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Bristol council advances draft budget with placeholder $1.98 tax rate; second reading set for June 19
Summary
City council approved first reading of the fiscal 2026 budget on June 3, amending the draft to use a placeholder tax rate of $1.98 while staff continues to refine revenues and await the certified rate from the state.
The Bristol, Tennessee City Council on June 3 approved first reading of the fiscal 2026 budget, amending the draft to use a placeholder tax rate of $1.98 while staff continues work to lower the rate and await the state-certified tax figures.
City Manager Kelly Bourgeois told the council that staff recommends amending the draft ordinance — originally prepared using an estimated $2.04 tax rate — to reflect revenues and expenditures based on $1.98. Finance Director Holly Vernon presented the budget numbers to council, saying the draft totals roughly $155.4 million and reflects a 4.5% increase over the prior year. Vernon told council the municipal portion totals about $96.0 million and the school system request shown in the draft is about $59.4 million.
The amendment to the ordinance was moved and seconded on the council floor and passed on a roll-call vote on first reading. Council members said the vote advances the budget process while giving staff additional time to refine numbers: Bourgeois asked council to hold a special work session next week and to consider final amendments at the second reading, scheduled for the June 19 meeting.
Why it matters: Bristol officials said they are trying to limit the tax-rate increase after a recent countywide reappraisal increased assessed values for many property owners. Council members and staff repeatedly framed the vote as a procedural step to move the budget forward while keeping options open to reduce the rate before final adoption.
Council discussion and public remarks touched on the reasons for the proposed increases and trade-offs between maintaining city services and limiting tax burdens. Finance Director Vernon confirmed the draft budget includes pay increases for city employees and funds for public safety and capital projects. At the meeting staff noted the draft continued allocations for the stadium and Melrose facility pending further discussions.
The council approved the first-reading amendment to base the draft fiscal 2026 budget on a $1.98 tax-rate placeholder and set a second reading for June 19 when the council will consider final adjustments after receiving additional staff analysis and the state-certified tax rate.
Ending: City staff and council members said they will continue work sessions and outreach before the second reading to try to lower the final rate before adoption.
