Chattanooga’s proposed budget for next year advanced Tuesday as City Council voted to approve Mayor Tim Kelly’s spending plan on first reading.
The package includes millions of dollars for transportation and infrastructure, parks and public safety.
Kelly told council members he is trying to run a “lean operation” while keeping property taxes flat.
The budget would provide $10 million a year to improve road quality and $2.5 million for public transit improvements.
Kelly also said the plan includes a citywide 3% cost-of-living raise for all employees.
“As you all know no budget is perfect but every budget reflects our true priorities,” Kelly said. “We made the tough trade offs to protect core municipal service through a relentless pursuit.”
Tuesday’s vote was not final. The budget still must pass a second and final reading.
Also Tuesday, the council took another step toward converting the long-vacant Airport Inn on Lee Highway into a shelter, unanimously voting to donate the former hotel to a nonprofit.
The McClellan Foundation will help fund the project, and First Things First will run it.
City leaders said the shelter will be reserved for struggling families with children, and the resolution lays out rules on who can be accepted once it is operational.
The project is intended to help families who need a place to stay, including situations when mothers need to stay with their young sons, but don’t have a steady home to go to.
Silverdale Baptist Academy is now a partner in the project after originally speaking out against it when the proposed structure was different.
Councilwoman Jenni Berz voiced support for the resolution, at Tuesday’s meeting.
“I think it serves as a great model for how we address future opportunities to serve our homeless community.”
The city previously pursued plans for the Airport Inn site.
In 2021, Kelly proposed turning the building into affordable housing, but that plan fell through amid public outcry and cost concerns.
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