Franklin residents likely will not see an increase in their tax rate in the coming 2024-25 fiscal year.
The Town Council held a budget workshop on April 16 with Town Manager Amie Owens outlining some of the expenses, capital improvements and outside funding requests. Owens began her presentation by saying they are basing the budget on the tax rate staying the same at 33 cents per $100 valuation.
Owens estimated they will need a “minimal fund balance appropriation” of $25,555 to balance the general fund budget.
Additionally on the revenue side, there will be a 5% increase in water fees – an annual increase in fees is part of a 10-year capital improvement plan approved in 2020. The department also will use $835,000 from retained earnings.
The Franklin Fire Department’s budget is based on a fire tax rate of .07, an increase over the current fire district tax of .0524. However, the Macon County Board of Commissioners set the fire district tax. Owens said if the county does not approve the increase, then the fire department’s budget will have to be adjusted.
Expenses
Owens said they were expecting an overall increase of about 6% in expenses.
“About the same as real inflation,” said Council member David Culpepper.
The general fund budget approved for the current 2023-24 fiscal year was $4,896,750.
Owens outlined $222,787 in increased expenditures related primarily to employee benefits such as health care insurance, retirement, retiree insurance, worker’s compensation, step increases (pay) for employees and disaster recovery/compensation. A 14.3% increase in health insurance accounted for $77,434 of the increase.
“This may not be the final number, but at this point, this is the number we’ve been given,” Owens said.
Personnel
Personnel requests for the coming year included a part-time accounting assistant ($30,000 salary and benefits), a full-time streets/maintenance employee ($41,500) and a Main Street program coordinator ($54,500).
Owens said the new maintenance position will be needed as the town assumes more responsibility in the upkeep of the park being developed on the Whitmire property, the new Women’s History Park and other town properties.
Mayor Jack Horton asked if there was enough work for a full-time Main Street coordinator. Owens replied there was some concern about that.
Culpepper asked if the position could be combined with the code enforcement position, but Owens didn’t think the job responsibilities of the two positions were compatible. She said they could possibly start with the Main Street position being part-time and growing into a full-time position, which is what Sylva did.
In response to the mayor’s question about the return on investment for the position, Vice Mayor Stacy Guffey said it would be easy to put together something that showed the return would be multi-fold.
He envisions the position including working on tax-credit programs and overall economic development for the town in addition to other duties. “I think there would be plenty of work,” Guffey said.
Capital improvements
The town adopted a Fund Balance Policy in February, stating that they would keep a minimum of 80% of the town’s operating expenses in the fund balance with the overage moved to the general fund for capital expenditures. In implementing the policy during the coming year there will be additional money added to the general fund for capital improvements.
Owens presented $5,397,530 in Capital Improvement Plan requests. One of the largest items is $4.2 million for the clearwell replacement at the water treatment plant. Owens said they are looking at other possible funding sources for that project, but the town would have to use retained earnings from the water/sewer fund or look at financing.
“We have to do it,” said Culpepper.
Owens said, “This is the crucial point in our water treatment plant.”
Outside requests
Owens proposed maintaining the $9,000 allocation to the Franklin Garden Club for its increased responsibility of beautification projects downtown. The club maintains Rankin Square, the clock tower square, the planters on Main Street, the plantings in front of Town Hall and the drainage area at the bottom of Town Hill near Rogers Street. The county owns the Rankin Square and clock tower square properties.
Macon County Transit requested that the town fund half of the Mountain Gem Route’s $139,079.62 in expenses that are not covered by fares or advertising revenue. The $62,000 in funding from the town would go toward fuel, maintenance and salaries for five part-time drivers. (The county would pay the other half.) In fiscal year 2023 the Mountain Gem Route served 32,260 passengers, according to a report from Transit Director Darlene Asher.
Horton and Guffey both thought the town’s Tourism Development Authority (TDA) could do more toward funding transit as it benefits residents and tourists. Transit requested $6,000 to help with the Hiker Route that runs March-May during the hiker season, and the TDA funded $2,000.
The mayor said they could “go back to that well a little more on that one.”
Culpepper said transit has multiple funding sources available and asked to take out the request, but Guffey thought the town should contribute something.
The mayor suggested putting $2,500 in and asking the TDA to match it.
“TDA should be funding that better than they do,” Guffey said.
Guffey said the Transit system serves Franklin residents and that the town should have some partnership in it. He said it would be helpful to have the transit director give a 2-3-minute presentation at a future Council meeting.
The town had also received requests for beautification of the roundabouts and for the new Macon County Farmers Market, but no dollar amounts were specified.
Guffey said he thought the farmers market, which will be held each Saturday on Iotla Street, would bring a lot of foot traffic downtown. The farmers market is a nonprofit, but Owens said at this time the town does not have an option in the budget for nonprofit funding. She explained the exception for the Garden Club because the town has an agreement with them for the downtown beautification projects and maintenance. She also pointed out the Garden Club provides a service that otherwise town staff would have to do.
“It’s a good deal for the town,” Guffey said of the service the Garden Club provides.
The Macon County Farmers Market requested $2,970 from the TDA and received $1,400 for advertising and marketing.
“It’s a mystery to me why our TDA doesn’t fund these types of projects more fully,” Guffey said.
The request for the roundabouts came through a petition signed by 27 Franklin businesses and residents. The Council asked Owens to research beautification options for the roundabouts; any plans will have to meet Department of Transportation requirements.
Culpepper said the roundabout beautification project could be something they accept donations from the community for.
“I don’t think we should be above asking people for money for projects,” he said. “It’s their town.”
Owens said in general people think government should not be asking for money because they pay their taxes to fund projects and the town’s operations.
Guffey said there might be beautification funding available through Region A.
“I think there’s money out there,” Culpepper said. “We need to relearn how to ask for money.”
ARPA funds
The town has $421,761.55 remaining in American Rescue Plan Act funds that was awarded as part of the COVID-19 pandemic recovery efforts. The town must have contracts for the funds in place by Dec. 31, 2024, with the money spent by Dec. 31, 2026.
Owens recommended using the funds to help alleviate some of the ongoing water/sewer system improvements.
Guffey said if there is any ARPA money left over after the water/sewer projects he would like to see it spent on sidewalks.
While Culpepper agreed with Guffey that any leftover funds should be put toward sidewalks, he thought the ARPA funds primarily should be put toward recreation rather than water/sewer since that department has the ability to fund itself.
As he has in the past, Culpepper noted it is better to invest in children rather than having to pay for policing and incarceration when they are older. He advocated for using the ARPA funds for the bike pump track in the park planned for the Whitmire property.
“This is a one-time opportunity to do something for a lot of kids,” he said. “Recreation is one of the most vital things we can do.”
When the mayor asked, what can you do with $421,000, Culpepper replied, “Build an awesome pump track.”
Culpepper said the bike pump track was the “most fragile part” of the plan for the Whitmire property because it is dependent on future funding.
“We adopted that plan and I’m committed to following that plan to the letter,” said Council member Mike Lewis. “I don’t think it is as fragile as you think it is.”
Budget schedule
Owens will present the proposed 2024-25 budget to the Town Council at its meeting on Monday, May 6. A second budget session will be held May 20, and the budget will be presented for a vote at the June 3 Town Council meeting. The budget must be approved by June 30 for the new fiscal year starting July 1.