City of Franklin, TN
Home MenuFY 2026 Budget Overview
Annual Operating & Capital Budget
FY 2026 Approved Budget Summary
FY 2026 Approved Budget (Online/Interactive) - June 24, 2025
FY 2026 Approved Budget (Static) - June 24, 2025
Each year, the budget process allows us to invest in Franklin's future. These key decisions shape our community as we strive to be America's finest Hometown, driven by excellence, balancing preservation and progress.
The 2025-2026 Approved Budget embraces a unique opportunity for the City of Franklin to significantly boost infrastructure investment and enhance community services. Similar to the pivotal 2016 Invest Franklin initiative, which dedicated $0.10 of property tax capacity to infrastructure needs and enhanced services, we have the means to address critical infrastructure needs and elevate City services. This initiative led to significant improvements in city services and facilitated hundreds of millions in infrastructure investments through the City’s 10-year Capital Investment Plan (CIP), proving its value and impact on our community. Let us again seize the moment to make meaningful investments that will shape the community for years to come.
Through the updated “Invest Franklin 2.0” initiative, we will continue to advance crucial infrastructure and enhance City services. This program allows the City of Franklin to partner with the Tennessee Department of Transportation (TDOT) to expand both Mack Hatcher Southeast (from Murfreesboro Road to Columbia) from two to four lanes and additional capital investment needs. Enhancing the capacity and functionality of this critical corridor will significantly enhance the quality of life for our residents. Additionally, we will be able to improve City services for years to come, prioritizing the enhancement of public safety staffing, increasing public works capacity, and implementing smart technology solutions.
Every four years, the County Property Assessor conducts a reappraisal of all property in Williamson County. This process updates valuations for each property, resulting in adjusted property tax rates. This provides the City with an opportunity to review its property tax rate and structure. The approved property tax rate for FY26 following the reappraisal is $0.296 per $100 of assessed valuation. The recommended budget includes both the existing property tax structure (certified at $0.2310 per $100 of assessed valuation) and an additional component ($0.0650 per $100 of assessed valuation) aimed at funding infrastructure investments and supporting City operations. Below is a summary of the updated property tax rate and the financial support designated for Invest Franklin 2.0 (based on assumptions from the Property Assessor’s information).
• $0.2310 per $100 of assessed valuation – This component is the existing base property tax rate for operations and debt service, maintaining the amount of tax dollars received for these purposes in the previous year. This funding also supports prior commitments for Invest Franklin/CIP projects.
• $0.0440 per $100 of assessed valuation – This component is allocated to infrastructure investments and transportation needs identified through Invest Franklin 2.0. The top priority for this funding will be collaborating with TDOT to expand Mack Hatcher Southeast from two lanes to four lanes and additional monies to support approved capital investment plan projects.
• $0.0210 per $100 of assessed valuation – This component is allocated to support City operations and service delivery. This allocation of property tax capacity would be the first additional property tax rate supporting City operations since 2016.
• Increase the Hotel Occupancy Tax by 1%. The current hotel tax is 4%. To support Invest Franklin 2.0, the proposal is to increase the hotel tax to 5%. The additional 1% which has been authorized by the State of Tennessee is projected to generate approximately $1.2 million annually. These funds would be dedicated to enhancing City parks and other improvements that positively impact Franklin’s tourism offerings. The City of Franklin last changed the Hotel Occupancy Tax in 2004. This piece is still under consideration by the Board of Mayor and Alderman and the State of Tennessee as of July 2025.
The City of Franklin continues to be bolstered 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 high-quality community service.
Budget Overview
The 2025-26 (FY26) budget for all funds is $243.3 million, which represents a decrease of 2.7% compared to the budget for 2024-25 (FY25). The General Fund budget is $128.1 million, which represents an increase of 9.7% compared to the FY25 budget.
Highlights of the 2025-26 Budget
• The budget is balanced and fully complies with the Board of Mayor and Aldermen’s debt and fund reserve policies.
• Following the four-year reappraisal, the City of Franklin’s property tax rate will move to $0.296 per $100 of assessed valuation. This rate will include dedicated funding to invest in crucial infrastructure and enhance City services. The City of Franklin property tax rate will remain one of the lowest property tax rates in Tennessee and among the lowest of comparable cities nationally.
• The City continues to invest in its most important resource, our City team members. The FY26 budget includes the implementation of an updated compensation plan, which moves all positions to the 90th percentile market target. This action is consistent with compensation plan adjustments made for Police and Fire team members in the FY25 budget. In addition, the FY26 budget includes a general pay increase of 2.5% plus an additional performance-based pay increase of up to an additional 2.5%.
• Thanks to the Invest Franklin 2.0 initiative, the budget includes eight new positions in the General Fund including three Firefighters, three Police Officers (patrol), a Victim Support Counselor in the Police Department, and an Information Systems Developer position.
• Health insurance premiums for City team members are unchanged for FY26. Deductibles are updated for the first time in over 20 years.
• Consistent with recently developed multi-year utility rate plans, Water and Sewer rates will increase 6% and 5.7% respectively beginning January 1, 2026.
• The City’s Hotel Occupancy tax is proposed to move from 4% to 5%. The additional 1% is projected to generate approximately $1.2 million annually, which will be dedicated to enhancing City parks and other improvements that positively impact Franklin’s tourism offerings.
• The budget incorporates performance measures and sustainability initiatives for every department. The connection to our updated Strategic Plan 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 15th 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.
Budget Development
The work of the budget began in December 2024 and continues through the review and eventual approval of the Board of Mayor and Alderman in June 2025. To see more of the process and proposed budgets, visit our Budget Development page.
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