City Council outlines $66M budget adjustments and revenue strategies for fiscal responsibility

The Memphis City Council convened on May 21, 2025, to discuss the budget wrap-up for the fiscal year. The meeting focused on responsible budgeting strategies in light of a tight financial year, emphasizing the need to align expenditures and revenues while maintaining public accountability.

The council began by addressing the overall budget adjustments, which included a reduction in expenditures by $36.94 million and an increase in revenues by $27.53 million, resulting in a total of $66.44 million being returned to the reserve fund. Notably, the proposed budget does not include any tax increases, maintaining the current tax rate after adjustments.

Key budget items discussed included:

1. **Group Life Insurance Reduction**: A decrease of $500,000 based on actuals from the previous fiscal year.

2. **Bridal Services Division**: The budget for this division was adjusted due to 18 vacancies, with three positions funded by ARPA being removed as those funds are set to expire.

3. **Mayoral Grants and Subsidies**: The budget line for grants was reduced from $650,000 to $0, with the council stating that any future grants would go through a public process.

4. **Family Safety Center**: With the closure of the center, the budget allocation of $450,000 was eliminated, as services have been absorbed by the county.

5. **Affordable Housing Fund**: The allocation of $3.6 million was moved back to the general fund due to a lack of active projects.

6. **Memphis Area Transit Authority (MATA)**: Funding was proposed at $15.34 million for the remainder of the year, contingent upon MATA providing a budget and audit, with the remaining funds being returned to the reserve.

The council also projected an increase in state taxes by $4 million and local taxes by $13 million, which includes a conservative estimate for XAI revenues. Additionally, the city court clerk's office is expected to collect $8 million in fines and fees, reflecting an increase from previous collections.

In conclusion, the meeting underscored the city's commitment to responsible financial management while addressing community needs. The council remains open to revisiting the budget should vital services require additional funding, ensuring that the administration can propose necessary motions for future votes.