The Town of Franklin is looking at an $11,941,449 budget for the coming 2024-25 fiscal year that begins on July 1. The budget is an 8% increase over the current year’s budget. Despite the increase, the property tax rate for town residents will remain at 33 cents per $100 valuation.
The total budget includes $5,197,500 for the general fund, $5,105,930.03 for water and sewer and $1,638,019 for the fire department. Balancing the general fund budget will not require an appropriation from the fund balance.
During the budget workshop on May 20, Town Manager Amie Owens noted the fire department’s budget is based on a fire tax rate increase. The current fire tax rate is .0524 per $100 valuation, and the fire department is requesting an increase to 7 cents, which is what it was in fiscal year 2022-23. The tax was lowered to a revenue neutral rate following the property revaluation last year.
The Macon County Board of Commissioners must approve and set the fire tax rate for the fire departments in the county. The commissioners were set to meet Tuesday evening for their budget presentation.
Council member David Culpepper asked if they needed to talk about what that budget would look like if the fire tax increase is not approved.
Finance Director Sarah Bishop said the difference between the current fire tax rate and the proposed 7-cent rate would be about $411,000.
Owens said restoring the fire tax rate to seven cents will help fund needs in the department, such as replacing aging trucks and equipment, and maintaining the staffing level.
“We worked hard to get three people on a shift instead of two people on a shift, and we don’t want to give that up,” Owens said.
Owens pointed out that employees are the biggest cost in any department and unfortunately that is where you start cutting if reductions must be made.
During last year’s budget planning, Fire Chief Ben Ormond told the council the department needed to start replacing its oldest trucks and get on an apparatus replacement schedule. He requested funding for two trucks during the current fiscal year.
Earlier this year, the council voted 4-2 to supplement the fire department’s budget with an allocation of $200,000 to go toward one truck. Council members Joe Collins and Culpepper voted against it. Collins and Culpepper have said they acknowledge the department’s needs but have repeatedly stressed that the fire tax should be set at a rate to fund the department’s needs rather than taking money from the town’s funds to support it, especially since the department serves areas outside the town limits.
Collins addressed that again at Monday’s budget session. He said people in the town are paying double because they are paying city and county taxes. Collins said if the town gets in the habit of subsidizing the fire department’s budget it will be more year after year. “It won’t ever go away.”
“I agree 100% and that would definitely be an ongoing expense,” said Council member Rita Salain.
The proposed Capital Improvement Plan includes $60,000 toward a new pumper truck and $40,000 toward a pumper/tanker truck. The total for the new trucks through fiscal year 2028 is $400,000.
Owens said the fire department continues to look at grants to help cover some of the costs.
Water and sewer budget
Owens said they are “$875,000 in the hole” on the water/sewer budget based on current requests and ongoing projects. She said there would be some additional revenue coming in from a rate increase, but an $875,000 appropriation from the department’s retained earnings will be required to balance the water/sewer budget.
There will be a 5% increase in water/sewer rates. The rate increase is in line with the 10-year capital improvement plan approved in 2020. Last year rates increased by 3%.
Owens has recommended that the town use some of its remaining $421,761.55 American Rescue Plan Act (ARPA) funds to help offset some of the projects in the water/sewer department.
The town must have committed the remaining ARPA funds by Dec. 31 of this year and the funds must be spent by Dec. 31, 2026.
Staffing
Owens said the budget includes funding for two and a half new positions, including a Main Street coordinator.
One part-time position in the finance office will become a full-time accounting technician; the cost for the change including salary and benefits is $30,000.
One new position is being requested for the streets division of Public Works. Owens said this position would be helpful as the town takes on more responsibility for maintaining the new parks (Whitmire and Women’s History Park). Salary and benefits for the position total $41,500.
The cost of the Main Street coordinator position, including salary and benefits is $54,500. When asked about advertising and filling the Main Street coordinator position, Owens said they have a general job description based on the requirements of the Main Street program and examples from other towns. However, she told the council she needed their input on their vision for the town for the next three to five years and what incentives, if any, they might want to offer for property owners to improve their properties or encourage new business, as coordinating that would be part of the job.
Incentive grants could come from the town as well as other sources.
“From our part, does that open the door for bigger money,” Council member Mike Lewis said.
Owens pointed out that while the state’s Main Street requires a specified geographic area, this position would work with businesses and economic development activities throughout the town limits.
She said there has been some concern if the position should be full time. “We want to make sure this position has enough to do,” she said.
Vice Mayor Stacy Guffey, who chaired the meeting in Mayor Jack Horton’s absence, said from examples he has seen in towns with successful Main Street programs, there would be enough work for the position to be full time.
Guffey said he would like to move forward with filling the position sooner rather than later. “I think its transformative,” he said.
Capital improvements
The budget also includes $6,472,130 in Capital Improvement Plan requests, with $1,034,600 of that coming from the fund balance. In February, the town passed a fund balance policy that states a minimum of 80% of the town’s operating expenses will remain in the fund balance and the remainder can be used for capital expenditures.
The largest expenditure in the capital improvements plan is $4.2 million for the clearwell replacement at the water treatment plant. Owens said funding for that will have to come through financing or from the Water/Sewer Fund’s retained earnings.
Fee increases
During Monday’s budget workshop, Owens reviewed some of the proposed changes in fees the town assesses for various services and permits.
• Occupant fee $25. Owens said it creates a lot of paperwork when renters frequently move from one property to another and that this fee is not unheard of in other places.
• Memorial Park rental $100 (requires $50 refundable deposit) – an increase from $75.
• Deposit for renters (water/sewer department) $100 – an increase from $50.
• Late payment fee for septic truck dumping fee – 1.5% of balance due.
• Conditional Use Permit $500. This is a new permit for people requesting conditional zoning, which was approved in December as an alternative to traditional zoning when people are developing properties.
• Temporary Use Permit $50. This is related to the town now allowing people to apply to live in a camper or RV on their property while they renovate or build their house.
Public hearing and budget approval
The Franklin Town Council will hold a public hearing on the proposed budget during its monthly meeting on June 3. If the fire department tax rate and budget have been finalized by that date, the council can vote on the town budget following the public hearing. If the fire department budget is still undetermined, the council will need to have a special meeting to approve the budget before June 30.
A copy of the budget can be viewed online at franklinnc.com.