Chattanooga mayor Tim Kelly's administration has 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 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 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.”