Committee reviews borrowing options, TID capacity and utilities costs for South 76th Street
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Summary
Staff presented citywide debt schedules and scenarios from the city’s financial advisor and detailed a South 76th Street county reconstruction: a $370,000 sidewalk the city must commit to by mid-February, a potential $1.85 million sewer/water extension and an estimated $600,000 assessment to property owners if pursued.
Franklin City staff used the finance committee meeting to review debt schedules, refunding possibilities and the city’s options for borrowing to cover several high-ticket projects slated for 2026–27.
Danielle (staff) walked the committee through documents showing city debt, TID debt and enterprise fund liabilities and said the city’s financial advisor is preparing scenarios for potential borrowing of different amounts and terms. “Ehlers is putting together a potential borrowing as of July,” Danielle said, noting the city could use internal funds until a planned mid/late 2026 borrowing.
Committee members discussed whether to combine 2026 and 2027 borrowing to hit a larger offering size, the trade-off of increased issuance costs for multiple sales, and the arbitrage risk if proceeds are not spent quickly. Members suggested structuring bonds with early-call provisions to preserve flexibility should development proceed faster than anticipated.
On South 76th Street, staff reported the county will perform a 2027 reconstruction and offered to include an east-side sidewalk at roughly $370,000; the city must tell the county by mid-February whether to include the sidewalk in the county design. Staff also said a sanitary sewer and water main extension in that area would cost about $1,850,000 and, if assessed, property-owner assessments would be about $600,000.
No final borrowing authorization occurred; staff will return with refined scenarios and tax-impact estimates to inform council decisions.
