Mayor Kelly’s Budget Approved by City Council
Unanimous vote demonstrates solidarity around One Chattanooga investments
CHATTANOOGA, Tenn. (June 10, 2025) – A Chattanooga budget that does more with less was unanimously approved by the City Council today.
Mayor Tim Kelly proposed a fiscal year 2025-2026 budget <https://chattanooga.gov/sites/default/files/resources/FY2026-Original-Proposed-Operating-and-Capital-Budget_0.pdf>, that continues critical investments in public safety, infrastructure and affordable housing while accounting for sunsetting federal pandemic dollars and 22% inflation since he took office in 2021.
“The first budget of my second term reflects a laser focus on delivering outcomes for residents, driving efficiencies in local government, and advancing the values of One Chattanooga,” Kelly said. “With unanimous support from the City Council, this budget meets today’s challenges and helps to shape a future that delivers on the promise and potential of our city for all Chattanoogans.”
One example of belt tightening under Kelly’s budget is within the Department of Public Works where a new in-house team of construction inspectors will provide significant savings to what the city currently pays to contract those services out. This budget covers July 1, 2025, through June 30, 2026.
Bolstering the One Chattanooga Plan, this budget:
Builds a path to universal early learning
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With more than $1 million going to early learning centers Ensures accessible housing choices for all Chattanoogans
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Invests in infrastructure for the generational South Broad and One Westside developments that will build new downtown neighborhoods
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Invests $2 million to preserve existing affordable housing across the City
Improves local infrastructure
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For the fifth year in a row, investing at least $10 million to improve local roads
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With $150,000 for a traffic light system modernization re-timing lights
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$10 million contributing to public transit capital and operations investments
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Funding $5.1 million for the city’s portion of Wilcox Bridge replacement
Closes the gaps in public health
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Helping to transition community centers to community resource hubs
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Increasing support for Outdoor Chattanooga
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Supporting critical local sports programs
Provides responsive and effective local government
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Meeting the basic needs of Chattanoogans with 59% of this year’s budget going to police, fire, and public works
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Increasing support for garbage and recycling pick up, refuse collection centers and the compost waste center
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Giving cost of living and step pay increases for non-sworn city employees