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Franklin committee recommends FY2026-27 budget, holds tax rate steady
Summary
City staff presented a structurally balanced FY2026-27 budget that keeps the property tax rate unchanged and funds roughly $458 million in capital investment; the Budget & Finance Committee voted to recommend the ordinance and several related rate changes to the full Board of Mayor and Aldermen.
Eric presented Franklin City’s recommended fiscal 2026–27 budget, asking the Budget and Finance Committee to forward ordinance 2026‑10 to the Board of Mayor and Aldermen for adoption. The all‑funds package totals roughly $273.4 million; the general fund is approximately $134.3 million, an increase of about 1.8% over the prior year. The proposed property tax rate remains unchanged at about 29.6 cents per $100 of assessed valuation.
The presentation stressed the budget is structurally balanced and complies with the city’s debt and reserve policies. Staff said consumption taxes (sales and related shared taxes) represent roughly 72% of general‑fund revenue, while reserves are projected to finish the year near the 70% level previously reported. Eric said the budget supports a continued Invest Franklin capital program, estimated at $458 million (not including the state’s Machatcher widening project), and funds targeted service and staffing improvements.
Key spending and revenue notes included a net addition of seven full‑time positions in the general fund (four in public safety and the restoration or creation of several specialist positions), modest pay increases (base 2% plus performance components), and changes to benefit cost sharing. Staff flagged a small increase in health insurance premiums and adjustments to out‑of‑pocket maximums.
On the capital side, Eric noted Invest Franklin‑funded projects prioritize transportation; he also announced that Machatcher widening is now included in the state’s 10‑year plan with an additional $15 million from the state, bringing the state contribution to $40 million against a city pledge of $50 million.
Committee members asked questions about performance bonds and how quickly the city acts after calling bonds; Michael Walters Young said the city solicits bids and typically contracts to complete the work within one to two months after funds are received, though developers have historically been given time to finish projects first. Staff also walked through fund‑level changes for sanitation, transit, stormwater and water management and reiterated rate timing (for example, water 5% and sewer 6% effective Jan. 1, 2027).
The committee voted by roll call to recommend ordinance 2026‑10 (FY2026‑27 budget) and related budget amendment ordinance 2026‑09 to the full board (Alman Peterson yes; Alman Brown yes; Chair yes). The committee also recommended related ordinances and resolutions (tax levy, sanitation and stormwater rates, plan‑review fee changes) for full‑board consideration.
