Franklin approves $243.3 million FY2026 budget, sets property tax at 32¢ and raises hotel tax to 5%

The Franklin Board of Mayor and Aldermen on Tuesday approved a $243.3 million budget for fiscal 2026, voted to levy municipal property taxes at 32 cents per $100 of assessed value and increased the hotel-occupancy tax from 4% to 5%.

Chief Budget and Performance Officer Michael Walters Young told the board the proposed budget is balanced and available online, and described the total as "The budget itself is $243,300,000 across all funds," while outlining a recommended property-tax structure that dedicates most of the certified rate to existing operations and designates new capacity for capital projects and public safety.

Why it matters: The board's action uses capacity created by a 2025 county reappraisal that raised the city's assessed base to roughly $10.75 billion. The board's decision to set the rate at 32 cents funds a new capital program called Invest Franklin 2 — including the city's $50 million commitment to a partnership for widening Mack Hatcher Southeast with the Tennessee Department of Transportation — and adds smaller operational and public-safety enhancements.

Budget and tax details The FY26 budget totals $243.3 million; the general fund is $128.1 million. Staff described the property-tax recommendation as three parts: a revised certified…