Impasse resolutions create new hole in Memphis budget | The Week in Politics

Shelby County Clerk Wanda Halbert speaks during a Shelby County Board of Commissioners budget committee meeting in Downtown Memphis, on Wednesday, May 1, 2024.
Shelby County Clerk Wanda Halbert speaks during a Shelby County Board of Commissioners budget committee meeting in Downtown Memphis, on Wednesday, May 1, 2024.

The Shelby County Clerk's Office location in Raleigh received a two-year lease renewal during Monday night's Shelby County Commission Meeting. During committee meetings the week prior, Commissioner Mick Wright questioned Shelby County Clerk Wanda Halbert on the space and if she wanted to renew the lease.

Halbert has repeatedly claimed the spaces the clerk's office operates out of are "illegal." During committee meetings the week prior, Halbert asked that the lease be approved.

The lease will run from April 1, 2024, until December 2026. It will also go month to month for three months after the expiration of the lease.

Property tax hike, solid waste fee hike go to final votes

Multiple ordinances pertaining to tax hikes were moved forward without any discussion during Tuesday night's Memphis City Council meeting. The property tax and solid waste fee increase both received ceremonial passage votes through the chambers.

These votes are not the final votes. The solid waste fee tax hike and the property tax increase both require one more reading and vote.

The solid waste fee increase, Director of Solid Waste Phillip Davis said previously, would bring in more employees, bring employee pay up to market rate and provide for fleet increases.

Without the hike, the division would be facing a $5 million shortfall.

The fee increase, proposed by the Division of Solid Waste, would be spread over three years. The first increase would be a 23% increase from $29.96 to $36.85. The second increase would be 8%, from $36.85 to $39.80.

The final increase would bring the solid waste fee over $40.

Solid waste fees are included in monthly Memphis Light, Gas and Water bills. Without paying for any utilities, the monthly MLGW bill would start at $56.05 during the first year of the fee increase.

Memphis Mayor Paul Young proposed the 75-cent increase in the city's property tax rate based on home value during his first budget proposal as mayor last month. The current property tax rate for Memphis residents is $2.70. Memphis residents pay both city and county taxes and pay the most in property taxes in all of the state.

Mayor Paul Young speaks during an event to celebrate the new critical care expansion at Le Bonheur Children’s Hospital in Memphis, Tenn., on Wednesday, May 8, 2024.
Mayor Paul Young speaks during an event to celebrate the new critical care expansion at Le Bonheur Children’s Hospital in Memphis, Tenn., on Wednesday, May 8, 2024.

Prior to the start of the meeting, Chairman JB Smiley Jr., Councilwoman Jerri Green, Jana Swearengen-Washington, Michalyn Easter-Thomas and Councilman Dr. Jeff Warren announced they would be proposing a one-month-long citation abatement program to raise up additional funds.

Green stated the goal of the citation abatement program is to avoid a property tax increase. There is no estimate on how much funds could be raised by the abatement, but according to Green, there is over $265 million in outstanding citations since 1991.

The hike, Young has said in the past, is to account for a $30 million budget shortfall caused by the loss of federal American Rescue Plan Act funds.

The citation abatement began May 21 and ends June 31.

City Council sides with municipal unions

Memphis City Council also passed a set of six impasse resolutions for various municipal unions. The benefits proposed in Young's budget included a 3% employee raise and a one-time $1,500 raise for every employee.

Unions argued that in order to retain their employees, a higher wage increase was needed to compete with the various surrounding municipalities. The passage of the impasse resolutions would add $12.7 million to the city's proposed budget.

Councilman JB Smiley Jr. speaks during a Memphis City Council committee meeting at city hall on Tuesday, January 23, 2024.
Councilman JB Smiley Jr. speaks during a Memphis City Council committee meeting at city hall on Tuesday, January 23, 2024.

Now, the council will have to figure out where to find the additional funds in their budget discussion. Smiley said the council could begin to look at how Shelby County Mayor Lee Harris used vacancy savings from positions that have been left unfilled for more than 20 months.

In Harris's budget proposal, positions that have been left vacant for more than 18 months will be removed giving additional funds in the already tight budget. Notably, Sheriff Floyd Bonner said that he would sue the county if the over 400 positions from his department were cut.

Bonner said previously that state law requires his consent if the county wants to cut the sheriff's office's budget. Harris' proposed budget includes cutting 441 vacant positions.

Elected officials from around the county discuss civic engagement

At New Memphis's "Conversation with Elected Officials" event Wednesday evening, Young and Harris were in the hot seat, answering questions from other elected officials from around the county.

The question-and-answer style panel highlighted public leadership, civic engagement and how to push Memphis and Shelby County forward.

Each elected official had the opportunity to answer questions from others. Shelby County Commissioners Brandon Morrison and Michael Whaley were present from the county side, Memphis Shelby County School Board member Amber Huett-Garcia represented the school board and State Rep. Torrey Harris was also present.

While there were some softball questions, like what Young's favorite 90's R&B song was and where Harris's go-to barbeque spot is, there was an insightful look into how public officials from around the county have a need, and want, to work together to make the county a better place for all.

Catch up on the week:

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Week ahead

The Shelby County Board of Commissioners will meet on Wednesday, May 29 at 8:30 a.m. Watch the livestream via the website, or attend in person at Vasco A. Smith, Jr. County Administration Building, located at 160 N. Main St. in Memphis.

This article originally appeared on Memphis Commercial Appeal: Memphis City Council sides with unions on budget issues, creating gap