Public hearing set on mayor's proposed 16% tax hike: 'I don't see another way to do this'

• Commissioner arrives late to break 3-3 tie to back tax hike
• Full commission will decide on tax rate June 26
• Rutherford's existing tax rate less than surrounding counties
• Mayor Joe Carr wants to maintain rainy day money for AAA bond rating

Rutherford County residents will get the chance to speak about a proposed 16.2% property tax increase impacting their household budgets.

The public hearing is set for 7 p.m. June 13 at the Rutherford County Courthouse in the center of Murfreesboro's downtown Square. The tax hike follows a current year budget that uses reserves to cover a $64 million deficit.

The 16.2% property tax hike proposed by Rutherford County Mayor Joe Carr won majority of support in a 4-3 vote Thursday, June 1, from the Budget, Finance and Investment Committee to present the recommendation to the public. Commissioners Trey Gooch, Wayne Irvin and Paul Johnson, the budget committee vice chairman, opposed the increase.

The mayor's recommended tax hike is higher than the previous 5.7% increase in 2019 to fund raises and boost rainy day reserves. The owner of a home appraised at $334,600, the median out of 92,036 houses examined by the Rutherford County Property Assessor's Office, could face paying more than a $218 increase in property taxes with a 16.2% hike in the next fiscal year that starts July 1.

"I don't see another way to do this," Carr said prior to the budget committee voting on a tax hike to help fund $849.4 million in government and public education services.

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Full commission will decide on tax rate June 26

Carr's proposed budget includes a 3.25% increase to the pay tables. When combined with 1.75% step increases in pay, the raises are 5% for those eligible. The recommended pay boost is less than when the commission June 2022 agreed to this year's budget with raises ranging from as high as 19.75% for public safety workers to 14.75% for other employees for those eligible for step increases.

The mayor suggested the tax increase should put the county government in strong financial position to fund operations for the next two to three years without considering any additional tax increases.

Carr said that he hated having to raise property taxes because he considers himself to be a Tea Party guy. He won his seat in August after winning the May 2022 Republican primary against runner up Rhonda Allen, a former county commissioner, and Bill Ketron, the previous mayor.

The budget plans include hiring 15 more firefighters to work at the county's future plans for Public Health and Safety Buildings to house fire trucks and ambulances. The county has plans for six buildings, including two opening soon with one in the Rockvale community southwest of Murfreesboro and the other in the Kittrell community east of the city.

The full 21-member Rutherford County Commission will vote on the tax rate during a 9 a.m. June 26 meeting at the courthouse. The commission meetings include public comment times prior to decisions.

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Commissioner arrives late to break 3-3 tie to back tax hike

The divided budget committee had debates for five 3-3 votes on proposed tax hikes between 5:30 and 8:43 p.m. when Commissioner Steve Pearcy arrived.

Pearcy was working on his farm and absent for the split votes, and unaware a meeting had been scheduled for him and other budget committee members. He arrived for the meeting after being contacted by the mayor to come to the courthouse to break the tie.

Pearcy joined fellow Commissioners Craig Harris, Chantho Sourinho and Robert Peay Jr., the budget committee chairman, in backing the tax hike to be presented to the public.

Harris called for approval in the split 3-3 votes, as well as the one that included Pearcy breaking the tie.

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Rutherford's existing tax rate less than surrounding counties

The mayor's proposal increases the tax rate per $100 of assessed value, which is 25% of appraisal, from $1.6162 to $1.8775. The 26.13-cent increase to the rate is nearly a 16.2% hike.

The owner of a townhouse appraised at $247,300, the median out of 10,994 town houses, according to the property assessor's office, would pay over $161 more in property taxes if the tax rate increases by 16.2%.

The proposed tax rate will remain one of the lowest in Middle Tennessee, Carr said.

Rutherford County's current rate is lower than all of the adjacent surrounding counties, ranging from Davidson's $2.922 to Marshall's $1.8187, according to the Tennessee Comptroller's Office.

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Carr wants to maintain rainy day money for AAA bond rating

The overall budget also includes debt service that pays back borrowed money, such as an additional $156.3 million in bond plans to fund the expansions and renovations of Riverdale, Smyrna and Oakland high schools.

Mayor Carr and Peay and other commissioners suggested that part of their support for the tax increase is for the county to keep ample money in rainy day reserve savings.

Reserves help the county cover payroll for overtime in responding to emergencies, such as the tornado that damaged the Readyville community east of Murfreesboro.

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Reserves that equal at least 30% of the main government's general budget of $159.6 million also help the county keep Moody's AAA bond rating, which means an estimated $6 million in annual savings in the coming fiscal year through lower interest rates to finance projects.

"In this economic environment, it's very important," Carr said.

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Key dates on proposed county budget

• Note: All meetings will be at the Rutherford County Courthouse in the center of Murfreesboro's downtown Square
• 7 p.m. June 13: Public hearing on the tax levy and budget plans
• 5:30 p.m. June 21: Seven-member budget committee votes on recommendation for tax levy and appropriation for next year's budget
• 9 a.m. June 26: Full 21-member Rutherford County Commission considers adopting tax levy and appropriation for budget funding government and public education operations next fiscal year starting July 1

Source: Rutherford County government