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Memphis City Council adopts FY2027 tax levy amid tense debate over AFSCME raises
Summary
The City Council approved the FY2027 tax levy and related omnibus budget on June 23 after committee amendments. Lawmakers debated a separate proposal for a 5% across-the-board raise for AFSCME employees; the amendment failed amid concerns about recurring costs, while targeted raises and one-time bonuses were left in the adopted measures.
The Memphis City Council on June 23 approved the city’s FY2027 tax levy and related budget measures after several committee amendments and votes. Vice Chair Chase Carlisle moved the substituted ordinance for third reading; the measure passed by roll call after a multi-hour session that included debate over employee pay and budget tradeoffs.
The omnibus resolution and levy (Ordinance 5971 as substituted) included the mayor’s proposed budget plus later council amendments. The budget package passed following roll-call votes after Council actions earlier in the evening to adopt same-night items and omnibus changes.
Why it mattered: Council members spent significant floor time debating how to fund compensation increases for city employees represented by AFSCME. Councilman Terrence Smiley proposed an amendment to provide a 5% across-the-board raise and a $2,000 bonus for affected AFSCME employees, funded by eliminating vacant positions and cutting miscellaneous professional services in several funds. Smiley argued the increase was necessary to help workers who “make $600 a week” and are struggling to keep up with inflation.
Opponents warned that a recurring 5% raise would create long-term fiscal pressures. Chief Walter Person, the city CFO, said one-time bonuses were easier to fund and that recurring pay hikes would raise future actuarial and operating obligations. Councilman Canale and others favored targeted adjustments to underpaid divisions rather than a uniform raise, noting the city had already proposed a 2% raise and a $2,000 bonus for many employees in earlier actions.
"I think everybody here should find a reason to say yes," Councilman Smiley said in support of the 5% plan, while Chief Person cautioned that the city’s balanced budget left limited room for additional recurring expenses.
The Smiley amendment failed on a recorded vote. The final adopted package preserved earlier council actions that include a 2% increase and a $2,000 bonus for many employees, and directed staff to pursue targeted pay adjustments for specific divisions where market data shows shortages.
What happens next: The budget and tax levy now move into implementation, with department heads and the administration responsible for executing appropriations. Council members said they will continue to review compensation inequities and consider targeted adjustments in subsequent budget cycles.
Votes and procedural notes: The Council recorded roll-call votes on the levy and related items after earlier same-night motions (items 16 and 17) were moved as substituted. The meeting record shows the substituted ordinance passed following the evening’s procedural votes.
