County Commission Approves $990 Million Spending Plan with No Property Tax Increase

Jun 22, 2026 at 08:53 pm by WGNS


MURFREESBORO, Tenn. (WGNS) - The Rutherford County Commission approved the final budget of Mayor Joe Carr’s term in a 20-to-1 vote. The spending plan passed Monday features no property tax increase for local residents.

STORY SNAPSHOT
• Balanced Spending: The new county budget effectively balances local spending without asking county taxpayers for more money.
• Tax Rate Drops: The Rutherford County property tax rate fell to roughly $1.49 per $100 of assessed value.
• School Funding: Education takes up the biggest piece of the pie with school operations making up 66% of total spending.
• Employee Raises: County workers will see a cost-of-living raise of up to 3.25% with some eligible for an extra step increase.

The total budget lands at just under $990 million. School operations make up the vast majority of that total, accounting for about 66% of all county spending. While the school system accounts for almost all of the budgeted deficit, county leaders say the plan keeps reserves strong.

Local taxpayers will see the property tax assessment rate drop. The rate fell to $1.4885 per $100 of assessed value, down from $1.8762. Officials say this keeps the county's rate as one of the lowest in Middle Tennessee.

The budget also rewards the people who keep the county running. Rutherford County employees will receive up to a 3.25% cost-of-living pay increase. Workers who are eligible will get an additional 1.75% step raise.

Commission Chairman Jeff Phillips called the process the smoothest he has ever experienced. Finance Director Michael Smith praised the teamwork between multiple departments to protect county reserves.

Mayor Carr noted that the administration focused heavily on employee pay raises and conservative spending over the last four years. He highlighted that Rutherford County remains part of an elite group of counties nationwide holding AAA bond ratings from Moody's, S&P, and Fitch.

Sections: News