Shelby County Commission finalizes $25 wheel tax increase

Shelby County Commissioners voted to pass a wheel tax increase during the Budget and Finance Committee early Wednesday morning. This comes after Monday night's meeting ran until early Tuesday morning as commissioners debated between a proposed property tax increase and the wheel tax increase for additional revenue sources.

The $25 wheel tax increase will go entirely to debt services incurred by the construction of a new Regional One and the development of two new high schools in Frayser and Cordova. The projected revenue from the tax is $17 million and there is no sunset.

This hike is less than the $50 increase Shelby County Mayor Lee Harris proposed, which would have raised $33 million in revenue.

Commissioner Erika Sugarmon said that neither a $50 or $25 increase to the wheel tax would be viable, as it would not provide continuous funding for other school renovations. Sugarmon added that the commission needs to be better about "checking the power" on Harris.

Commissioner Amber Mills was also against the tax increase, stating that the county is spending money on "things that they are not legally obliged to fund."

Commissioner Britney Thornton pushed for equity for the funding for school renovations. Thornton said that the $25 does not show a strong enough commitment to all students.

"In my personal opinion, our body has not thoroughly vetted the property tax option," Thornton said.

Sugarmon, Mills and Thornton voted against the wheel tax increase.

Captial projects budget

Commissioners also finalized the capital budget which includes funding for the Regional One campus and the Frayser and Cordova High Schools. The resolution alters the fiscal year 2023 budget to allocate funds for the continuation of capital improvement projects in fiscal year 2024.

The original resolution allocated $65 million for capital projects, but Commissioner Michael Whaley offered a substitute that would reduce the money to about $48.6 million. Whaley explained that some of the projects on the list had funds that were already appropriated and that the substitute number would reflect the budget more accurately.

Some commissioners voiced disappointment in the lack of funding for a program aimed at increasing contracts with minority- and women-owned businesses. Wednesday morning Shep Wilbun, the county’s administrator of Equal Opportunity Compliance, told commissioners that additional funding was needed to expand personnel and promote the program.

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Wilburn added that they will "work with whatever they get," but Commissioner Shante K. Avant proposed using contingency funds later on in the year to make up the difference.

Two million was requested for the M/WBE program but it only received $500,000. During Monday night's meeting, some Commissioners voiced disappointment that many projects were cut.

While much of the discussion focused on the lack of funding for the M/WBE program, there was overwhelming support for the program. The approval of the program passed with 10 votes.

Commissioner Edmund Ford Jr. was not present.

This article originally appeared on Memphis Commercial Appeal: Shelby County Comomission approves wheel tax increase