Work at VW site drives capital budget increase

A proposed capital improvement budget jumped almost $25 million over a year because of spending for the Enterprise South industrial park and the building of fire departments and sewers in annexed areas, records show.

City officials presented the 2009-10 fiscal year capital improvements budget to the City Council Tuesday. It is part of the five-year capital improvement plan.

“This is just a plan,” said Daisy Madison, the city’s chief financial officer. “This is not a commitment of dollars.”

Major expenditures in the capital budget include more than $13.7 million for expenses at the Volkswagen facility in Enterprise South, $10.8 million in interceptor sewer improvements and almost $5 million for fire halls in newly annexed areas.

The budget also includes more than $6 million in road improvements, records show. This year’s budget grew substantially from last year’s budget, which was $33.6 million, records show.

Each year, the city passes a capital improvements budget that is separate from the general fund budget. It helps pay for road improvements, neighborhood enhancements, building construction and other projects.

Councilwoman Deborah Scott raised a question about the amount of debt the city is taking on now.

Ms. Madison said the city will retire 33.9 percent of its debt in five years and 86.7 percent within 15 years. Compared to other similar-sized cities, Chattanooga is fine, she said.

“We’re low,” Ms. Madison told the council.

Councilwoman Carol Berz, chairwoman of the budget, personnel and finance committee, said the council would take a week to look over the budget and discuss it more in-depth next week in a budget, personnel and finance committee meeting.

In other business, local NAACP chapter President Valoria Armstrong asked that two council members join a committee that would look at racial profiling within the Chattanooga Police Department. She also asked that the police department be cooperative and open to discussions about racial profiling.

Councilmen Andraé McGary and Russell Gilbert agreed to participate.

Chattanooga Police Chief Freeman Cooper, however, told the council that his department does not conduct racial profiling and many of the cases they investigate include “black-on-black crime.” Chief Cooper criticized how the NAACP was handling its investigation into shootings of 15-year-old Alonzo O’Kelley and 32-year-old Alonzo Heyward.

Mr. O’Kelley was shot by Chattanooga Housing Authority police, and Mr. Heyward was shot by Chattanooga police.

“The focus and direction should not be on the police department,” Chief Cooper said. “It should be on the community.”