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Board approves year-end GASB budget amendments, debt reconciliation and transfer to Woodfin project fund
Summary
Commissioners approved two year-end budget amendments required by GASB 87 and 96, a debt reconciliation amendment, and a transfer to the Woodfin project development finance fund to cover a calculated debt payment of $507,984.
At its June 17 meeting, the Buncombe County Board of Commissioners approved a series of year-end accounting actions and a budget amendment to support payment on a long-standing Woodfin project development financing district.
Sam Riddle, the county's budget analyst, explained that two budget amendments were required for compliance with Governmental Accounting Standards Board standards: GASB 87 (leases) and GASB 96 (software subscription/implementation). Riddle said the accounting entries require the county to recognize full liability for multiyear contracts in the first year for budget reporting purposes; the changes are net-zero and have no effect on actual spending or revenues.
Commissioners then approved a debt reconciliation amendment. Riddle said earlier debt transactions to refinance or restructure existing debt required certain upfront costs—escrow contributions, professional services and IRS compliance payments—and that those costs are offset by bond issuance revenues and investment earnings.
Finally, staff explained the county's role in a project development financing mechanism created with the town of Woodfin nearly 20 years ago. The financing district pledges increases in assessed valuation to repay bonds for public infrastructure; the county issues the bonds and is responsible for payments, with Woodfin contributing revenue from its assessed-value increases. This year the calculated transfer the county must make is $507,984 because ad valorem revenues are not in excess as in prior years. Commissioners asked how many years remain on the district (staff said "in excess of 10 at least") and discussed the district's history; staff noted that this TIF-like mechanism is unique in North Carolina and was previously approved by the Local Government Commission.
The board approved the GASB amendments, the debt reconciliation amendment, and the budget amendment to create capacity to transfer $507,984 from the general fund to the Project Development Finance (PDF) Woodfin Special Revenue Fund.
