The Kelly Administration has unveiled a $29.9 million budget amendment to be voted on by the Chattanooga City Council, aiming to achieve long-term savings using dollars from the city’s general fund reserve balance.

Why the amendment? The city is in a strong fiscal position, having more reserve than necessary for typical needs. The administration said if the funds remain unused in the general fund reserve, the value decreases over time due to inflation. Additionally, if bills come due later and the dollar’s value has diminished, those needs go unmet.

Now, let’s get into the key areas the administration hopes to invest in.

The Police and Fire Pension Fund
A recommendation of $18 million will be transferred from general fund reserves to the Police and Fire Pension Fund. This will help reach the 60% minimum funding threshold by the State Comptroller.

With the remaining $11.9 million in the proposed amendment, this is how the City recommends funds be distributed, with notable investments.

Critical infrastructure + public safety needs

$3 million | Sewer lateral street repairs
$1 million | Crest Road improvements
$700,000 | To construct a sidewalk near Big Ridge Elementary School
$500,000 | Pedestrian safety on Hixson Pike (from Fernway Road to Barton Avenue)

Parks, community development, and housing

$250,000 | Heritage Park inclusive playground (matching Hamilton County)
$150,000 | Three transport vans to serve Carver, Avondale + East Chattanooga
$100,000 | Tennessee River Blueway trailhead, kiosk + parking

Technology, innovation + local economy

$600,000 | DOT grant match for automated test track
$250,000 | Retail recruitment in downtown
$78,000 | Create a visitors concierge booth at the Chattanooga Airport
$35,000 | ADA project at the Houston Museum of Decorative Arts

Public health, education + mobility

$455,000 | Preliminary engineering + upgrades to co-locate the Rape Crisis Center at the Carol B. Berz Family Justice Center
$100,000 | Feasibility study for an East Brainerd + Northgate library location ($50,000 each)

Pro tip: See all of the proposed investments by viewing the administration’s presentation ahead of the City Council's vote.