This is a call to ACTION.
City budgets are difficult. I know because I led Mayor Kelly's team through the last two. (Both had no tax increase, difficult spending cuts, and still got a lot done.) But there is unnecessary confusion and a choice between two bad options because this year's budget process was broken and full of spin. Having left the mayor's team a year ago, I'd like to help clear up some confusion, speak to the impact, and advocate for a path forward as a resident and small business leader.
I'd also like to ask people to come speak at the final public hearing on Tuesday at 3:30pm or email City Council if you want no tax increase but also support fire and police increases.
To be crystal clear, the mayor's proposal is a TAX INCREASE. Not a tax cut. Homeowners, renters, and businesses will pay MORE in taxes. In fact, the average homeowner/renter will pay $33 more per month. Affordable housing? Each person's home will get $33 per month more expensive on average, increasing rent, evictions, and homelessness, in direct conflict with the One Chattanooga plan. The mayor's budget solution? Of the $45M in new taxes, it includes $4M for down payment assistance, rent assistance, and eviction prevention to help SOME Chattanoogans while EVERYONE'S housing becomes less affordable due to the City's actions. In this case, throwing more government after a government-created problem is expensive and not a good solution. Taking this out would be a start.
Our residents and businesses cannot afford a $33 per month on average tax increase that includes unnecessary spending that was slid in late in the game. Should police and fire be paid appropriately? ABSOLUTELY. It seems very few disagree. But how? First, remove everything from the tax increase that was not communicated UP FRONT. Mayor Kelly said on June 6, 2025: "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.” Similar statements were made in May and in the budget document that was passed. So honor those words and only include fire and police pay increases in any tax increase ($18M is what is needed for police and fire vs the mayor's now $45M tax increase). Nothing else.
And is a tax increase really needed? Cut the $3M in savings identified by Councilman Henderson. On top of that, there are roughly $10M in unfilled vacant civilian (non-sworn) positions that could be eliminated from the budget to close the gap, including 25 newly added positions for IT. There are $2.5M in risk management funds set aside. I'm sure there's more, but that's $15.5M right there, very close to the $18M needed. Roll up the sleeves as promised. Close the gap. All households and businesses are having to do everything in their power to trim expenses right now. They expect the same from their city government.
What does this mean for YOU right now? It is time to take ACTION. If you are a city taxpayer (resident or business) and want to stop this tax increase, you MUST either (1) show up at City Council on Tuesday, August 26 at 3:30pm for the FINAL public hearing on the budget OR (2) email Council-Clerk@chattanooga.gov, which will go to all Council members before Tuesday. State your mailing address or district number.
Without YOU directly engaging City Council, do not be surprised when your taxes go up. YOU have the ability to make a difference. Share with a friend, family, coworkers, folks at church, neighbors. Go to Council together. Ask folks to email. Each person matters who speaks or writes.
But the time for action is NOW. After Tuesday's hearing and vote, it will be too late.
Respectfully,
Ryan Ewalt