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Star Correspondent

The Elizabethton City Council took the first step in adopting the city’s fiscal year 2025-26 budget Thursday night, approving the ordinance on first reading during its regular June meeting. The second reading and a public hearing are scheduled at 2 p.m. on Monday, June 30, inside Council Chambers.

The proposed budget includes a 9-cent property tax increase and multiple funding enhancements targeting city operations, infrastructure, employee compensation and education. Council’s approval follows a series of budget workshops held this spring to review and revise spending plans and priorities.

If finalized, the FY26 budget will fund continued operations across all municipal departments, launch capital projects aligned with council’s strategic goals, and include wage and benefit adjustments for city employees. A 4 percent across-the-board raise is slated for staff, and the city will absorb a 3 percent increase in health insurance premiums.

Also included is a $125,000 increase to the city’s operating contribution for Elizabethton City Schools — bringing the total to $2,525,000. The paving budget is also set to rise by $33,000, a 4 percent increase over last year’s original allocation.

During public comment, Elizabethton City Schools leadership voiced strong support and appreciation for the council’s decision to bolster school funding.

“We have the entire school board here and as a school system we want to say thank you so much for all you do to support us,” said Director of Schools Richard VanHuss. “I know you spent a lot of time on the budget for next year and are considering some things to help the school system, and we just can’t thank you enough for that. We are very proud of the school system and all the people that work there. We couldn’t do it without a coordinated effort. We understand what a big decision that you had to make there and the fact you invested in the school system and we can’t thank you enough.”

School Board Vice Chair Jamie Bass Schaff echoed the sentiment.

“Working alongside the City Council has been both inspiring and rewarding,” Schaff said. “Your recent commitment of $125,000 above the original funding displays the dedication that you have to our community. As a school board member, I feel that this will affect our community positively for many years. I am so proud to stand alongside you as I count most of you not only as a board member but as my friend.”

If approved in the second reading later this month, the new budget and tax rate will go into effect at the start of the new fiscal year on July 1.