FY 2022-2023 Approved Budget Summary

FY 2022-2023 Approved Operating & Capital Budget

The past two years have brought extraordinary challenges and change to communities across the United States and around the world. A year ago, the City of Franklin focused on how we could emerge as a “Stronger Franklin” in the face of these challenges. I am proud to say our community has emerged stronger and is as vibrant as ever. Investment and job growth reflect Franklin’s remarkable economic vitality. During calendar year 2021, private investment of $556 million took place, surpassing pre-COVID levels. Also, during 2021, five corporate headquarters announced their move to Franklin and commitment to bring a total investment of over $30 million and the creation of 1,000 new jobs. Franklin’s unemployment rate of 1.8% for March of 2022 is the lowest in the state of Tennessee. Significant infrastructure investment continues through the City’s 10-year, $380 million Capital Investment Plan highlighted by the opening of the Mack Hatcher northwest extension in December 2021. Later this year, we will see the completion of the City’s expanded and upgraded Water Reclamation Facility, the opening of the Franklin Road improvements, the completion of the 96 West Multi-use Trail, and the opening of renovated ballfields in partnership with Franklin Special School District. 

Franklin’s unique blend of rich history and dynamic investment truly set it apart as one of America’s most desirable cities. For the fourth consecutive year, Money magazine ranked Franklin in its top 10 best places to live list (ranked #3) and top-ranked in the state of Tennessee. These statistics and rankings are reflective of both the strength of our local economy and Franklin’s excellent quality of life. Our city is honored to be the community so many are choosing as the place to invest, build a business, raise a family, spend a vacation, and most of all, the place they proudly call “home.”  

Despite these successes, significant challenges remain. The community and our nation have recently experienced the highest inflation in over 40 years. The labor market is extremely “tight” and rapidly changing. To retain and attract the best talent to serve our community, the City of Franklin must be nimble and change to meet the needs of today and beyond. The City of Franklin will continue to be bolstered by our highly capable City team supported by strong long-term financial plans and policies that provide vital financial capacity to meet both challenges and opportunities. Our best efforts will be required to meet the demands that lie ahead. The City must continue to deliver high-quality services, enhance existing infrastructure, and prepare for growth in terms of services, infrastructure, and community impact. The City of Franklin will craft a budget and action plan that is both fiscally prudent and consistent in maintaining our commitment to community service.  

Budget Overview

The 2022-23 (FY23) General Fund budget is $94,896,513, which represents an increase of 2% compared to the current $93,065,290 budget for 2021-22 (FY22). The FY23 budget for all funds is $207,021,700, which represents an increase of 15.1% compared to FY22. Approximately $20 million of the budget for all funds is the planned use of cash reserves from various funds to support capital investment projects. 

Highlights of the 2022-23 Budget

• The budget is balanced.  
• The budget fully complies with the Board of Mayor and Aldermen’s debt and fund reserve policies. 
• Essential service levels are maintained.
• The City property tax remains unchanged at $0.3261 per $100 of assessed valuation. The Invest Franklin dedicated funding for infrastructure/transportation investment and support of City operations remains in place. The City of Franklin continues to maintain one of the lowest municipal property tax rates in the State of Tennessee.
• The budget includes the full implementation of an updated compensation plan for the City. Due to the disruption of the COVID-19 pandemic, this is the first comprehensive update to the City’s compensation plan in five years. City pay grades which were increased by 5% in January of 2022 will be increased an additional 5% in July of 2022. Nearly 70% of City positions are being moved up one or more pay grades with the City’s two lowest paid grades being eliminated and moved up.  
• A general pay increase for City team members will be effective the first pay period of July 2022. The budget includes a general pay increase of 5%, an additional performance-based pay increase of up to an additional 2.5%, and an additional $1,000 pay increase for all employees under $90,000 in annual salary. 
• The budget includes 13 new positions and one “restored” position in the General Fund. The new positions within the General Fund include four new Police Officers, a Fire Information Systems Analyst, a Public Works Analyst, an Information Technology Technician, a Paralegal, a Capital Projects Inspector, a Benefits Generalist, an Organizational Development Specialist, an Assistant Preservation Planner, an Assistant Field Turf Supervisor, and the restoration of a Building Inspector position. In the City’s other operating funds, there are two new positions in the Sanitation Fund and two restored positions in the Water Management Fund.
• Health insurance premiums for City team members are projected to increase by 5% for FY23, the first increase in premiums in two years. 
• In FY23, the City will create a separate Capital Vehicle and Equipment Replacement Fund. This approach will provide better, updated vehicles to our team in a more efficient manner.
• Funding is provided for important investments in operating capital ($3.1 million) including equipment replacements, technology enhancements, and facility improvements.
• The FY23 budget includes a $1.50 per month increase for residential trash and recycling collection (from $20.50/month to $22/month).
• Funding for the update of the Envision Franklin Land Use Plan is included in the FY23 budget.
• The budget incorporates performance measures and sustainability initiatives for every department. The connection to our Strategic Plan, FranklinForward, is clearly linked to performance measures and objectives throughout the budget. 

- A Policy Document

- An Operations Guide

- A Financial Plan

- A Communications Device

We are proud to have been recognized for the 14th year as a recipient of the GFOA's Distinguished Budget Presentation Award. This award symbolizes our commitment to continuous improvement and transparency for all Franklin taxpayers and citizens. 

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