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Mayor presents 2026 recommended budget with $1 million general-fund gap; finance schedule set
Summary
Mayor Nelson and finance staff presented the 2026 recommended budget, which projects a roughly $1 million shortfall in the general fund and a $33.2 million expenditure plan with 78% for personnel. Staff proposed a seven‑week review schedule and possible revenue and service adjustments to close the gap.
Mayor Nelson and City of Franklin finance staff presented the mayor's recommended 2026 budget on Sept. 16, describing a package that balances service priorities against revenue constraints and state levy limits and that currently leaves an estimated $1,000,000 gap in the general fund.
Staff said the 2026 general-fund proposal totals roughly $33.2 million in expenditures, with 78% of that devoted to personnel. The budget reflects prior labor commitments and a proposed 2% increase for nonrepresented employees; staff stated the proposed budget does not add new positions. City finance staff said shared revenue from the state increased modestly (about $44,000) and that interest income is projected to decline approximately 41% as market rates fall.
Staff briefed the council on key drivers and possible remedies: updating user and permit fees, freezing nonessential hiring, delaying noncritical capital projects, seeking grant funding, and revising health plan design to reduce employer/employee premium increases. The mayor noted the city has roughly $6 million of capital funding proposed in 2026, while departments requested about $37 million in capital projects; staff said many projects may be deferred.
The council and staff set a schedule of finance-committee review meetings (Sept. 23, Sept. 25, Sept. 29, Oct. 1) with a finance committee recommendation expected Oct. 7 and a potential special Committee of the Whole Oct. 27 if needed. The public hearing and adoption timeline remains: public notice in mid-October and final adoption around Nov. 11. Council voted to receive the presentation and proceed with the scheduled review process.
