Chattanooga advances $3.5 million budget amendment for Raccoon Mountain water extension

Chattanooga advances $3.5 million budget amendment for Raccoon Mountain water extensionThe City Council held a public hearing to appropriate $3.5 million in capital funding to bring municipal water to a neighborhood that has relied on failing private wells for decades, with a first reading slated for late May.

The FY2026 budget amendment would increase revenue by $3.5 million and appropriate the same amount to the capital improvement budget for the Raccoon Mountain Water Service project.

Residents testified that individual wells, some drilled over 1,000 feet deep, are collapsing or running dry, forcing families to haul water from off-mountain sources.

The Chattanooga Firefighters Association supported the project, noting that new hydrant infrastructure would reduce reliance on tanker shuttle operations.

A council member estimated the water extension could generate $500,000 annually in property tax revenues by enabling new development.

The council also approved a six-month extension for the Wastewater division's biosolids data management system agreement.

The Chattanooga City Council is moving forward with a proposed FY2026 budget amendment that would allocate $3.5 million to the capital improvement budget for the Raccoon Mountain Water Service project. The May 19 public hearing highlighted the urgent infrastructure needs of a community that has been within city limits for 50 years but still lacks access to municipal water. Under the proposed amendment, the city would increase revenue by $3.5 million and appropriate the equivalent sum to fund the water extension. The ordinance is scheduled for its first reading on May 26. The public hearing was dominated by testimony from Raccoon Mountain residents detailing the failure of private wells. Several property owners reported spending tens of thousands of dollars drilling wells—some exceeding 1,000 feet in depth—only to have them run dry or collapse due to the area's underground cave systems. Without municipal connections, families have been forced to haul water weekly from off-mountain sources or rely on limited rainwater collection systems. Beyond domestic supply, the lack of water infrastructure has raised significant public safety concerns. The Chattanooga Firefighters Association Local 820 submitted a letter of support for the project, stating that expanding fire hydrant infrastructure along the Wilcox and Raccoon Mountain road corridors would improve water supply reliability during fire incidents. The association noted that new hydrants would reduce the fire department's reliance on tanker shuttle operations and improve tactical flexibility in the heavily wooded area. The lack of infrastructure has also stymied local residential development. A resident representing taxpayer accountability noted that a state loophole 50 years ago allowed the original developers to bypass basic infrastructure requirements by carving the area into five-acre lots, leaving the financial burden of a water extension to future councils. However, city officials signaled strong support for the investment, viewing it as a long-overdue correction that will yield financial returns. One council member estimated that providing water access would spur development and generate approximately $500,000 annually in new property tax revenues. In a separate utility matter, the council approved a six-month extension for the city's Wastewater division agreement with Material Matters for biosolids data management system services. The contract extension runs through December 30, 2026, with no increase to the annual spending limit.