Franklin amends FY2025–26 budget to redistribute wages, correct tax-rate impacts and record Creekside purchase

The Franklin Board of Mayor and Aldermen on Aug. 26 held a public hearing and unanimously approved Ordinance 2025-28, the city’s first budget amendment for fiscal year 2025–26, which reallocates employee wage increases, adjusts capital transfers to reflect the adopted property tax rate, and acknowledges the purchase of a home at Creekside.

Chief Budget and Performance Officer Michael Walters Young told the board the amendment is four parts: redistribution of annual wage increases; carryovers and minor expense additions; corrections tied to the property tax rate adopted at third reading; and acknowledgment of capital purchases, including the Creekside house.

Why it matters: the amendment changes how the city will account for already-authorized pay increases and aligns capital transfers with the final tax rate on property bills. The board’s action preserves the city’s budgetary balance while authorizing specific reappropriations and project accounting changes.

Young said the amendment shows a net $0 change to the general fund balance but increases total budgeted activity by $2,204,898. The amendment recognizes a total annual cost for cost-of-living and merit adjustments of $2,635,000. For the sanitation and environmental services fund, the amendment increases planned use of fund balance by $800,644, including $352,000 in redistributed wage costs and a carryover for two automated side loaders. The hotel/motel fund increases $2,095,000, reflecting a $70,000 vehicle barrier system and $2,025,000 recorded for the purchase of the Creekside house via contract 2025-0246.

Young explained the capital transfer to capital projects decreased by $2,498,453 to reflect the difference between the proposed property tax rate of $0.32 per $100 of assessed value and the adopted rate of $0.296 per $100. He emphasized the amendment does not change tax bills already prepared and that the amendment is an accounting alignment following the board’s earlier tax-rate vote.

Board members asked staff for additional analysis on related relief options. Alderman Baggett and others asked staff to present a comparison between expanding the county/state tax-relief credit (which can be applied this year) and a local tax freeze (which would require additional cycles to implement). Board members noted the tax-relief credit could be more rapidly beneficial for income-qualified seniors, veterans and widows of disabled veterans and that the city currently provides elimination of sanitation fees to eligible relief recipients.

Alderman Brown moved to approve the ordinance; Alderman Baggett seconded. The motion passed unanimously.

The board was reminded that Tennessee law requires budget amendments when needed to keep municipal budgets aligned; staff said Franklin typically closes the books with a positive general fund balance and that the city routinely performs several amendments during a fiscal year to reflect timing and project changes.

The board did not receive public comment during the hearing and closed the public hearing before voting.