As she hits the final stretch of her eight-year term, Knoxville Mayor Madeline Rogero will ask the city council to set aside money to purchase portions of a closed North Knoxville hospital, fund affordable housing incentives, address police retention and pay for other needs beyond the end of her administration.
The final budget proposal of Rogero’s tenure offered few surprises. No property tax increase is included, and Rogero said the city has a $71 million fund balance.
The purchase of the former Tennova hospital and its property north of downtown was one of the marquee items listed in the $336 million spending plan set to take effect July 1. The general fund, which is the city's main operating budget, clocked in at $231 million.
Rogero will ask the city council for $6.5 million to purchase the old hospital campus and begin the work necessary to covert some of the buildings to serve as a centralized safety center, bringing the fire department, police department and the pension office to the same place.
“The northern part of the Tennova campus will become a site for future redevelopment that benefits the community, adjoining neighborhoods, and businesses,” Rogero said on Twitter.
Rogero is also asking for $2.5 million to go into the affordable rental housing fund she created two years ago. The money entices developers to build apartments and other units for low-income renters. $4.2 million dwill be directed to the revitalization of the Austin Homes development in East Knoxville. In her remarks, Rogero said a total of $10 million would be directed toward affordable housing efforts.
Housing advocates wanted Rogero to make the rental housing fund permanent before she leaves office. The mayor declined, leaving the decision to whoever is elected to succeed her.
Acknowledging the recent difficulty Knoxville’s police department has had in hiring and keeping qualified officers, Rogero said she’s requesting money for recruitment campaigns. Starting salaries for officers will also be raised under the proposed budget (to $40,000). Salaries for subsequent officer levels will also be adjusted.
Recreation also figured into Rogero’s budget plan, as has been customary during her term. Nearly three million dollars will be set aside for greenway connections, Ijams Nature Park and Fort Dickerson Park. Work continues on South Knoxville’s Urban Wilderness project, which was also the backdrop for Rogero’s budget address.
Rogero’s speech also referred to the frequent rumors of relocating the minor league Tennessee Smokies baseball team back to Knoxville. Noting that research indicates the team’s presence in a new stadium would “be a catalyst for more housing, retail, and mixed-use development in the area,” Rogero said the city is in the financial shape necessary to invest in the project. But she quickly added that it will be up to a future mayor to seal the deal.
The revenue sources that determine how much money is available for city spending are expected to be mixed in the coming year. Business tax revenues are projected to rise. Property taxes will likely see only modest growth, and public utility values are expected to fall. The budget document stresses low property tax collections can affect spending many years down the road.
The Knoxville City Council is slated to take up the budget for a “first reading” on May 7, with a second and final reading scheduled for May 21. The budget must be approved by mid-June.