Kelly administration proposes $1.99 mill rate to fund public safety, paving and neighborhood services

The Kelly administration presented a proposal to the Chattanooga City Council to adopt a $1.99 mill property tax rate as part of a budget amendment work session, saying the rate would raise incremental revenue to fund public safety pay increases and other city priorities while avoiding deeper service cuts.

The administration said the $1.99 rate would cover most of the remaining pay increases for police and fire after an earlier $5 million down payment, and also provide additional funding for paving, parks maintenance, affordable‑housing programs and targeted neighborhood economic development. Kevin, an administration presenter, described the plan as an attempt to “responsibly fund all three” competing resident priorities — reliable services, community improvements and tax affordability — and said the package was intended to be “resident focused, targeted, and high‑impact.”

Why it matters: Administration materials and discussion tied the proposal directly to a multi‑million dollar gap for first responder pay and to rising operating costs from inflation. Officials warned that without new recurring revenue, the city’s purchasing power will decline and service levels could erode over time. The session produced no formal vote; instead staff agreed to draft an implementing ordinance and the council scheduled follow‑up meetings and public hearings.

What the administration proposed - Public safety: Administration materials showed roughly $23 million identified for pay increases in total, counting a $5 million contribution already in the adopted budget and roughly…