County outlines bond capacity and Ashley Elementary funding gap as schools finalize estimates

County debt staff presented the board with an overview of outstanding obligations and near‑term issuance capacity, emphasizing the role of school capital in the county debt profile.

Staff said total general‑obligation principal outstanding is projected at about $613.1 million at fiscal‑year end, and that roughly three‑quarters of county debt supports school projects. The county will retire about $54.2 million in general‑obligation bonds this fiscal year, creating two‑thirds capacity to sell up to $36.1 million in 2/3 bonds in the next sales window.

Regarding Ashley Elementary, staff summarized identified funding sources — a mix of available two‑thirds bond capacity, referendum reserves and other project savings — and said the current set of identified sources leaves an estimated shortfall of about $3.4 million. Debt staff said the Winston‑Salem/Forsyth County Schools system has not yet requested certain lottery or repair funds because it is waiting for a value‑engineering revision and a guaranteed maximum price; the schools expect to provide an updated construction estimate in early March.

Staff also walked through a planning example for a potential November 2028 bond referendum, showing hypothetical capacity of about $308 million with no tax‑rate increase by redeploying debt‑leveling pennies that roll off in FY30; staff emphasized that structure and timing determine actual tax impacts.

Board questions focused on timing of school requests for lottery funds and how value engineering may change costs. Staff said they will continue coordination with the school system and provide updated project estimates and funding proposals to the board when the school estimate is received.

Provenance: debt presentation and Q&A by county debt staff and managers during the work session.