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Franklin City wins AAA ratings; accepts bids for $47 million bond sale
Summary
City officials announced AAA ratings from Moody's and S&P and accepted bids for $47,000,000 in general obligation bonds to fund capital projects; Hilltop Securities was the winning bidder with a true interest cost of 3.52% and closing set for March 26.
Franklin City officials announced on March 2025 that the city received AAA bond ratings from both Moody's and Standard & Poor's and accepted bids for $47,000,000 in general obligation bonds to fund capital projects.
The ratings and bond sale matter because a AAA rating signals strong fiscal health and lowers borrowing costs; staff said the proceeds will fund Southeast Park, major road resurfacing, fire apparatus, and a portion of McEwen Phase 4. Christine, a city staff member, said the city received 12 bids and the low true interest cost from the winning bidder was 3.52 percent. "We did accept bids this morning for bonds that will fund $47,000,000 of capital projects," Christine said, adding that Hilltop Securities of Dallas was the winning bidder and the city is working toward closing on March 26.
Eric Stuckey, city staff member, framed the ratings as confirmation of the city's organization and financial stability, noting that receiving AAA from two agencies places the city among the top-rated municipalities. Christine told the board the bids were received at 10 a.m., nine of the 12 bids came in below the 3.60 percent level staff had anticipated, and that the biggest single project in the bond package is Southeast Park.
No formal vote was recorded for the presentation; staff described it as an informational report to the Board of Mayor and Aldermen. The city said funds will go to multiple capital projects previously identified in the capital plan and that staff and the mayor participated in the rating interviews with the agencies.
