Buncombe County staff outline plan for up to $145 million in FY26 limited-obligation bonds

Buncombe County finance officials on Thursday presented the board with a plan to pursue limited-obligation bonds for fiscal 2026 and related actions to finance school and county capital projects.

Finance Director Melissa Moore told commissioners the administration plans to include a "not to exceed" authorization of $145 million for the 2026 issuance. Moore said the groupings within that cap would include $44 million for Buncombe County schools, $12 million for Asheville City Schools, $62 million for county projects, an estimated $18 million that could be used for refunding if market conditions produce savings, and an estimate of roughly $9 million to cover cost of issuance. Moore added the administration expects to include a reimbursement component for prior project expenditures totaling about $47 million (approximately $27 million for county school projects, $500,000 for Asheville City Schools and $20 million for county projects).

"Once we set a not to exceed, we can't go over it, but we can reduce it and continue to refine the amount that we need to fund these projects," Moore said.

Moore described the collateral structure for limited-obligation bonds, saying school-related assets are part of the existing 2015 deed of trust and that the county will create a new 2026 deed of trust to align county assets (for example the detention center) with the county-only portion of the collateral package.

Procedural next steps: Moore said the board will be asked to consider a findings resolution and hold the required public hearing on March 17; the issuance resolution is planned to return as an action item at the April 21 board meeting.

Commissioners asked follow-up questions about refunding mechanics, issuing costs and the reimbursement process. Moore said refunding is typically considered mid‑term (for a 20‑year maturity, often around year 10) if market rates make it advantageous; issuance costs (attorney, financial advisors, underwriter fees, trustee) are customary and are normally rolled into bond proceeds; and the Local Government Commission (LGC) requires documentation showing projects are proceeding and that pre‑issuance spending can be reimbursed.

The briefing did not include a formal vote. Moore said precise final numbers will be refined as staff and financial advisers go to market and as the board considers the findings and issuance resolutions at the upcoming dates.

What happens next: The board will consider the findings resolution and hold a public hearing on March 17; if the findings resolution is adopted, staff expect to present an issuance resolution for board action on April 21. Further adjustments to the size or structure of the issuance will be made before any formal vote.

Sources: Remarks and slides presented by Melissa Moore, Finance Director, Buncombe County (staff presentation).