The City Council is balking at approving the budget for the Chattanooga Downtown Alliance (Business Improvement District) over the issue of charges to four non-profits.
Councilman Darrin Ledford said he is passionate about the contributions to the community of such groups as the United Way and the Chattanooga YMCA. He said downtown churches should also not be billed.
Steve Brookes, executive director of the CDA, said the group's board wound up forgiving all but 10 percent of the charge to the United Way and the Y. He said it did not charge two downtown churches - Second Presbyterian and St. Paul's Episcopal - except for their parking lots, which he said could not be exempted under the law.
Asked what would happen if the City Council does not approve the budget at an upcoming meeting, Finance Director Daisy Madison said the city would not put assessments on downtown property owners on upcoming tax bills.
She said a decision is needed soon because the tax bills need to be sent out.
Mr. Brookes said the non-profit issue is usually decided much later in the year, but he said he would alert the board on the urgency of the situation.
Councilman Anthony Byrd praised the group, saying that downtown now "looks amazing." He said he often sees the group's Ambassadors politely working with the homeless and giving directions to tourists. He noted that many of the employees "are African Americans. They look like me."
Mr. Brookes said the group's upcoming budget has a $30,000 deficit, but that can be pulled from its $230,000 reserve fund. Councilman Ledford had issues with that fund being drawn down.
There was also questioning about the amount being spent on marketing. Mr. Brookes said Q Strategies was hired for getting out the message about the group's accomplishments, including on social media, and helping him with annual and monthly reports.
Mr. Brookes said the group had to suspend its cash for transfer program because as many as 60 homeless individuals were showing up with trash at the same time that the staff dropped as low as eight. It is budgeted at 14. He said staff members were having much of their time tied up with that program.
He said the program does have merit and needs to be re-examined.
Councilman Ken Smith said he was adamantly against the council having to vote without the non-profit issue settled. He said, "You make find enough of us to make this a bigger issue than it has been."