The Franklin Town Council received the first draft of its 2023-24 budget during the monthly meeting Monday night.
Town Manager Amie Owens said the budget will allow the town to continue a baseline of operations with no new services.
In her letter to the Town Council, Owens stated the budget “addresses critical infrastructure needs at the Water Treatment Plant, beautification and sidewalk improvements, recreational opportunities, and recruitment and retention of employees, while maintaining a healthy fund balance and providing quality services in a cost-effective manner.”
Tax rate
Due to the county’s property revaluation this year, the town is required to publish its revenue neutral tax rate, which is 29 cents per $100 value. The tax rate for the current 2022-23 fiscal year is 35 cents.
Following the revaluation, Franklin’s tax base (real property and personal property) was estimated to be $938,705,109 after adjustments from the county.
One penny on the tax rate is estimated to generate $89,176, according to Owens. She based the proposed general fund budget of $4,896,750 on a tax rate of 33 cents per $100 value.
Using that tax rate, Owens said they were able to balance the general fund budget without an appropriation from the fund balance.
The general fund budget for the current fiscal year is $4,250,542.63 and included a $150,632.63 appropriation from the fund balance.
Owens said she appreciated the work of the department heads and their diligence in monitoring expenditures. “They understand when they have to say ‘no,’” she said.
Presented with the budget was the five-year capital improvement plan for each department.
The combined budget for general fund, fire and water/sewer is $10,972,506.
Salaries
Owens said some of the largest items on the expense side that they had no control over included a 10% increase in health insurance premiums, 13% dental insurance increase, mandatory increases in retirement contributions and retiree health insurance.
The budget also includes an increase of $234,203 in salary adjustments based on the compensation and classification study the town initiated earlier this year. Archer Company conducted the study and will present more detailed information at a called meeting on May 15. Owens said the budget did not include any additional salary adjustments other than increases for certifications and probationary terms ending.
The budget includes a request for two new positions – a part-time accounting clerk ($15,000 salary) and a full-time utility maintenance technician ($60,700 salary and benefits). The technician would be assigned to complete the required Lead and Copper Rule Revisions. The EPA is requiring all community water systems to develop an inventory identifying the potential presence of lead within each service line connection. The reporting for that is due in October 2024 and after that the position would become a part of the regular water/sewer crew.
Fire Department
The Fire Department’s revenue neutral tax rate for 2023-24 is estimated to be .0522 per $100 value, compared to the current rate of .07. With the proposed new rate, the department’s revenues would total $1,183,250. The department’s 2022-23 budget is $1,169,196.
At the budget work session last month, Chief Ben Ormond said the department needs two new vehicles – a tanker and a tanker/pumper to comply with with NFPA standards. The department continues to look for grant opportunities.
It is not known yet if the county will approve a fire tax increase to help purchase the trucks; the county is still working on its 2023-24 budget as well. The Franklin Fire Department received a fire tax increase last year, so Ormond was uncertain if the county would approve an increase again this year.
The 2023-24 budget includes $300,000 for truck purchases and $40,000 in debt service for payment on the new substation.
Water/Sewer
The proposed budget for the water/sewer fund is $4,892,506 and will require a $838,506.03 appropriation from retained earnings to balance the budget. The 2022-23 budget is $4,845,977.75.
To continue Phase II of improvements and repairs to the Water Treatment Plant, a 3% increase in water and sewer fees is proposed, as was recommended in the 10-year capital improvement plan approved in 2020.
Capital improvements included in the 2023-24 budget total $726,400 for distribution and collection line replacements, a leak detection system and improvements to the pump stations.
Owens noted the water/sewer budget does not include using American Rescue Plan Act funding, although it is available.
Rescue Act money
The town allocated $350,000 in ARPA money for sidewalk repair and construction that was not used this year and will be moved into next year’s budget. Another $160,000 will be budgeted to complete the Greenway extension off Allman Dr. The town has a remaining balance of $380,279 in ARPA funds.
Added expenses
Following the budget session in April, $95,000 in expenses was added to the budget: $75,000 for the site preparation and landscaping of the site for the Women’s History Trail statue that is being donated to the town; $10,000 for No Wrong Door to assist in establishing a heating/cooling station; and $10,000 for a portable stage to use during town events.
Upcoming meetings
The town will hold a called meeting/budget session at 6 p.m. on May 15.
The public hearing on the budget will be held during the regular Town Council meeting at 6 p.m. Monday, June 5. While the budget was prepared using a 33-cent tax rate, the 2023-24 tax rate will not be set until the council adopts the budget.