The Bristol, Tennessee city council has approved a budget that has been cut by 2.5 percent.
The more than $106 million budget reflects a decrease of nearly $3 million from the 2013 fiscal year.
A proposed 18-cent property tax increase passed its first reading. The tax rate would be $2.37 per $100 of assessed value.
City leaders say the increase will help support municipal operations, programs, school system operations, debt obligations and maintaining local streets.
There will be a second reading and public hearing on September 3.