On Tuesday, Mayor Tim Kelly introduced his Fiscal Year 2026-2027 budget proposal to the Chattanooga City Council.
The budget proposal maintains wage competitiveness at the city with a 3% pay increase for first responders and employees, renews the mayor’s commitment to invest $10 million annually to fill potholes and improve city roads, and advances the One Chattanooga Plan and Council District-level priorities through targeted investments funded by continued internal savings and efficiencies
Despite ongoing inflationary pressures, Mayor Kelly’s balanced budget properly resources the city services residents deserve without increasing taxes.
“The city serves thousands of Chattanoogans every day, and it’s clear that our residents want to live in a city that prioritizes their needs, not the needs of the government,” Kelly said. “As a service delivery organization, the services we provide are delivered by the people we employ. Park stewards, crew workers, firefighters and police show up to serve when there’s litter on the side of the road, a fire, or an act of violence. It’s our people who fill the potholes, pick up the recycling, and plant the trees, and it follows that they represent by far the largest portion of this or any city budget.”
So the city can fill open positions more quickly, as well as attract and retain the best people for the job, Kelly is proposing a 3% cost-of-living pay increase for all city employees.
Some of the couch cushion savings and innovative approaches highlighted in the presentation:
- Mayor’s office: $136,000 in annual savings by cutting contracts and reducing internal initiatives
- Technology: $168,000 in annual savings from renegotiating Verizon cellular devices
- Fire: $42,000 in annual savings by trimming printing and hardware purchases
- Parks: $40,000 in annual savings by using in-house labor to build new park pavilions
- Planning: $36,000 in annual savings by using existing staff for grant duties
- Early Learning: $13,000 in annual savings moving from paid ads to local partnerships
- Community Development: $6,000 in annual savings by reducing credit card fees
“Everything from asphalt to steel costs more than it did a few years ago, sometimes much more,” Kelly said. “Identifying savings every year allows us to fund the investments that make us more efficient, such as fire equipment that helps keep insurance costs down for every property owner, and crime-fighting technology that allows us to solve serious crimes with a 94% clearance rate. It also enables us to address and enhance the infrastructure that allows us to drive, bike or walk to school, church and work from our homes.”
The budget presentation kicks off a series of public meetings ahead of the City Council passing a budget by the annual June 30 deadline.