Brady PieperThe Chattanooga City Council has amended the city’s budget to include additional funding for fire, police and capital construction projects.
The budget amendment, approved unanimously on final reading, will invest $29.9 million from the general fund reserve to support the city’s key funding priorities, including road paving, public safety and emergency responders. The move seeks to enhance funding for critical infrastructure projects while safeguarding the city’s long-term financial health.
“We’re paving roads, protecting our first responders’ futures, and making overdue investments while maintaining our conservative budget principles,” Mayor Tim Kelly said in a press release. “During my first campaign, I promised to use my business background to make city government more efficient and responsive to the needs of our city. We have a lot more to do, but the work is working.”
The largest of the city’s investments, $18 million, will be directed to the police and fire pension fund to adhere to recommended funding levels. The fund, established in 1949, provides benefits to more than 800 retired or disabled firefighters, police officers and other beneficiaries.
Beyond emergency responders, the amendment will make 73% of the remaining funding available to support critical infrastructure and public safety needs. These include street repairs, sidewalk construction, a modern traffic management center, intersection detection and beautification projects.
The budget amendment also proposes several investments for the city’s parks, community development initiatives and affordable housing planning. Projects include an inclusive playground, a parking lot, parking lot gates, a sports turf field, renovations, new pavilions and more.
This budget amendment will reduce the General Fund Reserve Balance to $88 million for Fiscal Year 2025, down from the current budget’s nearly $118 million. However, the city anticipates its strong fiscal position will allow for this investment in fire and police departments as well as capital construction.
According to municipal financial experts, the city’s general fund should maintain a balance in conjunction with the city’s annual revenue, at around 16 or 17%. Following the
amendment’s enactment, the city’s general fund balance will remain well above 26% of the city’s annual revenue.
A full list of specific funding allocations is available on the City of Chattanooga’s proposed budget amendment presentation.
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Chattanooga, Tennessee viewed from Stringer’s Ridge
Imilious via Wikimedia Commons
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