Franklin County approves up to $7.95 million in bonds to finance jail, communications, highway and solid-waste needs

The Franklin County Board of Commissioners voted unanimously (15–0) on Nov. 13 to adopt two resolutions authorizing the issuance of general obligation bonds in an aggregate principal amount not to exceed $7,950,000 to finance county capital needs.

Chair Eddie Clark presided over the special called, recessed session. Commissioner Dale Schultz moved to approve the initial resolution (1a-110917) authorizing bond issuance; Chuck Stines seconded. The board then approved the companion bond resolution (1b-110917) that sets terms for sale, repayment and related procedures. Both measures passed by roll-call vote, 15 ayes to 0 nays.

Why it matters: the resolutions authorize borrowing to help fund a group of county projects identified in committee materials — including construction and renovation of public buildings (notably a judicial center/jail project), emergency communications upgrades, highway equipment and solid-waste equipment. The written resolutions pledge the county’s full faith and credit and provide that repayment will be made from unlimited ad valorem taxes levied on property in Franklin County. They also include technical provisions covering book-entry/DTC registration, maturities, optional redemption, continuing disclosure and federal tax covenants.

What the board heard: construction managers Tom Smith and Matthew Bobo of Southeast Contractors answered commissioners’ questions about why the jail expansion bid exceeded an earlier October 2016 opinion of probable cost. Finance committee materials presented to the board listed project estimates (a jail expansion bid package cited at about $13.5 million in committee materials; a communications project at roughly $1.19–$1.4 million, highway equipment about $1.9 million, and solid-waste equipment about $520,000). County materials and estimates by financial advisor Stephens, Inc., included a projection that, under conservative assumptions and transfers shown in the debt schedule, issuing the authorized bonds would not require a property-tax increase to the general debt service fund.

Next steps: the initial resolution directs the County Clerk, Phillip Custer, to publish the required statutory notice. Under the resolution and state law (Tennessee Code Annotated §9-21-101 et seq.), there is a 20-calendar-day petition period after publication during which registered voters may file a petition against the bond issuance. If no legally sufficient petition is filed, the county may proceed with issuance and sale of the bonds in accordance with the resolution and the terms set by the County Mayor and financial advisor.

The board adjourned at 6:38 p.m.