Budget features targeted One Chattanooga investments in infrastructure,
public safety, affordable housing, transit
CHATTANOOGA, Tenn. (May 6, 2025) – Today, the Kelly Administration
presented their Fiscal Year 2025-2026 budget proposal
<https://chattanooga.gov/sites/default/files/resources/FY2026-Original-Proposed-Operating-and-Capital-Budget_0.pdf>
to the City Council. The balanced budget makes targeted investments in
infrastructure, public safety, affordable housing and transit. It also
identifies efficiencies and cost-saving measures to help offset the impacts
of inflation, the sunsetting of federal pandemic aid dollars, and economic
uncertainty. When adjusted for inflation, the total proposed budget is
lower than the city’s budget was two years ago.
“Since coming into office, my core focus has been tackling Chattanooga’s
structural challenges and setting our city on a path toward shared
prosperity and common purpose — and that commitment remains as strong as
ever,” Mayor Tim Kelly wrote in his budget message
<https://docs.google.com/document/d/1m5NDwiPKHrg6Sn2xKk8oWV7MvMMtYrbk2jdmg3Mj6Ig/edit?usp=sharing>.
“From our early reorganizing of city government around the real priorities
of our residents to establishing the One Chattanooga roadmap and committing
to putting our money where our mouth is year after year, we continue to
have a strong foundation for progress. I’m proud to continue building on
that foundation with this budget.”
Some of the investments highlighted in today’s presentation
<https://drive.google.com/file/d/1bxq_hc-KQA3MM4pRschWWaJa3Aiz7tx4/view?usp=sharing>
:
- 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 - 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
- Cost of living and step pay increases for non-sworn city employees
- $10 million toward public transit capital and operations investments
- 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
- $5.1 million to fully fund the city’s portion of Wilcox Bridge
replacement - More than $1 million for early learning centers
However, as the mayor noted in his budget message, “this year’s fiscal
constraints leave one glaring omission: pay raises for sworn police and
firefighters. Our first responders are underpaid, not just when you
consider the work they do–putting their lives at risk to keep us safe–but
also relative to competing public safety agencies in our market and in peer
cities around the region. That’s not just wrong, it’s risky. If we can’t
fill our academy classes and keep our best sworn employees, we won’t be
able to meet our city’s needs. That’s why my Administration intends to come
back later this year with a separate proposal on compensation for
Chattanooga’s bravest men and women. We simply must.”