Bristol Tennessee City Council Approves Earlier Beer Sales

BRISTOL, Tenn. – The city’s proposed $95 million 2008-09 budget is more than 18 percent higher than the current spending plan.

But the City Council unanimously approved the nearly $17.4 million increase on first reading Tuesday night, knowing the hike is targeted at long-overdue school construction and renovations, as well as other capital projects.

"I wouldn’t worry too much about that increase, because it’s mostly grant-driven," City Manager Jeff Broughton told council members.

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

Planned projects, other than the construction under way on U.S. Highway 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, and $250,000 for expansion of the Nature Center at Steele Creek Park.

The proposed school system budget is nearly $40.2 million, an increase over the 2007-08 budget of nearly $2.7 million. It makes up more than 40 percent of the city’s total budget pie.

A two-phase property tax rate hike was initiated this year to pay the debt service on the $12 million in bonds acquired by the city to pay for the new Fairmount Elementary School.

"That’s the driver," Broughton said of the new school. "If you were to strip away that project, it would change the budget substantially."

A 12 cent property tax increase was approved for the current fiscal year, and the coming budget, which takes effect July 1, includes another 8 cent increase. That will bring the two-year total to 20 cents and the tax rate to $2.50 per $100 of assessed value.

"This is the second straight increase we’ve had in property taxes, but we told people right up front at the beginning of this thing that it was going to cost something," Mayor David Shumaker said about the city’s plan to build the new school. "During this entire process, I’ve not received one call from any citizen saying, ‘don’t build this school.’ "

City employees will get 2 percent salary increases, and some will receive merit raises.

A public hearing and second reading on the budget is set for June 3.

Meanwhile, council members unanimously approved a request from Steve Smith, president of KVAT Stores, the parent company of Food City, to change the starting time that beer can be sold within the city limits for off-premise consumption from 8 a.m. to 6 a.m.

In his written request, Smith says the "incredible volume" of out-of-town guests during race events at Bristol Motor Speedway warrant the change.

Smith says the rollback – which will apply at all times – not just during race events – will keep guests from waiting to buy beer and other items. The move also will improve the city’s tax revenue, according to Smith.

Council members did not oppose or question the move.

"We really don’t have a problem with it," Police Chief Blaine Wade said Tuesday.

"We have problems late at night or very early in the morning. I look at it not just from a BMS point of view. If a fisherman or people on vacation want to hit the road, they don’t want to wait to start their trip."

The City Council also approved a resolution authorizing tax-increment financing [TIF] for the Green Property Redevelopment Plan. Zaxby’s Restaurant has tentatively agreed to locate alongside a BB&T Bank on 2.78 acres along Volunteer Parkway between Broad and Shelby streets.

Tax-increment financing freezes the assessed value of a property at pre-improvement levels, then allows a developer to borrow on the difference to help pay for a project.

"Some may see this as a tax giveaway," Broughton said. "That’s not the way it is."

Construction on the new bank and restaurant could begin in September and the total estimated cost of the project is about $6.3 million.

The Bristol Tennessee Housing and Redevelopment Authority Board approved the financing last week. Sullivan County commissioners now must approve the deal.

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