Chattanooga’s proposed budget for the next fiscal year puts a strong focus on maintaining city services while preparing for future growth. The $394 million operating plan includes a 3% salary increase for city employees while keeping the current property tax rates unchanged. Officials say the adjustment is intended to help the city stay competitive when hiring and retaining workers in essential departments. Alongside everyday operating costs, the proposal also outlines a $167 million capital investment plan dedicated for street improvements, bridge work, equipment upgrades, and other infrastructure needs across the area.

Even with a slight increase in overall spending, the said budget includes several funding reductions. The police department is expected to see one of the largest cuts, though it would still receive the biggest share of city funding. Parks and Outdoors, together with  other community-supported agencies may also lose financial support under the plan. At the same time, funding for the fire department, public works, and CARTA transit services is set to grow as the city continues investing in emergency response, transportation, and road maintenance projects. City Officials discussions and public hearings over the coming weeks will help determine what the final budget will look like before approval in June.

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