May 14, 2023

The City of Chattanooga FY 2024 Budget

Budget Overview

The mayor has released his proposed budget for fiscal year 2024, which runs from July 1, 2023 to June 30, 2024. The budget is split into 2 parts, the Operating Budget, and the Capital Budget. The Operating Budget accounts for the day to day cost of running the city: salaries, debt service, office overhead, trash pickup, paving, public safety, routine maintenance, etc. The Operating Budget is funded mainly through tax and fee revenues. The Capital Budget accounts for large projects with a long lifespan: new roads, new technologies, major facility renovations, etc. The Capital budget is funded mainly through reserve funds, bonds, grants, and loans (the loan payments then become part of the Operating Budget).

• You can view a short presentation summarizing the budget here.
• You can read the Operating Budget here.
• You can read the Capital Budget here.
• You can visit the budget dashboard and see a visual breakdown here.

Budget Schedule

• May 9, 16, & 23, the city council will have education sessions about the budget. You can view the first one here.
• June 6 the city council will have time for public comment at their regular 6pm meeting.
• June 13 the city council will have the first of two votes on the budget (as an ordinance it must pass 2 votes).
• June 20 the city council will have its final vote.

Budget Highlights

• No tax increases are proposed.
• 15 vacant positions and 14 currently filled positions will be eliminated.
• Public Safety is the largest line item in the Operating Budget, with $87M for police and $62M for fire.
  • The budget includes funds for 9 new firefighter positions.
• $142M is proposed for wastewater projects (improvements to our storm and sanitary system to ensure compliance with the EPA consent decree).
• $34M is proposed for road and bridge improvements.
  • $18M for the Walnut Street Bridge ($13M of which is coming from federal sources).
  • $10M for repaving projects (potholes!).
  • $1.6M for the Wilcox Blvd Bridge.
  • $4.1M for various road-related work and sidewalk improvements.
• $11M for water quality improvement projects.
• $9M for Public Safety Equipment
  • $8M for the fire department (new training tower, 5 new fire trucks, and other equipment),
  • $1M for the police department (new training and IT equipment).
• $6M for city government renovations.
  • $1.9M roof replacement for the Development Resource Center.
  • $1.4M for City Hall Annex Rennovation
• $5.8M for government vehicle fleet improvements (not including police, fire, and CARTA vehicles).
• $3.4M for Parks and Outdoors.
  • $1.3M for Provence Park.
  • $1M for (the long awaited) Chattanooga Skatepark renovation.
• $3M in federal funds to preserve or create 400+ affordable housing units.
• $820k to the Chattanooga Regional Homeless Coalition to support their work.
• $765K to supplement Head Start teacher salaries.
• $50k to increase paid apprenticeship opportunities.
• Funds to expand the Office of Affordable Housing.
• Starting with FY 24 most government workers will be moved to a step pay plan to ensure pay increases are awarded in a predictable and transparent manner.