Fiscal Year 2023
Budget Presentation
Operating and Capital Budgets
CITY OF CHATTANOOGA
Mayor Tim Kelly
Brent Goldberg, Chief Financial Officer
ONE Chattanooga
ONE Chattanooga Strategic Plan
● Broad vision that guides the work of all departments
● Systems focused, informed by prior work, and built on the basics
● Not meant to be a finished product, is in constant review
● 11 Principles firmly woven into the plan
● “Culture eats strategy for breakfast”
ONE Chattanooga Strategic Plan
● 7 goals and 40 priorities
1. Build a path to universal early learning
2. Catalyze economic vitality in the Black community
3. Ensure accessible housing choices for all Chattanoogans
4. Improve local infrastructure
5. Build a competitive regional economy
6. Close the gaps in public health
7. Provide responsive and effective local government
Significant Challenges
Significant Challenges
● Deterioration of roads and bridges
● Sewer and stormwater infrastructure needs
● Gun violence
● Persistent poverty and disparities
● Increasingly unaffordable housing
Housing Crisis
● As of 2019, 47% of households in Chattanooga were renters
○ 34% in Tennessee and 36% in the United States
● Monthly median rent in Chattanooga increased from $495 per
month in 2000 to $859 in 2019, an increase of 79%.
○ Median income increased 55% for the same period
● Now, monthly median rent is well over $1,000 and income growth
is not keeping up.
Housing Crisis
● Median housing prices have increased 80.7% since 2015
● Leaving 43% of renters defined as “housing burdened”, or
spending more than 30% of their income on housing
● And 22% of renters are “housing insecure”, defined as spending
more than half of their income on housing - putting them at risk for
eviction
Key Investments
Affordable Housing
● Unprecedented $33 million investment to seed a $100 million
affordable housing initiative.
● Aggressively seek to preserve or create thousands of units of
affordable housing over 5 years.
● Working with partners in the nonprofit, philanthropic, financial, and
homebuilding sectors to assemble remaining funds.
Affordable Housing
● Multi-pronged approach, including but not limited to:
○ Direct subsidies
○ Gap financing
○ Land acquisition
○ Down-payment assistance
○ Partnership with Community Development Financial
Institutions (CDFIs)
● Chief Housing Officer to lead this urgent work
Roads and Critical Infrastructure
● $131 million for roads and critical infrastructure
● Includes $10 million for paving as part of Mayor Kelly’s commitment to
invest at least $40 million over 4 years for repaving roads
● Includes $11 million for road construction, sidewalks, and bridges
● 2 new full-time employees to drive and operate pothole repair equipment
● Includes $3 million for traffic signal synchronization & optimization
● $100 million for sewer projects, $10 million for stormwater projects
Economic Development
● Nearly $5 million for early site preparation at Enterprise South
Industrial Park (ESIP).
○ 110-acre tract has the potential to lure another major automotive
manufacturer or electric battery manufacturer.
○ City/County Partnership
● $5 million for historic renovation of the 100-year-old Tivoli Theatre,
which will leverage $50 million from other sources.
○ In lieu of $1 million per year for 5 years
● Director of Entrepreneurship
Community Health and Gun Violence Prevention
● COVID/Public Health responses as needed
● Address racial and socioeconomic disparities in public health
outcomes.
● Gun violence is a public health crisis
● Partner with CPD to prevent gun violence
● Director of Community Safety & Gun Violence Prevention
Pay for First Responders and Essential Workers
● Invested more than $30 million last year to increase pay for first
responders and essential workers.
● 3% pay increase for all regular, full-time and part-time employees
○ City minimum wage of $15.45 per hour
○ Includes sworn employees
● No increase in health insurance costs for employees
● Supplemental funds for Head Start
Effective and Responsive Government
● Multiple investments to help streamline City processes and
prioritize innovative approaches, including:
○ 2 additional codes inspectors
○ Demolition Abatement Specialist
○ Increase of $350,000 for debris removal, cleanup, and demolition
○ 2 additional garbage truck drivers, 2 new garbage collection routes
○ Land Development - Transportation Review Specialist, Plans Review
Specialist, Construction Inspector
● Continuous improvement - $500,000 innovation fund
● Chattanooga IMPROVES
General Fund Revenues
No Tax Increase
General Fund Revenue Source Dollars Percent
Property Taxes $187,983,240 59%
Local Sales Taxes $63,438,500 20%
Other Local Taxes $20,747,390 7%
State Sales Taxes $19,703,500 6%
Other Revenues $25,127,370 8%
Total Revenues $317,000,000 100%
General Fund Expenditures
Department Dollars Percent
General
Fund Police $85,435,603 27%
Expenditures Fire $59,850,555 19%
By Public Works $37,558,254 12%
Department
Debt Service $19,878,455 6%
General Government $18,204,005 6%
Information Technology $16,447,433 5%
Parks & Outdoors $14,175,758 5%
Police Quasi-Agencies $12,868,870 4%
Fire
Community Development $12,834,842 4%
Public Works
Finance & Administration $7,511,131 2%
58% Executive Branch $6,186,945 2%
CARTA $5,800,000 2%
Other Departments $20,248,149 6%
Total Expenditures $317,000,000 100%
Other Funds
Fund Revenues Expenditures
General Fund $317,000,000 $317,000,000
Municipal Golf Course Fund $2,307,970 $2,307,970
Economic Development Fund $18,635,000 $18,635,000
State Street Aid Fund $6,310,000 $7,360,000
Hotel/Motel Tax Fund $10,344,308 $8,264,347
TVRC Fund $1,752,928 $1,752,928
Debt Service Fund $24,196,362 $24,196,362
Interceptor Sewer System Fund $107,000,000 $131,500,000
Solid Waste Fund $4,971,000 $4,971,000
Water Quality Fund $31,892,920 $35,027,920
Narcotics Fund $100,000 $350,000
Totals $524,510,488 $551,365,527
Capital Budget Summary
Three Capital Funds
Capital Budget Fund Dollars
General Government $96,102,591
Water Quality $9,835,000
Interceptor Sewer System $97,000,000
Total Capital Budget $202,937,591
General Government Capital Budget
Functional Areas # of Projects Dollars Percent
Housing 1 $33,000,000 34%
Roads and Bridges 7 $22,825,000 24%
Public Safety 9 $17,050,000 18%
Economic Development 3 $10,204,080 10%
Fleet 1 $4,500,000 5%
Neighborhoods 5 $2,649,670 3%
Better Government 7 $2,500,000 3%
Transit 1 $1,000,000 1%
Other Capital Projects 9 $2,373,841 2%
Total GG Capital Budget 43 $96,102,591 100%
Budget Book
Contents of Budget Book (Available Online)
● Executive Summary
● Revenue and Expense Overview
● Operating Budget Ordinance (Draft)
● Revenues
● Fund Summary
● Departmental Summaries
● Other Funds
● Capital Budget / Capital Improvement Plan
In Closing…
● Fiscally Sound
● No Tax Increase
● Bold Investments
● ONE Chattanooga
