The Kelly Administration on Tuesday unveiled a proposed $29.9 million budget amendment that invests in key priorities like road paving and public safety while transferring $18 million to the Police and Fire Pension Fund to meet minimum recommended funding levels.
“I promised as mayor to use my business background to make city government more efficient and responsive to the needs of Chattanoogans, and this is a big step in the right direction,” said Mayor Tim Kelly.
“If City Council approves this budget amendment, we’ll be using one-time funding to protect our first responders’ futures while improving roads and making overdue investments in key areas. And we will do it all while maintaining our responsible, conservative budget practices.”
He said the city of Chattanooga "is in a historically strong fiscal position, with general fund reserves more than double what’s recommended by conservative experts. By passing this budget amendment, Chattanooga hopes to achieve long term savings. If these funds remain unused in the general fund reserve, they will have their value eaten away by inflation over time as needs go unmet and bills like the unfunded Police and Fire Pension liability come due at a later date when the dollar’s value has diminished."
He said the Kelly Administration is recommending that $18 million be transferred from general fund reserves to the Police and Fire Pension Fund, "which we expect will help the Fund reach the 60 percent minimum funding threshold recommended by the State Comptroller. Currently, the Fund is considered an unfunded future liability, as it’s expected over time to be obligated to pay out more in benefits than it will bring in in contributions."
Officials said, "O
f the remaining $11.9 million proposed in the amendment, 73 percent will go to critical infrastructure and public safety needs. That includes $3 million dedicated to repairing sewer laterals, which are the rectangular road indents caused by sections of road being removed to establish connections between buildings’ plumbing and the sewer line. The Kelly administration is also proposing $1 million to improve Crest Road, $700,000 for sidewalk near Big Ridge Elementary, and $500,000 for pedestrian safety improvements on Hixson Pike from Fernway to Barton.
"For the remaining proposed investments, including investments in affordable housing planning, fire department gear and rescue vehicles, community center maintenance and capital improvements, park and library improvements, and more, view the administration’s slideshow presentation by clicking here or scrolling to the bottom of this press release.
"The funding for this amendment will come from the city’s general fund reserve balance, which currently sits at $117.9 million, an amount equal to 35% of the City’s annual revenue. Financial experts, including the state comptroller, the Government Finance Officers Association, and government finance experts PFM advisors all recommend a fund reserve balance between 16 and 17 percent. Even after this investment, the city’s general fund balance would be more than 26 percent of annual revenue, well above recommended levels."
Proposed Investments in Critical Infrastructure and Public Safety Investments
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$360,000 Detection for intersections
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$50,000 Mobile traffic count trailers
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$500,000 Modern Traffic Management Center
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$200,000 Streetlights upgrade
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$632,000 Lookout Valley Infrastructure upgrade
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$200,000 CPD Property Room and HVAC Upgrades
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$120,000 CFD turnout gear drying racks
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$80,000 CFD Swift Water Rescue Vehicle
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$3,000,000 for sewer lateral street repairs
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$500,000 TwoPacMac Leaf Vacuum Trucks
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$500,000 Pedestrian Safety (Fernway to Barton)
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$1,000,000 Crest Road Improvements
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$700,000 sidewalk at Cassandra Smith Road/Big Ridge Elementary
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$250,000 Rossville Blvd Beautification
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$150,000 Quick build transportation and safety (RPA SS4A match)
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$500,000 Raccoon Mountain Water Infrastructure
Proposed Investments in Parks, Community Development and Housing
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$100,000 Tennessee River Blueway trailhead, kiosk, and parking
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$100,000 Sports turf field for Eastside Elementary (County, TPL match)
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$250,000 Heritage Park-inclusive playground (County match)
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$100,000 Mowing equipment for municipal golf courses
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$100,000 Mountain bike pump track feasibility study
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$100,000 Park Signage at Glenwood, Summit Softball, Sterchi, & Warner Park
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$40,000 Pavilion at Lake Hills Park
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$40,000 Pavilion at Murray Hills
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$75,000 CARTA feasibility study for Transit-oriented Development
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$100,000 for planned expansion of the 3D printed shelter program
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$120,000 East Lake satellite parking lot
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$25,000 Glenwood room divider
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$150,000 Carver gym floor restoration- pending feasibility study results
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$50,000 Carver bathroom renovation-pending feasibility study results
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$7,500 ADA button for front door at Eastdale
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$50,000 Exterior Lighting for Eastdale
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$45,000 Ramsey Center parking lot gate
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$45,000 Shepherd Center parking lot gate
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$150,000 Three (3) Transport Vans
Proposed investments in Public Health, Education and Mobility
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$40,000 Preliminary engineering to co-locate the Rape Crisis Center to the Dr. Carol B. Berz Family Justice Center
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$415,000 Upgrades to the Carol B. Berz FJC to accommodate the co-location of the Rape Crisis Center
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$50,000 for a feasibility study for an East Brainerd Library location
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$50,000 for a feasibility study for a Northgate Library location