Forsyth County staff propose allocating expected bond premium mostly to county facilities; S&P and Moody’s affirm top ratings

Lee Plunkett, deputy chief financial officer for Forsyth County, briefed commissioners on May 5 about staff recommendations for allocating any net premium from the county’s upcoming 2025 general obligation bond sale.

Plunkett said staff recommend splitting any premium 65% to county capital maintenance, 30% to Winston‑Salem Forsyth County Schools and 5% to Forsyth Technical Community College. He cautioned that premium estimates are volatile and that recent market movements reduced a prior $2,000,000 estimate; “the latest estimate is 1,300,000.0 in total,” Plunkett said.

Commissioners discussed alternative uses, including directing more funds to specific school projects, and staff noted other revenue sources available to the school system — including lottery proceeds and public-school repair and renovation funds that cannot be used for debt service but can be used for facility enlargement and classroom expansions.

Separately, Plunkett reported that both S&P Global and Moody’s affirmed Forsyth County’s top ratings for its 2025 bond issuance. He said the agencies highlighted the county’s conservative fiscal policies, diverse tax base and relatively moderate long-term liabilities, while noting downside pressures from below‑median income and weakening fund-balance trends.

The briefing also included a technical correction staff will file regarding an earlier bond resolution: a prior April 10 bond resolution erroneously named the issuer as “Fayetteville” instead of “Forsyth.” Plunkett said the Local Government Commission and bond counsel have been notified and staff will submit a correction.

Ending: Staff said the final premium amount will be known after pricing on May 20 and that any realized premium will be applied according to the recommended split if the board adopts the resolution at its upcoming meeting.