Unanimous vote demonstrates solidarity around 1.93 property tax rate - lowest ever under the city’s mayor-council form of government.
CHATTANOOGA, Tenn. (June 23, 2026) – The City of Chattanooga budget for the fiscal year beginning July 1 has been approved, with Mayor Tim Kelly and City Council agreeing on funding predicated on the 1.93 property tax rate.
Chattanooga held its property tax steady in the face of inflation without cutting services due to a citywide initiative to identify cost savings and hold the line on expenses. The tax rate remains lower than the rate for residents pay in Knoxville, Nashville and Memphis. Chattanooga’s tax burden per resident is also lower than Nashville and Knoxville.
“Last year, we asked Chattanoogans to invest in the essential services that impact their lives: police, fire, paving, affordable housing, and technology to address traffic congestion,” Kelly said. “This year’s budget is about providing a return on that investment.”
The budget advances the One Chattanooga Plan and Council District-level priorities, including:
- A new litter pick-up crew that will help maintain the Scenic City’s reputation
- A 3% pay increase for city employees, including police and fire, to maintain wage competitiveness
- $10 million to fill potholes and improve city roads
- Investments in early childhood education and community centers
- Continued focus on internal savings and efficiencies
“The City Council is proud to unanimously support this budget, because it prioritizes funding for essential services that our residents depend on,” said City Council Chair Jeff Davis. “I want to thank Mayor Kelly’s administration for collaborating with the City Council over the past several months to develop the final budget ordinances that were passed on final reading today.”