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Administration presents structurally balanced FY27 budget; proposes 3% pay increase and no property tax rate change
Summary
City administrators presented a $393.98 million FY27 budget that officials said is structurally balanced, includes a 3% cost-of-living increase for sworn and civilian employees and keeps the property tax rate unchanged. The plan funds $33.4 million in general capital and a $167 million total capital program and sets a public hearing and two readings in May–June.
Weston Porter, a city budget official, presented the City of Chattanooga’s proposed FY27 budget on May 5, describing it as “structurally balanced and fiscally sound.” The proposal lists total revenue of $393,980,000 and matching expenditures, officials said, with roughly 86% of revenues coming from property and sales taxes.
Porter told the council the budget includes a 3% cost-of-living adjustment for both sworn and civilian employees and "no change to the property tax rate that we set last year," which he cited in the presentation as 193. He said core services such as public safety and public works account for about 59% of operating expenditures and that salaries and benefits comprise roughly 62–63% of the budget by type.
The proposed capital program includes $33.4 million in general capital investments and a $167 million total capital program covering transportation, public safety, wastewater, parks and affordable housing. Porter said printed and online budget books with project-level detail would be available to council members and the public.
Council members asked for copies of the presentation and the digital budget book materials; Porter confirmed both would be provided. Porter also outlined the review timeline the administration expects: a public hearing on June 2, a first reading on May 16 and a second reading on May 23.
Why it matters: The budget sets spending priorities for the coming fiscal year and determines capital investments in infrastructure such as transportation and public safety. The proposed employee COLA is intended to improve retention, and the administration emphasized that the plan adheres to recently approved fiscal policies.
What’s next: Council will review the budget in more detail at upcoming committee and work sessions and will consider the ordinance at the scheduled readings and the June 2 public hearing.
Quote: “This budget is structurally balanced and fiscally sound and it continues our work towards the One Chattanooga plan,” Porter said during his presentation.
