MEMPHIS — The Memphis City Council approved the city's $900 million fiscal year 2027 operating budget on Tuesday, June 23, 2026, by a vote of 11-1. Council member Chase Carlisle cast the sole opposing vote.

The approved budget will take effect on July 1, 2026, and includes over $100 million designated for capital improvements. The budget maintains a property tax rate of $3.39. Funding allocations include $221 million for the Memphis Police Department and $180 million for the Memphis Fire Department. Personnel costs account for over 70% of the entire budget.

The budget provides a 2% raise and a one-time $2,000 bonus for city sanitation workers. Representatives of the American Federation of State, County and Municipal Employees had anticipated a 5% pay raise for sanitation workers. Council member JB Smiley proposed supporting the 5% raise, while Council member J. Ford Canale objected. Canale, who serves as vice chair of the Personnel, Governmental Affairs and Annexations Committee, said discussions about the remaining 3% could be revisited after the administration identifies overcompensated employees.

The budget allocates $36.5 million for infrastructure projects in South Memphis. City leaders earmarked $20 million for paving projects and pothole repairs, and the budget funds are to expand Memphis' ability to lower asphalt production costs. It also includes $18 million to address blight and illegal dumping. A new police station is planned at the site of the former Southwest Twin Drive-In, and a new library is planned in Parkway Village.

Memphis Parks received over $40 million in funding for the fiscal year 2027. This includes $4 million for a new clubhouse at The Links at Audubon golf course and $3.5 million for American Way Park. Additionally, $3.1 million was allocated for site improvements at Jesse Turner Park, and enhancements are slated for the Overton Park Shell and city greenlines. The council reallocated $703,675 from remaining fiscal year 2026 Accelerate Memphis funds to purchase new vehicles for solid waste and anti-blight efforts.