KNOXVILLE, Tenn. (WATE) — The city is putting together its budget for the upcoming fiscal year and tax collections are up despite dealing with a pandemic.

Local sales tax collections are up 5% so far this year compared to last, according to Knoxville Chief Financial Officer Susan Gennoe. The increase comes despite a dramatic drop in revenue from the hotel-motel tax.

The city is set to get almost $44 million from the American Rescue Plan spread out over two years. The mayor’s office plans to have a list of priorities ready for amendments to the budget when the one-time funds are available.

“We’re in solid financial shape for the time being and barring and huge unknowns we should continue to be for the fiscal year 2022,” Gennoe said. “And although we remain cautiously optimistic, we’re planning for another fairly austere budget year as we move forward without new recurring revenue sources.”