CHATTANOOGA, TN (July 29, 2025) - Today, the Kelly Administration unveiled
a proposed supplemental budget that will fund significant police and fire
pay raises while lowering the property tax rate from $2.25 to $1.99 per
$100 of assessed valuation. Residential and commercial properties are
assessed at 25% and 40% of appraised value, respectively.
The proposal would represent the largest decrease in Chattanooga’s property
tax rate in decades, while allowing the city to keep pace with 22.5%
inflation since the last revenue change in 2021.
“This is a balanced proposal that funds police and fire pay raises and
critical government services like road paving while making a historic cut
to the property tax rate,” said Mayor Tim Kelly. “We have a generational
opportunity to ensure Chattanooga is the city of its full potential; a city
with safe neighborhoods, good roads, and the best quality of life. If we
fail to act accordingly, we will lose our great momentum and fall further
behind.”
Last week in a City Council education session, leaders of the Chattanooga
Police and Fire Departments explained to Council the dire situations their
agencies will be in without significant pay raises. Both departments lag
significantly behind competing agencies in pay and are facing large
potential staffing shortages as personnel leave for better pay or take
early retirement.
“Last week, I received a letter
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from a fantastic police officer, telling me that he had chosen to leave CPD
and accept a position at a competing law enforcement agency in order to
receive better pay,” said Chattanooga Police Chief John Chambers. “I know
from speaking with our officers that many more will do the same if we don’t
significantly increase pay now. Our officers love Chattanooga, and love
serving the people of our city. But they have to be able to provide for
themselves and their families.”
“I want to thank Mayor Kelly for this supplemental budget proposal and also
thank City Council for listening to us as we outlined our serious need for
increased funding,” said Chattanooga Fire Chief Terry Knowles, whose
appointment is pending confirmation by City Council. “Being a firefighter
is one of the toughest jobs there is, but our men and women are struggling
just to make ends meet. As more of our most experienced firefighters reach
retirement age, we are at serious risk of losing our ability to adequately
protect Chattanooga. I don’t want the day to come where we have to start
figuring out which fire stations to close on which days because we don’t
have the staffing.”