Last week, we presented our proposed budget to City Council, and I recapped that presentation in this newsletter. Following the recap, I asked you to send us any questions you had about the budget and shared that I would answer your questions here.
I have included a few of the most popular topics below and have also included a link to a video of a conversation with Beverly Robertson that provides a few more answers.
Q. Why don't you make the cuts necessary to avoid a tax increase?
Our team worked diligently to reduce expenses, but our personnel costs are climbing this year by $51M, much of this is due to increases for police and fire, and increases to our required employee benefits funding amounts. Even with these increases, our employees are still the lowest-paid municipal employees in the area. Additionally, our materials and supplies costs are rising by $29M this year, and much of this is due to naturally occurring inflation, but also includes increases in legal expenses, recruitment expenses, and insurance costs.
Even after our initial cuts, our budget was $53M in the red. We do not have the capacity to cover that amount with our reserves, and I believe that just covering the shortfall would be short-changing you, the residents of our city. I believe you deserve more. I believe you deserve to live in the next great American city, and I believe we can get there with more investment and innovation.
Q. Is there any relief available for seniors on fixed income who cannot afford a tax increase?
Yes, and we want to make sure that more residents utilize these programs. The City of Memphis has a range of taxpayer programs designed to assist seniors, disabled citizens, and disabled veterans or widows. The three programs are:
Tax Relief Program
If you qualify for the Tax Relief Program, you will either be reimbursed for paying your City of Memphis property tax bill or receive a bill where you pay nothing or get a reduced tax bill. To qualify for this program, you must be a City resident and meet one of the following guidelines:
- Age 65 or older by December 31.
- Combined income for you, your spouse, and property owners cannot exceed $36,370.
You can also qualify if you have been rated total and permanently disabled by the Social Security Administration and your income is less than $36,370.
There is no income limit for disabled veterans, widows of disabled veterans, or the widow of a soldier killed in action. Learn more here.
Tax Freeze Program
The Tax Freeze Program freezes your current tax rate. Your taxes will be frozen at the base tax rate owed in the year you first qualified for the program. If there is a tax increase, you will continue to pay the same amount you currently pay as long as you remain in the program.
To qualify for this program:
- You must be 65 or older before December 31
- Must provide proof of age
- Must own your home and be the primary residence
- Must provide proof of income of the spouse
- Combined income for you, your spouse, and all other property owners must not exceed $47,810
Learn more here.
Quarterly Payment Plan
If you are 65 or over, you can pay your property taxes quarterly. There is no income limit for this program. However, you cannot have delinquent taxes when applying.
You can qualify for one or more programs simultaneously. Learn more here.
Q. Memphians pay the highest combined tax rate in the State. Don't you believe this tax increase will further hamper economic development and growth?
The tax rate is certainly a factor for businesses looking to locate in our community, but what I believe might truly hamper economic development and growth is not supporting programs to create a cleaner, safer, more investable city.
We all know that public safety is our top priority. Our administration believes the time is now to act and to make investments to aid in those efforts. And that means investing in technology and people to support and strengthen MPD’s efforts. We also believe the visual state of our city needs help - we need to address the blight, trash, and disrepair. We need to invest in every neighborhood and all of our major streets. We also need to invest in the future of our city - our young people - with programs that will afford more of them the opportunities needed to create a better future. And we need a stable fiscal forecast to continue our good credit/bond rating to be able to finance our city’s debt with less expense to all of you.
All of these initiatives and programs require revenue that we currently don’t have in the budget. A tax increase would allow us to begin immediately making changes to make our city stronger.
Watch my conversation with Beverly Robertson by clicking the image below.
Timecode for Questions/Answers: 0:20 - What do we do about older people, people on fixed incomes, people who really can’t afford it? (watch here)
2:40 - Tax increase - what’s in it for the residents of Memphis? (watch here)
4:55 - What is the City doing to explore all options for this proposed tax increase and what is the actual deficit right now, and how did we get to it? (watch here)
8:40 - How do you respond to those who say that we are hurting economic development and it is allowing us to have issues in our attraction strategy? (watch here)
12:00 - What about the identification of creative and entrepreneurial revenue streams? (watch here)
13:40 - What is your advice for young people? How can we help you? (watch here)
15:13 - Do you anticipate additional tax increase after the first year of your administration? If so, what I the timeline? (watch here)
17:12 - How can regular grassroots residents help to support the work that the administration is doing? (watch here)
Clean, Green, and Better Togehter:
Our Strike Team worked in the following zip codes this week: 38104, 38108, 38115, 38117, 38118, 38122, 38127, and 38018!!!
Building a better community! Diversity is our Super Power!
We celebrated the inaugural Culmination Ceremony for the Contractor's University Program Spring 2024 Cohort. Thanks to Living Cities' grant, this initiative by the City of Memphis OBDC is supporting underrepresented BIPOC firms, fostering collaboration and growth within our community.
Learn more here.
Social Shout-outs and Community Events:
Celebrate Star Wars Day this Saturday, May 4, at our first Movies in the Park of the month! Join us at 5:30 p.m. at Fletcher Creek Park for a showing of Star Wars: The Force Awakens. Dress as your favorite Star Wars movie character or wear your best Star Wars gear to win a prize!
Learn more here.
The Memphis Public Libraries are full of FREE activities this May!
Check out Comic-Con, Frayser Fun Fest, dance classes, cooking classes, art classes, and so much more! Click here or the image below to learn more!
Weekly round-up
Our city embarked on another impactful week, engaging with communities and celebrating Memphis's vibrant spirit:
One Memphis Tour: Mayor Young facilitated direct dialogue with residents at the Orange Mound Community Center, fostering connections and listening to the needs of the community.
Community Pop-Up: Mayor Young brought City Hall to Memphis Rox Climbing + Community and Stax Music Academy, engaging with local residents and students in their own spaces.
Small Business Week Luncheon: Mayor Young addressed small business leaders during Small Business Week, highlighting their contributions to Memphis's economic vitality.
Botanic Garden Dedication: Mayor Young honored former Mayor Jim Strickland at the dedication of the new Youth Education Tropical Plant House at Memphis Botanic Garden, celebrating his commitment to education and the environment.
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