The City Council on Tuesday delayed a second reading on the city budget and setting the new tax rate after the city was notified by a state agency.
City officials said, "On Monday the State Board of Equalization notified the city that an inquiry had been received about the process for public notice on the new proposed tax rate as included in the budget ordinance.
The city has been following a longstanding budget process, which for many years has included ample public notice, several Council-led education sessions for the public, a formal public hearing, and two public readings of the ordinance.
"While we believe the code-mandated criteria have indeed been met for public notice and engagement - and that the city’s intent to set the tax rate higher than the current certified tax rate has already been clearly expressed - the State Board of Equalization nonetheless recommended that Chattanooga issue a separate public notice, and hold a separate public hearing, specifically on the proposed tax rate.
"Therefore the City Council deferred their final vote on the budget ordinance for two weeks in order to allow the Clerk of the Council to issue a 10-day public notice for another public hearing, to be held just prior to the Council's final vote on Sept. 28, 2021.
"Mayor Kelly's administration remains fully committed to this budget, and fully confident that the City Council will approve the budget on Sept. 28."
The council last week approved a 40-cent property tax increase above the new Certified Tax Rate that would bring in $30 million in additional income that mainly would go toward pay increases for city employees, including fire and police and public works.