City officials said Tuesday the upcoming city budget will not include a tax increase. Ryan Ewalt, chief operating officer, said that was reached through some "very hard decisions," including eliminating 29 positions.
Fifteen of those positions were vacant. However, 14 filled positions across six departments are being cut. Those include eight full-time employees and six part-time.
Officials said impacted staff are being paid through June 29 and are being encouraged to apply to the more than 30 vacant positions currently available at the city.
Officials stated, "Our goal during the budget process is to ensure every dollar of taxpayer money is allocated toward serving residents and accomplishing the One Chattanooga vision. To get there, we look at how we can improve essential services, drive One Chattanooga priorities forward, and reduce areas of redundancy and overlap – in projects, programs and jobs.
"This year, we identified 15 vacant and 14 filled positions (8 full time, 6 part time) that have become redundant, either due to departmental reorganization or newly streamlined processes that have reduced workforce needs. The administration made the decision to eliminate those positions as part of the upcoming budget. This represents one small but important part of ongoing work to streamline processes and improve services across the city."
There is $18 million for the future renovation of the Walnut Street Bridge - $13.3 million of which is coming from federal funding sources.
The budget proposes more than $3.5 million for a step pay plan for non-sworn employees. Officials said, "This historic new pay plan will provide a structure for incrementally increasing employee pay over time according to years of service and performance – something employees indicated was top priority for them during last fall’s employee engagement survey.
"If the plan is approved, non-exempt (primarily hourly) employees will start with a pay increase based on years of service, with more than two-thirds receiving a more than 4 percent increase. Exempt (salaried) employees will not be placed based on years of service but will receive two steps, equivalent to about a 2 percent cost of living increase. Future step increases will incorporate a performance component.
"Appointed employees will receive a 1.5 percent cost of living increase, while sworn (CFD and CPD) and wastewater employees will receive their regularly scheduled step increase."
The budget includes two new Short Term Vacation Rental (STVR) inspectors and a new Administrative Hearing Officer, who will handle STVR matters and other issues. The AHO will have the ability to issue fines of up to $500 per violation.
The city plans to buy seven new garage trucks and hire four additional drivers. Officials said the city for the second year in a row will put $10 million into the paving program.
Nine new firefighters are in the budget along with $4.5 million for five new fire trucks. The budget includes $1.5 million for a new fire training tower.
The spending plan includes $1.3 million for a new park in Brainerd called Provence Park and $1 million to revitalize the Skate Park near Finley Stadium.
Officials said $150,000 will go toward helping the Chattanooga Airport land new connections.
The city will once again put $765,000 into pay supplements for Head Start teachers.
The budget also includes $2.6 million for the City’s Office of Homelessness and Supportive Housing, with $820,000 going to the Chattanooga Regional Homeless Coalition to continue rapid rehousing of residents experiencing homelessness and to develop a strategic outreach plan focused on veterans and households with children. The city will fund the Chatt Foundation's cold weather shelter. It will continue the effort to convert the Airport Inn on Lee Highway for 80+ units of supportive housing.
Mayor Tim Kelly said his proposed fiscal year 2024 budget keeps his promise "to advance One Chattanooga priorities and invest in areas that are most important to Chattanoogans – such as affordable housing, infrastructure and public safety – with no tax increase."
More than $30 million is allocated for roads and bridges, including the funding for the future renovation of the popular walking bridge.
An additional $3 million is set aside for the creation and revitalization of new parks and green spaces. Another $3 million is reserved for affordable housing and homelessness prevention, which he said "will build on the record-breaking 40 percent reduction in unsheltered homelessness in 2022."
It includes a new cost savings incentive program and funds to improve city service delivery.
"Last year’s budget set a bold and actionable plan for One Chattanooga, and we made significant progress to show for it – from reducing homelessness to addressing violent crime,” said Mayor Kelly. “This year, we’re doubling down on that work, with no tax increase and a sharpened focus on efficient and effective governance - so that every taxpayer dollar gets put to work serving residents, lifting up our neighborhoods, and driving forward the One Chattanooga vision.”
The proposed budget – which covers July 1, 2023, through June 30, 2024 – is available for the public to view here. Members of the public are invited to attend informational sessions on the budget at 10:30 a.m. on Tuesdays in the City Council conference room through May 23, and a public hearing will be held on June 6 at 6 p.m. City Council will vote on the budget on first reading on June 13, with a final vote scheduled for June 20.
“This budget year called for us to focus funding and streamline departments, projects, and processes, to ensure our taxpayer dollars are used where they will best meet the needs of all Chattanoogans,” said Chief Operating Officer Ewalt. “We listened to the community and to our team members when making those decisions, to ensure that the budget we put forth is responsive, fiscally sound, and advances us toward One Chattanooga.
The budget includes a $187 million investment into infrastructure — including roads, sidewalks, bridges, traffic signal synchronization, sewer, and stormwater projects — representing an increase of $57 million from the current budget.
The city will also continue to invest heavily in preserving and enhancing its green spaces, including $200,000 toward a new pilot program with Hamilton County Schools and Trust for Public Land, which will revitalize local schoolyards into accessible community parks that all residents can enjoy outside of school hours. Another $400,000 is set aside for long overdue maintenance projects in neighborhood parks.
Nearly half of the city’s proposed operating budget will continue to flow into public safety, with the Police Department and Fire Department making up 45 percent of general fund expenditures.
This year’s budget will continue to fund efforts to unify and strengthen community partnerships for violence prevention and interruption, with a focus on youth. It also continues funding for the Chattanooga Police Department’s Crisis Response Unit and Victims Advocate Center.
The city will deploy more than $3 million in federal funds to create and preserve an additional 400+ units of affordable housing over the next year, and the proposed budget includes three positions to support new Chief Housing Officer Nicole Heyman – including a Director of Housing Finance.