MURFREESBORO, Tenn. — The Murfreesboro City Council approved a balanced $782 million budget for Fiscal Year 2026-27 on Thursday night, moving forward with major investments in public safety, transportation infrastructure, economic development, and employee retention while avoiding a property tax increase for residents.
The budget, approved on second reading June 4, maintains the City’s current property tax rate while funding new police officers, fire personnel, roadway projects, parks, stormwater improvements, and long-term development initiatives tied to Murfreesboro’s continued growth.
“This budget supports the priorities our residents care about most — safe neighborhoods, better roads, strong schools, and a vibrant local economy," said Shane McFarland. “I appreciate the hard work of our staff and City Council in developing a plan that meets today’s needs while preparing for tomorrow’s opportunities with high-quality services for our residents.”
City leaders said the financial plan was built around several community priorities that include responsible budgeting, public safety, infrastructure expansion, economic development, and strengthening Murfreesboro’s identity as one of Tennessee’s fastest-growing cities.
According to the budget message prepared by Darren Gore and Chief Financial Officer Erin Tucker, the city continues to experience growth that is increasing demand for services across nearly every department.
The FY27 operating budget does not rely on the city’s unassigned fund balance for day-to-day operations. General Fund revenues are projected at approximately $299 million, representing an 8% increase over the current fiscal year, largely fueled by continued sales tax growth.
City officials also noted that Rutherford County’s four-year property reappraisal process remains underway, and the certified tax rate has not yet been finalized. However, Murfreesboro leaders stated they do not anticipate increasing property taxes once the updated certified rate becomes available.
Photo Below: WGNS captured the photo below exactly eight years ago as contractors constructed the Joe B. Jackson Parkway bridge near Interstate 24. The bridge spans the CSX railroad tracks as well as the Middle Fork of the Stones River.
The city’s unassigned fund balance is projected to stand at roughly $115 million entering FY27, including between $60 million and $85 million in required operating reserves.
Public safety once again received the largest share of operational spending in the adopted budget.
The plan funds 18 additional sworn police officers along with five new civilian positions at a cost of approximately $2.4 million. Funding is also included for a Fire Rescue instructor, continued development of the city’s real-time crime data center, and ongoing progress toward CALEA accreditation for both police and emergency communications operations.
The budget also advances planning efforts for a future police precinct west of Interstate 24, an area of Murfreesboro that has experienced rapid residential and commercial growth in recent years.
Additional fire department investments include the delivery of the first of three new Pierce 107-foot ladder trucks and continued construction of Fire Station 12.
“Public safety remains our largest investment, with funding for additional police officers, fire personnel, and critical equipment to support a proactive, data-driven approach to keeping our community safe,” said Gore. “At the same time, we are advancing major infrastructure projects, improving compensation to retain a skilled workforce, and moving Solid Waste closer to a self-sustaining utility model.”
The spending plan also includes multiple employee compensation adjustments designed to improve recruitment and retention following significant pay increases approved in prior budgets.
Those adjustments include a 6% pay raise for full-time employees, $6.5 million in salary adjustments, nearly $4 million to fund 32 new positions, increased healthcare contributions totaling $670,000, and an additional $547,000 in pension funding.
City officials noted that payroll savings previously generated through staff turnover, often referred to as “slippage,” have nearly disappeared because employee retention has improved.
Residents will also see another increase in sanitation fees as Murfreesboro continues transitioning Solid Waste operations into a self-sustaining utility system.
Beginning in FY27, residential solid waste collection fees will increase from $13.50 to $15.50 per month, while commercial collection fees will rise from $45 to $50 per can.
The city said future costs associated with the eventual closure of Middle Point Landfill, transfer station operations, tipping fees, and recycling efforts could further impact rates in coming years.
Meanwhile, Murfreesboro’s in-house brush and limb pickup operation is reportedly saving the city approximately $1 million annually.
The adopted budget includes $132 million in capital expenditures supported through grants, reserves, and current revenues.
Among the larger projects included are $14.4 million in state and federally reimbursable roadway projects, $17 million for Town Creek stormwater improvements tied to daylighting the stream running from the wetlands at the Discovery Center at Murfree Spring to Cannonsburgh Village, and $39 million in roadway improvements funded through MED sale proceeds.
The city also plans to continue work on Veterans Park, which is expected to open in late FY26 or early FY27.
Transit projects, including the design of new bus shelters, will receive approximately $620,000 in funding, while $3.8 million has been budgeted for new city vehicles, including $2.5 million dedicated to the Murfreesboro Police Department.
Overall roadway maintenance and construction spending totals roughly $71 million, supplemented by an additional $75 million in capital improvement funding.
The budget additionally supports long-range planning, airport upgrades, tourism efforts, zoning enforcement, and economic development initiatives in partnership with the Murfreesboro Rutherford County Chamber of Commerce.
City leaders emphasized the importance of maintaining Murfreesboro’s parks and greenway system as part of the broader strategy to strengthen the community’s reputation as a desirable place to live and work.
Of the city’s original $24.1 million in American Rescue Plan Act funding, just over $3 million will carry forward into FY27. Another $5.4 million in one-time capital and extraordinary expenditures will be funded through reserves in accordance with city policy.
“I am proud of the collaboration across all departments in preparing this budget,” added Gore. “Their dedication ensures that Murfreesboro continues to deliver high-quality services in a cost-effective manner while planning responsibly for the future.”
The current Murfreesboro property tax rate remains at $0.9526 per $100 of assessed value. Property taxes account for approximately 26% of the city’s total General Fund revenue.
The City of Murfreesboro has earned 16 consecutive Distinguished Budget Presentation Awards from the Government Finance Officers Association, in addition to receiving recognition for 23 consecutive years for its Annual Comprehensive Financial Report.
