At Monday night’s town council meeting, a final $14.7 million budget for the next fiscal year was approved that will include employee raises, infrastructure projects, Main Street changes, water and sewer improvements and fire department funds.
Town Manager Amie Owens said, “This is a balanced, no tax-increase budget that invests in infrastructure and one-time capital expenditures, supports employees, addresses rising costs and plans for long term sustainability and transformation.”
Of course, the process was more involved than one meeting. In May, council members finalized various capital project proposals associated with the new budget.
Included was a five-year, $6.9 million Capital Improvement Plan (CIP) for future development. The CIP is a dynamic planning and fiscal management tool used to coordinate capital improvements.
Big ticket items
Owens said some of the areas seeing the largest increases in expenditures are health and dental insurance premiums, employer retirement contributions, worker’s compensation, property and liability insurance, and utilities.
Projects contained within the new budget include various paving and infrastructure expenditures, totaling $817,000, which is below the original estimate. She also emphasized that the projects collectively benefit east, west, and central portions of town.
There also is a 2% cost-of-living adjustment (COLA) increase for all employees, which comes on the heels of a 4% COLA hike in last year’s budget. She said the new increase closed an economic gap caused by inflation issues.
Some capital spending recommendations included in the general fund are the Sunnyside park additions (original plan pictured above), Main Street improvements and several paving projects around town. The Town’s tax rates have not changed for four years.
Overall, the operational budget increased 5.6%, well below statewide averages.
Main Street impact
Owens also revealed an increase in governing board costs as part of the Main Street transformation project to be used for implementation plans and to facilitate a nonprofit, which will contribute to the overall process.
Also, she warned that a 5% rate increase for water and sewer was due to escalating costs for water treatment chemicals, materials, and infrastructure improvements. The total Water/Sewer Fund budget allocation for the new year is just over $5.5 million.
However, all the increases may be misleading in the big picture. “We took $228,884 from retained earnings to balance the budget. That is the lowest amount needed within the last four years, where the previous totals averaged between $700,000 and $800,000 to achieve budget balancing.”
Council member Mike Lewis commented on two aspects of the budgeting process he wanted the public to understand.
“In 2019, we passed a capital improvement plan for water and sewer, and rate increases were built into that plan. We’ve been able to hold that plan,” he said. “You are going to see a lot of things accomplished in this budget without a tax increase. That’s a credit to our employees, our finance department and everyone involved.”
With no public input in response regarding the new budget, council members unanimously approved it.
Data centers
Data centers are quickly becoming a very hot topic around the nation with communities fighting them.
Both council members Lewis and Rita Salain said they did not want any data centers in Franklin.
The council decided to host a public hearing on the subject July 6 at the next council meeting. The council is asking for public input on a possible ordinance establishing a moratorium on new data center development within the Town of Franklin’s planning jurisdiction.
Franklin Fire Department news
A highlight of the evening was Town Planner Justin Setser officially recognized as the new chief of the Franklin Fire Department.
Prior to Setser’s pinning, Mayor Guffey lauded him for his dedication to the Town and his numerous roles fulfilled over the last few years. “You may not know this, but Justin has been town planner, information technology director, interim fire chief, and facilities director.”
After the mayor honored Setser, Owens followed with some background on the new chief and his family.
- A third-generation firefighter with a 24-year career in Franklin.
- Worked his way up from a volunteer firefighter to fire captain, where he served from 2012 to 2021.
- Assistant Chief from 2021, until February 2026.
- Named interim Fire Chief in February 2026.
- He worked with career and volunteer firefighters to make improvements to the department, develop the new budget, and create a plan to keep fire and rescue continually moving forward.
- Earned numerous firefighting certifications, and is certified as a North Carolina Medical Responder.
- He also is the fire department’s public information officer.
Owens concluded, “Justin is a committed public servant in all the roles he holds. The panel that interviewed him knew his experience, but it was his passion and enthusiasm for this job that really solidified the decision. We are appreciative of all that Justin contributes to the town and know that as fire chief, he’ll continue to make entire Town of Franklin proud.”
Town refunds fees
Last month, the town tabled a refund request by a Franklin resident who paid nearly $70,000 in tap and system development fees for a property he decided not to develop.
Because no cost had been incurred by the Town, council members voted to refund the resident $69,000.
The town attorney said by law fees legally collected are not generally refundable, but he advised the council to develop a policy that clarifies a stance on similar issues in the future.
In other news
- The council approved a contract with Backwood Bridges, LLC to complete the Cartoogechaye Boardwalk Project.
- Council also approved an agreement with Duke Energy to develop an electric substation and related electrical facilities on a 9-plus acre property located on Siler Road. The Town plans to extend the Little Tennessee Greenway across the same property in order to connect to Siler Rd.
The next council meeting is scheduled for Monday, July 6, at 6 p.m. at the Town Boardroom.