Memphis City Council approves budget amendment for 3% employee salary increase

The Memphis City Council has taken a significant step towards enhancing employee compensation by approving a resolution to amend the fiscal year 2026 operating budget. During a meeting on June 9, 2025, the council voted to allocate $17.5 million for a flat 3% salary increase for all full-time city employees. This decision aims to ensure fair compensation across various city departments.

The resolution, led by Councilwoman Walker and supported by several council members, also includes a reduction of $500,000 from the proposed contribution to the city's fund balance, reallocating those funds to support the salary increase. Additionally, the council has mandated that the administration provide quarterly reports detailing how the salary increase is distributed among city divisions, promoting transparency and equitable implementation.

Furthermore, the council anticipates an estimated $5.5 million in property tax revenues from XAI Corporation, which will also be directed to the general fund unassigned fund balance. This financial strategy is designed to bolster the city's budget while ensuring that employees receive the compensation they deserve.

As the council moves forward, the implications of this budget amendment are expected to resonate throughout the city, impacting the livelihoods of city employees and the overall financial health of Memphis. The council's commitment to regular reporting will help maintain accountability and ensure that the benefits of this decision are realized effectively.