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Catawba County appropriates $27.8 million in sinking funds to retire Qualified School Construction Bonds
Summary
The Board unanimously appropriated $27,808,553 of debt-restricted general fund balance to satisfy outstanding Qualified School Construction Bonds from 2010 and 2011 as required by the sinking-fund agreements.
Chief Financial Officer Mary Morrison told the board that two Qualified School Construction Bonds (QSCBs) issued in 2010 and 2011 are due in fiscal year 2026 and that sinking funds held with Truist Bank equal the outstanding balances. The county requested appropriating restricted fund balance to pay the bonds when they mature.
On May 4 the board unanimously approved the appropriation of restricted fund balance totaling $27,808,553 ($21,508,553 for the 2010 QSCB and $6,300,000 for the 2011 QSCB) to satisfy the outstanding debt. The action moves the restricted balances into the debt-service expense line to retire the obligations as scheduled.
Morrison said the QSCB program—created under the 2009 American Recovery and Reinvestment Act—allowed interest-free bonds for local school construction, and that sinking funds were established with Truist Bank as required by the installment financing agreements. Staff provided an account-level breakdown and noted these restricted balances have been carried on the balance sheet as debt-restricted fund balance since inception.
Commissioner Robert C. Abernethy Jr. moved to appropriate the restricted fund balance to satisfy the debt; the motion carried unanimously.
The board took no further action beyond the appropriation; staff will execute the debt-service transfers and provide accounting records consistent with state requirements.
