CARTA presentation: Path to a Modern Mobility Ecosystem. CARTA CEO Charles Frasier, joined by board chairman Johan Deny, presented a six-phase strategy for measured growth in transit and infrastructure, aimed at starting conversations on strategy and funding rather than seeking a decision.
Where CARTA has been. Frasier described the first phases as fixing the foundation: resolving audit findings, establishing a first capital budget, renegotiating unfavorable revenue contracts, fixing a Caravan compliance and technology shortage, and recovering from the Incline Railway fire. He said CARTA has secured nearly $50 million in competitive grants over about 2.5 years, including the $25 million BUILD grant.
Where CARTA is now (FY25-FY27). Accomplishments cited include transit service standards, a bus stop design guideline policy, permanent fare-free rides for students and a first-hour-free policy, an interlocal agreement with the Town of Lookout Mountain securing Incline operating certainty, a new call center, the Chattanooga parking network, and a 20-year vision incorporated into Plan Chattanooga.
Next three years: "Improve what we have." A framework approved by CARTA's board last week rests on service excellence, organizational excellence, and financial excellence. Priorities include improving fixed-route and Caravan on-time performance, a possible modest Caravan service area expansion into the county (budget permitting), a new website and mobile app, new bus stop signs, roughly 150 new benches and shelters, replacement of aging vehicles, software upgrades, and finding a downtown transfer center site.
Longer-term phases. The five-year transformation phase would raise frequency (for example, Route 4 to 15-minute peak service and local routes such as 10 and 13 from 60 to 30 minutes), add mobility hubs, and complete the BUILD grant initiative. The 20-year phase includes new microtransit zones and routes in Red Bank, East Ridge, Highway 153 and the college area.
Sustainable funding. Frasier said no regional funding formula exists today. CARTA has formed an ad hoc funding and finance committee to quantify the funding gap and explore options such as a regional formula based on jurisdiction, population and service type, a hotel/motel tax, vehicle registration fees, and the IMPROVE Act model used in Nashville.
Council feedback. Vice Chair Elliott asked about the current financial model and urged a durable funding structure, citing the recent 911 formula discussion. Another member stressed aligning funding with long-term capital and operating needs. Councilman Harvey asked about private employer contributions; Frasier said employers, universities and others should be explored, and a council member noted most Chattanooga workers are at businesses with 20 or fewer employees, so a broader approach is needed.
Other initiatives flagged. Frasier highlighted the BUILD grant workforce development center, the Connect the Corridor transit-oriented development study, and the Incline development feasibility study, noting the city can use their results in its own grant applications. He said a gondola is not being pursued.
Other business. The chair noted upcoming committee meetings, a Finley Stadium tour (possibly including the skate park) next Tuesday, outstanding board appointments, and light strategic planning agenda items in coming months. The chair said she plans to bring the homeless shelter proposal and broader homelessness policy back before year-end, and an attorney-client session with the city attorney was set before the 3:30 meeting.
Minutes from the previous strategic planning meeting were approved on a motion and second (no vote count stated) and will stand as published.
No other formal votes were taken; the CARTA presentation was informational. The meeting adjourned to an attorney-client session.
