Tuesday evening, the Chattanooga City Council gave unanimous final passage to the city administration’s $29.9 million budget amendment, investing in key priorities like road paving and public safety while transferring $18 million to the Police and Fire Pension Fund to meet minimum recommended funding levels.
“Thanks to the support of City Council, we’re paving roads, protecting our first responders’ futures, and making overdue investments while maintaining our conservative budget principles,” said Mayor Tim Kelly.
The City of Chattanooga is in a historically strong fiscal position, with general fund reserves more than double what’s recommended by conservative experts. By passing this budget amendment, Chattanooga hopes to achieve long term savings.
If these funds had remained unused in the general fund reserve, they would have lost value to inflation. And the needs addressed in the supplemental budget would have gone unfunded.
The $18 million transferred from general fund reserves to the Police and Fire Pension Fund will help the Fund reach the 60% minimum funding threshold recommended by the State Comptroller.
Of the remaining $11.9 million proposed in the amendment, 73% will go to critical infrastructure and public safety needs. That includes $3 million dedicated to repairing sewer laterals, which are the rectangular road indents caused by sections of road being removed to establish connections between buildings’ plumbing and the sewer line.
The administration is also proposing $1 million to improve Crest Road, $700,000 for sidewalk near Big Ridge Elementary, and $500,000 for pedestrian safety improvements on Hixson Pike from Fernway to Barton.
The funding for this amendment comes from the City’s general fund reserve balance, which currently sits at $117.9 million, an amount equal to 35% of the City’s annual revenue.
Financial experts, including the state comptroller, the Government Finance Officers Association, and government finance experts PFM advisors all recommend a fund reserve balance between 16 and 17%. Even after this investment, the City’s general fund balance would be more than 26% of annual revenue, well above recommended levels.
Proposed Investments in Critical Infrastructure and Public Safety Investments
- $360,000 Detection for intersections
- $50,000 Mobile traffic count trailers
- $500,000 Modern Traffic Management Center
- $200,000 Streetlights upgrade
- $632,000 Lookout Valley Infrastructure upgrade
- $200,000 CPD Property Room and HVAC Upgrades
- $120,000 CFD turnout gear drying racks
- $80,000 CFD Swift Water Rescue Vehicle
- $3,000,000 for sewer lateral street repairs
- $500,000 TwoPacMac Leaf Vacuum Trucks
- $500,000 Pedestrian Safety (Fernway to Barton)
- $1,000,000 Crest Road Improvements
- $700,000 sidewalk at Cassandra Smith Road/Big Ridge Elementary
- $250,000 Rossville Blvd Beautification
- $150,000 Quick build transportation and safety (RPA SS4A match)
- $500,000 Raccoon Mountain Water Infrastructure
Proposed Investments in Parks, Community Development and Housing
- $100,000 Tennessee River Blueway trailhead, kiosk, and parking
- $100,000 Sports turf field for Eastside Elementary (County, TPL match)
- $250,000 Heritage Park-inclusive playground (County match)
- $100,000 Mowing equipment for municipal golf courses
- $100,000 Mountain bike pump track feasibility study
- $100,000 Park Signage at Glenwood, Summit Softball, Sterchi, & Warner Park
- $40,000 Pavilion at Lake Hills Park
- $40,000 Pavilion at Murray Hills
- $75,000 CARTA feasibility study for Transit-oriented Development
- $100,000 for planned expansion of the 3D printed shelter program
- $120,000 East Lake satellite parking lot
- $25,000 Glenwood room divider
- $150,000 Carver gym floor restoration- pending feasibility study results
- $50,000 Carver bathroom renovation-pending feasibility study results
- $7,500 ADA button for front door at Eastdale
- $50,000 Exterior Lighting for Eastdale
- $45,000 Ramsey Center parking lot gate
- $45,000 Shepherd Center parking lot gate
- $150,000 Three (3) Transport Vans for Carver, Avondale, and East Chattanooga
Proposed investments in Public Health, Education and Mobility
- $40,000 Preliminary engineering to co-locate the Rape Crisis Center to the Dr. Carol B. Berz Family Justice Center
- $415,000 Upgrades to the Carol B. Berz FJC to accommodate the co-location of the Rape Crisis Center
- $50,000 for a feasibility study for an East Brainerd Library location
- $50,000 for a feasibility study for a Northgate Library location