"We are doing well as a city financially," Haslam said in opening the morning-long budget retreat for council members and directors of various city departments at Ijams Nature Center. "The numbers you are getting ready to see are good numbers."

Haslam also told the group that the city essentially has some extra money in savings and asked council to amend this year's budget to allocate about $4.9 million on much-needed projects ranging from flood control efforts along First Creek in North Knoxville to paving projects across the city.

According to a presentation by Jim York, the city's deputy finance director, Knoxville should finish the fiscal year in June with a General Fund Balance of $36.4 million - up from $34.7 million last year.

The General Fund balance has nearly doubled since 2004.

Haslam said the city has focused on controlling expenditures while trying to enhance revenues and the effort has paid dividends. He also credited a strong economy with helping the city's financial performance.

"I think things are going well with the city right now," Haslam said. "We set a plan that is working and I think we stay with it."

In addition to the increase in revenues the amount of the city's debt is falling.

"We've been taking off debt rather than taking on new debt," York told council members.

Because of the city's good financial condition Haslam asked council to amend this year's budget to add money to both the general and capital budgets to pay for projects.

He likened Knoxville's situation to that of a person who has a little more than expected in their savings account and a leaky roof.

"If you have money in your bank account and the roof is leaking, then you need to fix the roof," he said.

Haslam asked council to consider putting back $300,000 in the budget that was taken out last year so that performance raises for employees could be restored.

He also asked council to consider adding the $4.9 million for capital improvements.

Those improvements include: