Citizens' Guide to the Metro Budget

• Fiscal Year 2025 Operating Budget Infographic
• Fiscal Year 2025 Operating Budget Infographic- Spanish
• Fiscal Year 2025 Finance Budget Presentation
• Fiscal Year 2025 Budget Message to Department Heads and Elected Officials
• Fiscal Year 2025 Budget Improvement Discussion
• Fiscal Year 2025 Budget Modification Request by Department

Note: The reports show initial requests and first drafts as submitted by Metro departments and they will likely be changing as we move through the budget process.

The $3.27 billion FY 2025 Operating budget for the Metropolitan Government's six budgetary (tax-supported) funds supports a wide range of public services.

Where Metro Nashville's Budget Money Goes – Expenditures

Where Metro Nashville's Budget Money Comes From – Revenues

The Operating Budget, Capital Improvements Budget (CIB), and Capital Plan are developed through a multi-step information gathering and priority setting process that establishes objectives and priorities of the city and creates a financial plan for the operations of the government for the fiscal year. The Charter defines much of the process. The Mayor's Office, Finance Department, Office of Management & Budget (OMB), agency officials, and the Metropolitan Council are key participants.

For detailed and fiscal year schedules and a text description of the above image, please visit the Metro Nashville Budget Timeline and Process page.

Budget by Department

Archive Budget Documents

What are Metro Nashville's main funding sources?

The predominant, and most consistent, source of revenue is property tax which constituted approximately 56% of all general fund revenue in FY 2022. Many of Metro’s remaining sources are reliant on consumer activity and, as a result, tend to be more responsive to changes in the economy. This makes them more prone to year-to-year variability. These other sources are Local Option Sales Tax; fees & user charges; revenue from other governments; fines forfeits and penalties; and other fees and charges.

What is the difference between Mayor's Recommended and the Operating Budget?

The Metro Charter requires the Mayor to submit a balanced budget to Council by May 1. This is what’s known as the “Mayor’s Recommended Budget.” A budget is balanced when total expected revenues are equal to total planned spending. The Council has until the end of June to accept or amend this budget. The result is referred to as the “Operating Budget” will go into effect automatically on July 1.

What is the Capital Improvement Budget (CIB)?

Each year the Planning Commission submits a list of recommended capital improvements to the Mayor, as required by the Metro Charter. This list, known as the Capital Improvements Budget (CIB), is a “wish-list” of improvements that are desirable to be constructed or provided during the next six years.

The Capital Improvements Budget (CIB) is a planning tool to prioritize and coordinate investments in long-term, durable improvements. Investments are considered capital improvements when they:

• Have a lifetime greater than 10 years, and
• Cost more than $50,000

Capital improvements include Metro facilities and equipment, as well as infrastructure. Infrastructure refers to the investments that shape private activities, like deciding where to live, start a business, or invest. The Planning Commission’s role is most tied to infrastructure, which must be closely coordinated with land use policy.

Metro Planning is continually working to ensure that the Capital Improvements Budget aligns with NashvilleNext, is more accessible and transparent, and is data-driven.

What is the annual Budget timeline?

Most departments begin to review their budgets and consider Investment Requests for the next fiscal year sometime in December - January timeframe

By early February, departments have submitted their prioritized Investment Requests and Revenue estimates (if applicable) to the Budget Office.

From February to March, the Mayor’s Office meets with each department to review the Requests and any Revenue estimates – if applicable.

Mayoral evaluation of all submissions occurs from March through April.

The "Mayor’s Recommended Budget" is filed with Metro Council by May 1.

Metro Council’s consideration of the Budget occurs between May 1 and June 30.

The Approved Budget is filed with the TN Comptroller of the Treasury by June 30.

How do Metro departments request increases or revisions to their budget?

During the annual Budget planning process, each department has the opportunity to request that Metro make an additional investments into its department. Following a highly-structured process, the department must describe, prioritize, and justify each request according to criteria such as:

• Avoiding Costs;
• Enhancing Services;
• Compliance with Regulatory Requirements; and
• Fulfillment of Contractual Requirements.

Each justification should explain how the proposed investment will affect previously allocated resources by detailing if it will enhance or replace an existing program.

Taking the most recent revenue estimates into consideration, the Mayor’s Office reviews all requests from every department and will include, modify, or reject them from the "Recommended Budget" that is presented to Metro Council on May 1 for their consideration.

All departmental Investment Requests, regardless if they’re accepted or not, are a matter of public record and available for review on the Finance website.

What happens if expenditures exceed the amount budgeted?

The Budget development process provides appropriation for each department to meet its operational needs for the year. The appropriations provided set the spending limit for the department which, by Charter, shall not be exceeded.

Appropriations are monitored at the departmental level and the General Fund is considered one fund for which all separate departmental and administrative budgets are maintained. If Actual Revenues are falling short of Budgeted amounts, the Finance Director has the authority to adjust the General Fund to ensure that expenditures do not exceed revenues. (Sec. 6.09 Metro Charter)

How much of my Property Tax dollars goes to Metro?

In short, all of it. The State of TN does not collect property tax.

What is the General Fund?

The general operating funds are used to account for all resources except those required to be accounted for in another fund. Metro has separate general funds for the General Services District and the Urban Services District.

How does Metro Nashville show financial accountability and transparency in the budget?

State law and good fiscal responsibility requires Metro to balance its budget. Expenses should not exceed revenue and funds on hand.

During the budget planning process, Metro provides transparency by publishing all departmental investments requests, providing live coverage of council budget meetings, and enabling citizen feedback through public forums.

Metro publishes its annual budget, along with associated documentation, to its Nashville.gov website. Also included are previous years’ budgets, ordinances, and the Annual Comprehensive Financial Report.

Throughout the year, departments provide accountability to their budgets through the Budget Accountability Report, which is published monthly to the Nashville.gov website. The Finance staff is continually monitoring actual events to budget and provide data to help city leaders make decisions about possible adjustments.

How much of my Sales Tax dollars goes to Metro?

With the exception of select items purchased within downtown’s Central Business Improvement District (CBID), which now include an additional tax of 0.50%, Nashville’s 9.25% sales tax rate consists of a 2.25% local option tax and a 7.00% state tax (the total rate is 6.25% on unprepared food, because the state rate for such food is 4.00%).

The tax is levied on all retail sales in Davidson County, although the local portion is limited to the first $1,600 of the cost of each item. Tennessee Code Annotated, Title 67, Chapter 6, Part 7 states, at least 1/2 of the local sales tax must be allocated to schools.

The local option rate can be raised by referendum. Sales and sales taxes should reflect economic activity at the national and local levels, although some activities are not subject to the tax.