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Council approves cooperative agreement for regional wastewater bonds up to $11.93 million (Resolution 2018-56)
Summary
Franklin voted unanimously on Oct. 1 to join a cooperative agreement with the Warren County Port Authority and neighboring jurisdictions to enable Port Authority wastewater revenue bonds not to exceed $11,930,000 for regional wastewater treatment facility upgrades; city officials said Franklin currently contributes about 48% of wastewater to the plant and upgrades are planned as capacity reaches about 60%.
The Franklin City Council on Oct. 1 adopted Resolution 2018-56, authorizing the execution of a cooperative agreement among the Warren County Port Authority, the City of Franklin and other local governments and authorizing appropriation of funds related to Port Authority wastewater revenue bonds not to exceed $11,930,000 to pay costs of regional wastewater treatment facilities.
City Manager Sonny Lewis said the city and partner jurisdictions had pursued several lending options and ultimately will use the Port Authority’s bidding process to facilitate the loan. Lewis explained the Port Authority will handle the financing arrangements and the participating jurisdictions will sign agreements to repay their shares. He told council Franklin currently contributes about 48 percent of the wastewater to the regional plant, which informs the city's proportional share of debt service, and he said the plant is at about 60 percent capacity—prompting upgrades to prepare for future demand.
Council member Brent Centers and others praised the careful approach taken in negotiations; Brent Centers also noted that several experienced local representatives on the board will reach the ends of their terms in coming years, raising a need to preserve institutional knowledge. The resolution passed by unanimous roll-call vote.
The cooperative agreement enables the Port Authority to issue the bonds and establishes procedures for appropriations, reserve funds and payment of issuance costs; council did not vote on a specific project construction contract at the meeting.
Council later entered executive session on personnel and a litigation update and reconvened without further action before adjourning.
