MEMPHIS, Tenn. — Memphis Mayor Paul Young is getting ready to present his budget proposal for the upcoming fiscal year.

Last year, Mayor Young proposed a 75-cent increase in city property taxes, however, the city council later reduced that to a 49-cent tax increase. That also came with an increase in the solid waste fee and auto registration fee.

This time around it’s unclear if he’ll be looking for another tax increase, but there are some challenges facing the 2026 fiscal year budget.

WREG reported earlier this year that for seven months, the city’s auto-fee or wheel tax increase was never collected, resulting in a $7 million shortfall in the budget.

The city’s vehicle registration fee was supposed to double, going from $30 to $60 as of July 1 of last year.

When we spoke with city councilwoman Jerri Green in January, she feared those additional fees could have a domino effect on city services and already financially strapped agencies such as MATA.

“There are major budget holes with MATA, and we have to keep those buses running so people can get to their jobs. So our disabled citizens can enjoy life. So I was hoping to be able to come back with an additional resolution this year during budget and dedicate some of that funding towards public transportation,” she said.

City leaders say that new hole in the budget will have to be solved.

Mayor Young’s presentation has not been made available ahead of Tuesday’s meeting. We will keep you updated on the mayor’s presentation later this afternoon.