Council introduces ordinance to authorize up to $47 million in sewage works revenue bonds

The Franklin City Council on March 17 heard an introduction of Ordinance 25-03, which would authorize the issuance of up to $47,000,000 in sewage works revenue bonds to pay for a group of sewer projects including expansion of the wastewater treatment plant, a west-side interceptor and lift station, sanitary sewer manhole rehabilitation and related improvements.

City Attorney Lynn Gray deferred to bond counsel Mr. Hall to explain the ordinance, which Mr. Hall described as “authoriz[ing] the issuance of up to $47,000,000 in bonds” to fund projects listed in Exhibit A to the ordinance. Hall said descriptions in the ordinance are flexible to allow use of bond proceeds depending on construction bids.

Hall and finance staff explained the timing: construction bids are expected in mid-August, after which the city would size and sell the bonds. Jeff Peters, representing the city's finance staff, explained assumptions used for rate calculations: “If we did it today, we'd probably be in the low fours,” and reminded the council staff had previously calculated rates using a 5% interest assumption. The ordinance as drafted provides flexibility for amortization up to 25 years, though staff said they expect to amortize over 20 years; interest terms in the authorization allow rates up to 7% if needed.

Council members discussed project prioritization in case bids exceed early estimates; staff said the treatment-plant renovation would be prioritized and other sources such as TIF revenues or RDC funds could be used to complete remaining work. No final action was taken on Ordinance 25-03 at the March 17 meeting; it was introduced for consideration and may appear again for approval after ratings and offering documents are prepared.