OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Chattanooga City Council Public Hearing on FY26 Budget Amendment – August 19, 2025

City Council & City Boards — Tuesday, August 19, 2025
BodyChattanooga, Tennessee
SessionCity Council & City Boards
DateTuesday, August 19, 2025
StatusFILED
Video Record
0:00 / 2:14:38

Transcript — Verbatim
0:14

All right, guys, we have the thumbs up from Rick.

0:16

Thank you, Rick.

0:18

I call to order this meeting of the Chattanooga City Council for Thursday, August 19th, 2025.

0:24

I'd like to invite Councilman Davis to lead us in our Pledge of Allegiance and invocation.

0:55

Moment of prayer.

0:58

Father, we lift up to you today, all of those who've been affected by the flooding in our city this past week.

1:06

God, we just pray that you would bless them as they recover.

1:13

And we also, though, give you thanks and praise for the many ways we've seen your spirit at work in this city through your people over this past week for the many many acts of braveness, bravery, kindness, generosity from our first responders.

1:32

Amen.

1:33

Our our city officials and employees, our churches and nonprofits, and just individual citizens.

1:41

God, we we thank you for all of these ways that you've been at work amongst us.

1:48

And finally, we pray that you would guide and direct this council today and pray that your name would be glorified in all that we do.

1:55

Jesus' name we pray.

1:57

Amen.

2:01

Okay, I'm now going to turn the chair over to our budget chairwoman.

2:04

Councilwoman Rikita Dotley for the public hearing on our 2026 budget amendment.

2:25

Yes, ma'am.

2:26

All right, hello everybody.

2:29

Thank you all so thank you so much for coming and being uh committed to civic engagement.

2:34

So uh just a reminder uh we'll call the public hearing so order.

2:40

Uh this is a public hearing for the uh fiscal year 2026 budget amendment.

2:46

The mayor's proposal uh reintends to exceed the certified checks rate to 1.93.

2:51

So first we will start out with uh Chief of Staff, Kevin Rowe, he's gonna come and do a uh brief updated presentation uh regarding the mayor's uh budget amendment proposal.

3:06

Well thank you, madam chair, and I also want to thank everybody for being here, whether you support or um you're here in opposition of 193.

3:13

I just I think it's great that everybody's here.

3:16

Um Bible says that in an abundance of council their success, and I know that when we get to the end of this process, we're gonna land in a successful place, and we are gonna hopefully move in that direction some more today.

3:26

So just a recap, we did the the Kelly administration did come out and adjust down the initial rate of 199 to 193, but the fundamentals are all still the same.

3:39

We want we're trying to find the right balance between affordable property taxes, reliable services, and community improvements.

3:47

Um, and I made this graph five minutes ago because I think that it's important just to realize that the fundamental issue that we are trying to bring to the the forefront here is that irrespective of what the rate is today, we know that the city of Chattanooga has critical needs for resources and for programming and for services that our citizens and our businesses rely on every day, and we know that they cost an amount of money that is going to probably continue to rise that those costs for those services and for those resources.

4:22

And then we also know just time value of money that a dollar today is worth more than a dollar tomorrow.

4:27

And so, what the mayor has put forward is what we believe to be a fine-tuned, calibrated approach that um effectively splits the difference between um high end of 225, which is what the previous adopted tax rate was, and what we've heard some other council members um throw out there around the 169-168 figure.

4:50

So let's just talk about what 193 will do.

4:53

Current for FY26, the current projected general fund revenue is a 345 million dollars.

5:01

Well, we're proposing at 193 would move that number from 345 to 390, producing 44.85 million dollars of incremental revenue over and above the enacted amount.

5:14

So what will we do with that revenue?

5:16

Well, 31.5 million dollars of it is going to be for operations purposes, primarily around public safety and infrastructure priorities.

5:26

Obviously, police and fire are our number one goal here.

5:31

That's it's the impetus for the whole endeavor.

5:34

Um, but we're also proposing that we fund some other critical needs that we know that we need as it relates to both public safety and to um to infrastructure and and some other items.

5:46

Then on the capital side, um, we would pull $13.35 million dollars to continue to fund similar types of expenses, but that would be categorized as capital expenses.

5:58

So that would move the new capital budget from I'm sorry, yep, the new capital budget from 191 and change to 204 and change, which is just under a 7% increase if we were to adopt this proposal.

6:13

And then on the operation side, it would move what is currently a $345 million operating budget.

6:21

Um it would increase it by about 9% to $376,746, and then the median impact, the incremental cost that we are asking Chattanoogans to um to invest, is about $34 a month again on median average.

6:38

And then the asterisk here is the 390 figure in the operations ordinance, it's going to show 390 because we have to first capture all of the revenue before we can transfer the capital portion of it.

6:50

But then at the end of the day, those two numbers for the respective budgets, capital and operations would be what they show there.

6:56

And then um again, on average, $34 a month would be the incremental cost for your average Chattanooga, and you can see how that breaks out across the respective council districts.

7:10

And then just a reminder you know, we want to constantly be thinking about well, how does this stack up kind of in a broader context?

7:17

So you zoom out a click, and you can look at Knoxville, you can look at Nashville, and then you can basically just run simple division to get to an operating dollar figure per resident whose dollars go to get those services and those resources provided by these respective municipalities.

7:36

And you can see that that even with a rate of 193, um, we are by no means out in front.

7:43

You look at Nashville and Knoxville, and one of the things that the mayor says is you know, directionally, what kind of city do we want to be in?

7:49

Are we appropriately resourced to be that kind of city?

7:52

And I think that um that this figure would move us in the right direction.

7:56

And then the last slide here, I just want to remind everybody that it isn't just about property taxes.

8:00

You have to look at the total effective tax burden for uh for citizens.

8:06

The state of Tennessee in generally, in general, um, is third lowest in the country in terms of total tax burdens.

8:13

Now, this is 22 2022 figures that we got from the tax foundation.

8:19

Um, but this is a very attractive tax environment for people.

8:22

That's why we have so many new people coming.

8:25

People want to be in Chattanooga, people want to be in Tennessee generally.

8:28

And whether we did 225 or 193 or 167, we are not meaningfully talking about changing our broader status as a very competitive environment and a very desirable environment.

Discussion Breakdown — Share of Meeting
Procedural████████████████████████████████32%
Public Safety█████████████13%
Personnel Matters████████████12%
Public Engagement██████████10%
Public Finance███████7%
Fiscal Sustainability██████6%
Public Works████4%
Budget Equity Analysis███3%
Planning And Zoning███3%
Summary of Proceedings

Chattanooga City Council Public Hearing on FY26 Budget Amendment – August 19, 2025

The Chattanooga City Council met on August 19, 2025, for a public hearing on the fiscal year 2026 budget amendment. The hearing focused on Mayor Kelly's proposal to set the property tax rate at $1.93 per $100 of assessed value, generating $44.85 million in incremental revenue. The meeting began with an invocation and pledge, followed by a presentation from Chief of Staff Kevin Rowe, and then public comment for one hour. A second public hearing on Councilman Henderson's alternate $1.69 rate proposal is scheduled for the following week.

Consent Calendar

  • Ordinances on final reading (items A–F) were approved as a package without objection.
  • Consent agenda items included rezonings, easement abandonments, appointments, contract approvals, and routine purchases.

Public Comments & Testimony

  • Donovan Conico (Signal Centers, District 3) expressed full support for the mayor's proposal, stating that underinvestment in city services leads to greater future costs.
  • Daniel Bradley (District 3) opposed the tax increase, arguing that property assessments have doubled, calling the plan a "Trojan horse" that uses public safety as cover for a "massive tax grab." He demanded a full independent audit of city and county spending.
  • Beta Bagayavaggie (UTC student body president, Highland Park) strongly supported the mayor's plan, saying cutting the budget would weaken essential services and send a message that Chattanooga is unwilling to invest in young people.
  • Leanne Wiles (District 2, community advisory committee member) supported the mayor's plan, emphasizing that historically under-resourced communities would feel cuts the most and that it is better to "keep up than to catch up."
  • Harriet Whitaker (District 8, realtor) supported the $1.93 rate as a "quality compromise" and noted that the cost of maintaining services has increased.
  • William Ladd III (First Baptist Church, District 8) expressed strong support for the mayor's plan, stating that when property values rise, there is a shared responsibility to invest in the community.
  • Jeremiah Chambers (UTC student, District 8) spoke in favor of the mayor's plan, emphasizing collaboration and investment in equity and the future.
  • Emily O'Donnell (Legal Aid of East Tennessee, District 7) supported the mayor's proposal, citing an independent cost-benefit analysis showing that every $1 of public money invested in eviction prevention yields $4.84 in return.
  • Jessica Stewart (SEIU Local 205 president) supported the mayor's budget, specifically asking for increased on-call pay for city employees (currently $10/day, unchanged in 10 years).
  • Michael Whitfield (District 4, HOA president) expressed concern about the tax increase, noting he is on a fixed income and cares for a spouse in memory care. He asked why the tax freeze could not be based on his 2024 tax bill.
  • William Lloyd (District 4) opposed a tax increase, pointing to the city's general fund discretionary balance of $152.9 million, and asked the city to use existing funds before raising taxes.
  • Blake Wright (District 11) called for compromise between the $1.69 and $1.93 rates, asking council members to work with Ron Elliott on line-item cuts that could fund public safety without a larger tax increase.
  • Joe Degatano (District 2) urged council to fund police and fire raises but cautioned against a large tax increase, noting landlords will pass costs to tenants and the $34/month impact is significant for struggling families.
  • Sharonda Brown (Sister RN and Friends, Hooked on Healing 423) thanked the city for supporting her youth mental health and wellness programs, and asked council to fund first responder raises.
  • Vivian (name provided, senior citizen over 80) opposed a 25% tax increase, saying she lives on limited income and that property values have risen beyond belief.
  • Catalina Kay (fire wife) spoke in favor of the mayor's plan, describing her husband's 109-hour work weeks and the need for additional staffing, especially at Fire Station 21 in East Brainerd, where population has grown 96% since 1976.
  • Edward Hewitt (District 9) asked the council to focus on funding for the rest of the city, noting that police and fire are already funded under both proposals.
  • Sabrina Daniel (address 4410 Maryland Drive) cautioned against raising taxes, citing the city's discretionary fund and the impact on families who have lived in their homes for generations.
  • Jeff Miller (Chattanooga Police officer) supported the mayor's plan, stating that staying the lowest paid will result in being the least staffed, and noted the sheriff's office starting salary of $62,000.
  • Sergeant Ernest Crawf (CPD, 28-year veteran) supported the mayor's proposal, saying officers should not have to work multiple extra jobs to support their families.
  • Sydney Cassavant (CPD patrol officer, peer support team) supported the mayor's plan, stating that officers are forced to work overtime or find extra employment, leading to burnout and a potential mass exodus.
  • Benjamin Piazza (CPD sergeant, intelligence division) supported the mayor's proposal, sharing his personal story of adoption and the financial strain on officers.
  • Joseph Fogg (CPD officer, two years) supported the mayor's plan, noting that Chattanooga officers experience more traumatic calls than officers in other departments and are the lowest paid in the region.
  • Andrew Peker (CPD training director) supported the mayor's plan, stating he works three jobs and that officers report leaving CPD due to pay.
  • Sergeant Brown (CPD, two and a half years) supported the mayor's proposal, describing the stress of working multiple extra jobs and the impact on family life.
  • Officer Curtis Botcha (CPD, seven years) supported the mayor's plan, saying his salary is not enough to live off of and that he is considering leaving the department he loves.
  • Chris Melonix (FOP president, four years) supported the mayor's plan, stating the department is in worse shape than in 2021, with 71 operational vacancies, and that CPD is the lowest paid comparable agency in the Southeast.
  • Stephen Russell (wastewater department, SEIU Local 205) supported the mayor's budget, focusing on the need for increased on-call pay and solidarity with uniformed workers.
  • John John (District 9, former volunteer firefighter) asked for clarity on what would be lost if the lower $1.69 rate is adopted, noting that both proposals fully fund police and fire (except Station 21). He urged long-term sustainable development and zoning reform.
  • Chris Dooley (District 5, retired police and fire) supported a tax increase for police and fire but urged the city to watch spending and protect seniors on fixed incomes.
  • Monty Bell (address 727 East 11th Street) addressed the council during the general public comment period, referencing a lawsuit and alleging mistreatment by the city and county. He stated this was his last time addressing the council in that capacity.

Discussion Items

  • Budget Presentation (Kevin Rowe, Chief of Staff): Rowe presented the mayor's $1.93 proposal, which would increase the general fund from $345 million to $390 million, generating $44.85 million in incremental revenue. Of that, $31.5 million would go to operations (primarily public safety and infrastructure) and $13.35 million to capital expenses. The median incremental cost to homeowners is $34/month. Rowe compared Chattanooga's operating dollars per resident to Knoxville and Nashville, showing Chattanooga would still be lower. He also noted Tennessee's overall tax burden is the third lowest in the country.
  • Budget Calendar: Chairwoman Dotley confirmed that the council will vote on both the mayor's $1.93 proposal and Councilman Henderson's $1.69 alternate proposal on August 26, with a final vote on the winning proposal on September 9.
  • Public Hearing Rules: The city attorney read the rules: speakers have two minutes, one-hour limit, no vulgar language, address council as a whole.

Key Outcomes

  • Decision on FY26 Budget Amendment: Deferred to August 26, 2025, when the council will vote on both the mayor's $1.93 proposal and Councilman Henderson's $1.69 alternate proposal. The winning proposal will receive a final vote on September 9, 2025.
  • Consent Agenda Approved: All items on final reading, first reading ordinances (wastewater), and resolutions were passed unanimously.
  • Purchase Approvals: Six purchases and one RFP were approved, including a backhoe loader, dump trucks, a tractor/mower, and wastewater valves.
  • Committee Reports: Council members reported on flood relief efforts, town hall meetings, and upcoming community events.
  • Next Steps: A second public hearing on Councilman Henderson's $1.69 proposal will be held on August 26, 2025, at 3:30 p.m.

Meeting Transcript

All right, guys, we have the thumbs up from Rick. Thank you, Rick. I call to order this meeting of the Chattanooga City Council for Thursday, August 19th, 2025. I'd like to invite Councilman Davis to lead us in our Pledge of Allegiance and invocation. Moment of prayer. Father, we lift up to you today, all of those who've been affected by the flooding in our city this past week. God, we just pray that you would bless them as they recover. And we also, though, give you thanks and praise for the many ways we've seen your spirit at work in this city through your people over this past week for the many many acts of braveness, bravery, kindness, generosity from our first responders. Amen. Our our city officials and employees, our churches and nonprofits, and just individual citizens. God, we we thank you for all of these ways that you've been at work amongst us. And finally, we pray that you would guide and direct this council today and pray that your name would be glorified in all that we do. Jesus' name we pray. Amen. Okay, I'm now going to turn the chair over to our budget chairwoman. Councilwoman Rikita Dotley for the public hearing on our 2026 budget amendment. Yes, ma'am. All right, hello everybody. Thank you all so thank you so much for coming and being uh committed to civic engagement. So uh just a reminder uh we'll call the public hearing so order. Uh this is a public hearing for the uh fiscal year 2026 budget amendment. The mayor's proposal uh reintends to exceed the certified checks rate to 1.93. So first we will start out with uh Chief of Staff, Kevin Rowe, he's gonna come and do a uh brief updated presentation uh regarding the mayor's uh budget amendment proposal. Well thank you, madam chair, and I also want to thank everybody for being here, whether you support or um you're here in opposition of 193. I just I think it's great that everybody's here. Um Bible says that in an abundance of council their success, and I know that when we get to the end of this process, we're gonna land in a successful place, and we are gonna hopefully move in that direction some more today. So just a recap, we did the the Kelly administration did come out and adjust down the initial rate of 199 to 193, but the fundamentals are all still the same. We want we're trying to find the right balance between affordable property taxes, reliable services, and community improvements. Um, and I made this graph five minutes ago because I think that it's important just to realize that the fundamental issue that we are trying to bring to the the forefront here is that irrespective of what the rate is today, we know that the city of Chattanooga has critical needs for resources and for programming and for services that our citizens and our businesses rely on every day, and we know that they cost an amount of money that is going to probably continue to rise that those costs for those services and for those resources. And then we also know just time value of money that a dollar today is worth more than a dollar tomorrow. And so, what the mayor has put forward is what we believe to be a fine-tuned, calibrated approach that um effectively splits the difference between um high end of 225, which is what the previous adopted tax rate was, and what we've heard some other council members um throw out there around the 169-168 figure. So let's just talk about what 193 will do. Current for FY26, the current projected general fund revenue is a 345 million dollars. Well, we're proposing at 193 would move that number from 345 to 390, producing 44.85 million dollars of incremental revenue over and above the enacted amount. So what will we do with that revenue? Well, 31.5 million dollars of it is going to be for operations purposes, primarily around public safety and infrastructure priorities. Obviously, police and fire are our number one goal here. That's it's the impetus for the whole endeavor. Um, but we're also proposing that we fund some other critical needs that we know that we need as it relates to both public safety and to um to infrastructure and and some other items. Then on the capital side, um, we would pull $13.35 million dollars to continue to fund similar types of expenses, but that would be categorized as capital expenses. So that would move the new capital budget from I'm sorry, yep, the new capital budget from 191 and change to 204 and change, which is just under a 7% increase if we were to adopt this proposal. And then on the operation side, it would move what is currently a $345 million operating budget. Um it would increase it by about 9% to $376,746, and then the median impact, the incremental cost that we are asking Chattanoogans to um to invest, is about $34 a month again on median average. And then the asterisk here is the 390 figure in the operations ordinance, it's going to show 390 because we have to first capture all of the revenue before we can transfer the capital portion of it. But then at the end of the day, those two numbers for the respective budgets, capital and operations would be what they show there. And then um again, on average, $34 a month would be the incremental cost for your average Chattanooga, and you can see how that breaks out across the respective council districts. And then just a reminder you know, we want to constantly be thinking about well, how does this stack up kind of in a broader context? So you zoom out a click, and you can look at Knoxville, you can look at Nashville, and then you can basically just run simple division to get to an operating dollar figure per resident whose dollars go to get those services and those resources provided by these respective municipalities. And you can see that that even with a rate of 193, um, we are by no means out in front. You look at Nashville and Knoxville, and one of the things that the mayor says is you know, directionally, what kind of city do we want to be in?

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