CHATTANOOGA, Tenn. (Feb. 4, 2026) – The City of Chattanooga’s strong fiscal stewardship secured bonds for 16 capital projects at a lower rate than the average municipal rate – saving taxpayers approximately $400,000 over the life of the bonds.
The news comes after S&P affirmed the city’s AAA rating and Fitch awarded the city an AA+/stable rating.
The city received 17 bids for sale of the general obligation bonds – one of the highest on record - with PNC Capital Market securing the investment.
“In simple terms, the health of the city’s finances and budget management are strong as evidenced by the rating agencies and securing this lower rate from the bond market,” said Mayor Tim Kelly. “This news comes despite ongoing national economic headwinds. Most importantly, Chattanoogans reap the benefits because a higher rating allows the city to bond at a lower interest rate and invest in capital projects that benefit our city.”
| Budget Year | Project | Amount |
| 2025 | Fire Apparatus Replacement | $5,400,000 |
| 2025 | Station #14 Replacement | $2,500,000 |
| 2025 | City Hall Annex Renovation | $3,265,000 |
| 2025 | Pavement Management | $3,835,000 |
| 2026 | Pavement Management | $5,000,000 |
| 2026 | Riverfront Redesign | $1,050,000 |
| 2026 | Westside Evolves - James A. Henry Phase 1 | $3,000,000 |
| 2026 | Wilcox Blvd Bridge | $5,100,000 |
| 2026 | Parks Maintenance | $1,000,000 |
| 2026 | Senior Community Center | $500,000 |
| 2026 | City Hall Annex Renovation | $250,000 |
| 2026 | Walnut Street Bridge | $1,000,000 |
| 2026 | Montague Park | $850,000 |
| 2026 | North Chick Creek Greenway - Dupont | $100,000 |
| 2026 | Carver Park | $150,000 |
| 2026 | Landfill Expansion | $7,000,000 |
Total: | $40,000,000 |
