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Commissioner Hovis - Finance - To Appropriate $80,000,000 in Proceeds and $1,144,800 in Bond Premium for the General Obligation Bond Anticipation Notes for the Schools ($81,144,800)
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STAFF CONTACT
Tiffany Murray - Finance - 704-866-3032
BUDGET IMPACT
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The debt payment frequency is semiannually with the first payment due on November 1, 2023. The FY2024 debt service payments were included in the adopted budget.
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BUDGET ORDINANCE IMPACT
N/A
BACKGROUND
On June 20, 2023, Gaston County sold $80,000,000 of General Obligation Bond Anticipation Notes. The bonds sold at a premium of $1,144,800. The issuance closed on July 11, 2023 and the true interest cost for these bond anticipation notes is 3.2800%. The proceeds will be used to finance school additions, the construction of a new middle school to replace Grier Middle School, and finance of various other school capital projects. The attached Budget Change Request recognizes the proceeds and bond premium and sets up the budget for the expenditures.
This Board Action also returns the $20,789,687 School Bond Advance to Fund Balance in the Community Investment Fund.
POLICY IMPACT
N/A
ATTACHMENTS
Budget Change Request (BCR)