title
Commissioner Keigher - To Appropriate $50,025,000 in G.O. School Bond Proceeds ($50,025,000)
body
STAFF CONTACT
Tonya Frye - Financial Operations Manager - Finance - 704-866-3032
BUDGET IMPACT
budget
There are no debt payments due in FY16 but we did incur issuance costs for the bonds. Those expenses will be paid from the proceeds of the bonds. Debt payments for all future years will be budgeted during the budget process.
body
BUDGET ORDINANCE IMPACT
N/A
BACKGROUND
On May 3, 2016, Gaston County sold $50,025,000 of General Obligation Bonds. The proceeds will be used to finance the construction of a new elementary school that will replace 3 existing schools and the construction of a new middle school that will replace the current Stanley Middle School. The true interest cost for these bonds is 2.301%. The issuance closed on May 24, 2016. The attached Budget Change Request is recognizing the proceeds and setting up the budget for the expenditures.
The Budget Change Request is also returning to fund balance the $5,000,000 that was advanced to the schools as a loan for the groundwork costs of the construction (Res #2015-079). The county has been reimbursed for those expenditures out of the bond proceeds and the loan has been settled.
POLICY IMPACT
N/A
ATTACHMENTS
Budget Change Request- G.O. School Bonds ($50,025,000)