By Amos Maki
The Commercial Appeal
MEMPHIS, Tenn. — Leaders of unions representing city workers told City Council members Wednesday they have sacrificed enough to help the city solve its financial problems.
Businesses that receive tax freezes and nonprofit organizations with tax-exempt-status should help plug a projected $47 million deficit for the next fiscal year, the union officials said at a Memphis City Council budget hearing .
“The employees of the citizens of Memphis have given, and given and given,” said Chad Johnson, executive director of AFSCME Local 1733. “There’s the possibility for our corporate citizens to step up for this one bridge year, to pay their fair share.”
To balance the budget in the current fiscal year, Mayor A C Wharton and the Memphis City Council approved a 4.6 percent pay cut for most city workers which went into effect July 1.
Council member Janis Fullilove is crafting a proposal to have businesses enrolled in the city’s payment-in-lieu-of-taxes incentive program pay a percentage more in taxes than required. Fullilove is also exploring asking nonprofit institutions that pay no property taxes, such as hospitals and universities, make a voluntary payment in lieu of tax.
The PILOT incentive program freezes taxes at predevelopment levels, so businesses enrolled in the program essentially pay a discounted property tax rate. When businesses exit the program, they pay taxes on the full value of the developed property.
Hundreds of businesses are enrolled in the PILOT program.
“It’s a one-time giving because of the state of our economy,” Fullilove said of the plan to have PILOT-enrolled business pay more in taxes. “The employees have given and given, and the taxpayers have given by paying property taxes.”
Union officials endorsed Fullilove’s plan to generate revenue.
“A lot of the businesses are profiting from things going on in this city and my tax dollars,” said Williams. “I don’t think we can continually take from the employees. It has to be shared sacrifice.”
Joe Norman, vice president of the Memphis Firefighters Association, proposed several revenue-generating measures, such as fire suppression and rescue fees, false alarm fees and fuel spill fees.
Wharton’s proposed budget does not include any layoffs or salary reductions.
City employees have taken on more of the costs for their health care and pensions in recent years. Unions have sued the city in federal court to get the 4.6 percent pay cut reversed .
“We would like to ask at this point that it be given back if at all possible,” said Mike Williams, president of the Memphis Police Association. “We have not had a raise in the last two years, which is not keeping us competitive with other cities.”
Wharton has called for a 47-cent property-tax increase to cover the cost of court-ordered school funding.
He proposed a $628.3 million operating budget for city government, up from $606 million in the current year. The administration attributes the increase to rising fuel costs, higher costs for materials and supplies, the loss of some federal funding and debt restructuring.
Including school funding, the total budget would be around $696 million.
Copyright 2012 The Commercial Appeal, Inc.