FY 2017 Budget

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Annual Operating & Capital Budget

FY 2017 Approved Budget 

FY 2017 Budget Summary

FY 2017 Budget Presentation - Budget & Finance Committee - May 12, 2016  

The City is pleased to present this summary of the annual budget for the fiscal year which begins July 1, 2016 and ends on June 30, 2017. The budget is balanced, with revenues meeting expenditures. The proposed general fund budget is $64,147,849, which represents an increase of 4.1% compared to the current $61.6 million budget for 2015-16. This budget increase is primarily due to cost increases in the services we purchase, personnel expenses, and the funding of expanded services in the areas of public safety, streets (including city fleet), and parks, all of which are significantly impacted by growth. 

The 2016-17 proposed budget for all funds is $134,999,925, which represents an increase of 5.8% compared to 2015-16. The primary reasons for this $7,429,990 increase across funds are increases in the General, Sanitation, Transit, Community Development Block Grant (CDBG), Stormwater, Street Aid, Road Impact, Debt Service, and Water/Sewer funds. There are decreases within other funds, including Drug, Facilities Tax, and Hotel/Motel.  

Franklin continues to be a highly desirable community for families and businesses to call home.  Along with acclaim on numerous city ratings focusing on high quality of life, Franklin boasts unprecedented job and population growth.  In fact, Federal government numbers show that Williamson County was the top county in America for job growth in 2014-15.  Most of this job growth occurred in Franklin and matches recent U.S. Census reports that identify Franklin as one of the fastest growing cities in the country with a population of more than 50,000.  Since 2013 (a 39-month period), the City of Franklin has experienced a total investment in permitted development of nearly $1.7 billion.  Our city is honored to be a community that so many are choosing as a place to invest, build a business, raise a family, spend a vacation, and, most of all, a place they proudly call “home.” 

Of note in this budget: 

• The budget is balanced, with current revenues equaling expenditures.  
• The budget is in compliance with the Board of Mayor and Aldermen’s debt and fund reserve policies, significantly exceeding the reserve requirements.  
• Overall, the proposed budget has a net reduction of 11 positions across all funds.  This is largely due to the consolidation of the City’s emergency communication function with Williamson County.  A targeted group of new positions are added in the budget. These positions are in areas such as Parks, Police, Fire, Engineering, and Stormwater, all of which have been impacted by growth.  
• Within the Water Management department, the City will be establishing a team to manage utility location services through the State of Tennessee’s “One Call” system.  Per state law, cities and utilities are required to participate in this system by January 1, 2017.  
• The annual pay adjustments for City team members will involve two tiers this year:  1) All employees will receive a $500 base pay increase to offset medical insurance cost escalations in recent years and 2) a 4% general pay increase will be provided to employees.  There will be a cap placed on total base pay increase of $3,000 between these two elements.  The pay adjustment will be effective July 1, 2016.  In addition, the recommended budget includes $125,000 for funding of the merit supplements for a fifth consecutive year.
• The recommended budget proposes the reclassification of the vacant Capital Investment Project Executive/City Engineer position to an Assistant City Administrator for Public Works effective January 1, 2017.  Along with this reclassified position, a reorganization of departmental reporting structure will be brought to the Board for consideration during the fall of 2016. 
• Funding for a special census is included in the recommended budget.  This effort will enable the City to document its population growth and receive a more appropriate portion of state-shared revenue.  
• The City property tax rate is recommended at $0.42 per $100 of assessed valuation, with specific dedication of funding to infrastructure and operations (described above).  The City of Franklin maintains one the lowest municipal property tax rates in the State of Tennessee.
• The proposed 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.  

The creation, approval and execution of the operating budget is one of the most important policy and financial decisions the City of Franklin is tasked with annually. The City of Franklin adheres to the guidance and principles for budgeting set forth by the Government Finance Officer's Association of the United States and Canada. Specifically, we believe that a budget should be:

 

GFOAAward

- A Policy Document

- An Operations Guide

- A Financial Plan

- A Communications Device

We are proud to have had our budget recognized by the GFOA for 8 consecutive years as a recipient of the Distinguished Budget Presentation Award.  

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