City forecasts positive outlook for Knoxville financial status

Knoxville leaders meet during a budget retreat at the city's new Public Works Service Center (City of Knoxville)

KNOXVILLE (WATE) – Knoxville Mayor Madeline Rogero and her staff presented updates Friday to members of the city council, including a review of the mid-year budget and status report on major city initiatives.

Knoxville Finance Director Jim York said the overall outlook is positive when compared to the budget with strength in both local option sales tax receipts and state shared sales taxes. He said the city received a smaller growth rate in real property and personal property assessed values, favorable growth in inspection revenue and city court revenue.

The city noted significant savings due to more efficient garbage collection. The city started using new 95-gallon carts and installed an automated system with an arm on garbage trucks. The new carts are expected to save up to $2 million per year.

Related: Knoxville City Council approves new garbage cart contract

York also said independent experts evaluated the city’s finances and gave a high bond rating. Fitch gave Knoxville the highest possible investment grade, with an AAA rating. He said the grade is “rare.”Only nine governments in Tennessee received an AAA rating.

(Leam Bonds)
(Leam Bonds)

Only nine governments in Tennessee received an AAA rating. Moody’s gave the city a high grade of Aa1. Standard and Poor’s rating was AA plus.

Mayor Rogero said she will continue to look for ways to more efficiently use public funds in order to maximize development investments.

More: City of Knoxville budget reports

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