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After debate, Forsyth County keeps 65/30/5 split for 2025 bond premiums; dollar amounts pending closing
Summary
The board designated 65% of net premium to county facilities, 30% to Winston‑Salem/Forsyth County Schools and 5% to Forsyth Tech for the 2025 general obligation bond premium. Commissioners proposed and debated alternative allocations aimed at funding Ashley Elementary, but the board returned to the original allocation and approved it unanimously.
At its May 8 meeting the Forsyth County Board of Commissioners designated the purpose of net premiums related to the general obligation bond series 2025: 65% for county facilities, 30% for Winston‑Salem/Forsyth County Schools and 5% for Forsyth Tech Community College. The motion designating the split was approved unanimously; the exact dollar amounts will be determined when the bond closes.
The item prompted several substitute motions and extended discussion. Some commissioners proposed directing the net premium to a single shortfall project for Ashley Elementary after board members noted an estimated $6 million shortfall on that school’s project. Commissioner Woodbury moved to reserve 100% of the premium for Ashley Elementary; Commissioner McDaniel seconded that motion. Commissioners also proposed a revised split of 95% for the school system and 5% for Forsyth Tech; that alternative was moved and seconded and was voted on during deliberations. After the substitute motions and discussion, the board returned to the originally proposed percentages and approved that designation unanimously.
County Manager Chantelle Robinson told commissioners that the final dollar amount available from the premium would depend on market conditions at closing; staff estimated the premium would be somewhere between about $1 million and $2 million. Robinson also noted that the manager’s recommended budget identified additional school funding sources — including approximately $1.7 million from lottery proceeds the schools had not drawn down — and that the schools had requested use of 2027 bonds, which the county cannot allocate in advance of those bond proceeds becoming available.
Clarifying details: the board explicitly designated percentages (65% county / 30% schools / 5% community college); Ashley Elementary was cited by commissioners as having an estimated total project cost near $46,000,000 with roughly a $6,000,000 gap discussed; premium estimates in the meeting ranged from roughly $1,000,000 to $2,000,000 depending on market conditions.
The board’s vote keeps the premium split in place; staff will report final dollar amounts after bond closing and continue coordination with the school system and Forsyth Tech about how those funds will be applied.
