Chattanooga holds public hearing on FY2026 budget amendment; mayor proposes 1.93 millage, council to vote next week

Chattanooga City Council held a public hearing Aug. 19 on Mayor Tim Kelly’s proposed FY2026 budget amendment that would exceed the certified tax rate to 1.93 mills, and Council Budget Chair Rakita Dotley said the council will vote on competing proposals next week.

Chief of staff Kevin Rowe told the council the administration’s proposal would raise roughly $44,850,000 above the current projection and that roughly $31,500,000 of the increase would be directed to operations—principally public safety and infrastructure—with about $13,350,000 earmarked for capital projects. Rowe said the median homeowner impact of the proposal would be about $34 per month.

The hearing drew more than an hour of public comment. Supporters — including nonprofit leaders, students, and unions — said the compromise rate of 1.93 balances service needs with affordability. Donna Conoco of Signal Centers said, “This proposal is not just about taxes. It's about sustaining a quality of life, safety, and opportunity that makes Chattanooga the great community it is.” Emily O’Donnell of Legal Aid of East Tennessee urged investment as prevention, saying eviction-prevention work returns public dollars and estimated that planned services could yield “over $2,400,000 back to the city taxpayers.” SEIU Local 205 President Jessica Stewart asked the council to “support and fully fund the mayor’s proposed budget,” including increased on-call pay for city employees.

Opponents and…