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Last week, I shared with you the city-building strategy that I am calling our Era of Yes - it is Memphis’ opportunity to take control of our destiny and invite more people and industry into our city.
This week, I wanted to explain more about how we fund the government and why inviting more people and more businesses to join us here is the clearest path toward a Memphis that pays dividends on each of our investments in the city we love. I want those of us here now to experience gains due to the investment in efforts to recruit more people and more business. If you are a homeowner, I want your home value to rise. If you are a resident of Memphis, I want you to experience better city services and amenities. And I want us all to understand the challenges and opportunities we have when it comes to funding our city.
Our city’s operational budget is heavily fueled by property tax, local sales tax, and payments in lieu of property tax. 75%, or nearly $650M, of our adopted FY25 budget is funded by those sources. Property tax alone accounts for 52% of those funds, or nearly 49% of our entire revenue stream for the general fund.
 One of the primary uses of property tax revenue is to fund essential roles and services such as law enforcement, emergency services, code enforcement/blight mitigation, and public works. Investing in these services makes our city more attractive and safe; these services are essential to creating a Memphis that makes inviting new people and businesses easier. This revenue also helps us fund special initiatives like our ongoing blight and beautification work. The work that will make Memphis more attractive, reduce the visual chaos and help restore peace.
So, what would happen if we could attract 500 new homeowners into Memphis over the next three years? Let’s look at a scenario where each of those new homeowners pays an average of $3400 annually in property tax: In that scenario, those homeowners would contribute an additional $1.7M in annual property tax, which would afford us the capacity to hire even more local contractors to help us expand our blight mitigation in neighborhoods across our entire city; or it could help fund more after school initiatives in our parks and community; or additional workforce development or small business incubation initiatives.
 The addition of those people would also have an impact on the sales tax we collect annually. Let’s assume each of those 500 homeowners/families spends $10K per year on taxable goods and services; that would add an approximate additional $175K in sales tax revenue for our city budget.
And what would happen if we attracted three new corporate entities whose annual city property taxes were, on average, $3M each? Well, that might allow us the opportunity to upgrade our MPD fleet of vehicles, or to strengthen our support of MATA, or perhaps it would enable us to begin to reduce the property tax rate for all Memphis residents and businesses.
And what if those businesses each employed 100 Memphians? That would mean 300 families in our region now have more wealth, more economic power, and more stability. And what if some of those families used their newfound stability to enter the home market and take advantage of the low housing costs in Memphis and the opportunities that come with home ownership? That would mean the chance for each of those Memphians to create wealth and stabilize a neighborhood. Inviting new industry to Memphis creates the opportunity for more Memphians to rise.
 There is a development adage that states, “Retail follows Rooftops,” this means that people/customers are the highest indicator of success for a business. If each of those 300 people went out to lunch one time per week, that would mean an additional 15,600 annual opportunities for our restaurant community to shine. That could mean the difference between failure and success for some of those businesses.
But that only happens if we say YES, it only happens if we are willing to seek the opportunities to grow and mitigate the associated challenges. In my State of the City address, I made a promise to reduce the red tape and bureaucracy that prevents development from happening.
I also committed to doing more to acquire and revive blighted properties, like Somerset and Peppertree properties. And to create a clear, simple development code to make it easier to say "yes" to investments that grow our communities and our tax base, with the ultimate goal of becoming the easiest city in the country to do business with.
I stated that by the end of this year, we want to streamline our processes so that any major investment that is in line with our plan and our code could be building-permitted within 30 days. Let me state that again: this is for businesses that align with our code and goals. We aren’t saying yes to development that isn’t aligned with our plan for a stronger Memphis - only those that are part of the solution to strengthen our communities. This will allow us to be in control of our destiny as we send a clear signal to the world that Memphis is open for business.
With this invitation, we are opening the opportunity for more revenue, growth, and strength in our city.
 In some budget-related exciting news, we have added a new Finance Dashboard: Budget Tracker (check out the user guide here or the dashboard here). This tool allows you, the public, a clearer look at how we are managing your city funds throughout the year.
Good News!
     Do you have good news to share? We would love to share it! Send us a note at goodnews@memphistn.gov
Weekly Crime Trend
The report below provides our weekly update on Part 1 Crimes. It updates daily and shows a continuous rolling 7-day total compared to the prior 7-day total. The charts on the right show the calendar week trend, comparing 2023 to 2024.
 (We maintain two crime dashboards, the Weekly Crime Trend report can be found here, and the Crime Analytics dashboard can be accessed here.)
Our Strike Team worked in the following zip codes this week: 38106, 38107, 38108, 38112, 38114, 38117, 38118, 38119
Community Announcement
Attention vehicle owners: Personal vehicle registration rates change in February 2025. As an example: Class C passenger motor vehicles rates go from $30 to $60 annually. For more information call the Shelby County Clerk's Motor Vehicle Division at 901-222-3000.
In the Know:
901HELP: Memphis Home Empowerment Loan Program. Memphis homeowners needing financial assistance for home repairs can apply for 901HELP, a low-interest loan program offering between $5,000 and $25,000 for eligible residents. The program covers essential repairs like roofing, plumbing, HVAC, and accessibility modifications while providing construction oversight and financial education. Applications are open now—see if you qualify and apply today! Learn more and apply here.
DMC Event Grant Activation. Got a big idea for an event in Downtown Memphis? Applications for Activation & Event Grants are OPEN! The DMC’s Engage Downtown Grant offers funding for events/activations that recruit people into Downtown; utilize public, outdoor, or highly visible space; and provide unique or uniquely joyful experiences in Downtown Memphis. See more and apply here.
Social and Community Engagement:
 Made with Love Market. The barn is turning into a Valentine’s shopping paradise! This Saturday, Feb. 8, skip the big-box stores and find something truly special at the Made With Love Market at the Agricenter from 8am to 3pm! See more and share here.
HCD Housing Summit. Join Memphis Housing & Community Development transformative two-day event focused on shaping the future of housing through preservation, development, and equity on February 20-21. This summit brings together national experts, advocates, and local leaders to tackle the most pressing issues in housing today, from fair financing to policy advocacy. See full details and sign up here.
Memphis Parks Basketball Tournament. Play Your Park is hosting this FREE basketball tournament for boys and girls grades 1-8 for a thrilling day of competition, sportsmanship, and fun. The tournament will take place on Friday, April 18, across five premier locations: Morris Park, Halle Stadium, Chandler Park, Pierotti Park, and Tom Lee Park. Registration is now open. See more and register here.
Memphis Public Libraries. All month long, you can find Black History Month events at different branches across the city with Memphis Public Libraries. Join us for a month of celebration, commemorations, and honoring black history and culture. See more and find events here.
Stay Connected:
February is Black History Month! ✨ From visiting local museums and historical sites to supporting Black-owned businesses and attending community events, there are so many ways to celebrate and honor Black history in Memphis. Let’s learn, reflect; and uplift the rich contributions of black leaders, past and present. How are you celebrating this month? See full post here.
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