CHATTANOOGA, Tenn. (June 3, 2025) – Chattanooga City Council today on first
reading voted to pass Mayor Tim Kelly’s proposed fiscal year 2025-2026
budget, which makes significant investments in public safety,
infrastructure and affordable housing. The final, second reading vote is
scheduled for June 10.
“I come from the business world and know the value of a dollar,” Kelly
said. “When you account for the more than 20% inflation since 2021, this
budget spends millions less than we have in previous years. It continues
the work that voters overwhelmingly, in every single precinct, endorsed in
the election. This is a good budget that puts us on a solid footing as we
work to find a way to raise police and fire pay later this year.”
Some of One Chattanooga investments included in the budget
<https://chattanooga.gov/sites/default/files/resources/FY2026-Original-Proposed-Operating-and-Capital-Budget_0.pdf>
include:
For the fifth year in a row, at least $10 million to improve local roads
$2 million to preserve existing affordable housing across the City
$10 million toward public transit capital and operations investments
$5.1 million to fully fund the city’s portion of Wilcox Bridge
replacement
More than $1 million for early learning centers
Infrastructure investments for the generational South Broad and One
Westside developments that will build new downtown neighborhoods
$150,000 for a traffic light system modernization to re-time lights
59% of this year’s budget goes to police, fire, and public works,
keeping government effective and responsive to meet the basic needs of
Chattanooga
Cost of living and step pay increases for non-sworn city employees