City Council Budget Education Session – May 12, 2026

The Chattanooga City Council convened on May 12, 2026, at 10:00 a.m. for a budget education session covering general government, city attorney, internal audit, quasi agencies, HR, finance, and several departmental budgets. The session included presentations from city staff and department heads, followed by council discussion and questions. No formal votes were taken, but several policy directions and follow-up items were identified.

General Government & Debt Service

• The city’s debt service stands at $21.8 million for FY27, with a contingency fund of $3.2 million and $1.5 million for repair and replacement (R&R) of small equipment (desks, weed eaters, etc.).
• The R&R allocation was increased from $500,000 to $1.5 million using additional interest revenue.
• Other essential costs include $130,000 for the annual audit, $20,000 for tuition assistance, and funds for 911, McCann, and stormwater assistance.

City Attorney’s Office

• Total budget increased by $200,000, primarily due to moving a compliance officer to the risk office and elimination of a three-month hiring freeze (vacancy savings of $16,000 no longer budgeted).
• The office is handling increased code enforcement cases in city court. Council discussed recruitment challenges for attorneys due to pay rates, with a $10,000 gap needed to attract talent. The deputy city attorney position remains unfilled.
• Tort liability reform remains a risk; the office is not currently in an insurance pool.

Internal Audit

• Budget essentially flat, with a $22,000 increase for salaries and benefits. The director noted aging staff and potential succession challenges, especially for senior auditor positions requiring CPA/CIA certification.
• Council discussed the need for a deputy position and competitive pay to attract and retain talent.

Human Resources

• HR budget increased $168,000, largely due to elimination of vacancy savings from last year’s hiring freeze. No new positions.
• Training costs decreased by $5,500; the city offers a career ladder, apprenticeship programs, and expanded new hire orientation to three days.

Finance

• Finance budget increased $1.6 million, primarily due to moving purchasing ($1.4 million) into finance and adding one new payroll position to centralize payroll functions.

City Council Budget & Policy Position Debate

• Council’s budget is roughly flat, with $32,000 in savings. A proposal to create a new policy position (legislative affairs/research) sparked extensive debate.
• Councilman Elliott proposed a position initially including constituent services, but after feedback from colleagues, the constituent services component was removed. Councilman Clark advocated for a hybrid role with constituent services and a total compensation cap of $110,000 (including benefits). Councilwoman Hill suggested a legislative researcher only, with a salary comparable to the policy director in the mayor’s office (around $85,000 base). Councilman Burr recommended reviewing existing staff job descriptions to avoid duplication.
• The matter will be placed on the next council agenda for a vote. If approved, the budget will be amended to include funding for the position.

Community Development

• Overall budget decreased by $134,000, but $500,000 in COVID funds were reallocated to salaries and programs. Three new positions: three assistant directors for community centers, a lifeguard, and a manager of community safety and gun violence prevention.
• The assistant directors will manage clusters of community centers to reduce the deputy administrator’s span of control (from 24 direct reports to 6-7).
• The gun violence prevention manager will support expansion of the violence interrupter program, funded via general fund and temporary employment agencies for background check flexibility.
• Six community resource hubs (East Lake, South Chattanooga, Avondale, Carver, Hickson, Chris Ramsey) will offer consistent programming in health, social services, education, and recreation. Virtual “resource row” kiosks will provide services like driver’s license renewals.
• Council members expressed concerns about the department’s lack of outcome-based metrics and requested quarterly report cards for community centers.

Police Department

• Police operations budget increased $5.5 million (excluding 911 and McCann, which were moved to general government). The increase is primarily for salaries/benefits (COLA, anniversary increases, benefit rate adjustments).
• Chief Chambers reported that the department went from 23% vacancy to only two sworn vacancies, with an academy starting in July with 38 candidates. The salary adjustments from last year were credited for this improvement.
• One new fleet specialist position added to improve vehicle maintenance tracking.
• The Axon contract for body cameras ($1.4 million) moved to DTS budget.
• Special events security costs: large events (e.g., Ironman) are funded from the police overtime budget; private events often pay officers directly through extra-duty contracts.

Fire Department

• Budget increased $1.2 million, mainly for salaries/benefits. No new positions.
• Chief Knoles reported that resignations dropped from an average of 12 per year (2018-2025) to just one in 2026, attributing the improvement to pay increases. The department has 43 vacancies but expects to be fully staffed by April 2027.
• Ladder 21 (added last year) proved critical in a recent two-alarm fire, saving adjacent homes.
• Future needs include a new fire hall in the Black Creek area and a station near Hamilton Place Mall. Discussions are ongoing with developers regarding funding.
• Fire hydrant maintenance is the responsibility of Tennessee American Water and other utility companies; the fire department inspects and flows hydrants twice a year.

TVRCS (Tennessee Valley Regional Communications System)

• Budget is flat. The enterprise fund serves 11 counties (4 in Georgia) through subscriber fees. Revenue is expected to increase 3.7%.
• A substantial infrastructure upgrade is planned for end-of-life radio systems; the agency is working with the state for grant funding.

Key Outcomes

• No formal budget votes were taken; the session was informational.
• Council will consider a policy position for the council office at the next meeting (May 19 or 26).
• Follow-up items include: receiving a report on the city attorney’s pay gap, reviewing community center performance metrics, and obtaining a breakdown of TVRCS revenue by jurisdiction.
• The meeting adjourned shortly after 11:00 a.m., with the next budget session scheduled for May 19, 2026, at 9:00 a.m. (public works) and 10:00 a.m. (DTS).