MEMPHIS, Tenn. — Memphis Mayor Paul Young presented what he called a “flat” budget proposal with no tax increase to the City Council on Tuesday.
Sixty-three percent of the $883 million of expenses in the proposed operating budget is dedicated to public safety and blight.
Expenditures and revenues both are $20 million higher than last year.
“We practiced great fiscal responsibility and this year, our goal is to continue that work of right-sizing the budget while providing quality services,” Young said. “In this environment, where there’s a lot of uncertainty, costs are rising everywhere. We made the choice to hold the line.”
The city is working to build up its fund balance. Young touted a reduction in crime last year, with overall crime down about 13%, with murders down 29%.
Council Chairman Ford Canale thanked the mayor and said the council looked forward to working with him on the budget.
Minutes later, the City Council approved an increase in the existing Hotel/Motel Occupancy Tax to 4%. The vote passes with Janika White recusing herself.
Council members said the added hotel fee was part of keeping the Grizzlies in Memphis.
“This is a unique opportunity for us to at least have an additional revenue stream to secure a pro sports team that has probably been one of the greatest investments in the public-private partnership,” Chase Carlisle said.
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.