Franklin's 2027 Budget Is Balanced — But at What Cost?
Finance Committee review raises questions about taxes, debt, staffing and what residents may ultimately pay to maintain City services and quality of life
FRANKLIN — Mayor John Nelson's proposed 2027 budget is balanced on paper. But after multiple Finance Committee budget-review meetings, a larger question is emerging: At what cost—to taxpayers, City services and Franklin's quality of life?
By Dr. Richard Busalacchi
Franklin Community News
The Mayor's proposal increases the City's property-tax levy and debt-service levy while relying on borrowing and other revenue sources for millions of dollars in capital spending.
At the same time, some requested positions remain unfunded, some costs could potentially be shifted elsewhere, and Franklin is paying its former Finance Director to provide consulting assistance to the current Finance Department.
The Finance Committee is still reviewing the proposal. It is expected to submit its recommendations and proposed changes to the Common Council on October 20, with a public hearing and final adoption scheduled for November 17.
READ THE BUDGET:
2027 Mayor's Recommended Budget — City of Franklin
2026 Mayor's Recommended Budget — City of Franklin
The budget debate increasingly comes down to three things:
Taxes. Services. Quality of life.
City Levy Would Increase Nearly $900,000
Under Nelson's proposal, Franklin's total City property-tax levy before personal-property-tax aid would increase from approximately $24.33 million to $25.22 million—an increase of about $892,000.
The General Fund levy would increase approximately $917,000, or 4.3%.
That does not mean an individual homeowner's total property-tax bill will increase by the same percentage. Franklin is only one taxing jurisdiction on the property-tax bill, and the effect on an individual property depends on valuation and the final tax rate.
But it does mean the City proposes collecting more property-tax revenue.
Debt-Service Levy Jumps 24%
Franklin's debt-service levy would increase from approximately $1.14 million in 2026 to $1.415 million in 2027—an increase of $275,000, or roughly 24%.
Meanwhile, the separate $300,000 Street Improvement levy included in 2026 falls to zero.
The need for street improvements doesn't disappear. To the extent future projects are financed through borrowing rather than a current levy, those costs are instead paid over time through principal and interest.
A cost can be postponed or financed differently without being eliminated.
$26 Million in Capital Spending With No Capital Levy
That issue surfaced directly during the September 22 Finance Committee meeting when a member questioned how Franklin could undertake approximately $26 million in capital spending while putting $0 of the current property-tax levy directly into the capital fund.
Finance officials explained that the capital program uses multiple funding sources, including borrowing authorized in 2026, TID borrowing, landfill-siting revenue, grants, interest income and other resources.
Review the City's 2027 Capital Fund Budget
Borrowing can allow Franklin to complete long-lived infrastructure without requiring current taxpayers to pay the entire cost immediately.
But borrowing also creates future obligations—and Franklin's increasing debt-service levy demonstrates how those obligations eventually reach future budgets.
Review the City's 2027 Debt Service Fund Budget
Fire Staffing Shows the Tradeoff
The budget's effect on services becomes particularly clear in the Fire Department.
The department has identified a need for additional firefighter/paramedics as emergency calls and overlapping calls increase.
The Mayor's 2027 recommendation does not fund the requested additional firefighter/paramedic.
The Fire Chief estimated one firefighter/paramedic costs approximately $150,000 annually with benefits. During the same discussion, committee members cited approximately $167,000 in additional levy capacity.
Funding one position could therefore consume most of that additional recurring capacity.
That illustrates Franklin's fundamental budget dilemma:
Maintaining or expanding services costs money. Controlling spending requires deciding which needs get funded and which wait.
Health Position Also Left Unfunded
The same issue arose during the September 29 review.
Nelson's budget leaves the vacant Public Health Strategist position unfunded.
Health Department staff told the committee the position assists with emergency preparedness, community-health planning, grant writing and other responsibilities.
Restoring the position was estimated at approximately $115,000 including benefits.
Leaving it unfunded saves money. Health staff, however, told the committee that absorbing those responsibilities without the position would be difficult.
City Paying Former Finance Director as Consultant
Another expenditure surfaced during review of the Finance Department budget.
Former Franklin Finance Director Paul Rotzenberg, who now serves as a citizen member of the Finance Committee, publicly disclosed that he has been providing paid consulting assistance to current Finance Director Danielle Brown.
“I've been helping Danielle out on a consulting basis because I was the finance director, and I have a lot of knowledge,” Rotzenberg told the committee.
He also made clear that the work is paid:
“I'm charging for the consulting work.”
The proposed Finance Department budget contains a new $30,000 professional-services appropriation. During the discussion, that appropriation was connected to anticipated consulting assistance, although Rotzenberg said he did not expect to personally spend enough time working for the City to use the entire amount.
Rotzenberg also clarified that he does not charge the City for his participation on the Finance Committee. His paid consulting work is separate from his committee service.
The arrangement does not by itself establish anything improper, and Rotzenberg publicly disclosed it during the meeting.
It does, however, add another consideration as Franklin determines how to allocate limited resources: the City is paying its former Finance Director to provide assistance to its current Finance Department while other requested positions remain unfunded.
The issue also relates to questions FCN previously examined about Franklin's executive staffing, administrative costs and the additional resources that may be required during leadership transitions.
RELATED: Can Franklin Afford Another Executive? — FCN Wisconsin
Senior Programs Accidentally Left Out
The committee also discovered that two established senior programs were listed at $0 in Nelson's proposal.
Administration acknowledged September 22 that the omission was an “oversight.”
The committee discussed potentially restoring approximately $22,000 for Senior Travel and $12,000 for the senior luncheon/activity program.
That's potentially another $34,000 that must be accommodated somewhere in a budget already presented as balanced.
Could Residents Pay Through Other Bills?
Property taxes aren't the only way residents can bear City costs.
The Finance Committee discussed potentially moving approximately $270,000 in public-fire-protection costs from the property-tax levy to the Water Utility.
Such a move could create additional room under the property-tax levy.
But the expense wouldn't disappear. More of it would instead be recovered from water customers.
For residents, the distinction matters:
A cost removed from the property-tax levy isn't necessarily a cost removed from the household budget.
The Longer-Term Landfill Question
Franklin also receives millions of dollars in landfill-related revenue that currently helps support capital projects and other City expenses.
During the September 29 meeting, committee discussion described Franklin's broader landfill-related revenues as approaching $4 million annually across different sources and funds.
That revenue will not necessarily continue indefinitely.
If it eventually declines substantially, Franklin will face choices: replace the revenue through taxes or fees, find other revenue, reduce spending or services—or use some combination of those approaches.
That is a longer-term issue, not a proposed 2027 tax increase.
But it demonstrates why balancing one year's budget does not resolve Franklin's longer-term financial challenges.
What Does This Mean for Residents?
The debate isn't simply about whether taxes rise or fall.
It's also about what residents receive for what they pay.
Fire and emergency response, snowplowing, roads, public health, parks, recreation and other municipal services all contribute to Franklin's quality of life.
Reducing or postponing spending can control taxes and fees. But postponing positions, equipment and infrastructure can also affect services.
Conversely, funding every departmental request would require additional money from somewhere.
The Bottom Line
Mayor Nelson's 2027 budget balances. But balance doesn't make the underlying costs disappear.
Some costs are paid through today's property-tax levy.
Some are borrowed and paid tomorrow.
Some can potentially be shifted to fees or utility bills.
Some positions and projects can be postponed or left unfunded.
And some expenses—such as the senior programs—may have to be put back into a budget that initially left them out.
Franklin's challenge therefore isn't simply balancing the columns.
It is determining what residents are willing to pay—and what level of services and quality of life the City can sustainably provide in return.
The Finance Committee has not finished answering that question, and the Mayor's Recommended Budget is not yet Franklin's final 2027 budget.
What Happens Next? Franklin's 2027 Budget Timeline
September 15 — Mayor's Budget Presented
Mayor John Nelson presented his 2027 Recommended Budget to the Common Council, which received it and forwarded it to the Finance Committee.
September 22 — Finance Committee Review Begins
The Mayor's Recommended Budget was formally introduced to the Finance Committee.
September 29 — Finance Committee Review Continues
The committee continued its department-by-department examination of the proposed budget.
October 1 — Finance Committee Review
The committee continued reviewing and discussing the Mayor's Recommended Budget.
October 13 — Finance Committee Review Continues
The committee is scheduled to meet again at 5 p.m.
October 20 — Recommendations Go to Common Council
The Finance Committee is scheduled to submit its recommendations and proposed changes to the Common Council.
November 17 — Public Hearing and Final Adoption
The Common Council is scheduled to hold the public hearing and consider final adoption of Franklin's 2027 budget.
Follow the 2027 Budget Process and Review the City's Budget Documents
