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Record of Proceedings

Budget and Finance Committee Meeting - September 29, 2026

City Council & City Boards — Tuesday, September 29, 2026
BodyChattanooga, Tennessee
SessionCity Council & City Boards
DateTuesday, September 29, 2026
StatusFILED
Video Record
0:00 / 3:00:33

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording.

Speaker 1

6:46

We have a few more

Speaker 2

6:46

members uh of the council

Speaker 3

6:48

here.

6:48

Uh

Speaker 1

6:48

I'll go ahead and call the meeting to order uh and note that we do have a quorum of committee members uh from budget and finance committee.

6:58

Can I get approval of the minutes from last meeting?

7:00

So move.

7:02

Uh without objection, they'll stand as they are recorded in your finder.

7:07

Um I've moved the budget amendment up to um the first in discussion uh this afternoon and what um what I would like to schedule uh and I'll talk to administration about this, what I would like to schedule is having our uh public hearing uh on the budget amendment on the 20th of October, and then that would put our first reading on the 27th of October.

7:41

Uh so that are that's the two dates that I would like to shoot for uh for our budget amendment is uh the 20th of October for our public hearing and the 27th of October for our first read.

7:55

So um I've asked uh Chief Chambers to join us uh here today.

8:00

The first thing that I want to talk about is the uh mediation that needs to take place at the police service center.

8:09

Um when we when we talk about this in council, I think you have at your uh at your desk um little handout here.

8:19

There's there's basically three options that we want to examine and consider.

8:23

Number one is just basically replace the building as it is, uh which would run us about 17 and a half million.

8:32

Uh we do have an option in here for an expansion that would give us about an additional eighteen thousand square feet that would total about nine million dollars and what that would do that would allow CPD to vacate the uh fire training facility and bring them over to one building and give the fire training facility uh much needed space uh that they need there at that building.

9:00

Uh it's my understanding that there hasn't been some discussion about

Unassigned speaker

9:04

at

Speaker 1

9:04

least at one point having to add on to that building just because we need the additional space.

9:10

So it looks like we're gonna be doing an addition to one or the other of those buildings.

9:15

So uh this gives us a a second option.

9:18

The third option, which is in your little handout here is to build a new building uh that would give us about I think twenty thousand more square feet, and I believe that cost estimates running at about thirty thirty-five million, thirty-six million uh and some change.

9:36

That would give us an additional twenty-five thousand uh square feet.

9:40

So I'm gonna ask Chief Chambers if he would join us at the tables.

9:44

Um kind of Chief walk us through the from the beginning of this um just so that the council understands how all this started, how we got here, and then obviously uh then we'll need to discuss uh uh the options going forward.

Speaker 4

10:00

Yes, sir.

10:00

Uh first, thank you for the opportunity.

10:02

I truly appreciate um the fact that we're actually having this conversation.

10:05

Um I believe it's a true testament to the belief that we need to protect our employees, they should have a safe space and a clean space to work.

10:12

So thank you all so much.

10:14

Um so when I was I was appointed chief uh in September of 2024, um, which was in the fall, and typically when we you know see issues in the South with you know moisture in a building, it it pops up in the spring and summer when things start to get warm.

10:28

And uh between the May and July time frame of 2025 is when I noticed when I would walk over to that north building, I could you could feel moisture like it was just it felt a little more humid than it would normally feel.

10:41

And as you all know, I've kind of grown up with it with CPD, so I've been in that building for over 25 years.

10:46

So I know what that feels like on a day-to-day basis.

10:49

So I started asking questions, you know, about why does it feel humid, what's going on, and at the time and and even still um our all of the the computerized technology that keeps up with that was managed by an outside vendor.

11:02

We didn't have direct access to to what that looks like, nor did we have any type of technology that detected on an automatic basis the level of humidity in that building, it did not exist.

11:14

Um our our uh fleet facilities manager um was reaching out to the vendor multiple times and had them come on site multiple times, um, and I still never could get an answer as to what was going

Unassigned speaker

11:25

on.

Speaker 4

11:25

Um, so I believe it was probably the the August time frame is when I actually reached out directly to the owner of of our contracted vendor and spoke with him and asked him like what has changed.

11:37

Something has changed, what has changed?

11:39

And it was that point where he explained to me that someone um requested that so we have this system called a makeup air unit, a makeup air unit brings in outside air into a building, it's required for all commercial buildings, so it brings it in, it's supposed to bring outside air in and remove the moisture and then send it directly to all of our our HVAC units that then distribute it throughout the building.

12:04

So you have clean fresh air coming in or fresh air coming in from the outside in, and it's not just recycling you know carbon dioxide, right?

12:12

That's what it was explained to me.

12:14

Um and someone called and changed the setting on that, what's supposed to be set at somewhere between 52 to 54 degrees and changed it to 72 degrees.

Unassigned speaker

12:25

So

Speaker 4

12:25

what was happening, it was bringing outside air in, and it was not cooling it to the point to remove all of the moisture from the air, like it should, and then it was distributing that moist air throughout that north building, and that was what had changed.

12:39

And to this day, he cannot recall who whether from us or his company who made that call or made that decision to make that change.

12:47

Nobody could tell.

12:49

Um, and at that point, we started getting a series of complaints.

12:52

Um, it was sometime during that June, July, August time frame of 2025.

12:57

We started getting several complaints that uh and I'm about to turn it over to our uh director of uh police HR operations because at the time she was in charge of occupational safety.

13:07

So it was that the complaints were were coming in like through chain of command and then over to fleeting facilities, and then at some point it transitioned to her shop, and then that's when she got involved in answering and responding to some of the complaints.

13:19

And if I could ask uh director Teller Walker to speak to that, would you like her to come up here or just take my space?

13:24

Sure, sure.

13:25

Um,

Speaker 5

13:26

she come up.

Unassigned speaker

13:26

She's it right here.

Speaker 5

13:27

I can move sure.

Unassigned speaker

13:30

Okay,

Speaker 1

13:30

oh yeah.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis███████████████████19%
Public Finance█████████████████17%
Personnel Matters██████████████14%
Public Works█████████████13%
Public Safety████████████12%
Engineering And Infrastructure███████████11%
Public Engagement██████6%
Early Learning████4%
Procedural██2%
Summary of Proceedings

Budget and Finance Committee Meeting - September 29, 2026

The Budget and Finance Committee convened on September 29, 2026, at approximately 4:26 PM to discuss several budget amendment items, including remediation and potential expansion of the Police Service Center, a holiday bonus for city employees, and funding requests for the Bessie Smith Cultural Center, Eastdale Collective, and Purpose Point Learning Academy. The committee also set dates for the public hearing and first reading of the budget amendment.

Consent Calendar

  • Approval of minutes from the previous meeting – passed without objection.

Discussion Items

Police Service Center Mold Remediation and Expansion

  • Chief Chambers detailed the discovery of pervasive mold in the north building (built 1974) following a change in the makeup air unit setting. Initial remediation ($1.2 million) proved insufficient; Bell Four restoration found mold throughout ductwork, asbestos, obsolete electrical systems, and ADA non-compliance.
  • Three options presented:
    1. Gut renovation to shell (replace interior, no expansion): $17 million.
    2. Renovation plus expansion (18,000 sq ft): $26 million total ($17M renovation + $8.9M expansion). Would allow CPD to vacate the fire training facility and give fire department more space.
    3. New building (three floors, 80,000 sq ft): $36 million.
  • Chief Chambers stated that both options 1 and 2 would address all issues and extend building life for 25+ years. Councilmember Clark requested a structural survey of the building envelope before committing.
  • Committee members expressed preference for Option 2 (renovation + expansion) as the most cost‑effective (same functionality as new building for $10M less).
  • Funding model undecided: bonding the $8.9M expansion would replace other capital projects; using the entire $26M from the reserve fund would drop reserves from 34% to 26%. Chief of staff recommended funding the whole project from reserves to avoid disrupting planned capital projects.
  • Next step: Administration to provide a briefing on opportunity costs if bonding is used, and a structural survey of the building exterior.

Holiday Bonus for City Employees

  • Chair Henderson proposed a $1,000 one‑time bonus for all non‑elected city employees, costing an estimated $3.6 million (including payroll taxes and benefit impacts).
  • Discussion centered on eligibility (part‑time, temporary, sworn/non‑sworn), taxation (bonuses taxed at a flat 40% rate by the IRS), and equity.
  • Councilmember Clark suggested a tiered approach:
    • Employees earning under $45,000: $1,000
    • Employees earning $45,000–$120,000: $750
    • Employees earning over $120,000: $500 or $0.
  • Councilmember Hill asked for a prorated option for part‑time employees.
  • HR Director Erica confirmed current employee counts (384 full‑time regular, 132 part‑time, total ~516 civilian employees) but later a reference to 2,653 employees (likely including sworn) caused confusion. The $3.6M figure assumed all city employees including sworn.
  • Several councilmembers questioned the sustainability of a one‑time bonus versus permanent pay increases, especially given the impact on reserve funds.
  • No final consensus; the committee requested additional analysis from HR on tiered and prorated options for the October 6 meeting.

UTC Endowment Fund ($250,000)

  • Consensus to include in the budget amendment with no further discussion.

Bessie Smith Cultural Center – Reallocation ($250,000)

  • Request to repurpose $250,000 from the existing fund balance (total balance $555,000 after FY27 allocation) to fund planning for the “Dream Forward” project (specialized project management, facility planning, funding strategy, etc.).
  • Executive Director Paula Wilkes stated the money is needed for technical capacity building before fundraising; the city’s annual maintenance contribution has kept the building operational.
  • Some councilmembers expressed concern about drawing down the fund balance by half. The committee voted to move the item forward to the full council.

Eastdale Collective ($250,000)

  • Councilmember Elliott proposed $250,000 from the reserve fund to partner with the Enterprise Center for community development in Eastdale (staffing, marketing, supplies over two years).
  • Debate arose over funding source: Councilmember Hill preferred the Economic Development Fund (which has $25 million), while Chair Henderson and others argued for using the reserve fund to reduce its large balance.
  • Administration was agnostic. The committee agreed to move the item forward; final funding source to be decided.

Purpose Point Learning Academy ($245,000)

  • Councilmembers Dotley and Clark explained that the city inadvertently caused a staffing shortage at Purpose Point by hiring away their Head Start teachers without a transition period, leading to the closure of two classrooms (16 seats).
  • The requested $245,000 would supplement teacher pay to reopen the classrooms.
  • Several councilmembers requested more detailed cost and sustainability data. The committee decided to postpone discussion to the October 6 meeting, asking for a written plan.

Key Outcomes

  • Police Service Center: Committee consensus to pursue Option 2 (renovation + expansion, $26 million). Staff to provide a structural survey and opportunity‑cost analysis of bonding the expansion.
  • Holiday Bonus: No final decision; HR to present tiered and prorated options at October 6 meeting.
  • Bessie Smith Cultural Center: Recommended to move forward with reallocation of $250,000.
  • Eastdale Collective: Recommended to move forward; funding source to be determined.
  • Purpose Point Learning Academy: Delayed to October 6 for more information.
  • Next Steps: Committee will reconvene on October 6, 2026, at 3:30 PM in the chamber to finalize recommendations. Budget amendment public hearing set for October 20, first reading on October 27.

Meeting Transcript

We have a few more members uh of the council here. Uh I'll go ahead and call the meeting to order uh and note that we do have a quorum of committee members uh from budget and finance committee. Can I get approval of the minutes from last meeting? So move. Uh without objection, they'll stand as they are recorded in your finder. Um I've moved the budget amendment up to um the first in discussion uh this afternoon and what um what I would like to schedule uh and I'll talk to administration about this, what I would like to schedule is having our uh public hearing uh on the budget amendment on the 20th of October, and then that would put our first reading on the 27th of October. Uh so that are that's the two dates that I would like to shoot for uh for our budget amendment is uh the 20th of October for our public hearing and the 27th of October for our first read. So um I've asked uh Chief Chambers to join us uh here today. The first thing that I want to talk about is the uh mediation that needs to take place at the police service center. Um when we when we talk about this in council, I think you have at your uh at your desk um little handout here. There's there's basically three options that we want to examine and consider. Number one is just basically replace the building as it is, uh which would run us about 17 and a half million. Uh we do have an option in here for an expansion that would give us about an additional eighteen thousand square feet that would total about nine million dollars and what that would do that would allow CPD to vacate the uh fire training facility and bring them over to one building and give the fire training facility uh much needed space uh that they need there at that building. Uh it's my understanding that there hasn't been some discussion about at least at one point having to add on to that building just because we need the additional space. So it looks like we're gonna be doing an addition to one or the other of those buildings. So uh this gives us a a second option. The third option, which is in your little handout here is to build a new building uh that would give us about I think twenty thousand more square feet, and I believe that cost estimates running at about thirty thirty-five million, thirty-six million uh and some change. That would give us an additional twenty-five thousand uh square feet. So I'm gonna ask Chief Chambers if he would join us at the tables. Um kind of Chief walk us through the from the beginning of this um just so that the council understands how all this started, how we got here, and then obviously uh then we'll need to discuss uh uh the options going forward. Yes, sir. Uh first, thank you for the opportunity. I truly appreciate um the fact that we're actually having this conversation. Um I believe it's a true testament to the belief that we need to protect our employees, they should have a safe space and a clean space to work. So thank you all so much. Um so when I was I was appointed chief uh in September of 2024, um, which was in the fall, and typically when we you know see issues in the South with you know moisture in a building, it it pops up in the spring and summer when things start to get warm. And uh between the May and July time frame of 2025 is when I noticed when I would walk over to that north building, I could you could feel moisture like it was just it felt a little more humid than it would normally feel. And as you all know, I've kind of grown up with it with CPD, so I've been in that building for over 25 years. So I know what that feels like on a day-to-day basis. So I started asking questions, you know, about why does it feel humid, what's going on, and at the time and and even still um our all of the the computerized technology that keeps up with that was managed by an outside vendor. We didn't have direct access to to what that looks like, nor did we have any type of technology that detected on an automatic basis the level of humidity in that building, it did not exist. Um our our uh fleet facilities manager um was reaching out to the vendor multiple times and had them come on site multiple times, um, and I still never could get an answer as to what was going on. Um, so I believe it was probably the the August time frame is when I actually reached out directly to the owner of of our contracted vendor and spoke with him and asked him like what has changed. Something has changed, what has changed? And it was that point where he explained to me that someone um requested that so we have this system called a makeup air unit, a makeup air unit brings in outside air into a building, it's required for all commercial buildings, so it brings it in, it's supposed to bring outside air in and remove the moisture and then send it directly to all of our our HVAC units that then distribute it throughout the building. So you have clean fresh air coming in or fresh air coming in from the outside in, and it's not just recycling you know carbon dioxide, right? That's what it was explained to me. Um and someone called and changed the setting on that, what's supposed to be set at somewhere between 52 to 54 degrees and changed it to 72 degrees. So what was happening, it was bringing outside air in, and it was not cooling it to the point to remove all of the moisture from the air, like it should, and then it was distributing that moist air throughout that north building, and that was what had changed. And to this day, he cannot recall who whether from us or his company who made that call or made that decision to make that change. Nobody could tell. Um, and at that point, we started getting a series of complaints. Um, it was sometime during that June, July, August time frame of 2025.

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