MEMPHIS, TN (WMC) - Mayor A C Wharton and his administration say they will not raise taxes to narrow the gap in the Memphis city budget.
At a Memphis City Council working session Saturday, Chief Administrative Officer George Little said Mayor Wharton hopes to reduce the $16 million gap between expenses and income next year by restructuring the city's debt.
City council says they are working with the Tennessee Comptroller's office to ensure that any proposed restructuring will comply with State law and be in Memphis's best interest.
The City Council plans to avoid raising taxes by controlling expenses and continuing health care reform.
Memphis Finance Director Brian Collins hopes to have a proposal to restructure the debt by the next council meeting on February 17.
The city also has $12 million in reserves that it could use to smooth the transition into the next fiscal year, but Little says the city's goal is not to use that money unless absolutely necessary.