CHATTANOOGA, Tenn. — The city of Chattanooga is set to reallocate a surplus of millions of dollars in tax payer money to other parts of the city’s budget.
The mayor’s office says after years of smart spending, they have the surplus to divert these funds away from the city’s main budget.
City council members voted on 2 amendments to the budget to make this possible Tuesday.
The amount of money discussed was nearly $30 million.
Nearly $18 million will go toward the Police and Fire Pension Fund, which will help the fund reach the 60% minimum funding threshold recommended by the State Comptroller.
A spokesman for the mayor’s office says effective and responsive government is the mayor’s top priority.
Of the remaining $11.9 million, 73% will go to critical infrastructure and public safety needs.
That includes $3 million dedicated to repairing sewer laterals, which are the rectangular road indents caused by sections of road being removed to establish connections between buildings’ plumbing and the sewer line.
The Kelly administration is also proposing $1 million to improve Crest Road, $700,000 for sidewalk near Big Ridge Elementary, and $500,000 for pedestrian safety improvements on Hixson Pike from Fernway to Barton.
But Councilman Chip Henderson says he believes the fire and police pension fund is the most important thing.
“It’s almost like a milestone being about to achieve that. That’s that is significant. Fire and police pension funds, can, many times, bankrupt the city.”
The city’s general fund reserve currently sits at around $118 million.
Eric Holl with the city says this surplus is a great opportunity to take on new projects without adding new debt.