MEMPHIS, Tenn.- The city of Memphis’ administration says it’s not looking to raise taxes next year.
Its several months before the Memphis city council will hammer out a budget for fiscal year 2016. But council members, city CAO George Little and other city administrators sat down Saturday to get the budget conversation going, without the pressure of voting on anything.
“We will not be proposing a tax increase; we are not contemplating a tax increase for FY 16. We feel we have adequate levers to pull not to come forward with a tax increase,” said Little.
Saturday`s informal budget meeting highlighted a model of what the city`s finances could look like next year.
If the council doesn`t make any changes to the city`s operations, the model shows an estimated $16 million budget gap. The city administration says that`s not alarming enough to raise taxes on Memphians to foot the bill.
“We think with the fiscal restraint that`s been exercised over the last four years, that we can operate in our means,” said Little.
The city`s administration suggests using some of the city`s reserve funds to help fill in the anticipated gap.
“Just like a household, you build up your savings and when you go through times that you know are coming. You draw on those savings, even as you tighten yourself and reset your priorities,” said Little.
Changes are expected to be made to the way the city operates, but Councilwoman Wanda Halbert is also calling for changes in the budget making process.
She wants council members to be more involved; saying sometimes the council will vote on one thing, but that negatively impacts something else later. Halbert points to AutoZone Park as an example. Last year, the city council approved spending $25 million to buy the ball park and spruce it up.
“AutoZone is a capital project. Did that have any impact on repaving our streets? Could we have used that same process to pave long overdue streets?” expressed Halbert.
Over the next months, the city administration will sit down with the city council to discuss other budget issues; giving council members a clearer look on what to spend, cut and save.
