Board authorizes up to $20.7 million interim borrowing to fund capital projects; no tax increase expected

The Franklin County Board of Supervisors on Aug. 19 approved a resolution authorizing interim borrowing — a bond anticipation note (BAN) — of up to $20,700,000 for a package of general‑government and school capital projects.

Kyle Alex of Davenport, the county’s financial advisor, told the board the short‑term borrowing will provide flexibility to move on several projects the board and staff have prioritized, anchored by the planned purchase of the Majicraft property and including Career and Technical Education facility needs, E‑911, public safety and school roof/HVAC projects. Alex said the county’s credit ratings are strong — "one notch below AAA" — and staff have budgeted debt service for the borrowing so the board will not need to raise the tax rate.

"You should be able to conserve fund balances and continue to earn interest while the money is available for projects," Alex said, adding the county would deposit borrowed proceeds into the state’s special investment vehicle and could earn a reinvestment rate near the borrowing rate.

County CFO Brian Carter presented the municipality’s unaudited year‑end numbers to the board earlier in the meeting and said the estimated year‑end fund balance was roughly $50 million before certain planned set‑asides; he said roughly $24.5 million remained unassigned and unobligated after those items. Davenport used conservative assumptions in its debt‑service forecasts and stressed the plan preserved the county’s current low tax rate.

Supervisor Mitchell made the motion to adopt the financing resolution; Supervisor Tatum seconded. The clerk recorded a unanimous roll‑call vote: Carter, Tatum, Quinn, Jamieson, Mitchell, Smith and Chairman Thompson voted yes.

Davenport and bond counsel (Sands Anderson) will complete final documents, seek ratings presentations and bring sale results and the final interest rate back to the board in September. Alex said the county expects to close the borrowing in October and that the note will have a final maturity of up to five years; staff will later decide whether to refinance or convert some or all of the interim borrowing to longer‑term bonds.

What happens next: staff will work with bond counsel and Davenport to obtain credit agency presentations and take the note to market in late September; the board will receive sale results and closing documents in a subsequent meeting.