The City of Memphis has announced that higher costs for city services and a greater number of job cuts can be imminent. The reason forwarded has been the severe depletion of the city’s funds due to the fall in property tax collection. Mayor A C Wharton said the job cuts were an unwelcome possibility and that “It is daunting.”

In a typical manner by which shortage of budget is unsuccessfully (as indicated by most research) sought to be passed on to the shoulders of employees in the form of loss of jobs, Memphis too attempts to cover its budget gap. Other strategies to reduce expenses include reducing city services and removing discretionary grants, on top of the ceremonial job cuts.

The politicians and dignitaries wore long faces while announcing the job cuts. Memphis City Councilman Shea Flinn said, “We’re going to be faced with some hard decisions.” “We’re going to have to look at our whole fee model, what we charge and what we don’t charge and ask the questions,” added the Mayor.

The Mayor also talked on income strategies for the city including the school allowance, implementing an auto inspection fee, and increasing rates of other city services.

“The council needs to receive better projections from the city on our financial picture,” said Myron Lowry, Councilman. “This is a start today with a long-term strategic outlook,” he added.

The current budget gap of the City of Memphis is $17 million and if left unchecked, economists project that the gap would grow to $23 million by 2014.

The Mayor said, “The biggest red flag, we’re not coordinating all of our planned projects with the financial reality.”

According to the Mayor, job cuts are always a last resort for the city.