First budget vote, infrastructure improvement plan

See the full June 3 City Council agenda here

Budget amended and approved

Council members amended and passed on first reading the city’s operational and capital budgets for the upcoming year. The full, balanced budget is based on regular year-to-year growth in property tax revenue. It does not set a tax rate as Mayor Kelly’s office waits on property value data from this year’s countywide reappraisal.

The mayor plans to decide the tax rate, and how much tax revenue to collect, in a budget amendment later this year. Officials have said they would need to find upwards of $20 million to provide pay raises to police officers and firefighters.

Approved by Council, the June 3 budget amendment set aside $5 million dollars from a rainy-day fund and an equipment-repair fund for public safety salaries. Council members still pressed city Chief of Staff Kevin Roig on the administration covering about half the cost of police and fire raises with other budget cuts. The rest would fall to taxpayers.

“This is a start,” said Councilman Chip Henderson, District 1. “It cracks the door, and then it allows the administration to start having conversations with the nine of us to decide where are we going to get the rest of those funds from.”

Browse the full budget proposal here.

Capital plan

A five-year, $683-million-dollar capital improvement plan was approved. It earmarks about $303 million for wastewater upgrades. Other major projects include $66 million for pavement management and road rebuilding, $28 million for Shallowford Road, and $23 million to renovate Carver Park.

Wastewater fee increases

The approved budget ordinance also includes increases to monthly wastewater fees. Based on water meter readings, residents will now owe $16.05 per 1,000 gallons of water used — an increase of about 90 cents. Charges for additional water use rose by smaller amounts.

Minimum monthly wastewater fees will also increase. For a common-sized residential water meter, five-eighths of an inch, the minimum charge will be $32.97, close to $2 more than this past year’s fee. No matter the amount of water used, residents must pay at least the minimum fee each month.

$40.5M bond issue

Council declared the city’s intent to issue $40.5 million in government bonds to fund infrastructure projects. Last June, Council approved a $15.5 million bond issue for public works.

Consent decree contract

A $3.3 million contract renewal to manage the city’s consent decree received approval. Since 2013, Jacobs Engineering Group has managed the city’s consent decree with the EPA, which requires a $1.1 billion investment in the sewer system to prevent overflows into local waterways.

Attend next week’s meeting

When: Tuesday, June 10 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.

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Contact William at william@chattamatters.com