Council advances FY27 budget measures; staff proposes water and sewer rate increases

Murfreesboro — On May 21 the Murfreesboro City Council opened and closed a public hearing on the fiscal year 2027 budget with no members of the public speaking, then advanced related ordinances on first reading.

Miss Tucker, who presented the budget timeline and process, told council FY27 is a reappraisal year and the city has not yet received the certified tax rate. She said ordinance 26‑016 records council’s intent to adopt the certified tax rate once the new figure is received; if council later decides to increase the tax rate it would need to hold another public hearing.

Separately, Miss Smith presented proposed water and sewer rate changes based on a cost‑of‑service study and a pro forma that assumes $148 million of debt. ‘‘The water proposed increase is proposing a 75¢ increase for our residential customers,’’ Miss Smith said, adding the commodity charge would increase by $0.10 per 1,000 gallons. For sewer, Miss Smith proposed a $1.00 residential increase and a $0.05 per 1,000‑gallon commodity charge increase. Staff said the increases meet HUD thresholds for very low income in Murfreesboro and that the proposed schedule would bring Murfreesboro Water to approximately 99% rate recovery by 2030.

Council moved and seconded to advance the budget ordinance on first reading and then separately advanced the water/sewer rate ordinance on first reading; both motions passed on roll call.

No public comments were recorded during the hearing. Staff said the certified tax rate will be adopted once the state issues the certified figures and that any later decision to raise the rate would require additional public notice and another hearing.