The Chattanooga City Council on Tuesday on first reading voted to pass Mayor Tim Kelly’s proposed fiscal year 2025-2026 budget, which makes significant investments in public safety, infrastructure and affordable housing.
“I come from the business world and know the value of a dollar. When you account for the more than 20% inflation since 2021, this budget spends millions less than we have in previous years,” Mayor Kelly said. “It continues the work that voters overwhelmingly, in every single precinct, endorsed in the election. This is a good budget that puts us on a solid footing as we work to find a way to raise police and fire pay later this year.”
Some of One Chattanooga investments included in the budget include:
- 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
- $10 million toward public transit capital and operations investments
- $5.1 million to fully fund the city’s portion of Wilcox Bridge replacement
- More than $1 million for early learning centers
- 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
- 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
- Cost of living and step pay increases for non-sworn city employees
The final, second reading vote is scheduled for June 10.