Chattanooga City Council June 2, 2026 Meeting: FY27 Budget Hearing, Rezonings, and Key Appointments
Chattanooga City Council Meeting – June 2, 2026
The Chattanooga City Council convened on June 2, 2026, at 19:19 UTC for a regular meeting that included a public hearing on the proposed Fiscal Year 2027 city budget, discussion of upcoming agenda items, a planning and zoning committee session, and voting on multiple ordinances and resolutions. The meeting lasted approximately two and a half hours, including a recess for an attorney-client session.
Public Comments & Testimony
- FY27 Budget Public Hearing (one hour, two minutes per speaker):
- Charles Frazier (CEO, CARTA) expressed gratitude for the city’s proposed funding and noted that the city’s capital match would help leverage approximately $25 million in additional state and federal grants for transit, mobility, and infrastructure improvements.
- Brian McSween (CEO, Chattanooga Ballet) requested reinstatement of a $35,000 cut in ArtsBuild funding, arguing that general operating support is foundational for arts organizations.
- Jason Brown (SEIU Local 205) asked the council to “pop the hood” and consider a 5% wage increase for non-sworn employees and a $40,000 minimum entry-level pay floor, similar to recent raises for police and fire.
- James McKizick (ArtsBuild) asked that ArtsBuild funding be restored to the prior level of $270,000, noting that a $35,000 cut would eliminate 13 artist grants, 26 neighborhood projects, and thousands of field trips.
- Shelley Armstrong and Kelly Cruz (The Launch Pad) spoke in support of CARTA funding, emphasizing that bus passes remove the biggest barrier – transportation – for women in their sober living program, enabling all 55 residents to maintain employment.
- Swanda Tucker (city employee) stated that workers are struggling and need a 5% raise and $40,000 minimum, noting that many hold second jobs despite the city requiring this to be their primary job.
- Stephen Russell (city employee, SEIU) argued that a proposed 3% raise does not keep up with inflation (3.8% cost of living increase) and that many employees cannot afford to live in the city where they work.
- Stephen West (city employee) echoed calls for a 5% raise and $40,000 floor, warning that if the city cannot retain employees for garbage, brush, and emergency services, the city will suffer.
- Vincent Oates (Chattanooga Boys Choir) urged full restoration of ArtsBuild funding, calling the arts an “essential public necessity” that contributes to quality of life and economic activity.
- Danny Perez (alumnus of ArtsBuild programs) shared a personal testimony of how arts programs shaped his life and urged the council not to reduce access for future generations.
- Kathleen Nulty (Lyndhurst Foundation) announced a three-year operating support grant to ArtsBuild for $225,000 per year (an increase of $55,000) and respectfully asked the city to restore its allocation to $270,000 to maintain a true public-private partnership.
- Kim Jackson (Chattanooga Theater Center) requested restoration of ArtsBuild funding, recounting how a childhood theater trip changed her life and emphasizing that the arts help a community thrive, not just survive.
- Lynn Rutherford (Parks and Outdoors supervisor) pleaded for higher wages for her specialized staff (rain gardens, wetlands, etc.), noting that they love their work but cannot afford to stay without a 5% raise.
- Katie Harbison (Chambliss Center for Children) asked that the city keep its funding flat rather than cutting $55,000, warning that seven early childhood programs have closed since October and that affordable child care is essential for working families.
- Erica Roberts (artist) spoke passionately that arts funding is not a luxury but an intervention and memory, urging the council not to let the city “go quiet.”
- Latoya Smith (ArtsBuild community member) supported both ArtsBuild and CARTA funding, and also backed wage increases for city workers, stressing that all requested items are necessities.
- Monica Ellison (Arts Empower) urged funding for ArtsBuild and said that everything requested is a necessity, not a luxury.
- Taylor Boggs (ArtsBuild fellow) stated that art is crucial to civic engagement and that a city that does not prioritize its workers and art needs to reevaluate its priorities.
- Sadiv Khan (art educator) supported ArtsBuild funding, emphasizing that art builds community, brings peace, and provides therapeutic benefits.
- Public Comments (after voting):
- Anna Galladay (District 8, Park Central Neighborhood Association) urged the council to show moral courage and support a low-barrier shelter, noting that 70% of Chattanoogans experiencing homelessness are unsheltered – a rate two to three times higher than other regions in Tennessee – and that the CHAPT Foundation has identified four potential locations.
- Tyler Golson (District 1) thanked Councilwoman Noel and the council for their vote on the Raccoon Mountain water service project, saying it will provide water and safety for his family.
- Eric Atkins (co-chair, The Unity Group) criticized the city’s treatment of Juneteenth celebrations, noting that the city no longer considers the MLK parade a grand parade and that Juneteenth events face new insurance costs and lack of funding. He also referenced historical injustices, including lynchings on the Walnut Street Bridge.
- Rev. Ann Jones Pierre (District 9) contrasted the millions spent on the 250th anniversary of Independence Day with the lack of recognition and funding for Juneteenth, and urged the council to address systemic inequality.
Discussion Items
- Agenda Overview: The council reviewed the current week’s agenda, next week’s agenda, and items three or more weeks out. Vice Chairman Elliott explained that a taxi fare rate ordinance (first reading) would update rates to be compatible with Memphis, Nashville, and Knoxville. Councilwoman Dotley requested a red-line version, and the item was deferred one week.
- Community Development Resolution (withdrawn): Councilman Clark asked for an update. Vice Chairman Elliott noted he wanted an updated presentation on the consultant’s work before moving forward. The administration (Chief of Staff Kevin Rorick) stated intent to withdraw the resolution.
- Future Consideration – Recycling Pilot Program (Terra Nova): Vice Chairman Elliott discussed the composting and glass recycling pilot. The program’s composting curbside component will sunset; the city will focus on drop-off kiosks. Elliott expressed frustration that this change was not clearly communicated, but acknowledged the budget book was dense and that the administration and council are working to improve transparency. Councilman Clark asked about fees for niche services and expanding the program. The public works administrator noted that the curbside service cost 91 cents per pound ($53,000 for 59,000 lbs diverted) versus 66-72 cents per pound for drop-off/glass, so the decision was made to invest in the summer youth program instead of continuing curbside composting. Councilwoman Dotley expressed interest in citywide expansion.
- Bike Charging Stations: Councilman Clark asked about a resolution authorizing two bike charging stations and 25 e-fit bikes for the 4th Street Greenway and Erlanger Park. He asked if there could be a charging station in his district (North Brainerd) where the South Chickamauga Greenway is longest. The public works administrator indicated that was possible.
- Planning and Zoning Committee:
- Zoning Text Amendment: A cleanup to list specific uses (nursing homes, assisted living) under “residential care facility” – no policy change.
- Case 56 – 2836 Anderson Terrace (District 8): Request to rezone from RN16 to TRN3 for a triplex. Staff and planning commission recommended denial due to incompatibility with the suburban single-family pattern and narrow lot frontage. No applicant present; the item will move to next week.
- Case 60 – Jack Benson Park area: Rezoning from CMU1 to CC. The neighboring property owner requested a 20-foot buffer, which staff confirmed would be required. No opposition.
- Case 69 – Stanford Gap: Amendment to conditions of a prior rezoning (TRN3) to change a 30-foot Type A buffer to a Class M buffer and a 7-foot fence to a 6-foot fence. Staff and planning commission recommended approval.
- Case – 1601/1603 East 49th Street (District 7): Request to rezone to IH (heavy industrial) for outdoor vehicle storage (junkyard). Staff and planning commission recommended denial due to incompatibility with surrounding residential and because the current use is illegal and non-conforming. Councilwoman Dotley stated she will deny, noting the need to revitalize the Rossville Gateway Corridor. She recorded neighbor opposition.
Key Outcomes
- Ordinance 7A (Budget Amendment): Passed 5-2 (Councilwomen Dotley and Noel opposed). Amended FY 2025-2026 operations budget to increase general fund revenue and appropriate $3.5 million to capital projects.
- Ordinance 7B (Capital Budget Amendment): Passed 5-2 (same opposition). Increased capital budget by $3 million from general fund for the Raccoon Mountain Water Service Project.
- Ordinance 7C (Vance Road Rezoning, District 6): Passed unanimously. Rezoned portions of properties from RN16/IH/IL to RN16 and IL with conditions.
- Ordinance 7D (1128 East 13th Street Rezoning): Passed unanimously. Rezoned from RN3 to TRN1 with conditions.
- Ordinance 8A (Taxi Fare Rates): Deferred one week to June 9, 2026, to allow council members to review a red-line version.
- Resolution 9A (Community Health Contract): Withdrawn.
- Resolution 9B (Volkswagen Option Extension): Passed unanimously.
- Resolution 9C (David Johnson as Parks Administrator): Passed unanimously.
- Resolution 9D (Erica Collins as Chief Human Resources Officer): Passed unanimously.
- Resolution 9E (Liquor Store at 7703 Lee Highway): Deferred one week to June 9, 2026, pending additional information.
- Resolution 9F (Liquor Store at 2409 East Main Street): Passed 5-2 (Councilwoman Dotley and Noel opposed).
- Resolution 9G (Special Police Officer – Stormwater Division): Passed unanimously.
- Resolution 9H (SETWorks Contract Modification): Passed unanimously. Increased the Tennessee Youth Employment Program contract by $25,816.96 to $63,316.96 for summer youth employment in Public Works.
- Purchases: All seven purchases approved unanimously, including $902,435 for biosolids handling, $735,000 renewal for sweeping, $97,211 for utility terrain vehicles, and $125,000 for firefighter boots.
- Planning and Zoning Committee Recommendations: The committee approved minutes and forwarded items to the full council for next week’s vote. The 49th Street rezoning (case) will be denied; Councilwoman Dotley confirmed she will vote against it.
Other Business
- Councilman Henderson announced the first reading of the FY27 budget ordinance will be June 16, 2026, with second reading on June 23, 2026.
- Councilman Clark reported on upcoming budget town halls: June 4 at the Dr. Carroll Burr Family Justice Center (6 PM) and June 14 at Hickson Community Center (2 PM, with ice cream). Also announced a Historic Preservation Town Hall on June 3 at 6 PM in council chambers.
- Vice Chairman Elliott noted that school board member Alex White Tesla was present and congratulated him on his win.
- Chairman Davis reminded that the June 14 town hall will include a presentation from CBL on the Northgate Mall redevelopment.
- The certificate of compliance for Townsend Street wine (2409 East Main Street) was approved, and the certificate for Dream Liquor was deferred. A certificate of good moral character for the Council Fire Club (private club) was approved.
- Councilwoman Noel raised a point of order that Chairman Davis allowed a public speaker to call her name out, which she argued violated the rule against personal attacks. She stated she felt the rule was enforced selectively. The Chair apologized and said it would not happen again.
Meeting Transcript
All right. Thank you all for your patience. I'll now call to order our June second meeting of the Chattanooga City Council and recognize Councilman Clark to give our invocation and pledge. Heavenly Father, Lord, we come before you with grateful hearts. Thank you for the blessings that you have bestowed upon our city and our community and our nation. Help us to make decisions with integrity, compassion, and a genuine desire to serve the people entrusted to our care. Give us the courage to do what is right even when it is difficult. We pray for our nation during a time when unity is needed more than ever. Help us to see one another, not as opponents, but as neighbors, and give us the wisdom to work together for the common good. Father, we lift up our homeless neighbors and all those facing hardships, provide them with shelter, hope, opportunity, and caring people who will work alongside them, remind us that every person has dignity, value, and worth. Welcome again, everyone, and thank you for being with us this afternoon. Um, as we get started, I'll give just a brief overview of how our meeting runs. Um before I do that, just a reminder to everyone to please silence your your cell phones so that we don't have any unnecessary distractions as we go through the meeting today. Um we do have at the very beginning of our meeting today uh a special presentation in the form of our public hearing on the proposed fiscal year 2027 uh city budget. Um so that will be the very first thing that we do after I get through just explaining the flow of our meeting and our budget chairman uh councilman Henderson will give kind of the outline for that session when the time comes for that in just a minute. Um after that, we'll then um approve our minutes from our last meeting, and from there we'll get into a discussion of our agenda for this week, next week, and three or more weeks out. So we're a council who likes to be uh well prepared um for the things that come before us, and so um starting with this week, we'll look at our agenda going several weeks into the future, and council will have uh time to ask any questions or make any comments that they might have about those items. After that, we'll look at the purchases that are before us this evening for approval and then the future consideration items, which are those items I mentioned a minute ago, the items three weeks or more out on our agenda. Um, the council will have any discussion that we need to have about those items amongst ourselves up here on the dais. And after that, we will have a meeting of our planning and zoning committee, which I will be chairing this this evening in the absence of councilwoman burrs. And from that point, we will take uh a brief recess as we normally do, and we do need a brief attorney-client meeting during that recess to for the council to confer with our city attorney. Um, and we will uh so we'll we'll break for a period of time and then come back and vote on everything that's on our agenda for this evening. Um so without further ado, I will yield the chair to councilman Henderson for our public hearing. Thank you, Mr. Chair. Call to order the budget and finance committee for the sole purpose of conducting a public hearing on the proposed FY27 budget ordinance. Uh could I get a motion on the minutes of the last meeting? Probably without objections, the minutes will stand as recorded. Before I open the floor uh for public comment, uh the council has decided to allot a total of one hour for this public hearing and allow two minutes per speaker. Uh I would remind uh each speaker uh to please keep your uh input and your concerns regarding the FY27 budget ordinance only at this time. Uh council, I have uh three 37, so we will say 437 for the one hour at this time. I will open up the floor for our public hearing. So if you would like to address the council uh on matters of our FY27 budget, if you would uh make your way to the podium and make your comments from there. Say it again. Uh and we for those that are standing in the back, if you would like, we do have an overflow room and our conference room that does have a screen set up so that you can see the meeting. Uh I'm not sure how many of you are here for the actual public hearing, or if you've got another matter that you just like to wait in our conference room, you're more than welcome to wait there. If you would give us your name uh and um maybe the organization or district that you live in, and uh go ahead, and you'll have two minutes. I will do. Good afternoon, Chairman Davis, Chairman, uh, Vice Chairman Elliott and Council members. My name is Charles Frazier. I am the CEO of the Chattanooga Area Regional Transportation Authority, fondly known as Carta. I happen to live in District One. Uh, but first of all, I would like to sincerely thank the City Council for including Carta's funding request in the proposed fiscal year 27 budget. Um, we are grateful for your partnership and continued confidence in the work that we're doing here in Chattanooga. Over the last year, Carta has continued to demonstrate that our work is not simply about buses and parking. It's about economic opportunity, affordability, workforce access, quality of life, and ultimately city building. Ridership continues to grow across our system because people see value in mobility, reliable mobility. We are also seeing strongly stronger community engagement than ever before with residents, businesses, and neighborhood stakeholders becoming active partners in shaping Chattanooga's future. At the same time, CART is evolving into something larger than just a transit operator. Through initiatives like the Connect the Corridor on Brainerd Road, downtown mobility improvements and parking modernization.
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