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City councils

Memphis Mayor Presents $617.4 Million Balanced Budget to City Council

Strategic Insights

— 2 min read

Memphis Mayor Willie Herenton has presented a $617.4 million balanced budget to the City Council, relying on eliminating vacant positions, using more federal grants to fund police operations, and reducing and reorganizing some city services and funding agreements. The budget fully funds fire, police, and anti-blight initiatives and gives city employees a 3 percent raise, all without a tax increase. Herenton cited prudent planning and tough decisions to mitigate the impact of a possible economic slowdown. However, City Council members expressed concerns that the budget may not stand up to closer scrutiny.

Key Takeaways:

  • The budget is $617.4 million, a decrease of 1 percent from the previous year.
  • Herenton's administration relied on eliminating vacant positions, using federal grants to fund police operations, and reducing and reorganizing city services and funding agreements to balance the budget.
  • The budget fully funds fire, police, and anti-blight initiatives and gives city employees a 3 percent raise without a tax increase.
  • Herenton credited prudent planning and tough decisions for mitigating the impact of a possible economic slowdown.
  • The City Council will hold budget hearings on Thursday to review the budget in more detail.
  • More specifics will become available as the council reviews the budget.
  • The budget savings from using federal funds to hire police officers is $3.1 million, which will be plowed back into other crime-fighting initiatives.
  • The budget savings from reducing and restructuring cost-sharing agreements with Shelby County is $10 million.
  • The elimination of 125 vacant positions and reducing the hours of operations of pools, community centers, golf courses, and libraries will generate additional savings, although the exact amount is not specified.
  • Herenton plans to end an agreement with Linebarger, Goggan, Blair, and Sampson LLP for the collection of delinquent property taxes and bring the function in-house.
  • Herenton rejected an offer from Shelby County Trustee Paul Matilla to collect current and delinquent property taxes, citing the cost to the city.
  • The city will provide roughly $25 million to the Memphis City Schools system through fees and taxes, but the budget reflects funding only for the "operating divisions" of city government, not the school district.
  • If a court orders the city to fund the schools, it will be up to City Council members to find a way to do it.

Statistics:

  • $617.4 million: the total budget
  • 1 percent: the decrease in budget from the previous year
  • $3.1 million: the budget savings from using federal funds to hire police officers
  • $10 million: the budget savings from reducing and restructuring cost-sharing agreements with Shelby County
  • 125: the number of vacant positions eliminated
  • 3 percent: the raise given to city employees
  • $25 million: the amount provided to Memphis City Schools system through fees and taxes
  • $57 million: the amount ordered by Shelby County Chancellor Kenny Armstrong for the city to pay to the school district
  • $114 million: the additional amount the city could be responsible for raising in a matter of months

Sources:

  • "Herenton's Blueprint: Total budget: $617.4 million, down 1 percent from last year Cost-sharing: Reduces and restructures a host of cost-sharing agreements with Shelby County to save $10 million Amenities: Reduces hours of operations of pools, community centers, golf courses and libraries Personnel: Eliminates 125 vacant positions" - The Commercial Appeal, Memphis, Tenn.

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