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Chattanooga proposes largely flat FY26 budget; civilian pay raises included, sworn pay gap left for later proposal
Summary
City administration told council the proposed fiscal 2026 general fund budget increases projected revenues by roughly 3% — about $8.7 million — and directs most new money toward civilian employee pay and benefits, while a separate proposal will be brought later to address sworn fire and police compensation.
Chattanooga officials presented a proposed fiscal 2026 general fund budget in a city budget education session that projects roughly $345,000,000 in total revenue for FY26 — about a 3% increase, or $8.7 million, over the current year. The administration said most of the proposed net growth would go to employee pay and benefits, while the larger sworn pay issue would be addressed in a later package.
The budget’s revenue picture, Weston, deputy chief financial officer, told council, puts total projected revenue for FY26 at "345,000,000," a figure the administration said reflects modest, mostly organic growth. Kevin, chief of staff, framed the budget as effectively flat overall but said the administration intends to invest the bulk of the increase in employees.
The proposal includes a civilian pay plan that provides a 2% cost-of-living adjustment and a 1% step increase — described by staff as an effective 3% adjustment for non‑sworn employees — and funds increases in pension and OPEB (other post‑employment benefits). Weston also noted that the budget shows 1,996 positions for FY26, down from 2,065 the prior year; the administration said that reduction reflects unfilled positions and a desire to align budgeted roles with actual staffing.
The administration emphasized an unresolved gap for sworn personnel: "the thing that the budget does not do that we feel is an urgent need for us to address is truing up our compensation for sworn fire and police," Kevin said, adding the city will bring a separate proposal after reappraisal and certification of the tax rate so council and the public can consider options.
Council members pressed administration staff for more detail on revenue assumptions and personnel counts. Staff said the largest revenue sources remain property taxes and local sales tax and reiterated the administration’s intent to follow up with line‑by‑line supporting documentation and additional detail on recurring versus one‑time amounts.
The budget presentation closed with the administration promising to circulate fuller staff responses and supporting schedules for council review before final action.
