The meeting on August 26, 2025, was called to order by the City Council of Chattanooga, with a focus on a public hearing for the FY26 budget amendment. The council considered two proposals: Mayor Kelly's proposal to set the property tax rate at $1.93 per $100 of assessed value, and an alternate proposal (initially at $1.69, later amended to $1.73) sponsored by Councilman Henderson and Davis. After public testimony, debate, and votes, the council adopted the mayor's proposal (5-4).
Good afternoon, everyone. I call to order the City Council of Chattanooga for Tuesday, August 26, 2025. Like to invite Councilman Harvey to lead us in the Pledge of Allegiance and invocation. Thank you everyone for being here today. We have a special presentation today in the form of a public hearing. Oh my goodness, I apologize. Let me hit your button, sir. You'd like to do an invocation. I would like to do an invocation. Thank you, Madam Chair. Join me in prayer. Father, we thank you for this opportunity to be in this beautiful city that you've given us. Thank you for uh friends and family. Thank you for the blessings of life that you've given us. Would we pray for our first responders that you would go before them, keep them safe, bless them and their families. We thank you, Lord, for uh their service to keep us safe as citizens of this great city. Um Lord, I pray for uh for unity that uh no matter what we do here today and in the years following that we would be unified uh not only as Chattanoogans but as Americans, uh let us remember how good and how pleasant it is when God's people live together in unity. We pray these things in Christ's name. Amen. Thank you, sir. Okay, well, I am happy now to turn this chair over to Madam Budget Chair Rakita Gotley to lead our hearing. Good afternoon. Yes, it's taxes, yes, it's taxing, but hey, life goes on. Okay. All right, so we are here for our public hearing. Um so good afternoon, everyone, and thank you for being here today. I appreciate you taking the time to participate in this public hearing. Uh, as a reminder, this is a public hearing regarding the fiscal year 2526 budget amendment and councilman Henderson and Davis' alternate proposal to exceed the certified tax rate to a dollar sixty-nine. Um and so with that, we will start out with a presentation from Councilman Henderson. Um, so I'll bring this public hearing to order. Okay. Good afternoon, council. Good to be here with you this afternoon. We are here for a public hearing today to discuss the alternate version of the FY26 budget amendment and the intent to exceed the certified tax rate to $1.69. And Madam Vice Chair Hill, it would be my intentions this afternoon to get this alternate version on the floor as a first amendment to item 8A. So what increasing the property tax rate from $1.55 to $1.69 means for Chattanoogans. Number one, it will generate about $15 million of new revenue a year at a median cost for residents of about $12 a month. Now read my lips. So where is the money going? All of that previous page, the uh $5 million set aside the $15 million in increased revenue and the three million dollars of cuts uh total 23 million dollars, $9 million of which will go to the fire to the police department. Uh change of $9 million, and then fire department receives $14 million increase, goes straight into each department. Uh $9 million and $14 million. This page, whoa, I hit up wrong button somewhere. This page illustrates on your left-hand side here, uh it highlighted in yellow. These departments receive no cuts in funding whatsoever. Uh so they they had they remained the same as the FY26 current budget. The to the right shows departments that were cut, but funding is still increased from FY25. So if you'll look in the blue, all of those departments did receive cuts, but they are still funded at an increased level from the FY25 budget. And this is the two slides combined showing you the departments. Um that uh out of 16 of the 21 departments either had an increase in funding, no cuts to funding or funded at a higher level than last year's budget.