OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Chattanooga City Council Budget Public Hearing and Vote - August 26, 2025

City Council & City Boards — Tuesday, August 26, 2025
BodyChattanooga, Tennessee
SessionCity Council & City Boards
DateTuesday, August 26, 2025
StatusFILED
Video Record
0:00 / 4:29:47

Transcript — Verbatim
6:54

Good afternoon, everyone.

6:56

I call to order the City Council of Chattanooga for Tuesday, August 26, 2025.

7:03

Like to invite Councilman Harvey to lead us in the Pledge of Allegiance and invocation.

7:28

Thank you everyone for being here today.

7:30

We have a special presentation today in the form of a public hearing.

7:36

Oh my goodness, I apologize.

7:38

Let me hit your button, sir.

7:39

You'd like to do an invocation.

7:41

I would like to do an invocation.

7:42

Thank you, Madam Chair.

7:43

Join me in prayer.

7:45

Father, we thank you for this opportunity to be in this beautiful city that you've given us.

7:50

Thank you for uh friends and family.

7:53

Thank you for the blessings of life that you've given us.

8:08

Would we pray for our first responders that you would go before them, keep them safe, bless them and their families.

8:14

We thank you, Lord, for uh their service to keep us safe as citizens of this great city.

8:19

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.

8:38

We pray these things in Christ's name.

8:39

Amen.

8:44

Thank you, sir.

8:44

Okay, well, I am happy now to turn this chair over to Madam Budget Chair Rakita Gotley to lead our hearing.

9:07

Good afternoon.

9:11

Yes, it's taxes, yes, it's taxing, but hey, life goes on.

9:16

Okay.

9:17

All right, so we are here for our public hearing.

9:20

Um so good afternoon, everyone, and thank you for being here today.

9:23

I appreciate you taking the time to participate in this public hearing.

9:27

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.

9:41

Um and so with that, we will start out with a presentation from Councilman Henderson.

9:48

Um, so I'll bring this public hearing to order.

9:52

Okay.

9:55

Good afternoon, council.

9:57

Good to be here with you this afternoon.

10:01

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.

10:16

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.

10:32

So what increasing the property tax rate from $1.55 to $1.69 means for Chattanoogans.

10:42

Number one, it will generate about $15 million of new revenue a year at a median cost for residents of about $12 a month.

10:56

Now read my lips.

11:47

So where is the money going?

11:51

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.

12:09

Uh change of $9 million, and then fire department receives $14 million increase, goes straight into each department.

12:19

Uh $9 million and $14 million.

12:24

This page, whoa, I hit up wrong button somewhere.

12:30

This page illustrates on your left-hand side here, uh it highlighted in yellow.

12:39

These departments receive no cuts in funding whatsoever.

12:45

Uh so they they had they remained the same as the FY26 current budget.

12:52

The to the right shows departments that were cut, but funding is still increased from FY25.

13:04

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.

13:17

And this is the two slides combined showing you the departments.

13:23

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.

13:41

So this is just kind of a highlight of uh what affects each department sort of had.

13:48

So the blue had uh cuts, but were still funded at a level higher than FY25.

13:58

Our last slide, and uh Madam Chair told me I had three minutes.

14:02

How am I doing on time?

14:03

You're doing great.

14:04

Thank you.

14:05

So our that'll bring our total operational budget expenditures to uh 360 million two hundred and ninety-two thousand three hundred and forty dollars.

14:18

Madam Chair, that concludes my presentation.

14:21

All right, then thank you so much, Councilman Henderson.

14:23

We appreciate the presentation.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis██████████████████████████26%
Public Safety██████████████14%
Procedural███████████11%
Public Engagement███████████11%
Public Finance███████████11%
Planning And Zoning█████████9%
Affordable Housing████4%
Public Works███3%
Community Engagement██2%
Summary of Proceedings

Chattanooga City Council Budget Public Hearing and Vote - August 26, 2025

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).

Consent Calendar

  • (No consent calendar items were identified in the provided excerpt.)

Public Comments & Testimony

  • Leanne Wiles (District 2) opposed the Henderson/Davis alternate proposal, stating it leaves a $33 million gap and underfunds public safety, and expressed support for Mayor Kelly's plan as a one-step solution.
  • B. Tabagayavaji (District 9) strongly opposed the Henderson/Davis proposal, saying it cuts services like 311 and disproportionately harms black and brown communities, and urged adoption of Mayor Kelly's plan.
  • Bob Geyer (District 1, Friends of Mountain Creek) noted home values have risen 57% since 2021, argued the Henderson plan's 1.69 rate would cause a 20% tax bill increase (vs 38% under the mayor's), and requested consideration of fixed-income seniors.
  • Sherry Kitts (District 3) requested clear justification for the millage rate and expressed concern about hidden spending, such as down-payment assistance programs.
  • Kim Murphy (District 2) supported the Henderson proposal, argued the city should use $153 million in discretionary funds before raising taxes, and criticized the current property tax model.
  • Mike Hickman (District 2) stated the mayor's 1.93 rate is a 25% increase, argued city spending has grown 46% since 2021 (far exceeding 23% inflation), and called for more transparent budgeting.
  • Daniel Braden (District 1) accused Mayor Kelly and media of lying about a "tax decrease," argued that combined city and county rates would reach $3.44 (higher than Nashville), and threatened a recall petition if the increase is forced through.
  • Justin Cole (President, IBPO; District 6) supported the mayor's proposal, citing critical needs for police vehicles and infrastructure (flooding, malfunctioning traffic lights, crumbling roads).
  • Anna Galladay (District 8) opposed the alternate proposal, saying it would harm community services and homeless populations, and requested a public budget committee.
  • Janice Gooden (District 8) expressed uncertainty, advocated for partnerships with nonprofits, and criticized the process as lacking a concrete plan.
  • Krista Manorino (Signal Centers) supported Mayor Kelly's proposal, emphasizing its positive impact on vulnerable populations.
  • Officer Blevins (District not stated) argued the alternate proposal is a "band-aid" that doesn't replace vehicles or retain personnel, and urged adoption of the mayor's plan.
  • Chris Dooley (District 1) supported the 1.69 increase, argued the city should streamline expenses before raising taxes further.
  • Eddie Owensby (District 3) argued the tax increase would drive senior citizens out of Chattanooga.
  • Dr. Joshua Tyler (District 6) supported fair pay for first responders but highlighted the affordability crisis: median home prices tripled in five years, 8% of young adults have left since 2020, and 53% of housing units are investor-owned.
  • Emerson Birch (District 9) presented a 14-page report showing that the city's presentations only covered primary residences (less than half of parcels), and urged the council to demand better data.
  • Edward Hewitt (District not stated) argued the 1.55 rate already provides $5 million more due to reappraisal, and suggested a compromise lower than 1.93.
  • Jakir Rasheed (District 5) stated the council already passed a budget with no service cuts and should now fund police/fire raises.
  • Jan Purdy (District 3) supported the Henderson proposal, arguing it gives department heads discretion to manage cuts.
  • Curtis Lancaster (District 5) supported Mayor Kelly's plan, citing veteran support for first responder pay and road repairs.
  • Jack Thompson (Firefighters Association) supported the mayor's proposal, noting that delays would push back equipment delivery by months/years.
  • Keith Lyles (Firefighters Association) highlighted understaffing at Ladder 21 and argued the alternate proposal does not fund the needed truck.
  • Marie Mott (District 6) argued the city's growth narrative is a "lie," and the tax increase is a bailout for fiscal mismanagement, and proposed metro government consolidation.
  • Aaron Morrier (District 9) opposed both plans, saying they harm seniors and disabled on fixed incomes.
  • Tamika White (SEIU Local 205) urged support for the mayor's proposal, specifically highlighting the need for increased on-call pay.
  • Trino Coke (District not stated) argued public works employees also deserve raises if first responders get them.
  • Ryan E. Walt (District 2, former COO) urged finding a middle ground between 1.69 and 1.93, and suggested delaying the deadline via ordinance.
  • Chris Mullinix (FOP President, District 1) opposed the Henderson proposal, stating it does not fund police vehicles or Ladder 21, and argued a vote for it is a vote against public safety.
  • Kevin Hayes (District 5) urged collaboration among the mayor and council.
  • Vivine Hershey (District 1), age 80, argued the cost of living has surged due to outside investors, and supported the Henderson proposal.

Discussion Items

  • Councilman Henderson presented the alternate proposal (to increase the tax rate to $1.69, generating ~$15 million/year at a median cost of ~$12/month) and argued it prioritizes fire and police raises and transparency.
  • Mayor Kelly presented his proposal ($1.93), stating it accounts for 22% inflation since 2021, would be the lowest rate in city history, and would cost a median household about $1/day.
  • Extensive debate about the process: Councilman Henderson expressed frustration that needs for police vehicles and Ladder 21 were revealed late in the process. City Chief Kevin reported that police vehicle funding had been cut 50% in 2021 and that needs were presented in July. The fire chief confirmed that Ladder 21 needs were presented in the original budget hearings.
  • Councilman Harvey offered an amendment to the alternate proposal, raising the rate to $1.73 to fund Ladder 21. The amendment passed 7-2.

Key Outcomes

  • Vote on Amendment to Alternate Version (to increase rate to $1.73 and fund Ladder 21): Passed 7-2 (Councilwoman Dotley and Vice Chair Noel opposed).
  • Vote on Alternate Version (as amended to $1.73): Failed 4-5 (Councilman Henderson, Davis, Harvey, and Chairwoman Hill voted yes; Councilman Clark, Councilwoman Burrs, Councilwoman Dotley, Councilman Elliott, and Vice Chair Noel voted no).
  • Vote on Mayor's Proposal (to increase tax rate to $1.93): Passed 5-4 (Councilman Elliott, Councilwoman Dotley, Councilwoman Burrs, Councilman Clark, and Vice Chair Noel voted yes; Councilman Harvey, Councilman Davis, Councilman Henderson, and Chairwoman Hill voted no).
  • Capital Budget Ordinance (increasing capital budget by $13,350,000 from general funds): Approved.
  • Various resolutions and purchases were approved unanimously or without opposition.
  • The council recessed from its public hearing at approximately 4:31 PM and resumed regular session at 7:00 PM.

Meeting Transcript

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.

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