THE 901 REPORT
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Part I, Deep Dive

General Fund Divisions

The 901 Report's line-by-line review of every division Mayor Young's administration is asking Council to fund. All 19 General Fund divisions plus the Solid Waste, Sewer, and Storm Water enterprise funds, with red flags, findings, recommendations, and savings opportunities, division by division.

Briefing pp. 9, 37

19
General Fund divisions
$897.7M
FY27 General Fund proposal
843
vacant positions citywide
$52.7M
annual contractor spend

Public Safety

Two divisions, more than half the General Fund, and the budget's biggest risk lines.

Division 1

Police Services

FY27 Proposed
$304,062,000
YoY Change
, $959,630 (, 0.3%)
% of General Fund
33.9% (largest division)

A $9M overtime gap with no operational plan and a $28M attrition credit built on the same mechanism Mayor Young blamed for the inherited $82M deficit.

Findings
  • ,Overtime structural gap: FY25 actual $38.8M, FY27 proposed $29.8M, a $9M (23%) reduction with no staffing, policy, technology, shift, or precinct allocation plan disclosed.
  • ,Attrition mechanism: , $28,076,821 salary-savings assumption (Line 051901). If MPD successfully recruits, the City faces a $28M shortfall in this division alone.
  • ,Pension ADC: $22,742,478 (Line 051307), growing 8, 10% annually. At that rate, MPD pension ADC alone could exceed $45M by FY35.
Red flags
  • ,$9M overtime cut with no plan contradicts Mayor Young's April 21 statement that the budget was 'not built on assumptions.'
  • ,$28M attrition risk uses the same tool Mayor Young blamed for the $82M deficit (Tri-State Defender, June 26, 2024).
  • ,No precinct-by-precinct overtime allocation showing where coverage will be cut.
  • ,No 10-year pension funding strategy disclosed.
Recommendations
  • ,Require MPD to deliver a written overtime reduction plan before the June 9 vote.
  • ,Require monthly overtime actuals vs. budget reporting by precinct during FY27.
  • ,Require Administration to explain attrition safeguards preventing a repeat of the FY26 deficit.
  • ,Request a 10-year pension ADC projection with funding strategy.
Potential savings

No immediate savings. Red flags here represent risk, not savings. Operational planning and a 25% attrition buffer (, $7M risk mitigation) is the conservative ask.

Budget pp. 167, 170.

Division 2

Fire Services

FY27 Proposed
~$180M+
YoY Change
+$7.4M (+4.3%)
% of General Fund
20.7%

Most of the $7.4M increase is consumed by pension growth. Combined Police/Fire pension ADC already exceeds $73M and is doubling every 8 years.

Findings
  • ,Combined Police + Fire pension ADC > $73M in FY27 (Police $22.7M + Fire ~$50M+).
  • ,At 8, 10% growth, pension ADC could exceed $140M by FY35, , 16% of today's General Fund.
  • ,April 2023 promise from Mayor Young to publicly disclose the final actuarial cost of the pension enhancement remains unfulfilled as of May 2026.
  • ,Southwest Memphis response times averaged 8.2 minutes in 2025, above the 6-minute target.
Red flags
  • ,Operational budget squeezed by pension growth.
  • ,Promised actuarial disclosure 3+ years overdue.
  • ,No 10, 20 year pension projection in front of Council.
  • ,Response time targets at risk in southwest Memphis.
Recommendations
  • ,Fulfill the April 2023 promise: publicly disclose the complete actuarial cost projection.
  • ,Request a 10-year budget model showing ADC growth vs. operational capacity.
  • ,Earmark part of the $7.4M increase for southwest Memphis staffing/equipment with measurable response targets.
  • ,Establish a dedicated pension stabilization fund.
Potential savings

No immediate savings, contractual pension commitments. Long-term sustainability planning is the ask.

Budget pp. 10, 11 (Fire division pages).

Legal & Administrative

Five divisions, anchored by a litigation budget that grew 1,180% in the year of the Nichols trial.

Division 3

City Attorney

FY27 Proposed
$32,811,000
YoY Change
+$1,208,645 (+3.8%)
% of General Fund
3.7%

The largest single-line percentage jump in the entire General Fund: lawsuits up from $540,977 (FY25 actual) to $6,925,000 (FY27 proposed), 34 days before the Nichols civil trial.

Findings
  • ,Lawsuit Line 052923: 1,180% increase, $6,384,023 jump.
  • ,Council votes June 9; U.S. District Judge Mark Norris set the Nichols civil trial for July 13, 2026, 34 days later.
  • ,City's own court filing states a verdict at the $550M demand 'would essentially bankrupt Memphis.'
  • ,Outside Legal Services (Line 052207): $9.4M, separate from the $6.9M lawsuit line, total litigation-related spend exceeds $16M.
  • ,No litigation case list disclosed, no Nichols-vs-other-cases breakdown.
Red flags
  • ,Budget adopted with $550M exposure unresolved.
  • ,No transparency on $6.9M allocation across pending cases.
  • ,$16M+ total litigation spending with no vendor list or hourly rates.
Recommendations
  • ,Require a litigation case list: all pending cases, demand amounts, exposure, reserves.
  • ,Request an executive-session briefing on Nichols status before the June 9 vote.
  • ,Require monthly litigation spending reports during FY27.

Budget p. 23, Line 052923.

Division 4

City Court

FY27 Proposed
Flat
YoY Change
0% (flat)
% of General Fund
small share

Flat funding in an inflationary environment is a real reduction in capacity.

Findings
  • ,No real-dollar increase against rising personnel and operating costs.
  • ,Workload and case volume not addressed in narrative.
Red flags
  • ,Flat budget masks a real cut to court capacity.
Recommendations
  • ,Require caseload data and workload-to-funding analysis.

Budget, City Court division pages.

Division 5

Public Defender

FY27 Proposed
See division page
YoY Change
See division page
% of General Fund
small share

Workload vs. funding compared against case volume, indigent representation pressure flagged.

Findings
  • ,Caseload pressure not matched by funding growth.
Red flags
  • ,Capacity gap risks constitutional right-to-counsel obligations.
Recommendations
  • ,Require caseload-per-attorney metrics and a staffing analysis.

Budget, Public Defender division pages.

Division 6

Council & Mayor Administration

FY27 Proposed
See division page
YoY Change
See division page
% of General Fund
small share

Personnel and contracted-services lines reviewed against prior-year actuals.

Findings
  • ,Contracted-services line items reviewed for growth without narrative.
Red flags
  • ,Limited narrative explanation for line-item changes.
Recommendations
  • ,Require a written justification for any line item growing more than 10% YoY.

Budget, Council & Mayor Administration division pages.

Division 7

Executive Administration

FY27 Proposed
See division page
YoY Change
+47.5% one line item
% of General Fund
small share

47.5% increase in one line item with minimal narrative explanation in the budget book.

Findings
  • ,Significant single-line increase without disclosed rationale.
Red flags
  • ,Council cannot evaluate need without narrative.
Recommendations
  • ,Require written justification for the 47.5% line-item increase.
  • ,Conservative annual estimate: $1.5M, $3M through organizational review and consultant rationalization.
Potential savings

$1.5M, $3M annually through organizational review and consultant rationalization.

Budget, Executive Administration division pages.

Finance & Technology

Two divisions, the sales tax referendum diversion and the largest software-spending outlier in the book.

Division 8

Finance & Administration

FY27 Proposed
$22,545,000
YoY Change
, $3,370,289 (, 13.0%)
% of General Fund
2.5%

The single largest revenue change in the entire budget, , $13.4M in voter-approved sales tax referendum funding, with zero explanation in the budget narrative.

Findings
  • ,Sales Tax Referendum revenue: $26.9M (FY26) , $13.5M (FY27), a 49.8% drop on Budget p. 11.
  • ,Voters approved the 0.5% increase in October 2019 specifically for public safety pension restoration (Ballotpedia verified).
  • ,Finance division budget falls 13% during a period of rising fiscal complexity, CAFR and monthly reporting quality at risk.
Red flags
  • ,$13.4M cut to voter-dedicated pension funding with no narrative explanation.
  • ,No economic, collection, or projection data published.
  • ,Reduced Finance capacity during fiscal stress.
Recommendations
  • ,Require a detailed explanation for the $13.4M referendum cut.
  • ,Request an economic analysis: collection trends, consumer spending, projection methodology.
  • ,Require a public communication plan for voters who approved the 2019 measure.
  • ,Confirm the 13% division cut will not delay the CAFR or monthly reporting.
  • ,Require quarterly sales tax monitoring during FY27.
Potential savings

Revenue recovery, not spending cut: $2M, $5M if the decline is collection inefficiency, +$500K, $1M from broader revenue optimization.

Budget pp. 11, 75.

Division 9

Information Technology

FY27 Proposed
$27,953,168
YoY Change
+$319,062 (+1.2%)
% of General Fund
3.1%

Software is 46.5% of the IT budget, 72% higher than the 27% peer-city average, while the 3-1-1 system runs on 10, 11 year old unsupported software.

Findings
  • ,Personal Computer Software (Line 052209): $12,995,681 annually, 46.5% of the IT budget.
  • ,Peer benchmark (Nashville, Charlotte, Louisville, El Paso, Fort Worth): ~27%.
  • ,No software asset inventory, no license utilization analysis, no vendor consolidation plan.
  • ,3-1-1 SeeClickFix software is 10, 11 years old and unsupported by the vendor.
  • ,$12,731,044 Smart City CIP (IT01009) has no charter, scope, vendor, timeline, or success metrics.
Red flags
  • ,$13M software spend with zero visibility into what was purchased and at what utilization.
  • ,Constituent-facing system running unsupported, security risk.
  • ,$12.7M Smart City CIP undefined.
Recommendations
  • ,Require a complete software asset inventory: products, vendors, costs, license counts, utilization.
  • ,Require a software rationalization plan targeting the 27% peer benchmark.
  • ,Defer Smart City CIP until charter, scope, vendors, deliverables, timeline, and success metrics are approved.
  • ,Prioritize modernizing 3-1-1 and other resident-facing systems before speculative technology.
  • ,Require quarterly IT spending reports during FY27.
Potential savings

Software rationalization $5.0M, $5.5M, license right-sizing $1M, $2M, vendor consolidation $500K, $1M, Smart City deferral $12.7M one-time. Total IT opportunity: $18.7M, $20.7M.

Budget p. 140, Line 052209; CIP IT01009.

Infrastructure & Services

Six divisions covering streets, engineering, parks, libraries, housing, and community enhancement.

Division 10

Public Works

FY27 Proposed
$47,546,000
YoY Change
, $597,682 (, 1.2%)
% of General Fund
5.3%

Budget falls 1.2% while pothole complaints rose 34% year-over-year, contractor dependency drives costs 2, 3x permanent crews.

Findings
  • ,Memphis 3-1-1 pothole complaints up 34% YoY while budget falls 1.2%.
  • ,6,000+ lane miles, 80,000+ street lights, 1,200+ traffic signals on a $47.5M budget.
  • ,Peer cities with similar networks spend 15, 25% more on street maintenance.
Red flags
  • ,Service demand up, capacity down.
  • ,Contractor dependency drives 2, 3x cost.
  • ,Deferred maintenance backlog compounds.
Recommendations
  • ,Require pothole response metrics: average repair time, backlog, trends.
  • ,Request a contractor vs. permanent employee cost analysis.
  • ,Request a deferred-maintenance assessment with multi-year catch-up plan.
  • ,Targeted investment in permanent street crews.
Potential savings

Contractor reduction $2M, $3M, equipment efficiency $500K, $1M, preventive maintenance $1M, $2M long-term. Conservative annual: $3M, $6M, with upfront investment.

Budget p. 180.

Division 11

City Engineer

FY27 Proposed
$4,861,000
YoY Change
, $205,395 (, 4.1%)
% of General Fund
0.5%

Engineering oversight capacity falls 4.1% while the five-year CIP grows to $813.6M, development permit times have ballooned from 28 to 47 days.

Findings
  • ,Engineering review is a bottleneck behind a 47-day permit timeline (up from 28 days in 2023).
  • ,PE-licensed staff face private-sector salary competition, retention risk.
  • ,Engineer-to-CIP-dollar ratio falling against a $813.6M five-year capital program.
Red flags
  • ,Risk of CIP cost overruns from inadequate oversight.
  • ,Permit delays slow economic development.
  • ,Engineer turnover risk.
Recommendations
  • ,Require permit processing metrics and trend data.
  • ,Benchmark engineer-to-CIP-dollar ratio against peer cities.
  • ,Cost-benefit: permanent staff vs. consultants for CIP oversight.
  • ,Targeted investment in PE staff.
Potential savings

CIP cost-overrun avoidance $2M, $4M, permit-driven revenue $500K, $1M, consultant reduction $300K, $500K. Conservative annual: $3M, $5M.

Budget p. 40.

Division 12

Memphis Parks

FY27 Proposed
$52,633,000
YoY Change
+$987,866 (+1.9%)
% of General Fund
5.9%

A 1.9% increase for 170+ parks across 6,000+ acres, $8.9M of it routed to landscaping contractors at 2, 3x permanent-crew cost.

Findings
  • ,Landscaping Services: $8.9M, primarily contractors.
  • ,Kennedy Park (District 1, 260 acres) cited as a service-consistency concern at current funding.
  • ,No equity analysis disclosed, risk of service-quality disparities across neighborhoods.
Red flags
  • ,Contractor dependency drives costs 2, 3x permanent crews.
  • ,Equity gaps between higher- and lower-income neighborhood parks.
  • ,Status-quo funding cannot reduce deferred maintenance.
Recommendations
  • ,Require an equity analysis of park maintenance spending by district.
  • ,Convert contracted landscaping to permanent crews where workload supports it.
  • ,Quarterly service metrics by park.
Potential savings

$4M, $6M from permanent crews vs. contractors.

Budget p. 150.

Division 13

Library Services

FY27 Proposed
See division page
YoY Change
See division page
% of General Fund
small share

Library technology refresh deferred while Smart City CIP gets $12.7M with no charter.

Findings
  • ,Library technology refresh $2M, $3M is on the deferred list.
Red flags
  • ,Resident-facing technology underfunded relative to speculative CIP.
Recommendations
  • ,Reallocate part of any Smart City CIP deferral to library technology refresh.

Budget, Library Services division pages.

Division 14

Housing & Community Development

FY27 Proposed
See division page
YoY Change
See division page
% of General Fund
small share

Neighborhood-level allocations including Orange Mound housing flagged for reallocation.

Findings
  • ,Orange Mound housing $2M, $3M needs reflected in deferred-needs list.
Red flags
  • ,Neighborhood housing needs not matched in the proposal.
Recommendations
  • ,Reallocate part of any Smart City CIP deferral to Orange Mound housing.

Budget, HCD division pages.

Division 15

Community Enhancement

FY27 Proposed
See division page
YoY Change
See division page
% of General Fund
small share

Code enforcement and blight remediation funding reviewed against complaint volume.

Findings
  • ,Complaint-volume vs. capacity mismatch.
Red flags
  • ,Blight backlog risk.
Recommendations
  • ,Require quarterly code-enforcement metrics.

Budget, Community Enhancement division pages.

Support Services & Enterprise Funds

Four divisions, plus the Sewer fund swinging from a $12.1M surplus to a projected deficit that risks rate hikes for homeowners.

Division 16

General Government

FY27 Proposed
See division page
YoY Change
See division page
% of General Fund
varies

Procurement, fleet, and facilities, $3M, $5M of efficiency on the table.

Findings
  • ,Procurement, fleet, and facilities lines reviewed.
Red flags
  • ,Efficiency opportunities not pursued in the proposal.
Recommendations
  • ,Targeted procurement, fleet, and facilities efficiency review.
Potential savings

$3M, $5M annually.

Budget, General Government division pages.

Division 17

Grants & Subsidies

FY27 Proposed
See division page
YoY Change
See division page
% of General Fund
varies

Performance-based funding could free $3.5M, $8.5M annually.

Findings
  • ,No performance metrics tied to grant disbursements.
Red flags
  • ,Disbursements without measurable outcomes.
Recommendations
  • ,Adopt performance-based funding standards.
Potential savings

$3.5M, $8.5M annually.

Budget, Grants & Subsidies division pages.

Division 18

Solid Waste (Enterprise Fund)

FY27 Proposed
See division page
YoY Change
See division page
% of General Fund
Enterprise

Collection, fleet, landfill, and recycling reviewed.

Findings
  • ,Collection operations, fleet maintenance, landfill operations, recycling programs.
Red flags
  • ,Rate stability watch.
Recommendations
  • ,Require quarterly enterprise-fund financial reports.

Budget, Solid Waste enterprise pages.

Division 19

Sewer & Storm Water (Enterprise Funds)

FY27 Proposed
See division page
YoY Change
Surplus , deficit
% of General Fund
Enterprise

Sewer Fund swings from a $12.1M surplus (FY26) to a projected deficit (FY27), debt-service interest +97%, Hickory Hill failures cost $890K in 2025.

Findings
  • ,Debt service interest +97% with no restoration plan disclosed.
  • ,Hickory Hill sewer failures cost $890K in emergency repairs in 2025.
  • ,Enterprise fund instability drives rate increases for residents.
Red flags
  • ,Monthly sewer fee increases likely for homeowners.
  • ,No rate stabilization plan to protect fixed-income residents.
Recommendations
  • ,Require a sewer-fund restoration plan with multi-year rate impact.
  • ,Require a rate stabilization mechanism for fixed-income households.

Budget, Sewer & Storm Water enterprise pages.

Before the June 9 vote

  1. 1.Require a written operational plan for the $9M Police overtime reduction.
  2. 2.Require a written explanation for the $13.4M sales tax referendum cut.
  3. 3.Require a litigation case list and Nichols allocation breakdown.
  4. 4.Require a software asset inventory and rationalization plan.

During FY27 implementation

  1. 1.Monthly contractor spending and conversion reports.
  2. 2.Quarterly Police/Fire reporting: overtime actuals, ADC, service metrics.
  3. 3.Quarterly enterprise-fund financial reports.

The Young administration wants Council to approve $897.7M with these gaps unanswered. Part I is the map of where the answers are missing.

Source: CITY OF MEMPHIS FY2027 BUDGET COMPREHENSIVE INDEPENDENT ANALYSIS, Part I, pp. 9, 37.

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Part II
Capital Improvement Program (FY27, 31)
Part III
Conclusion & Council Recommendations

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The 901 Report is an independent civic accountability organization. Not affiliated with any political party, candidate, or government agency.

All commentary, analysis, headlines, and framing reflect the protected opinion of The 901 Report based on publicly available records, primarily the City of Memphis FY2027 Proposed Operating and CIP Budget. Dollar figures, exhibit references, and page citations are drawn directly from those public documents. Readers are encouraged to review the source materials and reach their own conclusions. See our Legal & Disclaimers page.