MEMPHIS, Tenn. — The Memphis Police Department asked city council for an additional $15 million to cover a budget hole Tuesday, as council members were preparing to approve a new fiscal year budget with a 55-cent tax increase.
Interim Police Chief C.J. Davis explained that the deficit was due to “exorbitant overtime” on top of a 14% pay increase, causing the police department to move money from other departments to cover it.
Davis said MPD racks up “upward of $24 million a year” in overtime, but the police department has never had its overtime budgeted. The department typically moves money in its budget to cover it.
Interim city COO Antonio Adams said the deficit was discovered on June 1, and was brought to the council’s attention when they found it was a problem they could not address, due to continued attrition from the department.
Council members were visibly frustrated at the ask, saying it was dropped on them at the 11th hour.
“I am baffled how we got to this point,” Councilwoman Jerri Green asked. “We are getting to the point where, quite literally at the last hour, we are getting two sentences saying we have to move $15 million, and no information about how or why we got to this point.”
Councilman Philip Spinosa said council members were notified at 10:15 the night before. He said council was looking at a total of $30 million in last-minute budget surprises, including another ask from the fire department.
Spinosa said he would request a continuation of the budget until the council had time to review the changes.
“I can’t vote for any of this. Not just this, but the full budget,” Spinosa said. “We’ve got to be better and demand better for our constituents.”
Councilman Chase Carlisle placed blame on the previous mayor’s administration for much of the current budget problems, and he intends to discuss the matter with the city’s attorney.
“We didn’t run a good budget. And when I say say ‘we’ — the prior administration manipulated that budget, and whether it was intentional or not, we need to find out,” Carlisle said.
Adams said the city owes it to the public to find out what happened, and correct the problem.
“Mistakes have been made. I just don’t want the public to think this is a runaway train,” he said.
Tuesday’s budget news comes as city council considers a budget, due June 30, that proposes a 55-cent property tax increase, in addition to fee increases, at a difficult point for Memphis.
“Good bad or indifferent, this will be the most consequential budget the city of Memphis passes, full stop. Because the slightest screw-up today could have an exponential impact in a year, two years, and three years and longer down the road,” Councilman Chase Carlisle said. “You’re either growing or dying, and the fact of the matter is, the city is flat to dying. Until we figure out how to make economic development a priority, these issues will remain.”
This is lower than the 75-cent hike proposed by Mayor Paul Young.
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“So, the budget conversation is ongoing. Today, there will be a lot of dialogue. I’m not sure where we will ultimately land. That’s because the City Council is now considering a proposed 55-cent property tax hike, in addition to fee increases,” Mayor Young said. “I do believe the Council and the administration are in line. We want to find a way to ensure that we’re delivering results for the people of Memphis and so the tax rate that we land on should ultimately help us get there,”
But getting there and to a budget agreement will apparently be easier said than done as the clock continues to tick on a budget season filled with debate and surprises.
City Council ultimately approved the request for $15 million at its evening meeting. Green and Spinosa voted no.