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City budget and property taxes, 5-year housing plan

On May 6, Mayor Kelly’s office presented next year’s budget, which calls for an $8.7 million increase over the current year.

Mayor Kelly’s Chief of Staff Kevin Roig presents the city’s FY2026 budget to City Council on May 6.

Budget presentation

Mayor Kelly’s office presented the proposed city budget for the upcoming fiscal year. The balanced budget calls for an $8.7 million spending increase. But the budget is subject to change — the city still has to decide on a final tax rate following this year’s countywide property reappraisal.

Kevin Roig, Mayor Kelly’s chief of staff, said officials plan to amend the budget once they’ve decided how much tax to collect. The budget amendment would provide pay raises in the police and fire departments

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What’s next for the budget?

Upcoming public budget meetings:

  • May 13 — 9 a.m. to 2 p.m. City Council building, 1000 Lindsay St.
  • May 20 — 9 a.m. to 12:30 p.m. City Council building, 1000 Lindsay St.

Council members plan to hold a public budget hearing on May 20 and take their first vote on June 3.

5-year housing plan

The city’s five-year plan to address housing and community investment needs was approved. HUD requires consolidated plans for grantees to receive federal funds, and officials expect to receive about $11.7M in grant dollars through 2029.

On April 29, the city’s HUD grant manager said the full five-year allocation is uncertain, subject to decisions by the federal government.

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$2.5M for housing programs

Council approved accepting $2.5 million in federal housing grant funds. The biggest fund recipients are:

  • City programs to incentivize developers: $690K
  • Chattanooga Neighborhood Enterprise: $500K
  • Community development office: $413K

RainSmart yard exemptions

Council approved exempting certified RainSmart yards from the city’s regulations on overgrowth. Currently, yards with grass, weeds, or underbrush over 10 inches violate city code.

The city’s RainSmart program aims to reduce stormwater runoff, and residents get up to $2,000 in reimbursement from the city by installing an approved rain garden in their yard. Yards feature native plants and downspouts directed into the garden or lawn. Homeowners with a certified RainSmart yard can also receive stormwater fee discounts.

Stormwater controls

A reorganization of city code regulating private storm drains was approved. Property owners must still perform quarterly inspections of all privately owned stormwater controls and “comprehensive inspections” at least every five years.

Developers must also sign agreements with the city to maintain stormwater controls and show proof of a maintenance contract.

Attend next week’s meeting

When: Tuesday, May 13 at 3:30 p.m.

Where: City Council Building, 1000 Lindsay Street, Chattanooga, TN 37402

Or: Watch the meeting live on YouTube @chattanoogacitycouncil8743

Chattanooga City Council is open to the public.


Contact William at william@chattamatters.com

Author

William is an award-winning journalist and editor focused on communicating important topics in a way that’s accessible to everyone.

Before coming to Chattanooga, he received his master’s degree from the University of Georgia and wrote for his hometown paper, the Atlanta Journal-Constitution. Catch him biking around town trying and often failing to avoid potholes.