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Commissioner Philbeck - Finance - To Appropriate Proceeds from Sale of $30,168,328 Limited Obligation Bonds
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STAFF CONTACT
Tiffany Murray - Finance Division Director - 704-866-3032
BUDGET IMPACT
budget
There are no debt payments due in FY19, 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.
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BUDGET ORDINANCE IMPACT
There is minimal impact to the current budget ordinance.
BACKGROUND
On April 24, 2019 Gaston County sold Limited Obligation Bonds totaling $30,168,328. The proceeds will be used to finance the jail infill/expansion project, upgrade of the public safety radio system equipment and infrastructure and reimburse the County for the Apple Creek Corporate Center land purchases. The $30,168,328 consists of two series - $21,613,328 (Series A) which was sold as traditional tax-exempt Limited Obligation Bonds, and the remaining $8,555,000 (Series B) was sold as a taxable Limited Obligation Bonds which are taxable to the bondholder. The total interest cost for the Series A bonds was 2.93% and the total interest cost for the Series B bonds was 3.27%. The issuance closed on April 24, 2019. The attached Budget Change Request is recognizing the proceeds and setting up the budget for the expenditures. The Apple Creek funds are being appropriated into a project for the purpose of preparing the park for development.
POLICY IMPACT
N/A
ATTACHMENTS
Budget Change Request