MEMPHIS, Tenn. — Memphis City Council members approved the new city budget Tuesday night, including a property tax rate hike of roughly 49 cents.
Mayor Paul Young had proposed a 75-cent increase earlier in the budget season, but as it got closer to a vote, 55 cents was thought of as a more realistic increase.
Council members voted 8-5 on the increase of 49 cents.
Mayor Young said he believes this budget still gives the city and his administration enough to accomplish their goals.
“The biggest thing is just understanding that there are a lot of tough decisions,” the mayor said. “We did not come at this lightly, knowing we are asking the residents of our community to pay more to increase taxes.”
The existing tax rate of $2.70164 is now increased by $0.49376.
"The people are being asked to pay more, so now we have to deliver more," Mayor Young said during the Tuesday night meeting.
Increases of $30 for passenger vehicle registration fees and $12 for solid waste fees have also passed during the budget hearing. The council members also allocated $1 million to Memphis-Shelby County Schools.
This is the first property tax increase in 12 years for the city.
Budget Committee Chair Councilman Chase Carlisle said one reason this budget season was so difficult was because of a lack of information from former Mayor Jim Strickland’s administration.
“Someone in the administration took the safeguards (of the budget process) off,” Councilman Carlisle said. “They incurred expenses, they didn’t disclose it to the city council. We don’t have any oversight into that unless we choose to take action, which is certainly on the table at this point.”
City council members have also allocated $15 million to Memphis Police Department officials to cover a deficit as a result of overtime during the budget session.
The request came late in the budget process and many Memphians spoke out against this decision during public comment.
“I’ve watched y'all make comments about how you’re so upset hearing about this last-minute and then you vote for it and vote in favor of it,” said Memphis resident and activist Amber Sherman. “And then you comment again, ‘We’re so tired about hearing about this last minute,’ and then y'all sit there and vote for it again.”
The budget also included a resolution that reset the City of Memphis Executive Salaries, including a pay cut for interim Memphis Police Chief C.J. Davis, who goes from a salary of roughly $280,000, to $246, 370.28.