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Franklin City Council voted 4-1 on Dec. 9 to adopt a resolution providing for the issuance, sale and award of a General Obligation Note, Series 2024 of the City of Franklin, Virginia, to allow the city to have up to $8.1 million in interim financing for a trio of projects it is working on.

Ward 3 Councilman Gregory McLemore cast the lone dissenting vote, and only five votes were cast total because Ward 1 Councilman Mark R. Kitchen, who made the motion to adopt, had stepped out at the time of the vote, and Ward 2 Councilman Ray Smith was not present for the meeting.

The adopted resolution states that City Council and the city wishes to provide interim financing for the construction, renovation and improvement of city courts facilities, city and community facilities at the former National Guard armory facility and a city public safety radio system project, along with other capital needs of the city and to pay the costs of issuance therefore.

Continuing, the resolution notes that the city’s financial adviser, Davenport & Company LLC, as directed by city staff, and its bond counsel, Sands Anderson PC, have prepared a

Request for Proposals (RFP) to obtain financing proposals for the interim financing of the aforementioned projects.

The resolution indicated that Davenport received responses to the RFP that reflected attractive terms for the financing of the projects and after reviewing the responses made a recommendation to the City Council on which proposal to select.

A public hearing was required before the council could vote on the matter, and that hearing took place at the Dec. 9 meeting. No members of the public spoke.

Franklin City Manager Rosylen Oglesby reintroduced the matter of the General Obligation Note later in the meeting during the City Manager’s Report.

“This is not to exceed $8.1 million,” she said. “This is the second phase of the necessary fund to do the three projects, which is the courthouse, the armory and the radio system project.

“The proceeds from borrowing these funds will be used for those three projects,” she continued. “This will ultimately increase the city’s debt by the said amount, and for the initial payments of the loan, any of the interest that we receive would be paid for on the loan in the very beginning.

“But however, in the future, there will probably be a need to increase certain General Fund revenues to offset those loan payments,” she added.

After the motion to adopt the resolution was made by Kitchen and seconded by Ward 4 Councilman Dr. Linwood Johnson, Franklin Mayor Robert “Bobby” Cutchins asked if there was any additional discussion.

McLemore said, “I have a question for Mr. Davenport. How much is the city paying for your services for this bond acquisition or loan acquisition?”

McLemore was told $50,000.

“OK,” he said. “So that’s what we pay you guys for getting the money for us?”

He was told that was correct.

The 4-1 vote followed shortly thereafter.