Rocky Top keeps ’26 tax revenue flat
The Rocky Top City Council sits in session on Thursday, May 15, at City Hall. In the middle is Mayor Kerry Templin. (photo:G. Chambers Williams III )
Projections in the new budget, which takes effect July 1, are for property tax collections of $1.58 million, compared with $1.57 million in the current (2025) fiscal year budget, according to the budget ordinance approved on first reading by the City Council on April 17.
The council has set a public hearing on the new budget for 5:30 p.m. Tuesday, May 27, to be followed by a special council meeting at 6 p.m. to consider passing the budget on second and final reading.
Although the tax rate hasn’t been set yet, the city will use the certified rate provided by the state Board of Equalization that takes into account the average increase in property values, so as to make the reappraisal “revenue neutral” for local governments as required by state law.
In the new budget, as approved on first reading, the city plans $3.025 million in general fund expenditures for the new year, against expected revenue collections of $2.774 million. The spending plan includes capital expenditures that would be offset by grant money.
Other 2026 revenues are projected to be $820,409 from the state, $20,676 from the federal government, and $353,000 from “other sources,” according to the proposed budget.
These amounts do not include utilities, which are covered by a separate budget.
Among the planned expenditures are $994,878 in salaries for the city’s 27 employees.
The city is using a combination of grants and State Revolving Fund loans to pay for massive sewer repairs.
City Manager Michael Ellis said the SRF loans come with a 40 percent “forgiveness,” rate, which means the city would have to repay only 60 percent of what is being borrowed.
