Shelby County Commissioners sidetracked an $18 million amendment that would settle a lawsuit between the Mayor Lee Harris and Sheriff Floyd Bonner during the Monday, May 18 meeting.
The agreement between the two offices will be scrutinized during the next committee meetings, on May 27.
Bonner filed the suit against the mayor and the commission in circuit court last August, alleging the county short changed the SCSO of $67 million in FY2026 funding, by failing to approve a salary petition for personnel and office expenditures. Bonner is wrapping up his second and final six-year term.
A confidential agreement was eventually mediated, after the matter moved behind closed doors in February. Moreover, it 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.”
The lone caveat is the commission. The payout requires the 13-member body’s stamp of approval. According to the terms, it must be approved within 30 days of signing.
The resolution is sponsored by the SCSO. Harris signed it on May 1. According to online data provided by the Shelby County Circuit Court, the case was dismissed on May 5 via consent order. Bonner added his signature on May 6.
The agreement also recommends the mayor remain relatively agnostic on the matter. Pursuant to the settlement, Harris doesn’t have to make a recommendation to the commission. However, he is prohibited from opposing it.
“As the sheriff’s request recently was the subject of litigation between the sheriff and myself, which litigation has been resolved, on the advice of counsel I take no position on the request,” read the settlement.
Nevertheless, the administration sought to distance itself from the item. The SCSO requested the $18 million settlement be drawn from the county’s reserve fund, or “fund balance.”
“This is not approved by finance. The reason that we are not approving this is because it will have a significant impact on our fund balance,” said finance director Audrey Tipton.
At the start of FY2026, the reserve fund was a robust $78 million. However, a $43 million withdrawal from the debt service/emergency fund to cover an “operational shortfall” quickly erased much of the balance.
Commissioners had to borrow the money last November after incurring increased expenses. The added costs were mainly due to the state-ordered Memphis Safe Task Force. Delayed federal reimbursements complicated the issue.
The fiscal year ends on June 30.
If the commission approves the settlement, the bulk of the money will go to overtime. As much as $16 million will be divided between 31 OT accounts. The remaining $2 million will go toward sundry items. Nearly $1 million will be used to purchase new service weapons. Landscaping projects will receive $768,905. The rest of the money will cover ammunition, building maintenance and food service costs.
