[{"_1":2,"_123":-5,"_124":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99,111],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6246556,"mediaKeyId","3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a","parentId",3217313,"title","Memphis CFO warns of $14 million shortfall, urges hiring freeze and overtime cuts","audioSeconds",2908,"startMs",100000,"endMs",3008000,"viewUrl","/Search/View?dp=1&key=3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a&start=100&end=3008","thumbnailUrl","https://assets.pipeline.soar.com/3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a/thumbnail_100000.jpg","articleUrl","/articles/6246556/Memphis-City/Shelby-County/Tennessee/Memphis-CFO-warns-of-14-million-shortfall-urges-hiring-freeze-and-overtime-cuts","mediaUrl","https://secure.pipeline.soar.com/6246556-db1df2f5c171d8312721552f2590b6b5/orig.mp4?Expires=1771163028&Signature=OXKP96GkrZfnnWdzyT0Lpov8eWd2WPxVIRBAdEssJZV50t9TGfB4AWrdJTv3e1xARaRUWYyaO5HrrYelX-3c2gX1oyFZl1-brw3xlxYPn~5I16VL-1gsaPDZYu6W4Dm-kTvA1i3vfeUbmR~nuRNNmQrJTYAbaTTdwiIOS3hhMshAhpd6ISYr8KSYTyrT9EUc9jfp4stVaH003a2V1bsK3FfpCoEBGai9yP5lEtdGV8DEd76mFEjXh-VMSYsEkbX6xK4ugON4RqfYb6pvB6vhWTd2n2KMK3VV19efgFdiZQbd0KqaganVzpO9ovFfLJ83cxjIHp91qCA-dftXyEdW9w__&Key-Pair-Id=KUT5TJCACFTXG","author","Memphis City, TN","date","2025-05-06T10:51:03Z","article","Walter Person, chief financial officer for the City of Memphis, told the Budget Committee on May 5 that the city is facing a tighter fiscal year than expected and “we're looking at about a $14,000,000 gap right now as we sit today.” The shortfall reflects slower state-shared and local sales-tax receipts, lagging collections on a doubled vehicle-registration fee and a series of FY24 and FY25 expenses that reduced fund balance.

The gap follows a year in which the city recorded an almost $74 million impact to fund balance after FY24 close and then adopted steps last year — including a 49-cent property tax increase and a higher vehicle-registration fee — that together were expected to add roughly $90.3 million to revenues. Person said the administration now projects a tighter picture, leaving the city to consider near-term measures to avoid starting FY26 in a deficit position.

Person described the main revenue and cost drivers that produced the situation. On revenues, he cited declines in state sales-tax receipts and local sales taxes (including behavior such as lower beer excise receipts and reduced concessions after relinquishing some stadium concession rights). On costs, the largest drivers were full-time salary increases (including prior negotiated raises for public safety), pension ADC charges and higher claims and health-care costs. Person said, “full time salaries...had to increase this year even in the face of trying to maintain a flat budget,” and he pointed to public-safety pay increases granted in prior impasse actions.

Committee members pressed finance for more detail. Councilman Green asked whether the city’s recent vehicle-registration fee delay cost the city revenue; Person said the revenue projection for the doubled fee is trending toward $16 million but that timing of collections created a shortfall of roughly $10 million as the fiscal year closed. Vice Chair Washington asked whether the projected FY25 gap would mean the city begins FY26 in deficit; Person said, “If that carries through, yes, we will be starting in a deficit position going into FY26.”

To narrow the gap, finance proposed immediate constraints: a hiring freeze (excluding first responders), promotion freezes for non‑public‑safety positions, targeted overtime reductions and tighter controls on part-time and temporary hires. Person said the city already is pressing first responders and other divisions to reduce overtime, and that departments are being asked to identify further reductions and revenue opportunities such as ambulance service fees, improved cash-management returns and right‑sizing professional services.

The administration also urged caution about the consequences of depleting fund balance. Person recapped the city’s target amounts: current unreserved fund balance was roughly $91 million; the administration expects to need at least $88 million (about 10% of the budget) to remain prudent, while the state recommends a roughly two‑month operating reserve (not a legal requirement) near $47 million. He warned that dipping below those levels can invite greater scrutiny from rating agencies and raise borrowing costs.

Discussion at the meeting made clear the council expects detail on where recent tax and fee increases were spent. Person offered to provide a breakdown showing the major FY24 and FY25 variances — items such as MATA support, a Grizzlies shortfall agreement and personnel- and claims‑related costs — and council members asked for those figures to use when answering constituent questions.

Ending: Council members and finance agreed to pursue a mix of immediate actions (hiring and overtime restrictions, fee reviews and monthly grant-reimbursement processing) while preparing a fuller, itemized reconciliation of FY24–FY25 variances for the committee. The city’s final FY25 close and any additional revenue that materializes in the last weeks of the fiscal year could narrow the gap, but finance warned the outlook remains constrained.","mediaType","Video","parentTitle","Budget Hearing - May 5, 2025","oneSentenceSummary","Walter Person, chief financial officer for the City of Memphis, told the Budget Committee on May 5 that the city faces roughly a $14 million shortfall in FY25 that risks leaving the city starting FY26 in a deficit position.","taxTitle","Memphis City, Shelby County, Tennessee","taxId",3648,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6246551,"2019 sales‑tax referendum fund shrinking to $7.5M projection; council told flexibility is limited",109,1336000,1445000,"/Search/View?dp=1&key=3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a&start=1336&end=1445","https://assets.pipeline.soar.com/3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a/thumbnail_1336000.jpg","/articles/6246551/Memphis-City/Shelby-County/Tennessee/2019-salestax-referendum-fund-shrinking-to-75M-projection-council-told-flexibility-is-limited","https://secure.pipeline.soar.com/6246551-0000603dc3abf1d090c4dfbc9175883a/orig.mp4?Expires=1771163028&Signature=FLJfR8DxHssjNo11D9PLVTMcQipt-uZ1n33V-gZSSjlKi1qu~TY8iCz3dNELYNy9id4rF3flLkK78KmbLB9xuo7rCTg8ahbXvQXVc-D0jF45OMKGcPqS9DU29MeKaGV4aFQVcXVU8A9N4oDsh5IphicCBXkHvZDJi1xbnznqaAdD~nIKh2bBJREBFE8uOIa~kDBPY0ZqV3CMzcOAtcPS0iLLzqGBhLzvREQcOz6lb5W4pdeUvWufq-QXifoY6WGh8Qi3fLq-GnTTdYru73y9JEcCkb1vXGtNxAgajgH8e-kf5-IQawovxU4xOLHPINaULc9mAm0GiUiBOt8rL9h53g__&Key-Pair-Id=KUT5TJCACFTXG","Walter Person, the city’s chief financial officer, gave a detailed review of the 2019 sales‑tax referendum fund and told the Budget Committee that the fund’s balance has fallen as salary recoveries and one‑time project costs have exceeded receipts. The referendum, passed in 2019, established a one‑half‑percent sales‑tax increase whose proceeds are restricted for restoring and maintaining health benefits for public safety employees, restoring pension benefits and, after those needs, for street maintenance and pre‑kindergarten education. Person said, “The referendum calls that all funds must be spent for the purposes designated above.”

Person showed historical receipts that surged during the COVID years (FY20–FY23), driven by temporary federal and pandemic-related spending, then reversed as federal sources expired and salary recoveries grew. He said expenses from the recovery of a 9% portion of a larger public-safety salary package and several one‑time projects pushed FY23 and FY24 expenses above receipts. Person summarized projections showing an ending fund balance of about $26.2 million for FY25 and a projected balance of roughly $7.5 million for FY26 under the proposed budget.

Council members asked about the fund’s flexibility. Councilwoman Easter Thomas asked whether the referendum fund could be reallocated from street maintenance to pre‑K and what tradeoffs would arise. Person said reallocating within the referendum’s allowed uses is possible but that moving money from the referendum to another purpose effectively shifts the cost back to the general fund; he framed such moves as a zero‑sum choice unless the council opts to cut services in the general fund to cover the reallocation. “It’s a 0 sum game,” he said, explaining that any reallocation would require general‑fund offsets or cuts in existing services.

The council also discussed that the referendum fund’s ongoing shortfall is in part structural: recurring salary and benefit recoveries that were charged to the fund continue to exceed its current revenue stream. That dynamic, plus one‑time transfers and project costs in recent years, constrains the committee’s ability to use the fund for new initiatives without identifying offsets.

Ending: Finance recommended prudence: maintain the referendum fund’s statutory uses, monitor recurring recovery obligations that have consumed the fund, and present the council with any proposed reallocations only after identifying compensating general‑fund reductions or other revenue sources. Council members asked finance to provide clearer line‑item history of recent uses of the fund to show constituents where recent referendum proceeds were spent.","Finance officials told the Budget Committee that the sales‑tax referendum fund established in 2019 is dwindling and projected to end FY26 with roughly $7.5 million because recent salary recoveries and one‑time project costs have outpaced receipts.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6246536,"City opts for real‑time dashboards and 311 overhaul as libraries absorb higher janitorial and security costs",3409,3947000,7356000,"/Search/View?dp=1&key=3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a&start=3947&end=7356","https://assets.pipeline.soar.com/3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a/thumbnail_3947000.jpg","/articles/6246536/Memphis-City/Shelby-County/Tennessee/City-opts-for-realtime-dashboards-and-311-overhaul-as-libraries-absorb-higher-janitorial-and-security-costs","https://secure.pipeline.soar.com/6246536-d85a08186ad4ca3e3dd2a666da9590da/orig.mp4?Expires=1771163028&Signature=AtoRQ~N1xBUhpmp7KBSg6rsHjGfDQSpQVVepWGxulhKUYiR4LMe9kuTQRzzKhVJqI-m1PXBU8e9g7oJ7UHUZ0J7vBo3HqyvGsxVywmzyoZOSUruPz2pqUF8ofvLMRjHJ9GXfcs1iYwugT8WyZx0sil4HgwpWoJogsSWadpBukGh281LqUHjIN~XPEkTZJ3ns~2a0C6Hm3~gbDMCfBv9-Xw89fG7cZa-7YN~7dhlo1u3Y0scDs44wrb88VybWcjVXYIpPaM6EtaMlOwN5K9wUzLmgErLlVGBEtD7SfTlWOik8UtTFAOUlaJ-L8V9ikEWNN10DbOWKOiJLhcAFj8QUTg__&Key-Pair-Id=KUT5TJCACFTXG","Finance and executive staff told the Budget Committee the city is investing in financial and operational dashboards to give council members and department leaders near‑real‑time visibility into grants, expenditures and service requests. Tanika Jennings, deputy CFO, said the finance team is building dashboards that will show grants, reimbursements and operating metrics “at a click of a finger,” and the IT office will integrate those tools with a broader enterprise migration to a cloud platform over the next 12–24 months.

Council members repeatedly pressed for 311 improvements and single, shared terminology and ticketing workflows so residents receive clear status updates. Karen Goss, special assistant to the mayor, described ongoing work to make PJA (partnership/joint agency) follow‑ups consistent and said some PJAs operate independently while others rely on mayor’s office staff for follow‑up; 311 managers and IT staff are collaborating to standardize workflows so tickets are closed by the worker in the field when the service is complete.

Library officials described program and facilities activity and explained an increase in materials-and‑supplies spending tied to two principal factors: a citywide janitorial contract (ServiceMaster) that consolidated multiple cleaning solicitations and a separate security contract that places armed security at some branches. Chris Mars, deputy director of libraries, said the larger janitorial and security outlays account for a significant portion of the library materials-and‑supplies budget and that the administration meets with vendors monthly to monitor performance. Mars said high‑glass features at newer facilities require occasional specialized services outside the routine janitorial contract and that the FY26 CIP includes continued funding for building improvements.

Council members asked for operational details and schedules for the dashboards and for a clearer explanation of how janitorial and security scopes were procured and allocated across city buildings. Finance and libraries pledged to provide more granular vendor and contract detail to council staff so members can reconcile year‑over‑year changes.

Ending: IT and finance officials said partial dashboard capabilities are already available for general‑fund spending and more comprehensive integration will roll out later this year, with fuller enterprise capability in about a year to 18 months; library staff said they will supply the council with vendor allocations and scheduled deliverables for the new janitorial and security contracts.","Officials briefed the Budget Committee on a multi‑year IT roadmap for real‑time financial and service dashboards tied to 311, and library officials explained higher materials-and‑supplies costs reflecting a new citywide janitorial contract and expanded security at some branches.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6246541,"Mayor’s office highlights youth jobs and new joint violence‑prevention office as city tightens spending",147,4971000,5118000,"/Search/View?dp=1&key=3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a&start=4971&end=5118","https://assets.pipeline.soar.com/3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a/thumbnail_4971000.jpg","/articles/6246541/Memphis-City/Shelby-County/Tennessee/Mayors-office-highlights-youth-jobs-and-new-joint-violenceprevention-office-as-city-tightens-spending","https://secure.pipeline.soar.com/6246541-ba576357abd10addaa9b2e80de8cfb3c/orig.mp4?Expires=1771163029&Signature=PNdl-e3~Am1q8iVAiTqWg0UXvZ5yk5dd7ZQaNqiD~7M41Bv6b5F~COmj2lLdx0fEVrqWogZML1kq8a9Ep9koLD-1OLGLfCXAotjpeG9~yOs~8jvVlzu8601pjMLOB6Mc68M~iCfgLS8hm4zSYtCGdX7kWNBcHZo4Cgn0sEub44bBbhNODOTz7imjR4wgB-HuAWlRjy-hbCd5MKHJyr5HQBgZLk12DT0UoOJBEEnjrw36iuOpFq85E-tyGNHoAb-fdaPcQ0-M43HyJscel5wSFhsEsmO~ci4wBrKiqP8wtO2a6FvFCRgc5NelC3um2fbxXmFzM60jWjobp64~B~lhDA__&Key-Pair-Id=KUT5TJCACFTXG","Antonio Adams, chief operating officer, presented the executive division’s FY26 proposed budget and emphasized community programs the administration expects to maintain or expand even as the city holds the line on overall spending. Adams told the committee the office of youth services served roughly 1,900 students this year across employment and enrichment programs and expects to expand to about 2,400 participants by adjusting program timing and application processes.

Director Harris (Office of Youth Services) said the office has moved from a single annual application period toward continuous recruitment and reduced documentation barriers to improve access. Harris said the city contracted with the University of Memphis this year to validate program outcomes and that the program produced high satisfaction scores in post‑program surveys.

Adams also described the new Joint Office of Neighborhood Safety and Engagement, a partnership with Shelby County to coordinate community‑based intervention and prevention services. Adams said the office will focus on targeted interventions and metrics and bring more consistent reporting and data to violence‑prevention efforts. Karen Goss, special assistant to the mayor, said the PJA (partnership/joint agency) meetings that bring residents and city representatives together will continue and staff are working to make follow‑up reports more consistent.

Council members asked for more specific performance data for violence intervention and the GVIP program. Councilman Warren and others requested clear “before‑and‑after” metrics that show the program’s contacts and outcomes; the administration agreed to provide a fuller presentation that explains how interventions are counted, how “touches” translate to outcomes and the roles of community‑based organizations in the network.

Adams and youth services staff emphasized prioritizing internships, vocational training and partnerships with Tennessee College of Applied Technology and other local organizations to create career paths for participants. Adams said the division aims to meet immediate needs while seeking leveraged private and public partnerships to expand opportunities without increasing long‑term recurring general‑fund commitments.

Ending: The council asked the administration to return with program‑level metrics for youth employment and violence‑intervention programs and to show how recurring costs funded with ARPA or other one‑time dollars will be or will not be folded into the base budget going forward.","The executive division said it expects to expand youth employment and after‑school programming while the city implements austerity elsewhere; the administration also described a reconstituted joint office for neighborhood safety and violence intervention that will focus and measure outreach and interventions.",{"_33":112,"_35":36,"_37":38,"_39":113,"_41":114,"_43":115,"_45":116,"_47":117,"_49":118,"_51":119,"_53":120,"_55":56,"_57":58,"_59":121,"_61":62,"_63":64,"_65":122,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6246546,"City plans roughly $97 million in GO debt for FY26; finance warns market volatility could raise borrowing costs",153,4556000,4709000,"/Search/View?dp=1&key=3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a&start=4556&end=4709","https://assets.pipeline.soar.com/3217313-8d6f7b8f6d4726c8f7dca4e9c1221d2a/thumbnail_4556000.jpg","/articles/6246546/Memphis-City/Shelby-County/Tennessee/City-plans-roughly-97-million-in-GO-debt-for-FY26-finance-warns-market-volatility-could-raise-borrowing-costs","https://secure.pipeline.soar.com/6246546-645c5bd4508f8429e94fd3c24e960746/orig.mp4?Expires=1771163029&Signature=UzhYb-7Mxw1sEjnTsOu1815gzmKB48zPWaxLZ-nH11nkAiL~KrBn~~BHNo0tndKo4kOrSKNp-7MvAr-uvz0x~3SJcHWwTt3aHFwGlGLWlR8UmSWsRNOTti8EoUtCRmN7HXem621sX9YOgNEiIFhwn1RcMipSb0wW6~w16h-zk88Y5BX-UoDXidErNGM0PhFh59RpVYcZDOmqbRnDRzOakYfhPmIfvgfYT8hmMl8kzIxT9QRlMLabkipOvBKgj4~hiTp4AgR4246FJoOEcAL4F93FsvNdsBZbN~F1BmsM~zUGG6IC3C22NQVf1y6cI3vwgoc5G7IYm-X~LZ1CXIOyUg__&Key-Pair-Id=KUT5TJCACFTXG","Finance briefed council members on capital financing plans for FY26 and the next five years, with officials saying the FY26 funding plan includes about $97,373,480 in general‑obligation (GO) bond authority plus planned sewer and stormwater revenue borrowing. The CIP presenter said that, “with our current bond rating, the 97 gets us right at our debt capacity,” and warned that a downgrade would reduce borrowing capacity or increase interest costs.

Andre Walker, a finance division debt presenter, summarized the FY26 debt and debt‑service budget. The debt group proposed total expenditures near $199.9 million for FY26 (debt service principal and interest and related costs), with principal payments of roughly $130.5 million and interest of about $68 million. Walker said the FY26 plan anticipates a use of committed fund balance of about $19.2 million; the division estimated committed fund balance entering FY26 near $48 million and projected a post‑FY26 committed balance near $23 million if the proposed plan is executed.

Officials described shorter‑term commercial paper practices and the city’s approach to converting short‑term paper to long‑term GO bonds. The city currently operates a commercial‑paper program with a $150 million limit; finance said the administration expects to return to council later this calendar year or early next to seek authorization to issue bonds to pay down commercial paper that has been drawn for capital projects. Walker said the city is spending capital proceeds more quickly than in past years and expects to come back to council sooner than historical practice to refinance outstanding short‑term obligations.

Finance staff identified two key risks to the plan: (1) potential changes in federal tax policy affecting the tax‑exempt status of municipal bonds, and (2) short‑term market volatility linked to trade, tariff or macroeconomic developments that can move yields and affect timing of bond sales. Walker said market participants recommended building extra time into financing schedules in case market turmoil requires a sale to be delayed.

Ending: Council members asked staff to continue tracking market conditions and to present updated timing and cost estimates before any bond authorization; finance said it would include contingencies in timing and provide the council with the annual audit and full debt schedules for deeper review.","City finance staff told the Budget Committee the FY26 CIP assumes about $97.4 million in general‑obligation borrowing — near the city’s debt capacity under current ratings — and outlined increased principal and interest costs, planned use of committed fund balance and market risks tied to federal policy and interest‑rate moves.","actionData","errors"]

Article not found

Memphis CFO warns of $14 million shortfall, urges hiring freeze and overtime cuts

2019 sales‑tax referendum fund shrinking to $7.5M projection; council told flexibility is limited

City opts for real‑time dashboards and 311 overhaul as libraries absorb higher janitorial and security costs

Mayor’s office highlights youth jobs and new joint violence‑prevention office as city tightens spending

City plans roughly $97 million in GO debt for FY26; finance warns market volatility could raise borrowing costs