lowest rate since 1974.

The budget directs $102.1 million to salaries and benefits for police and firefighters, accounting for about $1 in every $5 of the city's general fund. Mayor Indya Kincannon said she is adding five uniformed Knoxville Police Department positions—the first in years.

A total of $8 million is allocated for affordable housing initiatives, including $500,000 toward the construction of a Habitat for Humanity community in the Alice Bell neighborhood. An additional $200,000 is allocated for warming shelters, bringing the city’s total budget for warming centers to $500,000.

Chilhowee Park, which is transitioning away from its role as an event venue, will be managed by the Parks and Recreation Department under the new budget. A new four-employee Public Service Department crew will be assigned to the park full-time, and $2 million is budgeted for park improvements.

Other capital allocations include $2.7 million to renovate Knoxville Fire Department Station 15 in Fountain City and make additional department improvements, and $1.4 million for zoo projects, including support for the rhino exhibit. City sales tax revenue is expected to grow by 2.2 percent, while inflation is projected at about 3 percent. The mayor's office said the budget is "lean" due to rising operational expenses and slowing revenues.