Murfreesboro City Council members on May 22 reviewed a proposed fiscal year 2026 city budget that lists $286,000,000 in revenues and “a little over $400,000,000” in expenses, with a public hearing on the plan scheduled for later the same evening and a final vote set for June 5.

The budget “uses $110,000,000 of restricted and assigned fund balances for MED fund funded projects and CIP items,” the presenter said, and includes a $5,800,000 one‑time use of unassigned fund balance for equipment and outside legal expenses. Erin, a city staff member leading the budget presentation, said, “recurring operating revenues and expenses are balanced and projected at 261” (million), while next year’s budget draws on one‑time reserves to cover capital and designated projects.

Why it matters: the proposed plan shifts the mix of funding toward one‑time reserves to pay for major capital projects and MED proceeds, increases operating spending in public safety and infrastructure, and would require follow‑up ordinances for the tax rate and a proposed change to the tax due date.

City staff described the revenue and spending picture in detail. The presentation lists a property tax projection near $74,000,000 (about a 3.3% growth over the year’s projection) and anticipates local sales tax to be the single largest budgeted revenue at more than $75,000,000. The presenter said the city is proposing to move the property tax payment deadline from Dec. 31 to Feb. 1 and to move the delinquent date to March 1; that change requires council approval at upcoming ordinance readings.

On the expenditure side, staff proposed pay increases, new positions and sizable supplemental requests. The budget includes a 2.5 percent general pay raise (plus a 1.5 percent cost‑of‑living adjustment) for the city general pay plan and higher increases for the public safety pay plan; 32 new positions are budgeted, with roughly 75 percent of the new public safety positions included. Nonrecurring items paid from fund balance total about $3,800,000, of which $3,700,000 is earmarked for police and fire vehicles and equipment. Staff also proposed a five‑year plan to provide a $500 annual payment to certain retirees who began drawing pension benefits before 2022, initially budgeted at roughly $135,000 from the city’s general fund for FY26.

Council members and staff noted other schedule items: a public hearing and first reading will occur the evening of May 22, and second reading and final approval — which will also include the city schools and water budgets — are planned for the June 5 meeting. Darren, the city manager, said during the meeting that this is “my first budget cycle as city manager,” and he thanked staff for their work on the proposal.

What didn’t change: staff proposed no property tax rate increase for FY26. The presentation also said the city expects to borrow through a previously approved bond issuance but likely will not place the full borrowing until after January 2026, budgeting roughly half a year of debt service for FY26.

The council scheduled the public hearing and the first reading later that evening; specific votes on the budget and related ordinances will occur on June 5 unless the council acts sooner.