The Tusculum Board of Mayor and Commissioners Tuesday night approved a proposed city budget for fiscal year 2026-27 on first reading.

The proposed budget includes about $1.234 million in estimated revenues and about $1.244 million in projected expenses. An estimated slim city surplus under the proposed 2026-27 fiscal year budget is $1,098, Mayor Alan Corley said.

The spending package includes no major projects.

“It’s pretty much a continuation budget,” Corley said.

The budget will be considered on second reading at the board’s next scheduled meeting at 7 p.m. Monday, June 22. A public hearing will be held before commissioners vote on the budget measure.

“I would not expect any major changes,” he said.

The City of Tusculum’s upcoming fiscal year runs from July 1, 2026, through June 30, 2027.

The preliminary budget was approved on first reading by a 2-1 vote, with Vice Mayor Barbara Britton voting against the measure and Corley and Commissioner Mike Burns voting in favor of it.

A 3% cost of living pay increase for city employees is included in the proposed budget. Britton urged commissioners to approve a 4% raise, something Corley said would be considered before the second treading of the budget. The difference between 3% and 4% is $3,500, Corley said.

“I don’t think (3%) is right to our employees at this time the way things are. We have given them 4% in the past,” Britton said.

The city also must budget for a 10% health insurance increase, Corley said.

Several budget amendment ordinances on the agenda were approved by commissioners.

One budget amendment approved on first reading in April was heard on second reading, preceded by a public hearing.

The amendment uses $97,200 from an available fund balance drawn from local sales tax and traffic/speed cameras for equipment requested by department heads. Funding was approved for a new Tusculum Police Department patrol vehicle along with automated external defibrillators for three patrol vehicles and one for city hall, and a salt spreader for the public works department.

“We have heard from all departments and we have addressed some of those needs,” Corley said.

A budget amendment approved on first reading outlines grant funds received by the city in the previous fiscal year. Grants were received to help defray expenses for the sewer plant, a mobility grant and a pedestrian and safety grant to address pedestrian and traffic safety. Part of the grant was used for speed humps and speed indicator signs now in place on city roads.

The city will be reimbursed for most of the mobility grant.

Corley said local sales tax revenues allocated to the city are up in the current fiscal year, while state and federal sales tax revenues are lower. Tusculum has no property tax. The city receives about 86% of its revenues in local, state and federal sales tax based on a per capital formula, city Recorder Randy Harley said.

The city receives sales tax revenues from a state formula using U.S. Census figures. Tusculum’s population grew from 2,663 in 2010 to 3,298 in 2020, an increase of nearly 24%, according to the census. While Tusculum’s population has increased since 2020, U.S. Census figures from that year are still used to calculate the sales tax revenue formula, Corley said.

OTHER BUSINESS

In other business, several residents of Greenwood Road asked commissioners to look into ways to slow down speeding traffic on the road.

Resident Glenn Goszinski said young drivers, along with adults, routinely exceed the speed limit on the street, creating safety concerns.

“Kids will speed, I know they do, but adults do it too,” he said.

Corley said city officials are aware of the issue. He said the speed humps and speed signs in use on other city streets have helped slow drivers down.

“We appreciate the problem. We will look for additional measures (in the 2026-27 budget),” he said.

Tusculum Volunteer Fire Department member Kristie Hensley reminded the public the annual Old-Fashioned Barbecue & Homemade Ice Cream Supper will be held on Saturday, June 20, at the fire station, 150 Alexander St.

The fire department will also partner with the Camp Creek Volunteer Fire Department in a new fundraising venture. The fire departments will launch a fireworks sale on June 21 in advance of the July 4 holiday, Hensley said.