Fiscal Year 2026 – 2027

A steady continuation of Invest Franklin 2.0, with a major win on Mack Hatcher.

FY27 keeps Invest Franklin 2.0 on its current path. The total budget grows modestly to $273.4M, the property tax rate holds at $0.296 (the lowest in Franklin's recorded history), and the city locked in TDOT partnership funding for Mack Hatcher Southeast, one of only nine such projects selected statewide.

July 1, 2026 – June 30, 2027 Presented May 14, 2026 vs. amended FY 2026 throughout
Franklin Public Square
All-Funds Total
$273.4M
$266.3M FY27
↑ 2.7% YoY

General Fund
$134.3M
$131.9M FY27
↑ 1.8% YoY

Property Tax Rate
$0.296
FY26 → FY27 held flat
per $100 of
assessed value
Headline win
Mack Hatcher SE
Franklin secured TDOT partnership funding for the Southeast widening, one of only nine such projects funded statewide.
Reserves
$92.1M
Ending fund balance sits at 68.6% of annual revenues, well above policy. Up from $74.4M in 2023.
New General Fund hires
8 new
3 patrol officers, 1 training sergeant, 2 parks groundskeepers restored, plus Contract & OD specialists. One position cut in Admin (net +7).
Property Tax

$0.296 per $100: the lowest rate in Franklin's recorded history.

The FY27 budget holds the property tax rate flat from FY26. The Invest Franklin 2.0 dedicated funding structure stays in place, and Franklin's rate now sits at less than 14% of its 1987–89 peak. The city leans on that fact often when comparing itself to its neighbors.

Four decades of property tax rate decline.

FY27 marks the second consecutive year at the lowest rate in Franklin's history.

1987–89 peak
$2.15
FY27
$0.296flat vs FY26
Change
−86%
$2.50 $1.67 $0.83 $0.00 1987 1995 2005 2015 FY27 1987–89 peak · $2.15 FY25 · $0.32 FY27 · $0.296
Sales tax share
52.8%
of General Fund revenue. $70.9M projected, up 2.8%.
Consumption-based
71.6%
of all General Fund revenue, sensitive to corridor retail activity.
Personnel share
69%
of General Fund spending goes to people. Roughly $93M of $134.3M.
Capital Project Spotlight

New City Hall: "Completing the Square."

The 1970s converted-mall City Hall has been demolished. A new three-story civic building is going up in its place on the historic Public Square. It will be Franklin's first purpose-built City Hall since 1892. Construction started in May 2025, with opening targeted for summer 2027.

Drone view · Construction progress
City Hall building cost
$58–62.5M
Three stories, ~250 employees, public meeting spaces. Skanska's construction contract for the building itself is ~$53M.
Total project investment
$90M+
Building + 200-space subgrade garage + plaza + 1-acre park + streetscape + contingencies.
Target opening
Summer 2027
Vertical construction underway as of May 2026, on schedule for the public-square ribbon-cutting.

Where the dollars go: 7 project pieces.

Cost estimates as of June 24, 2025. Ranges reflect design and material-pricing variability.

Mid-estimate total
~$93.8M
City Hall building
Three-story civic campus, ~250 employees, public meeting spaces.
$58–62.5M
Subgrade parking · 200 spaces
Brings the block to 500+ total spaces, easing the downtown parking crunch.
$16.5–17.5M
Utility & site work
Underground infrastructure replacement and stormwater upgrades across the site.
$8.5–8.9M
One-acre public park
Fountain, seating, gardens, and shade trees. A rare patch of green space in downtown Franklin.
$3.5–4.2M
Plaza, promenade & public restrooms
Enlarged plaza, pedestrian promenade, ADA accessibility, expanded restrooms.
$1.3–2.0M
3rd Avenue streetscape
Wider sidewalks, landscaping, street trees, and pedestrian seating, from the Square to Church Street.
$1.3–1.7M
Commercial shell space
Tenant spaces along 3rd Avenue South to activate the street year-round.
$0.7–1.0M
Contingencies built in: $7M for construction & design issues, plus $5M reserved for potential tariff-driven increases in building-material costs.
Project Timeline

From a leaking 1970s mall to a purpose-built civic campus.

The old City Hall started as a 1970s shopping mall and then served as a 40-year placeholder. It was demolished after years of roof leaks, no windows, and five confusing entrances. Over 90% of public-survey respondents support the direction of the new design, including the form, subgrade parking, public restrooms, and LEED Silver target.

✓ Construction underway LEED Silver target
Key milestones
  • MAY 2025 Demolition complete · site work begins
  • MAY 2026 Vertical construction underway
  • SUMMER 2027 Targeted opening · ribbon-cutting on the Square
Staff working from interim sites Until 2027
Administration → 740 Columbia Ave
Community Development → 120 Ninth Ave S
Billing, IT, Emergency Mgmt → 204 Ninth Ave S
Fire Admin → old FSD office, Hwy 96 W
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Revenue · FY26 → FY27

The biggest shifts in where Franklin's money comes from.

FY27 revenue growth is modest and intentionally cautious. The headline movements: building activity is up sharply, one-time transportation grants have wrapped, and softer interest rates are pulling investment income down.

Building Permits & Licenses
Partly driven by new Plan Review Fee increases.
↑ 22.6%
State Shared Revenues
Tennessee-distributed revenue line, continuing its upward trend.
↑ 5.7%
Local Sales Tax
Now 52.8% of General Fund revenue. $70.9M projected.
↑ 2.8%
Grants
One-time transportation project grants have wrapped up.
↓ 29.9%
Interest Income
Reflects a softening interest-rate environment.
↓ 29%
All-Funds Total
Total budget across every fund, FY26 $266.3M → FY27 $273.4M.
↑ 2.7%
Where the Money Goes

Public safety still leads, but Public Works gets the biggest bump.

Of the $134.3M General Fund, 69% goes to personnel. Public Safety is the largest department at 43.9% of all General Fund spending, basically flat year-over-year. The big mover this year is Public Works, up 6.5% for parks restoration and street maintenance.

Public Safety

$59M, or 43.9% of the General Fund, basically flat. Adds 3 patrol officers and a police training sergeant. Fire creates a District Captain structure without new headcount.
$59M · flat YoY

Public Works

Up to $19.3M, a 6.5% jump driven by parks restoration and street maintenance. Restores 2 grounds worker positions, adds pavement-management software and a downtown traffic study.
↑ 6.5% YoY

City Employees

2.5% base raise with up to 5% total tied to performance. After four flat years, health premiums tick up 2.5% and out-of-pocket maximums rise for the first time since 2014.
2.5% raise · premiums +2.5%
8 New General Fund Positions · Net +7

More patrol officers, restored parks crews, and back-office capacity.

Public safety leads again. FY27 also restores parks and back-office roles trimmed in earlier cycles, with one Administration cut bringing the net to +7.

3
Patrol Officers
Police Dept.
1
Police Training Sergeant
Police Dept.
2
Grounds Workers (restored)
Parks & Recreation
1
Contract Specialist (restored)
Finance
1
Org. Development Specialist
Human Resources
−1
Position Reduction
Administration
0
District Captain Rollout
Fire Dept. · no new hires

For comparison, FY26 added 8 positions: 3 firefighters, 3 police officers, a victim counselor, and an IS developer.

Headline Infrastructure Win

Mack Hatcher SE: TDOT-funded, 1 of 9 statewide.

FY27's biggest transportation news: Franklin secured Tennessee DOT partnership funding for the Mack Hatcher Southeast widening, one of only nine such projects funded statewide. Construction targets a 2032 start. The Invest Franklin 2.0 dedicated funding stream remains the local match.

✓ TDOT funded Construction target 2032
Mack Hatcher Southeast
2 lanes
4 lanes
Murfreesboro RdFrom
Columbia AveTo
10-Year Capital Investment Plan Carryover
$458M
in improvements scheduled, with 82% going to transportation.
What Residents Will Pay More For

No property tax hike, but five other fees move.

FY27 is where the budget shows up in your monthly bills. The property tax rate holds at $0.296, but utilities, trash, stormwater, and a long-flat builder fee all step up. Most start January 1, 2027.

Water ↑ 5.0%
FY26 +6% +5%
Effective Jan 1, 2027 · multi-year utility plan.
Sewer ↑ 6.0%
FY26 +5% +6%
Effective Jan 1, 2027 · multi-year utility plan.
Trash & Recycling +$1/mo
$33 $34
Residential, monthly · effective Jan 1, 2027.
Stormwater ↑ 55%
$3.83 $5.94
Per ERU · first increase since 2018 · ~$20.70/yr extra.
Employee Health ↑ 2.5%
flat 4 yrs +2.5%
First premium change in 4 yrs · OOP max up first time since 2014.

Plan Review Fees jump for builders and developers

Nonresidential plan review goes from $50 → $250. A new $50 fire protection review fee is added. A new $100 residential plan review fee applies to homes over 2,000 sq. ft. Commercial transfer station tip fees also rise from $70/ton to $75/ton.

Capital Projects · FY26 → FY27

What just opened, and what's still under construction.

Franklin's 10-year Capital Investment Plan carries over $458M in improvements, with 82% going to transportation. Two big FY26 projects are open, and a pipeline of FY27–28 projects is on deck.

Opened in FY26

Complete
  • Bicentennial Park Jul 2025
  • Harlinsdale Farm Main Barn Aug 2025
Fund Balance · Financial Health

Reserves climbed from $74.4M to a projected $92.1M.

Ending fund balance now equals 68.6% of annual revenues and expenditures, well above what policy requires, and a steady climb even as service demands grow. Hotel/Motel Fund spending totals $7.6M, including $4M for Liberty Park improvements and $1.3M to the CVB.

$74.4M $92.1M
68.6% of annual budget
In Plain English

The whole FY27 budget, for normal humans.

Short version: no property tax increase, but utility and service fees are creeping up across the board. The city is still building, still hiring, and still managing its money carefully.

The city has $273 million to spend. That's about $7M more than last year, a careful 2.7% increase.

Your property tax rate is NOT going up. It stays at $0.296, the lowest in Franklin's recorded history.

Water and sewer bills go up again in January 2027: water +5%, sewer +6%. This is part of a planned multi-year schedule.

Trash pickup costs $1 more per month, going from $33 to $34, starting January 2027.

Stormwater fees go up for the first time since 2018. Most homeowners will pay about $20 more per year.

Franklin hired 3 new patrol officers and a police training sergeant, plus restored 2 parks groundskeeper positions.

City workers get raises again: 2.5% base, up to 5% with performance. This year their health insurance premiums also tick up a little, for the first time in 4 years.

Mack Hatcher SE is actually happening. Franklin landed TDOT partnership funding, one of only 9 projects selected statewide. Construction targets 2032.

The city's savings account stays healthy, with $92 million in reserves, nearly 69% of what the city spends in a year.

Most of what you pay in taxes goes to public safety. 44 cents of every General Fund dollar funds police and fire.