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Council amends and approves sewerworks revenue bond ordinance to allow higher‑rated surety options
Summary
The council approved Ordinance 2025‑15 to authorize sewer works revenue bonds and amended the surety language to permit either A+ or AA rated surety instruments, expanding options for the city's bond reserve mechanism.
The Franklin City Council on Aug. 18 approved an amended Ordinance 2025‑15 authorizing issuance of sewer works revenue bonds, with a narrow wording change to the reserve funding options.
City attorney explained the ordinance had been before council in earlier drafts. The original ordinance required the city to set aside a cash reserve fund from bond proceeds; a later draft allowed the city to purchase a bond surety instead. Staff and the city’s financial advisor recommended broadening the allowable surety standard from strictly A+ to either A+ or AA ratings to increase market options and potentially lower the cost of the surety. "The surety that we had was an A+ rated surety… our financial planner said we should really have either an A+ or a double‑A," the city attorney said. The council approved the ordinance as amended.
Councilmembers discussed timing; staff said the city expects to proceed to market sale in the autumn and that the amendment should provide greater flexibility in shopping competitive surety quotes. The vote on the ordinance carried by voice vote with members present responding in the affirmative.
