Schools Are Wildcard In Bristol Tennessee Budget

BRISTOL, Tenn. – City Council members continued shaping the 2008-09 budget during a four-hour work session on Thursday at Steele Creek Park Lodge.

Excluding the city schools budget, which has not been completed, proposed total city expenditures are nearly $55 million, which is an increase of about $14.6 million above the current fiscal year.

"The increase is largely due to the $12 million in bonds obtained to construct the new Fairmount Elementary School," said City Manager Jeff Broughton. "This comes from our School Capital Projects Fund created last year to track revenue and expenses associated with major school construction projects. There are other capital projects, such as the next planned phase of construction on [U.S. Highway] 11E and other city projects."

Last year’s $80.9 million spending plan likely will be topped by a healthy margin because the schools’ appropriation in the 2008 fiscal year was slightly more than $37 million.

"We’ll give the preliminary numbers to the city next week," said Todd Bailey, spokesman for the school system. "However, the dollars we’ll get from the state seem to be changing from week to week, so we’re not sure there. Our board will approve something in May, but our official budget may not be ready until July."

The new fiscal year begins July 1 and ends on June 30, 2009.

A two-phase property tax rate hike was initiated this year to pay the debt service on the bonds.

For the 2007-08 fiscal year, a 12-cent property tax increase moved the rate from $2.30 to $2.42 per $100 of assessed value, or a hike of about 5.2 percent.

Residents with a $100,000 home and lot saw their tax bills increase by about $30.

An additional 8-cent increase is expected in the 2009 fiscal year, adding $20 more to the bill. Combined, the two years of tax increases are expected to generate about $950,000 annually.

The $12 million is being used to kick-start the city’s newly created School Capital Projects Fund, where monies will be tracked for Bristol’s 20-Year Educational Facilities Financing Plan.

Beyond the 8-cent increase, Broughton said no additional property tax increases are planned. However, this budget includes a proposed $1 per month increase for residential customers using the city’s solid waste service.

The city’s proposed capital project fund is about $6.8 million, an increase of about $4 million over this year. The fund is supported by a combination of federal, state and local money.

Planned projects, other than construction on 11E around Bristol Motor Speedway, include about $1.4 million for the East Cedar Street Project, about $800,000 for traffic signals at 11E and state Route 394, $250,000 for expansion of the Nature Center at Steele Creek Park, as well as other projects.

"I’m excited about where we’ve gone as a city in the last few years," said Mayor David Shumaker. "The new street lights downtown is one example. If we can keep making these improvements downtown, it will make it one of the main selling points."

The city’s proposed general fund of $27.8 million, which is used for operating expenses, is poised to increase by about $1.6 million. Money from this pot has been sweetened by a federal Homeland Security grant that will help pay for six new firefighters.

A proposed 2-percent increase for the city’s 337 full-time employees and merit raises equaling about $180,000 for qualified employees also are on the table.

"From what I see, it’s an appropriate budget," said Fred Testa, a councilman serving his first term. "The city is moving toward improving services, and we’ve come a long way in a short period of time."

The City Council will hear a first reading of the budget on May 6. A public hearing and second reading are set for June 3.

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