Memphis budget committee backs flat 3% raise for city employees, ties potential XAI property tax to reserves

Memphis — The Memphis City Council budget committee on June 9 voted to recommend a resolution that would amend the fiscal year 2026 operating budget to provide a flat 3% pay increase for all full‑time city employees and to reserve projected property tax revenue from the XAI project in the general fund unassigned fund balance.

Councilwoman Walker introduced the resolution and framed it as a compromise between honoring city employees and protecting essential services. “This resolution reasonably amends the FY26 budget by implementing a flat 3% raise for all full time city employees, both represented and nonrepresented,” she said. The resolution caps the adjustment at $17,500,000 and directs the administration to provide quarterly reports showing how the increase is implemented across divisions.

The resolution, moved by Councilman Ford Senior and seconded by Vice Chair JSW, reduces the mayor’s proposed contribution to the City of Memphis fund balance by $500,000 and allocates $7,400,000 as a revised contribution to the fund balance. It also states the council’s intent that up to $5,500,000…