Mayor Paul Young presents intentionally flat FY 2026 budget emphasizing public safety, blight remediation

Mayor Paul Young on April 8 presented his administration's proposed fiscal 2026 operating and capital budgets to the Memphis City Council, saying the plan holds the line on taxes while prioritizing public safety, anti‑blight work and infrastructure investments.

The mayor said the city is proposing an "intentionally flat budget" and that "we are not proposing a tax increase in this budget." He told council members the administration trimmed roughly $30 million from initial division requests to align spending with conservative revenue forecasts.

The budget presentation framed stability and fiscal discipline as the principal goals. "Our goal is to continue that work of right sizing the budget while providing quality services for the residents of this community," Mayor Paul Young said. He noted earlier fiscal actions and targeted investments that the administration says produced measurable declines in crime, expanded camera networks and secured grants for fire and emergency response.

Why it matters: the plan ties priorities such as policing, fire and neighborhood improvements closely to personnel and materials spending. Young said about 70% of the proposed FY 2026 budget ("nearly $632,000,000") is dedicated to personnel, and that police, fire and neighborhood improvement together account for nearly 63% of the budget when personnel and materials and supplies are combined. He warned that preserving and rebuilding the city's fund balance is critical to maintaining favorable credit terms and avoiding future budget shortfalls.

Key details and program highlights cited by the mayor included a focus on public safety initiatives, continued investments in camera technology and road work, and CIP projects such as upgrades to AutoZone Park, continued work on Lester Community Center and a planned Southwest Twin multiuse facility that the mayor described as including a police precinct, library and greenway amenities.

Young said the city ended FY 2025 with a fund balance near $91,000,000 on an approximate $860,000,000 budget and called that level "dangerously close to the minimum of 10%" established as a common standard. "For every decision to increase expenses, we must have an equivalent expense cut or revenue increase to keep from tapping into our proposed fund balance contributions," he said.

The mayor identified several line‑item drivers: a roughly $7 million personnel increase reflecting negotiated salary steps and a 5% increase for fire; higher materials and supplies costs from inflation; and a reclassification of management fees into the service charges line for transparency. On the revenue side, he cited a small decline in state‑shared sales tax receipts, some one‑time reductions tied to transfers (including the Simmons Bank Liberty Bowl), and modest increases in short‑term interest income.

Young said the administration plans to preserve essential programs while seeking ways to increase revenue and reduce red tape to spur private investment. He emphasized that maintaining the fund balance is central to the city's ability to borrow at favorable rates.

Council follow‑up: the council set the budget hearing calendar and will review division budgets in the coming weeks under newly adopted rules for FY 2026 hearings. No formal budget vote occurred at this meeting; Young's presentation served as the administration's opening statement to the council.

Ending: Council members thanked the mayor for the presentation and signaled a collaborative review process during the budget season.