What to know about Franklin's $207 million budget for 2023, how it compares to last year's

The city of Franklin unveiled its $207 million draft budget for the 2022-2023 fiscal year.

The budget outlines increased city tax revenues, proposed pay increases for many city employees and at least one fee increase for city residents.

Here's what to know about the new budget.

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How does Franklin's budget compare to last year's?

Franklin's all funds budget for 2022-2023 is $207,021,700, a 15.1% increase from last year's budget. About $20 million of that budget was drawn from cash reserves to support capital investment projects like road improvements and park projects.

Franklin's general fund budget for 2022-2023 is $94,896,513, up 2% from last year's $93,065,290. The general fund, the city's largest, draws on local sales tax, state shared tax and other taxes and fees to fund public safety, city employee salaries and other operating expenses.

Most city revenues and funds have increased from last year's budget, however the budget notes that this "does not tell the whole story of sales taxes growth over the past year."

Notably, the city is now collecting new revenue from a Local Option Sales Tax that was first approved in 2018. The tax first went into effect in 2018 and was previously used to fund public education in Williamson County. However, the tax is now being collected by the city rather than the county, so there is no change in what Franklin taxpayers pay. The city is also collecting online sales tax and new tax due to Middle Tennessee's economic development at large.

Like all American cities, Franklin is dealing with inflation due to the ongoing coronavirus pandemic and supply chain issues. Prices for goods and services have risen, meaning Franklin's actual purchasing power may not have risen as much as its additional revenues indicate.

What are the new spending categories for this year?

Franklin is gearing up to spend on substantial capital projects in the coming years, most notably a new city hall that will replace the 50-year-old former shopping mall the government now occupies.

In 2023, the city will spend $20 million on improvements to parks like Bicentennial and Thompson Alley, work on roads including Jordan Road and Church Street, renovations to the Main Barn at Harlinsdale Farm and other projects.

The city will designate a new $2.78 million fund to replace city vehicles. The fund will draw on existing city funds rather than new taxes in 2022-2023.

Have property taxes gone up?

No. The city completed a required five-year reappraisal of property tax values in 2022 and maintained the current rate of $0.3261 per $100 of assessed property value. The city adopted this rate in its 2021-2022 budget, which cut the rate from $0.4176 per $100 of assessed value.

Have any fees increased?

Yes. The city's residential trash and recycling fee, collected monthly, has increased from $20.50 a month to $22 a month. The fee covers curbside trash and recycling collection.

How are city employees being compensated?

Franklin was due to complete a full study of its compensation plan for city employees before the coronavirus pandemic intensified in 2020. The Board of Mayor and Aldermen in January approved a 2.5% cost of living adjustment raise and a 5% increase to pay grades — the range of salaries that employees may receive for a given job — for many city employees as a stopgap measure before the full pay study was completed.

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The pay study is now complete and will be presented to the Board of Mayor and Aldermen for a vote. In general, the raises again increase pay grades for many employees and provide an across-the-board 5% raise based on those new pay grades. Franklin officials said city employees will receive more specific information from their department heads.

The city will add 15 net full-time positions across several departments, including three "restored" positions that were not budgeted for in last year's budget.

When will the budget take effect?

Franklin's Board of Mayor and Aldermen must vote to approve the budget before it takes effect on July 1, 2022. The budget ordinance will be up for a first reading on May 24, followed by a public hearing and a second reading on June 14. The final reading will be held June 28.

Once approved, the budget takes effect July 1.

How is coronavirus aid being spent?

Franklin received $10.8 million in coronavirus aid from the CARES Act and American Rescue Plan Act. The majority of that money — including $8.2 from the American Rescue Plan — has not been allocated. Of the $2.6 million that has been allocated and spent, the largest portion helped pay police and fire department salaries totaling $837,192 during the economic downturn caused by the pandemic.

Cole Villena covers Williamson County at The Tennessean, part of the USA Today Network — Tennessee. Reach Cole at cvillena@tennessean.com or 615-925-0493. Follow Cole on Twitter at @ColeVillena and on Instagram at @CVinTennessee.

This article originally appeared on Nashville Tennessean: Franklin unveils $207 million budget for 2023: What's included