Question 1

What is ADC?

Accepted Answer

Actuarially Determined Contribution. The amount an actuary calculates the City must pay into the pension fund each year to keep it healthy long term. If the budgeted ADC is lower than the actuary's recommendation, the pension hole grows.

Question 2

What is a diversion?

Accepted Answer

A diversion happens when money earmarked for one purpose is redirected elsewhere. The 0.5% sales tax voters approved in 2019 for police and fire pensions is being cut by $13.4M in FY27 and used to balance the General Fund.

Question 3

How do I read the line-item citations (e.g., 051307)?

Accepted Answer

Memphis budget line items use a 6-digit object code. The first two digits indicate the division (05 = Public Safety), the next two the department or program, and the last two the specific expense type.

Question 4

What was the 2019 sales tax referendum?

Accepted Answer

In October 2019, Memphis voters approved a 0.5% local option sales tax increase to fund police and fire pension benefits. The FY27 budget cuts that dedicated transfer in half, from $26.9M to $13.5M.

Executive Administration, $28,400,000

Sources

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