Chattanooga Mayor Tim Kelly's administration has presented their Fiscal Year 2025-2026 budget proposal 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.
“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,” he added.
Some of the investments highlighted:
- 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