Shelby County Commissioners penciled in an executive session to get to the bottom of a last-minute $18 million settlement between the Shelby County sheriff and the mayor during the Wednesday, May 27 committee meetings.
Commissioners would also like to explore financial alternatives in absorbing the unexpected cost during the Monday, June 1 session.
Sheriff Floyd Bonner filed the suit against the Mayor Lee Harris and the commission in circuit court last August. It alleged the county withheld $67 million in FY2026 funding, by failing to approve a salary petition for personnel and office expenditures.
The episode was the latest dustup between the SCSO and Harris over the office’s Maintenance of Effort, which requires the department to keep a reserve of unfilled positions in case of an emergency.
A confidential agreement was successfully mediated behind closed doors in February. Along with the payout, the settlement prohibits both sides from “wilfully” disclosing details “to any member of the public or to the media without the express written consent of the parties.”
Harris quietly signed the settlement on May 1. The commission was also left in the loop. The payout requires their stamp of approval too. According to the terms, it must occur within 30 days of signing.
“This is very, very odd, this whole agreement and the way that it’s been denied on record when asked about it. Then the major people involved don’t speak to it or don’t know about it. We have basically been thrown under the bus on this, if you read the agreement, that the mayor who didn’t know anything about did sign,” criticized Commissioner Amber Mills.
Further details were revealed during Wednesday’s discussion. The largest chunk of the money — $16 million — will cover overtime costs. The remnants will pay for operational expenses, like new guns and ammunition for SCSO personnel. To date, the SCSO has incurred around $19 million in OT. The figure is expected to climb to $27 million by the end of the fiscal year on July 1.
“This is the product of a settlement between the mayor and the sheriff. We can either approve it or not approve it or perhaps alter it, or alter the source,” reflected Mick Wright.
Still, there is a silver lining. Some of those costs have already been budgeted. During a financial system switchover, an additional $11 million dollars was given to the SCSO.
The new state-proposed Oracle system has the money on a budget line. However, $7 million still needs to be found somewhere. Prior to the conversion, the bulk of overtime was paid out through a “salary pool.”
“In the past, we’ve always taken all of that into consideration and closed the books using those dollars as well as part of fund balance,” said Audrey Tipton, Shelby County director of Administration and Finance.
During the discussion, Budget & Finance Committee chairman Michael Whaley proposed a possible solution. Instead of reallocating $7 million from the general fund, the money would be transferred from the SCSO’s vacancy savings.
This past budget season, Harris eliminated 41 reserve positions for additional operating budget funding. The “vacancy savings” reduced the budget by around $31 million.
Around $50 million remains in vacancy savings. The needed funding would be reappropriated internally to pay the settlement. Alicia Lindsey, the office’s CAO, also agreed that the maneuver would allow the SCSO to avoid MOE concerns.
“I believe that you are correct,” said Lindsey.
Some of the financial stress is due to the ongoing Memphis Safe Task Force. The state, federal and local law enforcement initiative was ordered by Republican Gov. Bill Lee in late September at the request of President Donald Trump. In addition to extra manpower on the streets, the task force has further strained resources at the overcrowded Shelby County Jail. The SCSO staffs the Downtown Memphis lockup.
In November, commissioners approved a $43 million resolution to transfer money from the county’s debt service/emergency fund to cover what the county termed an “operational shortfall.” Before the withdrawal, the account stood at $78 million.
According to Lindsey, the federal government only plans on reimbursing the county $700,000.
