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Administration flags one‑time ARP and other nonrecurring funds used to support agencies; council asks for historic funding and line‑item justifications
Summary
The city presented a set of agency and nonprofit appropriations that the administration said are funded in part with one‑time American Rescue Plan (ARP) or other nonrecurring dollars. Council members asked for historical funding data, which organizations received ARP, and which items are recurring versus one‑time.
Council and administration spent substantial time reviewing funding for outside agencies, quasi‑agencies and RFP‑funded contractors in the FY26 proposal, with the administration characterizing many of the new or increased awards as one‑time, nonrecurring appropriations.
Kevin, chief of staff, told council that some awards shown in the FY26 budget are funded with remaining ARP or other nonrecurring revenue and therefore should not be assumed to recur. "These are 1 time nonrecurring appropriations," Kevin said, and repeated that the administration wants to be clear to partners that funding shown for FY26 may not continue in future budgets.
Staff cited several examples and asked council to use the budget documents and a supplemental packet for details. The proposal includes an increase to CARTA’s operating subsidy (the slide shown listed a $7.6 million appropriation with an $1.8 million increase called out on the presentation), and staff said they hope some increases — such as a $500,000 boost for the Chattanooga Public Library system — will be funded on a recurring basis but emphasized that the administration must balance that hope with fiscal constraints as one‑time federal dollars are drawn down.
Council members asked for: (1) a list of which agencies previously received ARP funds and how much remains in ARP carryover; (2) 15‑year historical funding for agencies to show patterns of city support; and (3) line‑by‑line budget justifications for each agency and quasi‑agency so councilmembers can explain to constituents what specific appropriations pay for. Kevin and other staff agreed to provide a follow‑up packet with ARP carryover numbers, historical funding, and written program justifications.
Administration and council also discussed the separate four‑year RFP awards that currently fund multiple social‑service and arts providers; staff reminded council that many of those contracts enter their fourth year in FY26 and that the administration will engage council next year about whether to renew or restructure the RFP process.
