There is not a property tax increase included in the $345 million Kelly administration budget for 2025-2026, but officials said a way still must be found for a salary increase for fire and police.
Kevin Roig, the mayor's chief of staff, told City Council members at budget hearings this week that those raises could cost from $16 million to $20 million.
Eric Holl of the mayor's staff said, "There's no property tax increase in the current budget proposal. We’re still determining what new investment will be required to make our police and firefighter pay competitive with other first responder agencies in our area.
"It will also be at least a few months before we have final, workable numbers on a range of funding variables, including property reappraisals. This timeline is similar to the process that we followed in 2021, the most recent reappraisal year.
"One thing is certain: we simply must provide significant raises to Chattanooga’s bravest men and women. We will bring a full proposal to do so later this year."
Mayor Kelly said earlier, “This year’s fiscal constraints leave one glaring omission: pay raises for sworn police and firefighters. Our first responders are underpaid, not just when you consider the work they do - putting their lives at risk to keep us safe - but also relative to competing public safety agencies in our market and in peer cities around the region.
“That’s not just wrong, it’s risky. If we can’t fill our academy classes and keep our best sworn employees, we won’t be able to meet our city’s needs. That’s why my Administration intends to come back later this year with a separate proposal on compensation for Chattanooga’s bravest men and women. We simply must.”