The ordinance addresses a significant and growing backlog of unresolved parking violations in Chattanooga, where there are currently 64,118 outstanding citations totaling $4.1 million in unpaid fines. The existing enforcement framework lacks the tools and legal authority needed to resolve chronic non-compliance, leaving these violations unresolved for extended periods. This ordinance completes a phased compliance plan that was originally designed in 2024 but was interrupted by state law.

This ordinance puts drivers first by establishing clear, enforceable protections that did not previously exist. Parkers benefit from capped rates and fines, no more being forced to pay for 8 to 10 hours when you only needed an hour for dinner, and all enforcement operators must be licensed, bonded at $250,000, and held to uniform standards. Required signage at all lot entrances and exits means no more surprise charges, and a 24/7 staffed customer support line ensures help is always available. Service fees are capped at unpaid fines plus a maximum of $75.00, putting a firm ceiling on what any operator can collect.

For drivers with outstanding violations, the ordinance also offers a meaningful path forward. A proposed 120-day amnesty period gives people time to resolve unpaid fines before enforcement begins, and those facing financial hardship may qualify for a payment plan or a fine reduction of up to 50%. There is even a proposed food donation credit program in partnership with the Chattanooga Food Bank, allowing residents to reduce their balance by donating food during the amnesty period. Taken together, the ordinance creates a fairer, more transparent parking experience for everyone in Chattanooga.

Functionally, the ordinance creates a legal framework that establishes consumer protections for any entity involved in parking enforcement, while authorizing the Chattanooga Parking Authority (CPA) to enforce parking violations both on-street and in lots and garages. The CPA is also assigned as the licensing administrator for private operators seeking access to the enforcement mechanism, and the CARTA Board of Directors is granted authority to establish licensing requirements for those private operators.

Practically, the ordinance establishes fair enforcement by completing the phased plan originally designed in 2024, using a local option expressly permitted under Tennessee law. The measure targets repeat, chronic non-payment violators rather than first-time offenders, and amnesty and voluntary payment remain the first step in the process.

The ordinance establishes strong consumer protections by requiring all enforcement operators to be licensed, bonded at $250,000, and regulated by the CPA. It mandates the use of self-release enforcement tools and a 24/7 staffed customer support line, while also requiring clearly posted signage at all lot entrances and exits. Additionally, service fees are capped at the amount of unpaid fines plus a maximum of $75.00.

The ordinance sets clear limits on parking rates and fines throughout Chattanooga. Hourly parking rates are capped at $3.00 per hour, which cannot exceed 150% of the on-street rate, and daily rates are capped at $18.00. All parkers are guaranteed a minimum one-hour allowance, and parking ticket fines are limited to $25.00 and cannot exceed the daily maximum plus $25.00. For delinquent tickets, escalation fees are capped at $20.00.

As the licensing administrator, the CPA holds significant oversight authority to protect the public. It may revoke or suspend licenses for good cause, including ordinance violations, and is required to investigate consumer complaints and provide a quarterly complaint report to City Council. The CPA is also responsible for ensuring all lots comply with required signage standards, referring suspected violations to the attorney general, law enforcement, or both, and maintaining a public registry of all licensed operators that includes license numbers, status, and contact information.

Today, some private parking operators require minimum payments of 8 to 10 hours even for a short dinner or quick errand, charge excessive rates and fines compared to CPA, and operate without uniform standards across public and private enforcement. This ordinance changes that by establishing reasonable time minimums that reflect how people actually park, capping fees to eliminate arbitrary or excessive charges, and requiring mandatory licensing and consumer protection compliance for all operators. Any third-party company seeking access to regulated enforcement must agree to CARTA's requirements — those that won't, don't get access — creating a more consistent and fairly priced parking environment that also encourages increased parking inventory for downtown restaurants and businesses through better turnover.Item description

Before enforcement begins, the ordinance proposes a 120-day amnesty period giving violators the opportunity to resolve unpaid parking fines. For those facing financial hardship, a proposed hardship program administered by the CPA — following guidelines approved by the CARTA Board — would offer a monthly payment plan option and a partial fine reduction of 25% to 50% based on qualifying circumstances. Additionally, a proposed Food Donation Credit Program, offered in partnership with the Chattanooga Food Bank, would allow residents to reduce their fines by donating food, with each pound of eligible food reducing fines by a fixed amount and a maximum credit of up to 50% of the outstanding fine. The food donation option would be available only during the amnesty period.

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