Building a Stronger Frankfort: FY26 Budget Reflects Stability, Investment, and Momentum
As we enter a new fiscal year, I want to share how the FY26 city budget reflects our commitment to disciplined financial management, strategic investment, and long-term stability for Frankfort. This twelve-month budget reflects our commission’s priorities and serves as a blueprint for building a strong financial future. The results are a projected surplus, with no new fees.
At just over $45 million, our general fund budget maintains funding for core services while laying the foundation for continued growth. Public safety remains our top priority, with more than half of the general fund allocated to police, fire, EMS, and 911. These essential services keep our city safe and secure, and they remain our top priority. As evidenced by the recent floods, we must be prepared to respond to any emergency at any time.
We are also investing more in the departments that keep Frankfort clean, connected, and moving forward. Sanitation, transit, planning, and public works all receive increased funding next year to support our growing city.
Perhaps most notable is that this is our first projected general fund surplus in five years (and, as of this writing, it appears we will also end the current fiscal year with a surplus as well). This outcome reflects our commitment to modernizing systems, managing expenses, and growing revenue responsibly. This hard work is starting to pay dividends. The projected surplus is available for additional funding needed for contingencies throughout the year and, if unspent, will further strengthen our already healthy reserves.
This budget also marks a turning point. We can now say that Frankfort has fully recovered from the fiscal impacts of the COVID-19 pandemic. We have switched from playing defense to playing offense.
Significant projects are advancing across the city, with new ones slated for this year, including city-wide park improvements, a new fire station, and a new meeting and event center. These efforts will improve quality of life, drive tourism, and expand the city’s revenue base. These projects are being mostly funded through dedicated sources outside the general fund, to limit strain on day-to-day operations.
Meanwhile, several ongoing projects are bringing us closer to realizing new revenue from previously committed funds. We are primarily focused on the long-awaited west side investment, which includes the much-publicized Paddocks development. We are also advancing the development of the downtown parcels. A joint city-county committee is currently reviewing proposals for a new meeting and event center in that area, with a selection expected soon.
These projects will add new housing, new jobs, attract businesses, and connect more residents to opportunity. These projects come with bond obligations, but we have structured these investments carefully. This budget includes annual bond payments that are fully funded from a designated account, separate from the general fund.
We are also seeing the benefits of key structural changes made over the past two years. The Finance Committee, established early in my term, has improved long-range forecasting, policy guidance, and the connection between financial strategy and capital investment. These reforms may not make headlines, but they are building a stronger city government.
This year, the commission also created a Technology and Innovation Committee to modernize service delivery, integrate systems, and promote transparent, efficient government. We are digitizing more records, automating outdated workflows, and enhancing the way departments collaborate and serve the public. These measures will not only improve constituent services but also save time and expense.
Meanwhile, we are modernizing our revenue collection process to ensure the city receives what it is owed fairly and efficiently. That helps us keep rates low while making revenue more predictable.
Our cash reserves are now working harder for us due to strategic financial management. We are generating more interest income and have positioned a portion of our reserves into long-term investments that can potentially produce higher returns, which will benefit not only future commissions and mayors, but the future of our city.
The bottom line is this: Frankfort is on solid financial ground and poised to capitalize on future opportunities. We have adequate reserves. We are managing debt responsibly. We are making smart, future-focused investments that will position us for long-term success.
I am proud of this budget because it reflects our priorities now and invests in the future. It is a testament that we are on the right track, and the best is yet to come. As always, I welcome your questions and feedback. I am proud of this progress and grateful to work alongside so many of you to build a stronger Frankfort.
Thanks,
