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Franklin City Council adopts FY2026 city and school budgets, reinstates taxes and updates fees
Summary
Council approved a $90.6 million city operating budget and a $21.3 million school operating budget, reinstated several existing taxes (including a cigarette tax and a package of local taxes), adjusted selected fees and accepted PPEA guidelines.
Franklin City Council voted to adopt the city and school operating budgets and a set of ordinances that restate existing local taxes and update fees during its regular meeting.
The council approved an ordinance appropriating $90,575,442 for city operations beginning July 1, 2025, and later adopted the Franklin Public Schools FY2026 operating budget in the amount of $21,299,411. Council members moved and recorded votes during roll call for the measures; motions on the record indicated the measures carried.
Council members also adopted a package of ordinances that restated existing local tax charges in the city code, including a reaffirmation of the real estate tax rate (Section 27-47.1). The council adopted an ordinance to increase the city food and beverage tax described in the packet as a 1 percent increase "to 8¢ for meals, beverages sold within the city limits." The body also reinstated a cigarette tax of 70¢ per pack (staff had earlier noted a higher proposed rate but referenced a 2022 law that froze prior charges), adopted a grouped ordinance to reinstate retail sales, utility, telecommunications and other local taxes, and approved an updated fee schedule affecting services such as parks and recreation and camping.
An ordinance to amend Chapter 8 of the city's electric utility code was adopted to increase rates and fees for commercial electric service; staff emphasized that residential rates did not increase. The council also adopted the FY2026 classification and pay plan for city employees to help retain staff.
Separately, the council adopted a resolution accepting guidelines for reviewing and approving proposals under the Virginia Public-Private Education Facilities and Infrastructure Act of 2002 (PPEA). The packet and staff handouts contained the guidelines discussed at the meeting.
During discussions, council members and the city manager emphasized the effort to close a $5.8 million gap in the budget and praised staff work on balancing the budget. The council adjourned after completing the agenda.
The meeting record contains motions and recorded "aye" votes for the listed ordinances and budgets; the transcript does not list full roll-call tallies by name for every item. No additional implementation timeline was specified in the meeting minutes recorded on the transcript.
