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Bristol City Council Rejects Proposed Budget and Tax Increase

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Bristol City Council public meeting with community members voicing concerns about budget and tax increases

News Summary

The Bristol Tennessee City Council has unanimously rejected a proposed budget of $155.3 million and a property tax increase amid significant public dissent. The proposed increase of $1.92 per $100 of assessed value was aimed at generating over $4 million for city operations but faced opposition from residents concerned about affordability and transparency. With the fiscal year starting soon, the council plans to reassess the budget and tax rate in a meeting scheduled for June 24, where community feedback will play a crucial role.

Bristol, Tennessee City Council Rejects Budget and Tax Increase Amid Public Dissent

During a meeting on Thursday, the Bristol Tennessee City Council unanimously rejected a proposed budget and a property tax increase following significant outcry from community members. The proposed fiscal 2026 budget was $155.3 million and included a property tax rate increase to $1.92 per $100 of assessed value, considerably above the newly certified rate of $1.5397 established after a countywide property reassessment.

The proposed tax rate was projected to generate over $4 million in new revenue aimed at supporting city operations and capital improvements. However, the council also dismissed an amended property tax rate proposal of $1.89 per $100. The rejection of this budget leaves Bristol without an approved financial plan as the new fiscal year is set to commence on July 1.

Public Sentiment and Concerns

Residents expressed their concerns about affordability and the proposed spending during the city council meeting, which was attended by a packed audience at the Slater Center. Members of the public voiced frustrations regarding the burden of the proposed tax increase. Suggestions for compromise were made, with one resident proposing a tax rate between $1.73 and $1.76. Public commentary emphasized the community’s dissatisfaction with the city’s transparency and fiscal management.

Finance Director’s Insights

City Finance Director Holly Verran presented data indicating that the proposed budget represented a 4.4% increase from the current fiscal year. The budget focused on education, infrastructure, public safety, and economic development. A significant component of the budget included an allocation of over $59 million for the school system, reflecting a 2.5% increase primarily due to general fund expenses.

City Attorney Danielle Smith addressed the issues surrounding the certified tax rate, explaining that rising property assessments would not directly result in increased city revenues. This complexity was a key point in the discussions leading to the council’s decision.

Future Actions and Meetings

In acknowledgment of the strong community turnout and feedback, council members expressed a commitment to improved communication and engagement with residents. Councilwoman Margaret Feierabend highlighted the importance of better dissemination of information and fostering meaningful dialogue with the community. Mayor Mark Hutton also addressed public concerns, describing the situation as complicated due to external factors, including the property reappraisal.

The council plans to reassess the budget and tax rate, with an upcoming meeting scheduled for June 24 at 6 p.m. During this meeting, the council will continue discussions on potential budget adjustments and tax rate considerations. Mayor Hutton noted that while improvements are being sought, he could not assure residents that future tax increases would be avoided, underscoring the ongoing need for strategic financial planning and discussion.

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