Board approves resolution to pursue $15.9M refunding bonds to reduce debt service

The Franklin board approved a resolution on Jan. 14 to proceed with a plan to issue approximately $15.9 million in general obligation refunding bonds (Series 2026A) to refinance portions of the 2017A bonds. Financial advisors from Ehlers explained the plan during the meeting and outlined a timeline: proposals will be taken on Feb. 4, the sale awarded that evening, the bonds will close Feb. 25 and the old bonds will be redeemed on the April 1 call date.

Jeff Seeley of Ehlers said the refunding targets 2027 and later maturities of the 2017A issue and matches the remaining term through 2035. Advisors projected roughly $800,000 in interest savings over the life of the refunding (net of issuance costs), driven in part by expected premium proceeds on the new bonds. They described the premium process—underwriters can sell bonds at higher coupons relative to current market rates, generating up‑front premium funds that reduce the net amount the district must levy for future payments.

Board members asked procedural and fiscal questions about timing, net present-value metrics and issuance costs; advisors said the transaction would be competitive and that district credit (AA1 double-A1 rating referenced) supports favorable market access. Because the refunding is time sensitive, the board treated the adoption of the resolution as an exception to the typical two‑meeting process for such actions and approved the resolution to go to market.

The resolution authorizes staff to proceed with the sale process; the board will consider bids and award the sale at the Feb. 4 meeting.