The City Council on Tuesday night unanimously approved a 40-cent property tax increase above the new certified rate.
The increase raises some $30 million in new income dedicated mainly to improving the pay of fire, police, public works and other city employees.
The new $302 million spending plan also funds a record level of new street paving projects.
Mayor Tim Kelly said, “I’m grateful to the Chattanooga City Council for partnering with us to lay the groundwork for tackling the structural challenges our community faces while we also get the basics right -- all while ensuring our first responders and essential workers are paid fairly.
“With this budget, we're able to capitalize on the growth of Chattanooga's economy to ensure every resident has access to quality and responsive city services to keep pace with that growth."
Councilman Darrin Ledford said the budget "has a significant focus on our city's most important resource" - the employees.
He said, "For far too long, the private sector and other governments have soaked up our talent, causing our fire and police to have to take second and third jobs."
The new certified tax rate for Chattanooga is $1.8529 per $100 of assessed value. The tax rate under the Kelly budget will be $2.25 - 40 cents above the certified tax rate.
Pay for a starting police cadet will go from $35,141 to $43,575, while a starting firefighter will move from $32,524 to $40,330. Both are 24 percent increases.
For general city workers, there will be a $15 per hour minimum wage and more than half of general employees will receive over 12 percent more. The general employee pay adjustments go from five to 48 percent.
Improving firefighter pay, police play and general employee pay will cost over $10 million each.
Higher level employees will get three percent pay increases.
Mayor Kelly said he was also going to embark on an expansive paving program as well as bridge repairs. A full-time pothole inspector will be hired. It will be a 58 percent increase for paving over the prior budget.
More than $7 million will be spent to upgrade YFD centers to community centers, he said.
For general city workers, there will be a $15 per hour minimum wage and more than half of general employees will receive over 12 percent more. The general employee pay adjustments go from five to 48 percent.
Improving firefighter pay, police play and general employee pay will cost over $10 million each.
Higher level employees will get three percent pay increases.
Mayor Kelly said he was also going to embark on an expansive paving program as well as bridge repairs. A fulltime pothole inspector will be hired. It will be a 58 percent increase for paving over the prior budget.
More than $7 million will be spent to upgrade YFD centers to community centers, he said.