Rutherford County sets $1.4885 property tax rate, approves FY2026-27 budget and $1.68M reappraisal transfer

The Rutherford County Board of Commissioners on June 22 adopted a resolution setting a combined property tax rate of $1.4885 per $100 of taxable property for the fiscal year beginning July 1, 2026, and approved the countys appropriation resolution and a related budget amendment.

The tax levy approved by the board allocates the combined rate among county funds: general county fund .6184; ambulance service .0780; highway fund .0057; general purpose schools .4064; education capital projects .0811; and debt service .2989. The resolution also specifies revenue splits for the countys situs portion of sales tax (60% solid waste sanitation, 20% general fund, 20% road and bridge), wheel tax (30% general fund, 30% road and bridge, 40% general purpose school fund), and school facilities tax (50% education capital projects fund, 50% general debt service fund).

Why it matters: the levy provides the revenue framework for Rutherford Countys spending on schools, public safety and infrastructure in the coming year and underpins the appropriation resolution the board approved the same day.

The board also approved a comprehensive appropriation resolution that funds county departments, capital outlays and debt-service payments for the fiscal year beginning July 1, 2026. During questions from Commissioner Ervin, county finance staff provided a breakdown of budgeted surpluses and deficits across major funds. Finance director Michael said the county general fund shows a budgeted deficit of $891,000; the schools fund (141) has a deficit of $9.9 million; the central S-cap fund shows a deficit of $8.5 million; the industrial economic development fund has a $578,000 deficit but is partially offset by principal payments; and the solid waste fund shows a $70,000 deficit. Michael told commissioners the debt service fund was at about 90–100% of its target and the county general fund at roughly 50–60% of its target.

On concerns about litigation reserves, Commissioner Ervin asked whether the county had adequate reserves to cover items on the published litigation list and any pending or threatened cases. Michael replied, "At this time, I think we do with the facts and evidence that I know about, yes," and the county attorney agreed.

Separately, the board approved a late general-fund amendment moving $1,681,947 from the reappraisal classification (fund 52-310) to the property assessor classification (fund 52-300). County staff said the change responds to guidance from the Comptroller's Office about how reappraisal costs must be categorized and that the transfer represents a reallocation of existing budgeted dollars rather than new spending; staff emphasized it is intended to correct a repeated audit finding.

The appropriation resolution passed with a recorded vote of 20 yes and 1 no. The tax levy resolution and the reappraisal-to-assessor amendment each passed on recorded votes of 21 yes. The board moved other routine business and committee reports earlier in the meeting, and there were no public commenters signed up for this session.

During the meeting, Keith Elrod, vice chairman of the Rutherford County Farm Bureau, urged the board to keep agriculture in mind when making land-use and policy decisions and said Tennessee is "currently losing approximately 10 acres of farmland every hour." Elrod also invited commissioners to a candidate meet-and-greet at Lane Agri-Park on June 30.

The board thanked finance and department staff for work on the budget; a budget committee meeting was scheduled for July 9 and the full commission will next meet July 16 at 6:00 p.m. The meeting adjourned after brief public acknowledgements and local event announcements.