Shelby County, Tennessee 

Recovery Plan 

State and Local Fiscal Recovery 

Funds 

2021 Report 

 
Shelby County, Tennessee 2021 Recovery Plan Performance Report 1 

Shelby County, Tennessee 

2021 Recovery Plan 

Contents 

GENERAL OVERVIEW ................................................................................................................ 2

Executive Summary .................................................................................................................. 2 

Uses of Funds ........................................................................................................................... 2 

Promoting Equitable Outcomes ................................................................................................. 4 

Community Engagement ........................................................................................................... 4 

Labor Practices ......................................................................................................................... 5 

Use of Evidence ........................................................................................................................ 5 

Table of Expenses by Expenditure Category ............................................................................ 5 

Project Inventory ......................................................................................................................... 5

 
Shelby County, Tennessee 2021 Recovery Plan Performance Report 2 

GENERAL OVERVIEW 

Executive Summary 

Shelby County, Tennessee (the County) greatly appreciates the Federal State and Local Fiscal 

Recovery Funds (SLFRF) provided through the American Rescue Plan Act (ARPA). 

Throughout the COVID-19 pandemic, the County has proactively responded to the community, 

and the County’s operating divisions have continued to serve its residents. The County’s vital 

response to the pandemic has included the work of the County’s health division, division of 

community services, emergency management and homeland security, Sheriff division, fire 

department, and other departments crucial to providing government services. 

Unfortunately, the County’s revenues were impacted by the pandemic; therefore, the County 

intends to utilize the SLFRF for Revenue Replenishment in order to continue the provision of 

government services. In the fourth quarter of the County’s fiscal year 2020, the County’s 

revenues decreased by nearly 10% year-over-year, and overall, in calendar year 2020, the 

County’s revenues were $88,877,418 or 7.3% less than the calculated adjusted revenue 

according to the Interim Final Rule. In the initial 2020 calendar year measurement period for 

Revenue Loss, the County’s revenues were $1,135,513,339, which is short of the calculated 

adjusted revenue of $1,224,390,758. 

In setting the FY 2021 budget, the County had to implement budgetary reductions that were as 

high as 12% for some departments, but we did not lay off staff. We acknowledged that retaining 

staff would be crucial in our response to the pandemic. Thankfully, the Federal Government 

has provided the SLFRF, which will enable us to sustain our ongoing operations, support our 

pandemic response, and set us on the path to economic recovery. 

Uses of Funds 

The County plans to utilize the SLFRF for Revenue Replacement (EC 6). The County’s 

Revenue Loss is $88,877,418 for the initial 2020 measurement year. This amount is 97.6% of 

the SLFRF provided to date. We expect to have more calculated Revenue Loss for calendar 

year 2021 that will exceed the remaining SLFRF funding provided. 

Shelby County 

Federal ARPA Funding $91,016,755 

Calendar Year Revenue 

2019 Base Year $1,152,773,405 

2020 Growth-Adjusted Calculation 1,224,390,758 

2020 Actual 1,135,513,339 

2020 Revenue Loss ($88,877,418) 

Remaining Allowance for 2021 Loss $2,139,336 
Shelby County, Tennessee 2021 Recovery Plan Performance Report 3 

The County’s use of SLFRF for Revenue Loss or Revenue Replacement will enable us to 

continue our critical operations focused on health and public safety. 

The Shelby County Health Services Division provides essential public health services to our 

residents, and it has been crucial in the County’s response to the pandemic. It has 

approximately 710 employees in the Adopted Fiscal Year 2022 (FY22) Operating Budget, 158 

of whom are funded through the County’s General Fund. The Adopted FY22 General Fund 

Operating Budget of the Health Service Division is $38.4 million, including $11.4 million of 

personnel costs and $26.9M of operating and maintenance (O&M) costs. 

Through its primary General Fund operating budget, the County also provides funding for the 

Shelby County Health Care Corporation, which is known as Regional One Health. Regional 

One Health offers hospital services to residents of Shelby County and the surrounding area. 

The Adopted FY22 General Fund Operating Budget includes $29.4 million for Regional One 

Health. 

The Shelby County Sheriff Division provides law enforcement services to the County to 

preserve peace, prevent crime and disorder, and protect the lives and property of those in the 

County. The Sheriff Division has continued to focus on maintaining public safety through the 

pandemic. The Sheriff Division has 2,149 employees in the Adopted FY22 Operating Budget 

that are funded through the County’s General Fund. The Adopted FY22 General Fund 

Operating Budget of the Sheriff Division is $187.9 million, including $164.2 million of personnel 

costs and $23.7 million of operating and maintenance costs. 

The County plans to use the SLFRF to ensure these vital services are not interrupted. 

2020 Revenue Replacement $88,877,418 

General Fund Health & Public Safety Expenses 

Health Services Division: Personnel $11,438,787 

Health Services Division: O&M 26,947,250 

Regional One Funding 29,408,000 

Sheriff Division: Personnel 164,174,859 

Sheriff Division: O&M 23,712,862 

Total $255,681,758 

Costs Exceeding Revenue Replacement $166,804,340 

 
Shelby County, Tennessee 2021 Recovery Plan Performance Report 4 

Promoting Equitable Outcomes 

The County is focused on promoting equitable outcomes through all of our operations. The 

County serves a population of 929,744 people for whom the demographic composition is 54.3% 

Black or African American, 35.3% White – not Hispanic or Latino, 6.6% Hispanic or Latino, 

2.8% Asian, 0.3% American Indian and Alaskan Native, and 0.7% Other or Two or More Races. 

Additionally, approximately 13% of Shelby County families and 17% of Shelby County residents 

live below the poverty line. 

We have identified five primary strategic goals as a foundation for our Countywide decisionmaking. In adopting each year’s budget, we consider these initiatives and evaluate the 

appropriate levels of funding needed to achieve the identified priorities from both short- and 

long-term perspectives. The County’s strategic goals are: 

 Support Quality Public Education 

 Enhance Public Safety and Support Criminal Justice Reform 

 Protect and Promote Community Health 

 Promote Workforce Development and a Healthy Economy 

 Provide Effective Governance and Sound Stewardship for County Resources 

More information can be found on pages 17 through 26 of our budget book. 

During the COVID-19 pandemic, we have focused additional resources towards those who have 

been hardest hit – from both a health perspective and an economic perspective. Certain zip 

codes with lower income and more minority residents have experienced a disproportionately 

high burden of disease and hospitalization, and in these areas, we have undertaken additional 

medical outreach. We also have directed resources towards those who have experienced the 

greatest economic dislocation. Our programs have included small business grants, direct 

financial assistance for restaurant and hospitality workers, and rent and utility assistance, 

including the Federal Government’s Emergency Rental Assistance Program. More information 

on our COVID-response programs can be found on our website: 

https://www.shelby.community/. 

Community Engagement 

The County’s budget and use of funds has incorporated input and feedback from members of 

the public. The County’s response has been reviewed and vetted by the Administration and 

County Commission at public meetings, and numerous members of the community have 

attended meetings and given input. 

Additionally, through the COVID-19 pandemic, we have partnered with a coalition of community 

partners and other local institutions to strengthen our outreach capacity. One example of our 

community engagement is our partnership with LeMoyne-Owen College, which is a historically 

black college located in an area that has been disproportionately impacted by COVID-19. With 

County funding, the college is hiring students to serve as street-level community health workers. 

Another example is the County’s partnership with Memphis For All, a multi-racial, cross-class 
Shelby County, Tennessee 2021 Recovery Plan Performance Report 5 

organization that fosters economic and social equity to engage underserved, non-English 

speaking communities. 

Labor Practices 

The County stresses local hiring and supports Locally-owned Small Businesses. In 2021, the 

County Commission amended our Locally-Owned Small Business (LOSB) Ordinance to expand 

the goals for LOSB participation. The County also encourages the use of minority- and womenowned businesses. 

Use of Evidence 

Through its annual budget process, the County regularly evaluates the services we provide and 

the operational needs and funding required to provide such services. As the County is using 

SLFRF as Revenue Loss to support our general budget, we do not have specific evidencebased interventions for the SLFRF. 

Table of Expenses by Expenditure Category 

The County expects to use all of its SLFRF funding for Revenue Replacement to continue the 

provision of government services. 

The County adopted its FY22 Operating Budget before the Revenue Loss calculation was final; 

therefore, the County included a conservative estimate of Revenue Loss for Revenue 

Replacement in the amount of $23,315,775 in the Adopted FY22 Operating Budget. However, 

the County experienced greater loss according to the Revenue Loss calculation. Accordingly, 

the County plans to utilize $88,877,418 of calendar year 2020 Revenue Loss as Revenue 

Replacement in FY22, with the formal obligation of the remaining $65,561,643 of calendar year 

2020 Revenue Loss in the fall of 2021. We also expect to obligate the remaining $2,139,336 of 

SLFRF funding for Revenue Loss we are experiencing in calendar year 2021. 

Category Cumulative 

Expenditures 

to Date ($) 

Amount Spent 

since Last 

Recovery Plan 

6 Expenditure Category: Revenue Replacement 

6.1 Provision of Government Services $23,315,775 $23,315,775 

Project Inventory 

The County is not directly utilizing SLFRF funds for specific projects. The County is utilizing the 

SLFRF funds for Revenue Replacement to continue to provide critical health and public safety 

services.