Proposed budget includes 2-cent property tax increase

3:35 p.m. May 12, 2026

Proposed budget includes 2-cent property tax increase

DUANE CROSS
MCO Publisher•Editor

Moore County residents will get their first public look at a proposed 2026-27 budget Monday night that includes a 2-cent increase in the countywide property tax rate and draws on reserves to make the general fund numbers work.

The Metro Council is scheduled to consider the first reading of the county’s spending plan and a proposed property tax levy that lists the countywide rate at $1.7612 per $100 of assessed value, up from $1.7412 in 2025-26. For properties inside the urban services district, the packet lists an additional $0.0068, bringing the proposed urban rate to $1.7680.

For example, on $100,000 in assessed value, the proposed 2-cent increase would equal about $20 more per year before any urban services charge.

A public hearing is set for 6:20 p.m. Monday, May 18, followed by the regular 6:30 p.m. Metro Council meeting at the American Legion, 119 Booneville Hwy. in Lynchburg.

The proposed tax levy breaks the county rate into six pieces: general fund, $0.6689; solid waste, $0.0552; highway, $0.0097; school, $0.8300; debt service, $0.1774; and capital projects, $0.0200. Together, those total $1.7612. The school rate, at $0.8300, is the largest single piece of the proposed county tax levy.

The agenda packet shows the general fund budget with roughly $6.89 million in proposed revenue and about $7.40 million in proposed spending for the fiscal year ending June 30, 2027. That leaves a projected gap of about $517,712, which the budget document shows being covered by fund balance.

The reserve draw is the number to watch. The budget can balance on paper by drawing from reserves, but reserves are one-time money. They can soften a hard budget year. They cannot pay recurring costs forever.

Under the proposal, the estimated general fund balance would fall from about $2.1 million at the start of the year to about $1.59 million by June 30, 2027.

Schools List No Tax Increase

The school budget summary says Moore County Schools’ 2026-27 general purpose budget includes no tax increase.

The school spending plan includes a new school bus, additional textbooks, a 3% cost-of-living adjustment for support staff, mandatory teacher salary increases, higher health insurance costs, increases in retirement contributions, and an additional elementary classroom teacher tied to enrollment.

The school budget also notes an estimated $635,000 increase in state funding due to enrollment. It also changes the district’s fund balance from 3% to 6%, with the stated goal of avoiding the need for a Tax Revenue Anticipation Note in the fall.

Items the school board is still working to afford include paving at Lynchburg Elementary School, sealcoating at Moore County High School, security camera updates at both campuses, metal weapons detection systems, other security upgrades, additional parking at LES, and new photocopiers for both schools.

The school fund shows about $11.9 million in estimated revenue and about $12.17 million in estimated expenditures, with the difference also covered through fund balance.

EMS Vehicle Also on Agenda

Council members will also consider purchasing an EMS vehicle.

The packet says EMS wants to replace a 2010 Explorer, taken out of service due to safety issues, with a 2500 4x4 pickup truck. The listed cost is $48,365, with $30,303 coming from an annual EMS equipment grant and $18,062 from unused EMA reserve grant funds.

EMS says the truck would improve response in remote areas, including farms, rugged driveways, and places ambulances cannot easily reach. It could also be used in bad weather and to tow the mass-casualty trailer and other EMS equipment.

Grant, Zoning Items Also Listed

The agenda also includes a resolution authorizing Moore County to apply for $400,000 in HOME grant funds through the Tennessee Housing Development Agency to address substandard housing.

The resolution says South Central Tennessee Development District would administer the funds if awarded, with administrative services listed at 8% of the total award, or $32,000. The resolution says no local matching funds are required.

Council is also scheduled to consider a zoning ordinance on first reading involving 2.50 acres on Majors Cemetery Road, owned by Aaron Nunley and Ellington Inc. The ordinance would rezone part of Moore County Tax Map 043, Parcels 010.01 and 012.01, from A-1 agricultural-forestry to R-2 residential district-rural center. The Planning and Zoning Commission recommended the change on May 5.

Several old business rezoning items also remain on the agenda for second reading, along with a jail renovation item.