Chip Henderson
The City Council on Tuesday night voted 8-0 to approve on first reading a $345 million budget that includes $5 million in "earnest money" toward a raise for sworn fire and police officers.
Cost of the fire and police raise has been put at between $17.5 million and $20 million - leaving a large gap yet to be filled. Councilman Chip Henderson said the exact amount needed is not yet known.
The $5 million, which is to be put in a separate, temporary account, would come from reducing amounts set aside for contingencies and for (R&R) repair and replace. Contingencies was trimmed to $950,156 and R&R to $1 million.
Kevin Roig, chief of staff for Mayor Tim Kelly, said the goal is for the city to find an additional $5 million in savings, though he said that will be difficult.
Any overage apparently would require a property tax increase.
Several Council members said they want to lessen the effect on taxpayers, with Chair Jenny Hill noting the big assessment jumps on homes in her district.
Councilman Ron Elliott said, "We should not put all this burden on the taxpayers alone."
Councilman Jeff Davis said, "We need to find every savings we can before we even consider a tax increase."
Councilman Cody Harvey said, "We need to open the hood and see if we can find more savings."
Councilman Henderson said, "I am deeply concerned about the many families who are already one emergency away from catastrophe."
Concerning the contingency, Mr. Roig said the administration had been hoping to bring it up to a more comfortable level this year. He said the average is about $600,000 paid out per year, but he said it has been as high as $1.9 million.
He said additional cuts might get into such items as eliminating positions that are now vacant.
The final, second reading vote is scheduled for next Tuesday.
But officials have said this budget will be "amended" to deal with the fire and police raise issue.
Mayor Kelly said, “I come from the business world and know the value of a dollar. “When you account for the more than 20% inflation since 2021, this budget spends millions less than we have in previous years. It continues the work that voters overwhelmingly, in every single precinct, endorsed in the election. This is a good budget that puts us on a solid footing as we work to find a way to raise police and fire pay later this year.”
Some of One Chattanooga investments included in the budget include:
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For the fifth year in a row, at least $10 million to improve local roads
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$2 million to preserve existing affordable housing across the City
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$10 million toward public transit capital and operations investments
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$5.1 million to fully fund the city’s portion of Wilcox Bridge replacement
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More than $1 million for early learning centers
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Infrastructure investments for the generational South Broad and One Westside developments that will build new downtown neighborhoods
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$150,000 for a traffic light system modernization to re-time lights
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59% of this year’s budget goes to police, fire, and public works, keeping government effective and responsive to meet the basic needs of Chattanooga
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Cost of living and step pay increases for non-sworn city employees