Farragut approves first reading of 2026-27 budget
Town of Farragut’s 2026-27 budget received initial approval with a 4-0 vote from Farragut Board of Mayor and Aldermen during the Board’s meeting Thursday, May 14.
The budget includes funding for a new economic development coordinator position and an additional $15,000 for Farragut Business Alliance/Shop Farragut. The ordinance still requires a second reading before taking effect for the fiscal year beginning July 1 and ending June 30, 2027.
“The staff did a great job,” Alderman Joe LaCroix said. “It was a long, drawn-out process. It was a lot of work on their part.”
Before the vote, Farragut Business Alliance/Shop Farragut president Candace Viox asked the Board to increase funding for the organization, which operates through a volunteer board.
“We are a non-government volunteer board,” Viox said. “We share important information and content for our businesses.”
Viox said Shop Farragut promotes local businesses through social media, a business directory, the Town Sampler contest and community events, such as the Health and Wellness Expo, Dog Daze and Harvest Fest.
To continue offering those events and services, Viox said costs have increased significantly.
“Our rental infrastructure for events have increased by over 200 percent,” she said.
“They do a great job — Harvest Fest and Dog Daze,” Alderman Drew Burnette said. “I think, given the economy and the scale … I think it’s a fair and reasonable ask.”
“The events are amazing,” Alderman Alex Cain said. “We have people from all over the country.”
According to Town administrator David Smoak, proposed FY 2027 General Fund revenues total $19,225,404, fueled largely by projected increases in local and state sales tax revenue.
Smoak said local sales tax revenue is expected to increase 2.5 percent to $11,032,897, accounting for 57.3 percent of the Town’s total general fund revenue.
“A second major revenue source is State Sales Tax,” Smoak said. “This tax is distributed from the state of Tennessee to local governments and is based on the Farragut population base, which is currently estimated at 25,242, according to the Tennessee State Data Center.”
State sales tax revenue is projected at $3.3 million, and overall General Fund revenues are expected to increase by 7.9 percent over the FY 2026 budget.
General Fund expenditures are proposed at $13,161,660, an 8.2 percent increase over the FY 2026 budget.
The proposal includes a 3 percent cost-of-living adjustment for employees and potential merit increases of up to 3 percent based on performance evaluations.
“The cost to implement the COLA and merit package for personnel is $396,000,” Smoak said.
Employee health insurance costs are projected to rise 7 percent, adding $106,520 to the budget. To offset some of the increase, the employer-employee contribution split would change from 90/10 to 88/12.
“This adjustment will reduce this overall health insurance increase to the budget by $34,584,” Smoak said. “The overall increase for COLA, merit and employee health insurance is estimated at $467,936.”
The budget also includes personnel changes totaling $431,130, including the addition of an economic development coordinator at a cost of $115,936.
“These changes are designed to support service delivery demands, organizational alignment and operational efficiency across departments,” the budget report stated.
Resident Kimberlie Parks opposed creating the economic development coordinator position.
“That is not a job for a Town employee,” Parks said. “That is a private sector job … the only difference between what this job description has and what we already currently have with the FBA is … to recruit people.
“That is not the Town’s job,” Parks added.
The Capital Investment Fund includes $8,778,000 in planned projects for FY 2027. Projects include Enterprise Resource Planning software upgrades for the Community Development department, upgrades to park facilities, McFee Road improvements, adaptive traffic signal upgrades and infrastructure work related to the new Farragut Elementary School.
Other projects include improvements at the Grigsby Chapel Road-St. John Court intersection, construction of a roundabout at Watt Road near Mayor Bob Leonard Park and Turkey Creek Road multi-modal improvements.
“By far the largest of our CIP funding next year, and in the future, is going into transportation and infrastructure projects,” Smoak said. “The total next year is planned at $6,427,000.”
Funding for the Capital Investment Program includes a $7 million transfer from the General Fund, $1,078,000 from CIP reserves and $600,000 in federal or state matching grants.
“Overall, the FY 2027 projected available fund balance is $13,280,451,” Smoak said.
