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Commissioner Hovis - Financial and Management Services - Finance - To Appropriate $179,500,000 in Bond Proceeds, $11,112,396.25 in Bond Premium for the General Obligation Bonds for the Schools, and Appropriate $80,000,000 From the Bond Proceeds in Refunding to Make the Principal Payment on the 2023 Bond Anticipation Notes
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STAFF CONTACT
Kyle Sutherland - Finance - 704-866-3130
BUDGET IMPACT
budget
Community Investment Fund: Increase bond proceeds and bond premium revenue $190,612,396.25 and increase transfers out by $190,612,396.25
Education Debt Service Fund: Increase transfers in $80,397,450 and increase debt service expenditures $80,397,450
Education Capital Fund: Increase transfers in $110,214,946.25 and increase bond expenditure accounts $110,214,946.25
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BACKGROUND
On April, 8, 2025 Gaston County sold $179,500,000 of General Obligation School Bonds. The bonds sold at a premium of $11,112,396.25. The bonds are comprised of $110,000,000 in new funding for Gaston County Schools and $80,000,000 refunding of the 2023 Bond Anticipation Notes (BANs). The refunding of the 2023 BANs covers the maturity of the principal, due May 1, 2025
The issuance will close on April 30, 2025 and the true interest cost for these bonds is 4.0033%. The proceeds will be used for various Gaston County Schools capital projects. This is the final issuance of the 2018 School Bond Referendum that was not to exceed $250,000,000.
The attached Budget Change Request (BCR) recognizes the proceeds, the bond premium, sets up the budget for the expenditures, and sets up the budget to repay the principal on the 2023 BANs.
The debt payment frequency is semiannual with the first payment due September 1, 2025. The FY2026 debt payments will be included in the FY2026 recommended budget as is required by G.S. 159-13(b)(1).
POLICY IMPACT
N/A
ATTACHMENTS
Budget Change Request (BCR)